Europe

  • 2015-05-25 04:26


    By Johanna Treeck

    SINTRA, PORTUGAL (MNI) - European Central Bank Governing Council member Patrick Honohan Saturday called on fellow central bankers to remove obscure language on structural reforms and offer clearer policy advice.

    Honohan's spoke at the ECB Forum on Central Banking in Sintra, Portugal that was kicked off with a speech by Mario Draghi Friday in which the ECB President defended the Bank's frequent calls for a shift in national policies.

    "Structural reforms that reverse the downward drift in potential growth are now vital for the euro area, which is why I believe, as the guardian of the currency, we have a legitimate interest in talking about them," Draghi said, adding that "structural reforms" are mentioned in about a third ECB Executive Board member speech

  • 2015-05-24 08:00


    By Johanna Treeck

    SINTRA, PORTUGAL (MNI) - European Central Bank Governing Council member Patrick Honohan Saturday called on fellow central bankers to remove obscure language on structural reforms and offer clearer policy advice.

    Honohan's spoke at the ECB Forum on Central Banking in Sintra, Portugal that was kicked off with a speech by Mario Draghi Friday in which the ECB President defended the Bank's frequent calls for a shift in national policies.

    "Structural reforms that reverse the downward drift in potential growth are now vital for the euro area, which is why I believe, as the guardian of the currency, we have a legitimate interest in talking about them," Draghi said, adding that "structural reforms" are mentioned in about a third ECB Executive Board member speech

  • 2015-05-22 13:38


    --Current Negative Inflation Rate Is "Good Deflation"

    LONDON (MNI) - Bank of England Chief Economist Andy Haldane said Friday that interest rates will start to rise at some point, but when they do, Bank Rate hikes will likely be slow and gradual.

    "When rates do start rising - and I've no idea when that will be - increases will likely be slow and gradual," Haldane told BBC Radio Scotland.

    The Bank of England's benchmark Bank Rate currently stands at a record low 0.5% - a level it has now sat at for over 6 years.

    However, Haldane underlined comments he has made in the past, stating that when rates did start to rise, they were unlikely to hit the levels seen before the financial crisis.

    "When rates do start rising, they will not hit the "old norma

  • 2015-05-22 09:35


    By Martin Baccardax

    LONDON (MNI) - European investors will head into a holiday shortened session next week focused on developments in the ongoing negotiations between Greece and its international creditors and concerns over the strength of the single currency's economic recovery.

    With Germany signalling the increasing likelihood of a slow second quarter, there are concerns that growth outside of the region's largest economy may not be strong enough to maintain the 0.4% pace of expansion recorded in the first three months of the year.

    This week also saw a string of sobering sentiment indicator releases, with the readings from ZEW's investor confidence survey, Markit Economics' PMI all undershooting market expectations.

  • 2015-05-22 05:45


    - Shafik: Fears About Damage To Economy Main Reason For Her Votes - Shafik: Expects Wage Growth Soon; Productivity Improvement Next 12 Months - Shafik: Pessimistic To Think Headwinds Will Persist

    LONDON (MNI) - Bank of England Deputy Governor for Markets and Banking, Minouche Shafik, said Friday that concerns about permanent damage to the real economy from the financial crisis was a primary motivation for voting to keep Bank Rate at its record low level of 0.5%.

    Speaking at the Association of Corporate Treasurers Annual Conference in Manchester, Shafik said she thinks productivity could begin to pick up over the next year, due to a tighter labour market, adding that pay growth could increase as job security confidence improves.

    She also said that while

  • 2015-05-22 04:54


    By Martin Baccardax

    LONDON (MNI) - European Central Bank President Mario Draghi said Friday that the region's economic outlook was the brightest in at least seven years as he laid out a detailed case for the need to accelerate structural reforms around the single currency area.

    Speaking at the ECB's annual Forum on Central Banking in Sintra, Portugal, Draghi also said that the Bank's accommodative monetary policy would support the region's reform effort and noted that the Bank's myriad policy initiatives were working their way through the real economy.

    "The argument that accommodative monetary policy constitutes an excuse for governments and parliaments to postpone their reform efforts is incorrect," Draghi asserted.

  • 2015-05-22 04:42


    By Martin Baccardax

    LONDON (MNI) - European Central Bank President Mario Draghi said Friday that the region's economic outlook was the brightest in at least seven years as he laid out a detailed case for the need to accelerate structural reforms around the single currency area.

    Speaking at the ECB's annual Forum on Central Banking in Sintra, Portugal, Draghi also said that the Bank's accommodative monetary policy would support the region's reform effort and noted that the Bank's myriad policy initiatives were working their way through the real economy.

    "The argument that accommodative monetary policy constitutes an excuse for governments and parliaments to postpone their reform efforts is incorrect," Draghi asserted.

  • 2015-05-22 04:34


    By Martin Baccardax

    LONDON (MNI) - European Central Bank President Mario Draghi said Friday that the region's economic outlook was the brightest in at least seven years as he laid out a detailed case Friday for the need to accelerate structural reforms around the single currency area.

    Speaking at the ECB's annual Forum on Central Banking in Sintra, Portugal, Draghi also said that the Bank's accommodative monetary policy would support the region's reform effort and noted that the Bank's myriad policy initiatives were working their way through the real economy.

    "The argument that accommodative monetary policy constitutes an excuse for governments and parliaments to postpone their reform efforts is incorrect," Draghi asserted.

  • 2015-05-22 04:30


    -UK April PSNB ex Banks Stg6.816 bln vs Stg9.327 bln April 2014 -UK 2014/2015 Full-Year Borrowing Revised Up to Stg87.669 bln -UK April Net Debt 80.4% of GDP

    By Laurie Laird and William Wilkes

    London (MNI) - UK public borrowing fell in April, as tax receipts rose across the board, but borrowing over the 2014/15 fiscal year was higher by more than Stg300 million and net debt.

    Excluding public sector banks, borrowing slipped to Stg6.816 billion, below the MNI median forecast of Stg8.0 billion, from Stg9.327 billion in April of 2014.

    Total net debt rose to Stg1,487.7 billion, the second highest month on record, leaving debt at 80.4% of gross domestic product, unchanged from March.

  • 2015-05-22 04:19


    -- Expectations fall further than forecast
    -- Current conditions rise, beating expectations

    FRANKFURT (MNI) - Germany's benchmark business confidence indicator dropped for the first time in seven months in May, as the Ifo business climate fell to 108.5 points, the institute announced Friday, marginally down from 108.6 in April.

    The Ifo publication capped a disappointing week of data releases, providing strong evidence that the rate of growth in Europe's largest economy is slowing.

    However, even though market participants generally expected a decline, the actual decrease was less than the 0.4 point drop forecasted by the median of economists polled by MNI.

    While the expectations component dropped for a second straight month and now stands at 103.0 fr