Europe

  • 2016-07-03 04:17


    By Jack Duffy

    AIX-EN-PROVENCE, FRANCE (MNI) - European Central Bank Governing Council member Francois Villeroy de Galhua warned again on Sunday that the City of London would lose its European financial "passport" and its lucrative clearing business if the UK did not reach a new trade accord with the European Union.

    "It is desirable there there is a new accord with the UK inside the rules of the of the single market," Villeroy de Galhau told a business conference here.

    "But it is necessary to say that if there is not such an accord there will be no longer be a European "passport" for the City and it will no longer be able to maintain its clearing operations," he added.

    Villeroy de Galhau, who heads the Bank of France, said the UK was facing difficult economic and mo

  • 2016-07-02 07:52


    By Jack Duffy

    AIX-EN-PROVENCE, FRANCE (MNI) - European Central Bank Executive Board member Benoit Coeure said Saturday that it was too early to say how Britain's vote to exit the European Union would affect its monetary policy stance.

    "It is too early to have this discussion," Coeure said on France Culture radio on the sidelines of a conference here.

  • 2016-07-01 13:39


    By Johanna Treeck

    MUNICH (MNI) - European Central Bank Governing Council member Jens Weidmann, in an interview released Friday, said he does not expect Britain's decision to leave the European Union to inspire other member states.

    "I cannot imagine that the negative consequences that the exit will have for the United Kingdom to create appetite" for others to leave, Weidmann told Germany's weekly magazine Focus.

    At the same time, the President of the German Bundesbank said he would not support the idea of a referendum on EU membership in his country.

    "In Germany we have decided for good reasons for a representative democracy," he said.

  • 2016-07-01 12:48


    By Jack Duffy

    AIX-EN-PROVENCE, FRANCE (MNI) - French Finance Minister Michel Sapin called again on Friday for Britain to implement its decision to leave the European Union as quickly as possible to lift the uncertainty weighing on Europe.

    "The most damaging consequence of Brexit is the lack of visibility," Sapin told journalists at a meeting of economists and financial officials here. "So the first thing we need to do is to lift the uncertainty," he said.

    Sapin reiterated the warning issued by many European officials since the British vote that there would be talks on the conditions of separation until Article 50 of the Lisbon Treaty was triggered.

    "There will not be any negotiations until the decision is implemented," Sapin added.

  • 2016-07-01 12:00


    By Johanna Treeck

    MUNICH (MNI) - European Central Bank Governing Council member Jens Weidmann said Friday that he does not see the need for further easing of monetary policy in reaction to Britain's decision to leave the European Union.

    Speaking at an economics club in Munich, the Bundesbank President nevertheless cautioned that financial markets and the real economy will not escape unscathed from the decision he personally considers a mistake.

    "I do not see the need for additional monetary easing in the euro area in reaction to the Brexit vote," Weidmann said.

  • 2016-07-01 06:20


    By Martin Baccardax

    LONDON (MNI) - European Central Bank Executive Board member Peter Praet said Friday that the UK referendum result is one of a number of 'uncertainties' the Eurozone faces at present but vowed the Bank was determined to play a "pivotal role" in support the region's ongoing recovery.

    In prepared remarks for a speech at the Financial Times Festival of Finance event in London, Praet, who also serves as the Bank's Chief Economist, said that its various strategies were having a positive impact on the Eurozone recovery but again noted that monetary policy would not be sufficient to address the risks the region is now facing.

    "The ongoing recovery has shown signs of strengthening, also on the back of an accelerating pass-through of our monetary policy measur

  • 2016-07-01 04:58


    -UK June Manufacturing PMI 52.1 Vs revised 50.4 in May

    LONDON (MNI) - The UK manufacturing sector bounced back in June, a survey released Friday showed, hitting a 5-month high and continuing a recovery from April, when the worst results since February 2013 were posted.

    The Market/CIPS Purchasing Managers' Index rose to 52.1, rallying from a revised 50.4 in May.

  • 2016-07-01 04:49


    By Jack Duffy

    PARIS (MNI) - European Central Bank Executive Board member Benoit Coeure said Friday that the demand for global economic coordination was outstripping the capacity of international institutions to supply it.

    Speaking at an event in Paris marking the 60th anniversary of the Paris Club, Coeure said "we are at a moment today where we have an sort of scissor effect between the supply and demand for global governance."

    While the demand for international coordination "is stronger and stronger because of the volume of capital flows, volatility and the macroeconomic uncertainty," he said "the capacity to furnish this coordination is weak."

    Coeure did not make any comments on monetary policy during his remarks.

  • 2016-06-30 16:01


    By David Robinson

    LONDON (MNI) - St. Louis Federal Reserve President James Bullard Thursday said the impact of the UK leaving the European Union on the U.S. economy was either zero or a slight negative.

    Bullard said Brexit was a shock, but it been managed well by global markets and that was a success story. He said the upward effect on the dollar was slight and may not persist.

    Bullard also weighed in against central banks setting negative interest rates.

    Speaking at a Society of Business Economists dinner Bullard said that negative rates were like a tax on banks and increasing taxation was unlikely to increase economic activity.

    Bullard said negative rates were not likely in the U.S.

  • 2016-06-30 08:35


    By David Robinson

    LONDON (MNI) - Bank of England Governor Mark Carney, in a foreword to the central bank's Annual Report, said the global environment was challenging and the Bank had extensive contingency plans to deal with the UK electorate's decision to leave the European Union.

    The statement offers no details on the plans and Carney is set to make a keynote speech at 1500GMT Thursday.

    "In a challenging global environment, it is more important than ever that the Bank co-ordinates its microprudential, macroprudential and monetary policies," Carney said.

    The Bank assessed the implications of Brexit on its "ability to achieve our core objectives of maintaining monetary and financial stability," he said.

    "In response to the risks, the Bank and its policy commit