Europe

  • 2019-03-13 09:35


    -Hammond: Brexit Uncertainty Damaging UK Economy; Can't Go On

    LONDON (MNI) - UK growth forecasts for the current year were cut to 1.2% by the Office for Budget Responsibility from the 1.6% forecast in October, Chancellor of the Exchequer Philip Hammond told Parliament Wednesday.

    Unveiling his Spring Statement, comprising an updated set of forecasts from the OBR, Hammond said that uncertainty was still hanging over the UK and "We cannot allow that to continue: It is damaging our economy."

    The OBR, like the BOE, bases its forecasts on the assumption that there will be a smooth Brexit. On this basis, the OBR's growth forecasts were little changed from October while it predicted a slight improvement in the public finances.

  • 2019-03-07 09:18


    By Luke Heighton

    FRANKFURT (MNI) - A fresh round of targeted long-term refinancing operations (TLTROs) was announced by the European Central Bank Thursday, while key interest rates will remain unchanged "at least through the end of 2019."

    TLTRO III will be launched in September this year and end in March 2021, each with a maturity of two years.

    Full details will be announced "in due course," the ECB said, but counterparties will be entitled to borrow up to 30% of the stock of eligible loans as at February 28 2019 at a rate indexed to the interest rate on the main refinancing rate over the life of each operation.

    In another significant move, the ECB also changed its forward guidance on the timing of key interest rate rises from "at least through the summer of 2019,

  • 2019-03-07 05:27


    --Tenreyro, Like Vlieghe, Sees Easing Likelier Response To Disorderly Brexit

    LONDON (MNI) - In the event of a no-deal Brexit, an easing of monetary policy was more likely than tightening, Bank of England Monetary Policy Committee member Silvana Tenreyro said Thursday.

    Her comments align with those of her college, Gertjan Vlieghe. Other MPC members have refused to attach any weights to the likely policy response to no Brexit.

    The following are the key comments from Tenreyro's speech in Glasgow:

    --Tenreyro said that the policy response to a no deal, no transition period would depend on the balance of the impact on supply, demand and the exchange rate.

  • 2019-03-06 13:30


    BOE Saunders Says UK Economy Has Slowed Significantly

    LONDON (MNI) - The UK economy has slowed significantly and the current sluggish growth rate is not likely to give rise to excess demand, BOE Monetary Policy Committee member Michael Saunders said in a speech Wednesday.

    The following are key points from his speech at Imperial College Business School:

    -Recent activity indicators have pointed to a marked deceleration in UK economic growth, with output, orders and confidence all falling.

  • 2019-03-06 08:44


    --Cunliffe: Brexit Aside Risks To Financial Cycle Not Obvious

    LONDON (MNI) - Setting aside the obvious dangers from a disorderly Brexit, it is not clear where the key risks to UK financial stability lie at present, Bank of England Deputy Governor Jon Cunliffe said Wednesday.

    Cunliffe warned the key issues may lie outside the core banking system, and arise from the rapid evolution of the financial system in recent years.

    The following are key points from the speech at the London School of Economics:

    --BOE research has found that a rapid build up in credit is a fairly reliable indicator of a subsequent downturn but Cunliffe said that the pace of recent credit growth appears sustainable.

  • 2019-03-05 07:45


    By Luke Heighton

    FRANKFURT (MNI) - The eurozone's current macroeconomic environment is "unquestionably less favourable than anticipated a few months ago," the First Deputy Governor of the Bank of France said Tuesday, with France expected to grow faster than Germany in 2019.

    Here are the key points from Denis Beau's speech in Strasbourg:

    --In line with the rest of the world, France's economic growth is slowing, albeit to a lesser extent than in some other European countries thanks to a rise in purchasing power and robust domestic demand.

  • 2019-03-05 05:30


    By Jai Lakhani, Irene Prihoda and David Robinson

    LONDON (MNI) - The following are the key points from the March Financial Policy Committee (FPC) statement and minutes released Tuesday by the Bank of England:

    -As part of its Brexit preparations, the FPC said that it was launching a new liquidity facility in Euros (LiFE), with the first auction next Wednesday. These auctions will occur on a weekly basis over the coming months.

    The facility requires the activation of the existing swap line with the European Central Bank and is designed as a backstop facility.

    -Whilst the FPC continued to argue that the core of the financial system is prepared for a disorderly no-deal Brexit, market stability would likely be impeded under such a scenario.

  • 2019-03-01 06:45


    By David Robinson and Jai Lakhani

    LONDON (MNI) - Bank of England money and credit data showed mortgage approvals and consumer lending rose and average interest rates on shorter-term fixed rate mortgages fell in January.

    The data add to the evidence that monetary conditions remain easy. The following are key points from the data sets:

    --The headline rise in mortgage approvals, to 66,766 from 64,468, exceeded analysts' expectations. Analysts tend to extrapolate from the data issued by major British banks ahead of the BOE figures.

  • 2019-02-27 08:52


    By Jaspreet Sehmi

    LONDON (MNI)

    * A US Commerce Department investigation has reportedly designated US auto imports a threat to national security... * ...paving the way for US President Donald Trump to make good on previous threats to hike auto import tariffs to 25% * MNI's analysis looks at the potential economic consequences of such a move for the EU * We find that a rise in tariffs to 25% on car exports to the US could knock 0.2pp from annual GDP growth in the EU * In Germany, the EU's economic motor, the hit to growth could amount to a much heftier 0.6pp

    --Trump ups the ante

    US President Donald Trump has once again set his sights on the EU car industry.

  • 2019-02-27 06:00


    By Luke Heighton

    FRANKFURT (MNI) - German economic growth is expected to continue, Deutsche Bundesbank President Jens Weidmann will say Wednesday, with "no reason to be overly pessimistic about the outlook" despite the recent loss of momentum at home, in the euro area and across the world.

    Weidmann and Executive Board member Johannes Beermann will take part in a press conference at 11am CET in Frankfurt following the release of the Bank's Annual Report for 2018.

    Weidmann will say he believes that economic growth continues to be supported by favourable financing terms, rising employment levels and increasing wages, and will single out the ECB's decision to cease net asset purchases at the end of 2018 as the most significant monetary policy decision of last year, marking "