May 3, 2013 |
FRANKFURT, Germany - The European Central Bank cut its key interest rate to a record 0.50 percent Thursday and announced other measures to spur lending and help lift the eurozone out of a stubborn recession. ECB president Mario Draghi said the bank was prepared to flex its muscles further in the face of high and rising unemployment and growing evidence that Europe's economy is getting weaker. He said the ECB stood "ready to act if needed," but implored European governments - which responded to the region's debt crisis by slashing spending - to do more to stimulate economic growth.
March 26, 2013 |
NICOSIA, Cyprus - The Central Bank of Cyprus says the country's finance minister has decided to order all banks in the country to remain shut until Thursday. The announcement late Monday came hours after the central bank had said all banks except the country's two largest lenders, Laiki and Bank of Cyprus, would open Tuesday morning. Banks have been closed since March 16 to avert a run on deposits as the country's politicians struggled to come up with a plan that would raise enough funds to qualify for an international bailout.
February 20, 2013 |
European Central Bank president Mario Draghi said he urged finance chiefs from the Group of 20 nations to be prudent when talking about currency movements. During a G-20 meeting in Moscow last week, "I urged all parties to very, very strong verbal discipline" because "the less we talk about it, the better it is," Draghi told European lawmakers in Brussels on Monday. "Exchange rates should reflect fundamentals" and "looking at the real and nominal exchange rates of the euro, it is by and large around its long-term averages," he added.
November 25, 2012 |
European Central Bank president Mario Draghi said his institution had the competence to supervise the euro region's banks and sought to allay concerns that it might be overburdened by the task. "Some observers have suggested that the presence in the same institution of monetary policy and supervisory decisions can lead to excessive burdens, a potential confusion of roles and/or distorted incentives," Draghi said in a speech in Frankfurt on Friday. Though those concerns "must be taken seriously," building a single supervisor around the ECB "is the only pragmatic" option "in the present circumstances," he said.
September 28, 2012 |
ATHENS, Greece - Europe's fragile financial calm was shattered Wednesday as investors worried that violent anti-austerity protests in Greece and Spain's debt troubles showed that the continent still cannot contain its financial crisis. Police fired tear gas Wednesday at rioters hurling gasoline bombs and chunks of marble during Greece's largest anti-austerity demonstration in six months. The protests were part of a 24-hour general strike, the latest test for Greece's nearly four-month-old coalition government and the new spending cuts it plans to push through.
September 7, 2012 |
FRANKFURT, Germany - The European Central Bank unveiled its most ambitious plan yet to ease Europe's financial crisis with a pledge to buy unlimited amounts of government bonds to help lower borrowing costs for countries struggling to manage their debts. Large-scale purchases of short-term government bonds would drive up their price and push down their interest rate, or yield, taking some pressure off financially stressed governments such as Spain and Italy. "We will have a fully effective backstop to avoid destructive scenarios," bank president Mario Draghi said at a news conference, at which he also defended the euro currency union as "irreversible.
September 6, 2012 |
Move over, Ben Bernanke. This is Mario Draghi's moment. The European Central Bank president is overtaking the Federal Reserve chairman - at least for now - as the central banker with the most influence on the global economy and markets. Faced with a growing recession and a possible breakup of the 17-country euro alliance, Draghi has bigger problems than Bernanke, who's overseeing an economy in recovery. Some economists expect the ECB to cut its benchmark interest rate Thursday.
September 5, 2012 |
The Standard & Poor's 500 Index fell, after trimming steeper declines, as speculation that European leaders will announce new steps to tame the debt crisis tempered concern that the economic recovery is slowing. Down for much of the trading session, the S&P 500 lost 0.1 percent to 1,404.94, trimming a drop of as much as 0.7 percent. The Dow Jones industrial average retreated 54.90 points, or 0.4 percent, to 13,035.94. Volume for exchange-listed stocks in the United States was 5.6 billion shares, or 7.3 percent below the three-month average.
August 28, 2012 |
FRANKFURT, Germany - Debate raged on among Europe's top bankers Monday over the merits of a proposed plan for the European Central Bank to buy government bonds to lower borrowing costs for financially troubled governments. Germany's national central bank, the Bundesbank, is increasingly isolated in its opposition to the plan, saying it would expose taxpayers to risks and could leave countries dependent on the financial relief as though on a drug. Bundesbank head Jens Weidmann says bond purchases would also be too close to an outright bailout of governments, which the ECB is forbidden from doing by treaty.
August 21, 2012 |
Europe's leaders plan a week of intensive shuttle diplomacy to help defuse the continent's debt crisis, as Der Spiegel magazine reported that the European Central Bank is considering a plan to put a cap on bond yields. As the debt crisis continues to threaten the global economy, French President Francois Hollande and German Chancellor Angela Merkel will meet in Berlin on Thursday. Greek Prime Minister Antonis Samaras will travel to the German capital the next day and to Paris on Saturday.