June 8, 2013 |
NEW YORK - A Thursday afternoon rally on Wall Street gave the stock market a better day. The Standard & Poor's 500 index was down 10 points and falling at 12:30 p.m. as traders reacted to a slump in overseas markets. It seemed headed for another sell-off like Wednesday's 22-point drop. But the index reversed course and rose the rest of the day. It closed with a gain of 13.66 points, or 0.9 percent, at 1622.56. The Dow Jones industrial average rose 80.03 points, or 0.5 percent, to 15,040.62.
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.
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.
January 1, 2013 |
If you had told investors what was going to happen in 2012 - U.S. economic growth at stall speed, an intensifying European debt crisis, a slowdown in China, fiscal deadlock in Washington, decelerating corporate-earnings growth - and asked how the stock market would perform, few would have predicted a good year. But that's just what they got. The markets all ended the year substantially higher, despite losing ground in the final days as fiscal-cliff concerns mounted. The Dow ended 2012 with a 7.3 percent increase, its fourth yearly gain in a row, having started the year at 12,217.
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.
November 12, 2012 |
FRANKFURT, Germany - The worst of Europe's financial crisis appears to be over. European leaders have taken steps to ease the panic that has plagued the region for three turbulent years. Financial markets are no longer in a state of emergency over Europe's high government debts and weak banks. And this gives politicians from the 17 countries that use the euro breathing room to fix their remaining problems. Threats remain in Greece and Spain, and Europe's economy is forecast to get worse before it gets better.
September 13, 2012 |
Germany's top constitutional court Wednesday rejected efforts to block a permanent eurozone rescue fund, handing a victory to Chancellor Angela Merkel, who championed the bailout facility. The Federal Constitutional Court in Karlsruhe dismissed motions that sought to block the European Stability Mechanism, while ruling that Germany's $240 billion contribution cannot be increased without legislative approval. The court said Germany can ratify the ESM if it includes binding caveats that it won't be forced to assume higher liabilities without its consent.
September 9, 2012
"This weak jobs report is going to feed into [the Fed's] argument that the economy is growing at a subpar pace. " - John Silvia, chief economist at Wells Fargo, on Friday's unemployment numbers. "Let me repeat what I said last month: We act strictly within our mandate to maintain price stability over the medium terms; we act independently in determining monetary policy; and the euro is irreversible. " - European Central Bank president Mario Draghi, introducing a widely heralded plan for the bank to buy European government bonds in an attempt to lower those nations' borrowing costs in the ongoing financial crisis.
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.