“The European Central Bank (ECB) has redoubled its efforts to encourage mergers and acquisitions in the euro zone banking sector by seeking to tackle market myths and launching a public consultation on its approach to consolidation.” – by Joe Brennan ECB Public Consultation Announcement here.
ECB
European investors’ appetite for risk growing (Pension & Investments)
“As European countries are easing travel restrictions and governments and central banks have stepped up monetary and fiscal support, investors are looking for opportunities to take on more risk.” – by Paulina Pielichata
Italy’s Del Vecchio asks ECB to allow bigger Mediobanca stake (Reuters)
“Del Vecchio’s holding company Delfin said it had filed the request to increase its Mediobanca holding above 10% and up to 20% with the Bank of Italy on May 29, adding that the authorisation process usually takes up to 60 days.” – by Claudia Cristoferi
Interview with Isabel Schnabel, Member of the Executive Board of the ECB, and the FT (ECB)
“The ECJ ruled in December 2018 that the PSPP is legal. Therefore, it is clear for us that we can and have to continue our monetary policy in line with our mandate to make sure that in the medium term we are getting back to our inflation aim of below, but close to, 2 per […]
Interview with Philip R. Lane, Member of the Executive Board of the ECB (El País)
“The speed at which the economy bounces back will then hinge on whether consumers are more reluctant to consume and businesses hold back on investment. From today’s perspective, it looks in any case unlikely that economic activity will return to its pre-crisis level before 2021, if not later.” – Luis Doncel
ECB shakes off limits on new €750bn bond buying plan (FT)
“The details of the new programme support the declaration by Christine Lagarde, the ECB’s president, who said on Twitter after it was announced last week: ‘There are no limits to our commitment to the euro.’” – by Martin Arnold and Tommy Stubbington
ECB announces €750 billion Pandemic Emergency Purchase Programme (ECB)
“This new Pandemic Emergency Purchase Programme (PEPP) will have an overall envelope of €750 billion. Purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase programme (APP).” – ECB Governing Council
Investing in Europe in 2020 – The Year Ahead
An overview of some European key themes and political risks for 2020
2020 brings with it the 10th year of recovery since the global financial crisis. Equity markets continue to break records, ample credit is available, yet the bullish performance appears cosmetic at times and investing in Europe in 2020 is fraught with political risks. The US deficit doubled from $385bn to $779bn last year, the UK […]
Europe: Did the banks cry wolf on negative rates? (Euromoney)
“As the howls of anguish at negative interest rates reach a crescendo, central bankers and prominent economists are still convinced that Europe’s financial sector would be even worse off were base rates above zero.” – by Dominic O’Neill
Christine Lagarde prepares sweeping review of ECB’s strategy (FT)
” Process will put her stamp on the central bank and seek to resolve recent divisions.” – by Martin Arnold