Posts belonging to Category ECB



Bitcoin Reaches All Time High

Bitcoin’s Price Peaks Past $5800

The price of bitcoin has finally surpassed the $5K territory after a few teases this past spring and summer. During the earlier hours of October 12, bitcoin’s market value spiked past the $5,000 range and has reached an all-time high of $5846 per BTC across popular global exchanges. Bitcoin’s pathway to $6K is within sight.

https://news.bitcoin.com…  Fri.,  13  October 2017

EU wants Apple to pay taxes

EU takes Ireland to court for not claiming Apple tax windfall

The European Commission said on Wednesday it was taking Ireland to the European Court of Justice for its failure to recover up to 13 billion euros ($15.3 billion) of tax due from Apple Inc (AAPL.O), a move labeled as “regrettable” by Dublin.

The Commission ordered the U.S. tech giant in August 2016 to pay the unpaid taxes as it ruled the firm had received illegal state aid, one of a number of deals the EU has targeted between multinationals and usually smaller EU states.

http://www.reuters.com…  Thu.,  05  October 2017

Next Financial Crisis

Where Deutsche Bank thinks the next financial crises could happen

Central banks unwinding quantitative easing, potential crises in China and Italy, elevated global trade imbalances and a backdrop of populism: Just some of the potential sources of the next financial crisis, according to the latest research from Deutsche Bank. In a report looking for the potential source of the next financial shock, Deutsche Bank strategists Jim Reid, Nick Burns, Sukanto Chanda and Craig Nicol warned that there are “a number of areas of the global financial system that look at extreme levels.”

“This includes valuations in many asset classes, the incredibly unique size of central bank balance sheets, debt levels, multi-century all-time lows in interest rates and even the level of potentially game changing populist political support around the globe. If there is a crisis relatively soon (within the next 2-3 years), it would be hard to look at these variables and say that there was no way of spotting them.” Although the strategists note that their list of potential sources for the next financial shock is “far from a prediction that they will occur,” their list is designed to show where some of the stresses are in the financial system and ones that could create global financial and economic problems.

http://www.cnbc.comThu.,  28  September 2017

EU explores account freezes to prevent runs at failing banks

Discussions were due to continue in September

European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed. The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble.

The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender.

It also come amid a bitter wrangle among European countries over how to deal with troubled banks, roughly a decade after a financial crash that required the European Central Bank to print billions of euros to prevent a prolonged economic slump.

http://www.reuters.com…  Fri.,  08  September 2017

BREXIT: no progress on any of the principle subjects

UK’s approach to Brexit is ‘nostalgic and unrealistic’, says EU negotiator

The UK’s approach to Brexit is nostalgic, unrealistic and undermined by a lack of trust, the EU’s chief negotiator has said in his strongest criticism of the UK’s stance at the talks so far.

In a tense press conference alongside his British counterpart David Davis after the third round of exit talks in Brussels, Michel Barnier was scathing about the UK’s approach to the financial settlement, citizens’ rights and hopes for future access to the single market.

http://www.theguardian.com…  Fri.,  01  September 2017

Greece is looking towards China

Resentful Greece Embraces China’s Cash and Interests

After years of struggling under austerity imposed by European partners and a chilly shoulder from the United States, Greece has embraced the advances of China, its most ardent and geopolitically ambitious suitor.

While Europe was busy squeezing Greece, the Chinese swooped in with bucket-loads of investments that have begun to pay off, not only economically but also by apparently giving China a political foothold in Greece, and by extension, in Europe. Last summer, Greece helped stop the European Union from issuing a unified statement against Chinese aggression in the South China Sea. This June, Athens prevented the bloc from condemning China’s human rights record. Days later it opposed tougher screening of Chinese investments in Europe.

http://www.nytimes.com…  Mon.,  28  August 2017

Jackson Hole meeting in focus

Speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi on Friday will be scrutinized

U.S. stocks dipped on Thursday as political uncertainty in Washington kept investors cautious ahead of comments on monetary policy from central bankers gathered for their annual meeting in Jackson Hole, Wyoming. Speeches by Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi on Friday will be scrutinized for hints on the path of monetary policy, but neither of them is expected to give fresh guidance.

The focus on central bankers’ views will be a departure from the past two weeks, when the stock market was roiled by concerns over geopolitics, mayhem in Washington, and President Donald Trump’s controversial comments. President Donald Trump picked a new fight with fellow Republicans whose support he needs to advance his policy agenda, saying congressional leaders could have avoided a “mess” over raising the U.S. debt ceiling if they had heeded his advice.

http://www.reuters.com…  Fri.,  25  August 2017

Bank of America warns about BREXIT transition

Markets are too optimistic about Britain’s Brexit deal

As many as 70% of investors said that they “expect a transition of near-EU membership for at least 1-2 years,” according to a note circulated to clients on Wednesday from BAML’s European Economics group.

Analysts Robert Wood, Gilles Moec, and Sebastien Cross argued this is unrealistic.

http://www.businessinsider.com…   Thu.,  24  August 2017

Brexit exodus for Investment banking jobs

70,000 roles may be relocated from the City of London post-Brexit

A banking exodus from London will be costly. International lenders may need to shift as many as 40,000 investment banking jobs to the European Union to maintain activities on the continent after Brexit, according to financial consultants Oliver Wyman.

Banks may also have to pump as much as $50 billion in extra capital into EU subsidiaries “to support new European entities,” analysts at Oliver Wyman said in a report published on Tuesday.

Oliver Wyman is not alone in predicting a banking exodus. The Centre for London estimated last month that as many as 70,000 roles may be relocated from the City of London post-Brexit, while EY last year predicted 83,000 financial services jobs could be lost. Brussels think tank Bruegel made a more conservative forecast of 30,000 jobs lost.

http://www.oliverwyman.com…   Tue.,  01  August 2017

Brexit: Japan’s biggest bank moves investment operations to Amsterdam

Hundreds of MUFG staff could be leaving the UK

Japan’s biggest bank is reportedly set to move its European investment operations from London to Amsterdam because of the uncertainty posed by Brexit. MUFG could move hundreds of its 2,100 London employees to the Dutch capital, sources told the Financial Times.

Other banks are also looking to set up new offices in various European cities because of Brexit. The UK’s withdrawal from the EU is likely to have a significant effect on the financial services industry in the UK – along with numerous other areas – as companies in Britain will no longer be able to operate within the EU framework.

This could potentially block access to clients and significantly interfere with business. Amsterdam is already home to MUFG’s retail and corporate banking operations.

http://www.independent.co.uk…   Mon.,  31  July 2017