The implication of negative interest rates

Posted on by
Commerzbank is considering storing cash in costly vaults instead of keeping it with the European Central Bank. Should Commerzbank take this step, pulling money away from the ECB and literally storing it in vaults would likely be seen as a huge protest against the ECB. Read more at businessinsider.com.
read more
Posted in

The deadline for MiFID II has been extended

Posted on by
The European Commission finally announced the long-awaited delay in the implementation of Markets in Financial Instruments Directive (MiFID II) last Wednesday. Investment firms, market operators and data reporting services providers will have an additional year to comply with the Directive and the Regulation. The reason for the extension lies in the complex technical infrastructure that
read more
Posted in

Investors in practice pay to lend it money

Posted on by
Germany sells five-year government bonds at a negative yield. Germany auctioned five-year government bonds at a negative yield. That is for the first time in its history. It’s a Big day for the financial history books. 3.28 billion euros of bonds due in April 2020 were sold at an average yield of negative 0.08% according to
read more
Posted in

Economic Developments in the Euro Area

Posted on by
Excerpt from the speech by Peter Praet, Member of the Executive Board of the ECB at the FT Debt Capital Markets Outlook Conference in London, on 12 February 2015. Faced with an increasing risk of a too prolonged period of low inflation, ECB intensified stimulus to a degree necessary to bring inflation closer to 2%.
read more
Posted in

ECB Trillion-Euro QE Plan to fight deflation

Posted on by
The ECB Governing Council took today the following decisions: 1. ECB decided to launch an expanded asset purchase programme: the Eurosystem will start to purchase euro-denominated investment-grade securities in March 2015 issued by euro area governments and agencies and European institutions the combined monthly purchases of public and private sector securities will amount to €60 billion
read more
Posted in