The chief of Germany’s central bank, Jens Weidmann, warned the government of increasing risks of the economy cooling when he spoke at a July 6 cabinet meeting, business newspaper Handelsblatt reported, citing government sources.
World stocks rose for a second consecutive week on Friday as investors prepared for an expected run of strong earnings in the United States, although fears about the U.S.-China trade conflict kept gains in check and pushed the dollar higher.
European Union’s top court granted six French banks an exemption from holding capital against deposits parked with a state-owned fund, overturning a decision by the European Central Bank.
Euro zone interest rates will remain at their current level for as long as needed to raise inflation and the European Central Bank’s guidance should be seen as “open-ended”, ECB policymakers concluded in June according to minutes of their meeting published on Thursday.
ECB defended its 2.6 trillion-euro bond-buying program before EU’s top court from accusations it was bankrolling govts and endangering taxpayer money.
Belgium hopes to sell bonds with super long maturities soon, while bankers say several other euro zone governments and state-linked bodies may follow suit as the European Central Bank mulls pushing long term borrowing rates even lower.
IHS Markit’s Final Composite Purchasing Managers’ Index for the euro zone, seen as a good overall indicator of growth, rose to 54.9 in June from May’s 54.1.
Halfway through 2018, trade tension and concern about economic growth have turned European fund managers wary on equities, with allocations falling to 19-month lows.
ECB is considering buying more long-dated bonds from next year to keep euro zone borrowing costs in check even after it stops pumping money into economy, sources told Reuters.
Latvia’s central bank governor Ilmars Rimsevics has been charged with soliciting and accepting a bribe following a four-month-long investigation, the Prosecutor General’s office said.