Metropolitan Pachomious of Beheira visits London's Coptic churches    50 vessels transit Suez Canal    Endowments Minister: Egypt has potentials for religious tourism    El-Sisi meets commander of northern military zone    Palestinian FM: El-Sisi interfered to stop Israel violations    US military delegation arrives in Cairo Thursday    Joint Egyptian-Jordanian energy firms to be formed    Fatwa Observatory condemned Boko Haram attacks in Nigeria    New architectural elements discovered in Saint Pishoy's Monastery    Expert reveals why ‘Hasm' militia is called that way    British intelligence is consorting with Muslim Brotherhood—says analyst    Egypt's police kills 4 Hasm terrorists implicated in recent attacks    تغريدة - ماذا قالت جمهاير أستون فيلا عن الظهور الأول للمحمدي "مبهر.. هو بالتحديد ما نحتاجه"    Gala Concert at the Alexandria Opera House    Gloria Gaynor visits Egypt's Pyramids ahead of concert    Gloria Gaynor arrives in Cairo, and yes she'll sing 'I Will Survive'    Former Brazilian football star Ronaldinho visits Egypt's Pyramids    مباشر انتقالات أوروبا – سانشيز يقرر مصيره مع أرسنال.. وبرشلونة يسترد ديولفيو    Mohamed Salah spends Eid holiday in Egypt after move to Liverpool    تغريدة – ماذا قال مشجعو ليفربول عن صلاح "الصفقة المسروقة وأسرع رجل حي"    2 June deadline to serve units allocated for Egyptian expats    Propertyfinder receives demand requests for property worth EGP 4.6bn in Q1    HHD, Al Oula sign EGP 500m finance lease to develop New Heliopolis City utilities    Egypt needs huge investments and 10 million tourists    Polezni Durak and the summit of Riyadh    Former ERTU head Safaa Hegazy mourned    How 5 alternatives left ‘no option' for Maspero Triangle residents    In Pictures: Lanterns' brightness glows Egypt's ashen streets    Borussia Dortmund win German Cup, beating Frankfurt 2-1    Raikkonen on pole as Ferrari lock out Monaco front row    Egypt pledges right to self-defence before UNSC by Libya airstrikes    Supreme Council of Antiquities to launch Cairo Pass permits for foreigners in Cairo and Giza    Summer Of Love: Beatles album &. Pepper's turns 50    Gomez penalty puts Wolfsburg in front in relegation playoff    Star Wars turns 40, but the Galactic Empire is far from over    High Administrative Court questions constitutionality of Emergency Law articles    Army destroys two tunnels beneath Egypt-Gaza border    After tribal clashes, is Sinai militancy turning into proxy war?    Newsreel    New Year routine    Imminent cabinet reshuffle    Footballer furore    In quest of national consensus    ‘Protecting the weakest'    Briefs    IMF open to scrutiny    Art heist goes wrong    All the fun of the Book Fair    







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ECB hints at new bond-buying scheme
Published in Daily News Egypt on 04 - 09 - 2012

Details of a new bond buying plan by the European Central Bank (ECB) fueled a surge in some Spanish and Italian debts and increased mediated talks between European leaders.
German Chancellor Angela Merkel met with the President of the European Union (EU) Herman van Rompuy in Berlin on Tuesday, while French President François Hollande travelled to Rome for a meeting with Italian Prime Minister Mario Monti. The meetings came after President of the ECB Mario Draghi said he would be comfortable buying three year government bonds to aid European nations struggling for funding.
Merkel has indicated that Germany would support a more proactive role at the ECB to combat the economic crisis.
“I think there is broad agreement among these people," said Luca Jellinek, head of European interest-rate strategy at Credit Agricole Corporate & Investment Bank in London. “Many people are realising that monetary policy is broken in Europe, badly broken."
The Euro fell 0.2 percent against the dollar yesterday, sitting at $1.2574 by 3.15pm Berlin time after trading on a near two month high, while Italian two year yields suffered the largest drop in a month and falling to the lowest level since March; 25 basis points to 2.38 percent. Spain's two year yield fell 36 basis points to 3.25 percent. Spain and Italy's two year yields were at an all-time on-record low relative to ten year bonds, while Germany's ten year bond yields rose by three basis points, to 1.4 percent. Germany and Italy disagreed last week in Berlin over the details of a broad collective action. Merkel insisted on focusing efforts on budget rigour, while Monti advocated for flexibility on market intervention.
“We have to press for reforms in other countries even if they sometimes say we're hard-line," Merkel said, addressing a crowd in Abensberg, northeast of Munich. “It's not enough just to keep muddling through. But I also say that in such a difficult phase these countries deserve our solidarity and that we root for them to overcome their difficulties."
It is expected that Draghi may provide additional details on the ECB's bond-buying plans on 6 September, when he holds his first press conference after the summer break. Greece will be one of the points discussed by ECB as policy makers anticipate a bailout progress report, due next month, from the principal creditors of the nations; the European Commission, the ECB and the International Monetary Fund.


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