Gas Pipeline explosion in Giza leaves civilian injured    European stocks open higher as oil prices jump    Syria's Aleppo relatively calm as truce takes effect: Residents    Turkey won't hold election after ruling party changes leader: Presidential adviser    Egypt's deputy foreign minister meets U.S. defense delegation    VIDEO: 'Break the gag order', Egyptian journalists chant at press syndicate    Sisi extends state of emergency in North Sinai for 3 months    Court sentences Sanaa Seif to 6-month prison over insulting judiciary    Oil edges up as Canadian wildfire reduces oil sands production    Pfizer approaches Medivation about potential takeover    US Court orders Touch ID iPhone unlock    Clixta App to store old family photos launched    Air raids hit east of Damascus after 'calm' expires: Observatory    Yuan, rupee forecast to weaken slightly over coming year: Reuters poll    Newspaper editors declares their support to Syndicate    Journalists refuse to form committee to meet with Sisi    Egypt's Forex reserves up 2.8pct in April: CBE    LIVE COVERAGE: Egyptian journalists protest storming of press syndicate in Cairo    Afreximbank seeks to raise $3 bln this year: Bank president    Cole set to swap Coventry for Tampa Bay Rowdies in NASL    Egypt court acquits former Mubarak-era PM Ahmed Nazif    Germany relaxes rules on using cannabis for medical purposes    Berlusconi to start talks on sale of AC Milan- Il Messaggero    US dollar registers EGP 8.87    Prosecution tries Friday of Land protesters    Ranieri puts hefty price tag on title-winning Foxes    Kerry says ceasefire possible in Syria, issues warning to Assad    Asian markets mostly lower, BHP down 9.4%    Cruz pullout makes Trump presumptive Republican nominee    Security tightens measures around the Press Syndicate    Radiohead releases single after stirring intrigue on twitter    Leicester wins English title for 1st time in 132-year history    Mohamed Mounir holds concert to welcome refugees in Frankfurt    Ministerial committee inspects Rashid's archaeological sites on Tuesday    Palestinians blast Eurovision Song Contest's flag policy in Sweden    Art Alert: Organ concert in Cairo church    Egypt's Press Syndicate calls for general assembly, sit-in at HQ after police 'attack'    ‪#‎AmwalAlGhad‬ | Egyptian journalists call for sacking of police minister after Sunday raid    ‘Unprecedented' crackdown on media, Egyptian police raids press syndicate    Ministerial visit to Rasheed to evaluate archeological sites    Businessmen MPs may form lobby in Egypt new parliament    New winner of expelled MP Tawfik Okasha's seat announced after by-election    MUSIC AND DANCE    MUSEUMS    Adrenaline rush    Victory in Africa    Surprise promotions    FIFA threatens to suspend Egypt over court ruling    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





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.


Clic here to read the story from its source.