Breaking: suicider killed, other 2 terrorists eliminated in Jeddah, KSA    Minister: Merkel expresses deep respect for Sisi, great Egyptian people    Discrimination against British Muslims in employment sector, reports    Bundesliga: Lewandowski special hands Bayern last-gasp win in Freiburg    $400 million for rain forests    New Barberini Museum near Berlin is a hot number for impressionism and more    Cooperation between Egypt and Germany in the field of sports    Egypt's Karim Abdel Gawad and France's Camille Serme snatch the Tournament of Champions title    Al-Sisi meets with top security, government officials    Exclusive: A newly-emerged terrorist group likely behind al-Naqb attack in Egypt    9 armed Syrian platoons to participate in Istana negotiations    Awaiting an official response    Diplomacy in action    A fresh start for businesses    Dispute over protest law continues    Policemen killed in Western Desert    After Mali, a double dilemma    Revisiting Africa    Ready two years ahead    ‘Fruits of development'    Latest TV addition    New hopes for tourism    Islamic Museum to reopen    Entre Nous: Warm drinks for winter    Sufra Dayma: Stuffed duck with crushed wheat (fereek)    LECTURES    Nehad and Soares    Detained Youth Committee submits 2nd pardon list to presidency: member    WEF discusses gender equality    May wants 'bold and ambitious' trade deal with EU    Lincoln, Nixon, Kennedy and the rest: US presidents in film    NAEEM Shares and Bonds joins Nasdaq Dubai's equity futures market    Egypt's foreign debt expected to reach $102bn after reforms implementation: IMF    Impact of Egypt's mega projects revealed at Cityscape Business Breakfast    Exclusive: Turkey trains terrorist 'Hasm', Qatar provides media support    Conflict among terrorist entities escalate, Egyptian monitor group    Criticism of prime minister 'not fair': Al-Sisi    Ministry provided EGP 50m from Emirati grant to reconstruct Museum of Islamic Art: Nasr    Egypt arrests alleged Islamists ahead of revolt anniversary    Trial of Shawkan, 738 other defendants adjourned to 7 February in "Rabaa dispersal" case    How German designer Stefan Diez takes a global approach to everyday objects    كريس جيريكو مع عازف الساكس العالمي كيني جي ضمن أكثر 10 لقطات رواجا هذا الأسبوع    Egyptian gas market sees seasonal surplus, says Wood Mac    Sisi: We will not leave citizens prey to greedy traders    French ‘Eric La Garenne' performed in Egypt Opera House    160 commissions take stock of Egyptian artefacts in museums: head of museum department    Dalida film to be screened in Bahrain    CAF faces legal kicking in Egypt over international football TV rights deal    







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.