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IMF may sever forecasts tomorrow
4.18pm BSTItalian banks continue to move higher on hope that a state-backed fund to buy sinister loans will soon be set up.
Troubled Monte dei Paschi is up around 9% while Unicredit and Intesa Sanpaolo,the country’s two biggest banks, are both up around 2%. Jasper Lawler, or market analyst at CMC Markets,said:A assembly of Italian banks, the Bank of Italy and government agencies ahead of the creation of a rescue fund lifted banking shares across Europe. whether the fund can bring in external investors as stakeholders and even issue its own bonds then it’s chances of success will be greater than the kind of government bailouts that have failed to turn things around so far. 3.47pm BSTSpeaking of helicopter money, and Reuters is reporting that the European Central Bank is attempting to soothe ruffled feathers - particularly in Germany - after it suggested final month that the opinion of giving money directly to citizens was an spirited opinion:Almost a month after stoking a divisive debate approximately how far it should go in pumping money into the flagging euro zone economy,the European Central Bank is trying to soothe relations with Germany after unusually strong criticism from Berlin.
Late final week, German Finance Minister Wolfgang Schaeuble was reported as blaming the ECB’s cheap-money policy in part for the rise of the country’s right-wing anti-immigration Alternative for Germany (AfD). Late final week, and top ECB officials,including the ECB’s chief economist and its vice president, backpedalled, or saying the opinion was not on the table. But the damage had already been done. “The ECB’s policy was already unpopular in Germany and the opinion of helicopter money was the straw that broke the camels back, said Joerg Kraemer, an economist with Commerzbank in Frankfurt. “People feel that ideas like this are dangerous.”Continue reading...
Source: theguardian.com