EUROPEAN CENTRAL BANK

New Investments In Euro Funds Restricted In The US

Investors
Three of the world's biggest financial institutions in the U.S. are closing their European money market funds to new investments after the European Central Bank (ECB) reduced its benchmark rate to a record low of 0.75 percent and slashed deposit rates to zero on Thursday, undermining global investor confidence.

Global Economic Concerns Drag US Stock Futures Down

Traders work on the floor of the New York Stock Exchange
U.S. stock index futures point to a slightly lower open Friday as the interest rate cuts announced by central banks in Europe and China on Thursday failed to convince investors that the measures will be sufficient to rejuvenate the struggling global economy.
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Spain is the latest victim of the euro zone crisis. Fitch Ratings downgraded 18 Spanish banks on Tuesday.

Euro Zone Unemployment Hit Record High In May, PMI At 3-Year Low

Unemployment in the euro zone rose to a new record high in May, while manufacturing activities fell for the 11th consecutive month in June. The numbers increase the likelihood the European Central Bank will cut its key interest rate when its governing council meets Thursday.
Frequency of Banking Crises, as Shown in IMF Working Paper

Collapse Of Financial System Will Come In August, Maybe September: Market-Watchers

Disappointed by the lack of aggressive action by the U.S. Federal Reserve during the meeting of its powerful rate-setting committee last week, and expecting little more than rehashed promises from the leaders of Europe this week, pessimistic market-watchers are turning to once again guessing when the clock atop the Eurozone time-bomb will finally run to 0.
Euro Zone

Euro Summit Agrees On Bank Rescue

European leaders established Friday a set of measures to address the euro zone debt crisis, including an agreement to allow some rescue funds to be sent directly to struggling banks instead of adding to the public debt of reeling economies.
An eye-catching illustration included in a report by BNP Paribas Exane explains why the Continent's leader seem unable to solve the ever-worsening eurozone crisis: in spite of being ostensibly committed to the same goals, top policy-makers disagree on the

Why Can't Europe's Leaders Figure Out How To Solve the Crisis? BNP Paribas Explains

An eye-catching illustration included in a report by BNP Paribas Exane explains why the Continent's leader seem unable to solve the ever-worsening eurozone crisis: in spite of being ostensibly committed to the same goals, top policy-makers disagree on the more aggressive policies most experts believe are needed. It's almost like they're on different planets.
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ECB Eases Lending Standards

The European Central Bank said Friday it was easing the collateral rules on certain asset-backed securities currently pledged by banks as backing for ECB loans. Specifically, the bank will accept lower-quality securities as collateral for loans made to banks without demanding higher cash collateral, as had been the case in the past.
A trader reacts in front of the DAX index board at Frankfurt's stock exchange

European Markets Fall Amid Weak Euro Zone Data

European markets fell Friday as concerns about the economic slowdown were revived after data from the euro zone was disappointing and 15 global banks were downgraded by Moody's Investor Service.
The highs do not last

'Sugar High' Is Only Fleeting in Skeptical Markets: Economist

Markets are losing the power to ride high after positive political developments, a worrying trend that might rain chaos on the best laid plans of central bankers and politicians looking to buy time to solve the financial crisis in Europe with grandiose statements.
ECB President Mario Draghi and Spanish Finance Minister De Guindos

ECB May Toss Rule Book On Bond Collateral: Report

The European Central Bank may soon ease its lending standards in what appears to be an effort to prevent Spain's sovereign debt crisis from worsening, according to reports published Thursday. But the move could also impair the credibility of ECB.
Greece

Greece Remains In Economic Death Spiral Despite New Government

The formation of a new Greek government Wednesday staves off fears of a swift departure from the euro zone by the Hellenic Republic. But this week's election and installation of a new administration merely extends the country's economic death-spiral as its economic woes remain deep and pervasive.

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