Economic & Financial

Spain follows France, Italy, and the UK to introduce a digital tax

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Spain will press ahead with a digital tax, following in the footsteps of France, Italy, and the UK, according to El Pais. The plan for a so-called digital tax will go ahead despite threats of...

ECB brings forward plans for public digital currency

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The European Central Bank is planning to bring forward a plan for a public digital currency as European economies are continuously reducing cash usage, Reuters reported on Thursday. The EU’s cryptocurrency is also likely to...

ESM reform postponed

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The chairman of the Eurogroup Mario Centeno announced on Wednesday that changes to the European Stability Mechanism (ESM) would be adopted early next year instead of next week. The delay provides room for negotiations with...

EU negotiators ready to agree on taxonomy for sustainable finance

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After long negotiations in the European Parliament, EU officials expect on Thursday the finalisation of the "EU taxonomy for sustainable finance" regulation that will provide a common set of standards determining whether an economic activity is...

Lagarde quizzed for the first time by EU Parliament

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Christine Lagarde, the new President of Europe's central bank was heard for the first time in her new role, by Members of the Committee on Economic and Monetary Affairs (ECON) of the European Parliament, on Monday. Lagarde​​​​​​​...

EU willing to delay ESM reform to avert second Italian crisis

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The EU is ready to delay implementing the European Stability Mechanism (ESM) reform to avert a standoff with Italy, Reuters report. The Italian government and opposition have expressed fears that the ESM reform could raise...

Germany’s hawkish monetary policy no longer a point of consensus

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There is no single German position on monetary policy in the eurozone. While the German nominee for the European Central Bank (ECB) executive board Isabel Schnabel favours expansionary policy, Bundesbank President Jens Weidmann sticks to...

Salvini renews attack on the Italian government over ESM reform

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Addressing the Italian parliament on Thursday, Italy’s League leader Matteo Salvini accused prime minister Giuseppe Conte of “an attack against the Italian people.” Salvini is accusing Conte of failing to stop the reform of the...

Italy seeks ESM compromise

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The planned reform of the European Stability Mechanism (ESM) continues to divide Italy domestically, but also in relation to other eurozone member states. Under a policy deal agreed in June, the ESM’s mandate is expected...

Brussels warned France and Italy over high debt levels

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Brussels have warned France and Italy over their alarming levels of public debt, meaning that their future budget could deviate significantly from EU's fiscal rules and deter investors. The European Commission's opinion published on Wednesday...

Italy calls for ESM reform amendment​

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Italy wants to improve rather than veto the reform of the European Stability Mechanism (ESM) at the next Eurogroup in December, and an Italian official told Reuters. On Tuesday the Italian prime minister Giuseppe Conte...

OECD expects global growth dropping to decade-low levels

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The global economy is growing at the slowest pace since the 2008 financial crisis, according to the OECD. The OECD global growth projections published on Thursday suggest 2,9% growth for 2020, down from a 3%...

EU allocates €200 million for the promotion of agri-food products

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The European Commission has earmarked €200 million in 2020 to fund promotional activities for the agri-food products both inside and out of the European Union. According to the Commission, Brussels' policy for promoting agri-food products...

German manufacturers project 4% nosedive in industrial output

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Germany’s manufacturing output will drop by 4% in 2021, mostly due to weaker demand, the German industry association (BDI) said on Tuesday. In a country where one in five jobs depend on {mostly manufacturing} exports,...

Fury in Italy over Eurozone debt-restructuring reform

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Italian prime minister Giuseppe Conte aims to postpone the reform of the European Stability Mechanism (ESM) at December’s EU summit, ANSA reported on Tuesday. A draft of the reform was agreed by eurozone finance ministers...

Italy urges caution in giving ESM debt-restructuring mandate

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Italy’s Central Bank’s governor, Ignazio Visco, said on Friday that he favours reforming the European Stability Mechanism (ESM) but without triggering market panic. The euro zone’s bailout fund has been designed as a lender of...

German nod on banking union

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Germany’s finance minister, Olaf Scholz, told the Financial Times on Wednesday that Berlin is ready to accept an EU-wide bank deposit reinsurance scheme. The nod from Berlin comes as the prospect of Brexit means that...

EU financial regulator determined to close London’s back doors to the Single Market

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The chair of the European Securities and Markets Authority (ESMA), Steven Maijoor, issued a warning to the City of London on Monday: the EU has entered a “completely new area of supervisory convergence” to...

The Euro was a “strategic mistake” says Hungary’s Central Banker

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The euro has been a “strategic error” the Governor of the Bank of Hungary (NBH), Gyorgy Matolcsy, wrote in an article published by the Financial Times. Under Prime Minister Viktor Orban, Hungary has pursued its...

Trump administration signals conclusion of Sino-American trade deal

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U.S. President Donald Trump signalled on Friday the possible conclusion of a long-awaited Sino-American trade deal. Trump referred to a “phase one” agreement that could be signed in Iowa. Although China has not confirmed that they...

Italy wants to shield off Monte dei Paschi from bad loans portfolio

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Italy wants to offload Monte dei Paschi’s non-performing loans portfolio before its sells the lender, a choice that is opposed by the European Commission. The world’s oldest lender was bailed out by the state in...

Marseille uses abandoned U-boat base to become a European data-hub

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A WW II German U-boat base submarine base in Marseille will become France’s second-biggest data-storage centre after Paris. The Dutch cloud services firm Interxion plans are investing €140 million to turn the 1943 “Martha Base”...

Germany nominates Isabel Schnabel to the ECB executive board

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Germany nominated Isabel Schnabel to the European Central Bank’s executive board on Wednesday. The nominated academic will replace Sabine Lautenschlaeger, who resigned from the ECB board last month in protest to the ECB’s fiscal stimulus. Finance...

The Netherlands and Austria demand an end to ECB’s bond-buying program

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The Netherlands and Austria have challenged the European Central Bank’s bond-buying program on Wednesday, demanding a radical rethink under incoming President Christine Lagarde. Austrian Central Bank President, Robert Holzmann, and the Netherlands, Klaas Knot, questioned...

Shipping braces for new regulatory framework on emissions

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New rules regulating shipping emissions are due to come into effect by 2020, a development that could affect the global economy as ships carry 90% of global trade. According to a 2014 International Maritime Organization...

US sanctions Turkey, UK joins EU arms embargo

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US President Donald Trump called for an immediate halt to Turkey’s incursion to Syria on Tuesday, as Washington slapped sanctions on Turkish officials. By the end of trade on Tuesday, the Turkish Lira surged by...

Publication of ECB minutes unveils deep policy polarisation

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The European Central Bank’s deep division over the second wave of quantitative easing decided on September 12 was known, not least from public statements by the Governors of the Netherlands, France, and Germany. On Thursday,...

Eurozone unemployment continues to slide even as growth decelerates

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Unemployment is falling even as the economy is slowing down in the eurozone. The biggest decline in countries with the highest jobless rate:  Spanish unemployment went from 13.8% in August from 13.9% in July and...

Finland faces population decline by 2031

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Finland faces a decline in its population by 2031, according to the Statistics Finland latest projection published on Monday. The national statistical service projection suggests that if the birth rate remains at the current level...

Libra not likely to launch by 2020

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The launch of the Libra cryptocurrency is postponed, the head of the 28-member Libra Association Bertrand Perez told Reuters on Friday. “We knew that we would have to answer lots of questions coming from regulators...

Bank of England poised to cut interest rates under all Brexit scenarios

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The Bank of England may need to cut interest rates irrespectively of whether a Brexit deal happens on October 31. According to the Bank of England’s Monetary Policy Committee (MPC) member, Michael Saunders, even if...

Georgieva to succeed Lagarde at the helm of the IMF

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The International Monetary Fund confirmed the Bulgarian economist Kristalina Georgieva to succeed Christine Lagarde, who is moving to become the President of the European Central Bank (ECB). Georgieva is the first person from an emerging...

ABN-AMRO embroiled in major money-laundering scandal

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The biggest bank in the Netherlands, ABN-Amro, has been embroiled in a money-laundering investigation. The banks valuation sank by 9% on Thursday, Reuters reports. The bank was notified of the investigation on Wednesday but was...

EU watchdog warns real estate market overheats in 11 member states

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The European Systemic Risk Board (ESRB) warned on Monday that eleven real estate markets are overheating. The EU’s financial stability watchdog warned that the housing market in Belgium, France Germany, the Czech Republic, Denmark, Luxembourg,...

Regulators take hard line against Facebook’s Libra

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Facebook faced the grilling of 26 central bank representatives over its Libra currency plan on Monday; Libra is a virtual currency considered a threat to monetary sovereignty. Facebook executives representing were questioned by the Bank...

Hong Kong bids for London Stock Exchange

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The Hong Kong's stock exchange made a €35.43bn ($39bn) offer for the acquisition of the London Stock Exchange on Wednesday. The offer is below the current valuation of the LSE. A statement issued by the parent...

Poverty level drops to 18-year low in US

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The US poverty rate is at the lowest it has been since 2001 and middle-class income has hit a historical high, the Census Bureau reported. In 2018, 11.8% of Americans lived under the poverty line...