The European Central Bank enters monetary policy territory: It starts the highly controversial, mass purchase of government bonds. The Fed releases so that a new flood of money from – and is a high risk
+++ cheering on the financial +++
+++ ECB launches new flood of money? +++
+++ debt countries hope to harsh criticism from Germany +++
16.01 Clock: The risk of loss for German taxpayers through the bond purchases is limited: The breakdown of purchases on the individual euro countries depend on each country’s share in the ECB’s capital (population size and economic power). Therefore, especially German Bunds be purchased, followed by French and Italian papers. Only 20 percent of bond purchases are subject to a common risk liability . These include the bonds of EU institutions, will be allocated to twelve percent of purchases
15.41 clock. announced by the ECB program for bond purchase encountered in the banking associations in Germany sharp criticism. To allow the ECB dramatize the price and economic development in the euro area unnecessarily says the chief executive of the Bankers Association, Michael Kemmer. It is to be feared that the extra money flowed mainly in the financial markets. As a result, climb the risk of asset price bubbles and fail-guided investment
15.25 clock. Mario Draghi justifies its monetary policy: A large majority the Governing Council have seen the need to start the program for the purchase of government and private bonds now, the ECB president says. However, there have been other opinions in the Council. At the same time the decision was made by consensus, to keep the joint liability low. In addition, Draghi has doubts as to the admissibility of state bond purchases by the Fed back: “The Council is unanimously of the opinion that it is a common instrument of monetary policy in the securities purchases.”
Animation: How the turning the interest rate screw acts
15.17 Clock: The German economy criticized the announcement by the ECB mass purchase of government bonds. “The ECB has become the prisoners of their own announcements,” said the chief executive of German Chambers of Industry and Commerce (DIHK), Martin Wansleben. “She has no need now played their last trump This clearly outweigh the risks.. The effect of the purchase of government bonds on price developments in the euro zone is uncertain” At the same time so that the pressure is mitigated to the crisis countries to urgently implement necessary reforms
15.07 clock. No sooner has the ECB announced its historical measure, it hails criticism from Germany: The CSU Financial politician Hans Michel Bach refers to the announcement by the ECB bond-buying program as “Document of failure” and raises the central bank a “soft monetary policy ‘before.
” violates With the program of buying government bonds European Central Bank not only against the ban on public finance. The decision is also a recognition that the ECB’s policy of non-transparent risk accumulation without effect on the real economy and thus failed is practical, “the chairman of the caucus criticized the Finance Committee of the Bundestag.
14.55 Clock: The purchase program of the ECB is scheduled to begin in March. The program will run until the end of September 2016. This results in a total volume of 1.14 trillion euros , which are also pumped into the financial markets.
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14.49 Clock: The German index jumps the Draghi statements to a new record high of 10,399.67 points. The euro also fall on an intraday low of 1.1513 US dollars.
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14.41 Clock: ECB chief Mario Draghi provides clarity: The central bank is for 60 billion euros to buy up until the end of September 2016 monthly government bonds and other securities from the euro-countries
14.36 clock. The ECB press conference in Frankfurt begins.
14.26 Clock: So far, the stock markets show unimpressed, it will wait for the details of the Governing crisis decisions, explain dealer. The nervousness was high. Last climbs the leading index of 0.05 percent to 10,304 Plus points. The euro exchange rate is largely unchanged. Details are given in a ECB press conference from 14.30 clock .
14.11 Clock: The German insurance industry criticized the monetary authorities. “The move of the ECB is a disgrace,” the president of the industry association GDV, Alexander Erdland says. Further damage to the saver is programmed. The ECB’s purchase program reinforces the pressure on fixed-income securities as column of private pension plans . “This allows us now even harder to make people good deals on their age.”
13.52 Clock: The European Central Bank leaves the key interest for the euro zone at the historic low of 0.05 percent. The central rate for the currency union will not be further lowered says the central bank shortly before the highly anticipated press conference by ECB President Mario Draghi in Frankfurt am Main.
13.45 Clock: The European Central Bank (ECB) has decided to further anti-crisis measures in the fight against an impending price drop. Thus, the especially in Germany controversial purchase of government bonds should be meant. Details wants the central bank, according to a spokeswoman announced in Frankfurt still on Thursday
13.24 clock. The head of the Euro Group, Jeroen Dijsselbloem, has called on the ECB continued loose monetary policy, to stimulate the economy in the area. Shortly before the possible promulgation of a program to purchase bonds by the ECB said Dijsselbloem he expects that the ECB “adaptable” stay. “I’m sure they will do within its mandate what is necessary.”
12.56 Clock: Looking Forward to the German stock market: the uncertainty as to whether the ECB with its monetary policy decision in the afternoon can meet the high expectations that investor holds first in the coverage. The Dax is around noon 0.20 percent lower at 10,279 points. In the morning, the stock market barometer at 10,313 points had conquered almost a new record
12.33 clock. The debt of the euro zone has fallen for the first time in four years. In the third quarter of 2014, the debt ratio of the 18 euro countries was, according to the statistics agency Eurostat only 92.1 percent of Bruttoinalndproduktes, compared with 92.7 percent in the previous quarter. Previously, the debt ratio is 15 quarters had risen in a row
12.05 clock. The CSU Vice Peter Gauweiler Peter Gauweiler shoots sharp against the ECB: the central bank would “with this form of playing down ‘Quantitative Easing’ said printing money fuel inflation in order to relieve the expense of savers over-indebted countries, “tells the euro critics with” No matter which of the previously discussed variants of such a program is decided today: The ECB will therefore exceed its mandate and against the prohibition of monetary state financing violate “
11.21 clock. Shortly before the expected announcement of massive bond purchases ECB calls Federal Minister of Economics Sigmar Gabriel (SPD) Europe resolute reform efforts on. “I believe that European policy as a whole to stimulate the European Central Bank the task of growth and employment, must not leave alone,” says Gabriel at the World Economic Forum in Davos
10.59 clock. Given the critical attitude of Germany to the planned government bond purchase program of the ECB reminds French Finance Minister Michel Sapin the independence of the ECB. “The Germans have taught us to respect the independence of the ECB,” said Sapin the radio station France Info. France approves the purchase of government bonds of euro countries; in Germany it is seen critically
10.23 clock. Savings Bank Chairman Georg driving Schon warns of the dangers for savers, the crisis stance of the ECB and bring extremely low interest rates with them. Everyone had to be clear that he could not keep any credit offered cheap in the long run, he says in the ZDF “Morning Magazine”.
“For some time the interest rate will go up and you have to watch just that you now not moving into a wrong investment.” The system should not align so that debtors would be rewarded. “We need to do much more concerned that not a generation of savers really losers will ,” says driving Schon
9.44 clock. Greece Calls by the ECB and its euro partners more accommodating – and holds otherwise even a departure from the euro zone for not completely ruled out. The European Central Bank (ECB) calls on Gikas Hardouvelis Finance “Handelsblatt” his country at the expected huge bond purchase program (“quantitative easing”) will not skip. “No other country needs Quantitative Easing as much as Greece,” he said
Background:. “quantitative easing” (German for: “Quantitative easing”) means that the quantity of central bank money increases. A central bank prints himself money to buy securities. Most are bonds issued by governments and companies. Through the acquisition of such bonds, the central bank plans to cut long-term rates. Then some States may solicit favorable new money from investors
9.33 clock. The euro traded weaker against major policy decisions ECB. In the morning, the price of the common currency at $ 1.1580, slightly lower than on previous
9.26 clock. A few hours before the ECB’s decision on an extensive purchase program for government bonds keep investors back on the German stock market. The Dax is in the first minutes of trading hardly move. With approximately 10,300 meters but he noted in reach of his prepared the day before all-time high of 10,311.90 points
“If the ECB were to fulfill the expectations of Dax is expected to continue its record pace -. Otherwise, it could however just as fast with the courses go down, “said one trader. “Investors are very, very nervous.”
9.15 Clock: The ECB announces its interest rate decision at 13.45 clock known , To 14.30 clock begins the press conference by ECB chief Mario Draghi. For many investors, it is a foregone conclusion that the European Central Bank (ECB) will announce the purchase of government bonds. According to an insider, the volume
Video Comment is 50 billion euros monthly amount .? Is this week broke our currency
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