Posts belonging to Category ECB



Brexit bill: Government loses key vote after Tory rebellion

Parliament is to be given a take-it-or leave-it vote

In a blow to Prime Minister Theresa May, MPs voted to give Parliament a legal guarantee of a vote on the final Brexit deal struck with Brussels.

The government had argued this would jeopardise its chances of delivering a smooth departure from the EU.

Despite a last-minute attempt to offer concessions to rebels, an amendment to the bill was backed by 309 to 305.

Ministers said the “minor setback” would not prevent the UK leaving the EU in 2019.

http://www.bbc.com… Thu., 14  December 2017

EU has serious concerns about Trump 3 tax plans

Top EU economic powers warn US 

The European Union’s top five economies are warning the United States that its massive tax overhaul could violate some of its international obligations and risks having “a major distortive impact” on trade.

In a letter to U.S. Secretary of the Treasury Steven Mnuchin, the finance ministers of Germany, France, Britain, Italy and Spain wrote they had “significant concerns” about three tax initiatives in particular.

In the letter, seen by The Associated Press, the five wrote that “it is important that the U.S. government’s rights over domestic tax policy be exercised in a way that adheres with international obligations to which it has signed-up.”

EU nations have been warily eyeing President Trump’s domestic tax proposals as they made their way through congress and have long expressed fears they might hurt world trade and EU companies in particular.

http://www.washingtonpost.com… Tue., 12  December 2017

EU blacklist names 17 tax havens

Caymans and Jersey on notice

The EU has named and shamed 17 countries in its first ever tax haven blacklist and put a further 47 on notice, including British overseas territories and the crown dependencies of Jersey, Guernsey and the Isle of Man, in an attempt to clamp down on the estimated £506bn lost to aggressive avoidance every year. The move was hailed as a vital “first step” but the failure of the member states to agree on any sanctions for those on the blacklist provoked the European commissioner for economic and financial affairs, Pierre Moscovici, to concede it was as yet “an insufficient response”.

The blacklist includes South Korea, Mongolia, Namibia, Panama, Trinidad & Tobago, Bahrain and the United Arab Emirates. Guam, the US territory in the Pacific, also features on the blacklist, in a move that is unlikely to endear Brussels to Donald Trump’s White House.
http://www.theguardian.com… Thu., 07  December 2017

Britain and EU fail to reach Brexit deal

Critical moment in the negotiations

Britain and the European Union failed to reach a highly anticipated Brexit deal on Monday despite “significant progress” on key outstanding issues, both sides announced in Brussels.

Negotiators had earlier appeared close to reaching an agreement on the Irish border, the complex and historically sensitive issue that had emerged as a final stumbling block.
But after details of a draft deal leaked, the Democratic Unionist Party, a small but hardline grouping from Northern Ireland that props up the minority government of British Prime Minister Theresa May, said they would not support it.
http://www.cnn.com… Tue., 05  December 2017

What is the future of Money?

Bitcoin, Dollars or Gold?

Type “Bitcoin is a Bubble” into Google and you’ll get 31,800,000 results, a clear indication of how many times people have, incorrectly so far, called a top in the price of the worlds most famous cryptocurrency. We’ve been studying it for years and have summarised our thoughts in a detailed report; “Bitcoin, Dollars, Gold: What is the Future of Money”

We see numerous potential tailwinds for Bitcoin, and for blockchain especially. Capital is flowing into the sector, millennials love it, and we also think governments and commercial banks are supportive of digital currency, as they have a general disdain for physical cash. Blockchain’s potential to disrupt multiple industries is also another tailwind. For those who want further evidence of its potential, we suggest reading “Banking is only the Beginning: 30 Big Industries Blockchain Could Transform”.

Finally, for as long as central banks the world over engage in the monetary largesse we’ve become accustomed to in the “post” GFC environment, more and more people will look for alternative monetary solutions.

http://www.livewiredmarkets.com… Mon., 04  December 2017

The Fed has no plans for its own cryptocurrency — at least for now

Fed is paying attention to research on blockchain

The Federal Reserve isn’t planning on launching its own digital currency — at least for now. While speaking at an event at Arizona State University on Wednesday, the president of the Federal Reserve Bank of San Francisco, John Williams, said the Fed is not working on its own digital currency, according to Reuters reporting.

But the Fed is paying attention to research on blockchain, the technology underpinning bitcoin, the news wire said.

http://www.businessinsider.com

UK could pay £50bn Brexit divorce bill

Bowing to EU pressure

The UK has bowed to EU demands on the Brexit divorce bill in a move that could result in the UK paying £50bn to Brussels, in an attempt to get France and Germany to agree to move negotiations to trade.

Non-stop behind-the-scenes negotiations have led to a broad agreement by the UK to a gross financial settlement of £89bn on leaving the bloc, although the British expect the final net bill to be half as much.

http://www.theguardian.com…  Wed., 29  November 2017

Dark clouds gathering on the horizon’ for Britain’s economy

UBS upgrades pessimistic forecast for UK growth

he Swiss bank UBS has admitted that the outlook for the UK is not as bad as it thought in the immediate aftermath of the European Union referendum and that the economy is well-positioned to benefit from strong global growth. While uncertainty about the final outcome of Brexit might weigh on economic progress, the bank did not believe it would derail future economic expansion.

UBS forecast that the UK will grow 0.7pc in 2018 has been upgraded to 1.1pc and the bank believes this rate of acceleration will be sustained into 2019. This is still a fairly negative view compared to other economists. The consensus view is that the economy will grow by 1.4pc next year. The Bank of England thinks it will be 1.6pc.

http://www.telegraph.co.uk…  Fri., 24  November 2017

London loses EU agencies to Paris and Amsterdam in Brexit relocation

Paris won the race to take the European Banking Authority from London

London is losing the European Medicines Agency to Amsterdam and the European Banking Authority to Paris, in one of the first concrete signs of Brexit as the UK prepares to leave the European Union. The two cities won the agencies after tie breaks that saw the winner selected by drawing lots from a large goldfish-style bowl.

The Dutch capital beat Milan in the lucky dip after three rounds of Eurovision-style voting on Monday had resulted in a dead heat.

Paris won the race to take the European Banking Authority from London, beating Dublin in the final, after the favourite Frankfurt was knocked out in the second round.

http://www.theguardian.com…  Tue., 21  November 2017

Quantitative Easing policy in Eurozone

Will the ECB stop buying government bonds?

Since March 2015, the European Central Bank (ECB) has been buying government bonds (also known as ‘sovereign’ bonds) as well as some corporate bonds in huge volumes, at a rate of 60 billion a euros month. The declared aim of this practice, often called “quantitative easing” (QE) in the jargon of central bankers and economists, has been to stimulate inflation and growth in the euro area.

Critics from Germany in particular saw QE as a hidden way for the ECB to fund European national governments — which is illegal under the ‘Maastricht treaty,’ the 1992 statute that established the rules governing European monetary union.

http://www.dw.com…  Thu  26  October 2017