Mario Draghi didn’t do it but Kim Jong-un did

Last Thursday, Mario Draghi, the President of the European Central Bank, was unable to move the capital and money markets with his customary monetary policy Press conference in Frankfurt am Main. On the contrary, North Korea’s leader Kim Jong-un, a global castoff, did it the next day just by pressing a button. However, it took […]

No end to Deutsche Bank’s problems: new litigations in the US and frailty in EU stress test

Last Wednesday, Deutsche Bank’s shares fell by 4.5% in the first hour of trading in Frankfurt, after the bank released its second quarter results, showing a measly profit of €20 million, in comparison to €818 million last year. The percentage fall of this stock is the biggest ever in such a brief time in the […]

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

One of the most direct and important consequences of the Brexit vote is the uncertainty it casts on the merger of Europe’s largest stock exchanges and clearing houses, the London Stock Exchange and the German bourse in Frankfurt, the Deutsche Börse. The two mammoth institutions, the double sun of Europe’s financial universe, last March agreed […]

Deutsche Bank slammed by the US-based trio of IMF, Fed and Moody’s

Last Thursday morning the International Monetary Fund and the American central bank, the Fed, simultaneously but in the face of it independently, issued warnings about the health of the largest German lender, the long ailing Deutsche Bank. A few days before that the US rating agency Moody’s had degraded the creditworthiness of the bank close […]

Biggest London City Banks ready to move core European operations to Frankfurt or Dublin?

The United Kingdom last week has voted to leave the European Union and thus opened the most uncertain chapter of its modern history. The business side of the complicated Brexit drama is indeed where the whole world is currently looking at, as the main economic players are still trying to figure out the way they will be influenced by all […]

Will the outcome of the UK referendum “calm” the financial markets?

Just one day left for both the Remain and Leave campaigners to persuade the undecided Britons to vote in their favor promoting what is best for their country. The world is about to finally find out what will be the outcome of the UK referendum with the reports and polls already showing reverse results compared to last […]

The IMF sees Brexit’s ‘substantial impact’ while the world’s economy holds its breath

The International Monetary Fund last Friday published what will most likely remain its most detailed analysis on a “Brexit” scenario, calling the impact of Britain’s departure from the European Union “negative and substantial”. With only two days to go until the referendum, it is clear more than ever that the economic field now is where […]

ECB’s new money bonanza handed out to help the real economy or create new bubbles?

Last Thursday the European Central Bank announced it will pump extra piles of freshly printed money into Eurozone’s banking system. The President of ECB, Mario Draghi said that he will be delivering €80 billion a month for the public bonds owned by banks for as long as it is needed. On top of this, the […]

Who is to pay the dearest price in a global slowdown?

What happens in China is more important for the European economy than a meagre fall of unemployment in the Eurozone. Last Tuesday, China said its February exports dived by a record 25.4%, fuelling new fears for a bigger slowdown in the world economy. At the same time, a Press release by Eurostat, the EU statistical […]

What have the banks done to the markets making them unable to bear cheap oil?

Last Tuesday, a new steep fall of the price of crude oil by almost 5%, triggered another selloff in all the major capital markets of the world. The New York and the European stock exchanges lost anything between 2% and 3% of their capitalization. One may observe that this development is one of many of […]

Can the next financial crisis be avoided?

The descent of prices in the world capital markets continued almost unhindered this past week and only last Friday financial, oil and commodity values gained some limited grounds. Altogether however, the major stock markets have erased trillions off their capitalization since last June, when the dark clouds gathered above the Chinese mega-cities of Shanghai and […]

2016 crisis update: the year of the Red Fire Monkey burns the world’s markets down

The Chinese New Year began two days ago and has brought already significant turbulences and volatilities to the global financial markets and economies. Luckily for the world’s second largest economy, Chinese stock markets are closed due to New Year’s festivities and haven’t experienced, at least yet, the losses of the European, U.S. and Japanese markets. This […]

Is there a way out of the next financial crisis? Can more printed money or austerity save us all?

Every time Mario Draghi, the President of the European Central Bank, tries to fight very low inflation and indirectly support growth and job creation in Eurozone with monetary measures, the Germans stand in his way. Last Thursday 28 January, Jens Weidmann, the governor of the German central bank the Bundesbank, did it again. In an […]

Why are the financial markets shivering again?

The major central banks of the world are currently in the middle of a precise but of dubious results surgical operation on capital markets. On the one hand, the monetary authorities aim at supporting the real economy by injecting more cash into the financial system. On the other, they try to mitigate the risky super […]

WEF Davos 2016 LIVE: “There is a communication issue (about China) which markets don’t like” Christine Lagarde, Managing Director of IMF stresses from Davos

At the second day of the World Economic Forum 2016 in Davos the world was anticipating very much the session on China’s outlook and how its growth slowdown affects the entire world. This issue was addressed in a session called “Where is the Chinese Economy heading?” which took place in Sanada room of the Davos Congress […]

WEF Davos 2016 LIVE: Banking moguls continue brandishing financial Armageddon to intimidate us all but in Davos they worry about the very distant future

On Thursday 7n January this newspaper commented that behind the capital markets selloff, which shook the financial world in the first week of this year, were the financial moguls who want to impose their terms to central banks and mainly the American Fed. Since then stock markets keep losing a lot of grounds every day. […]

WEF Davos 2016 LIVE: “You just don’t know if the oil price will be 20$ or 100$ in the next 2-3 years!” top Harvard economist Kenneth Rogoff underscores from Davos

It is the first day of the most important economic forum in the world and economy and financial markets are as every year in the foreground. The session called “Preventing Future Shocks” finished a couple of hours ago in the Sanada room in Davos with Maria Bartiromo, anchor and Global Markets Editor of Fox Business Network, […]

Capital markets selloff: The financial moguls send messages to monetary authorities

The wild selloff in the major capital markets of the world that culminated last Monday, the first working day of the New Year and continued on Wednesday for a fifth day in row was not just an overreaction to the anticipated slowdown of the Chinese economy, as almost all chief analysts assumed in mainstream media. […]

G20 LIVE: the EU trade gold rush continues as EU and Australia agree to launch Free Trade Agreement (FTA) live from Antalya Turkey

While the outcomes of the last round of the TTIP negotiations and the many recent turning points are still dominating the conversation on the trade side in Brussels, another major happening broke a few days ago. Following talks at G20 Leaders Summit in Antalya Turkey last Sunday morning with Australian Prime Minister Malcolm Turnbull, the President of […]

The Commission sees ‘moderate recovery’ but prospects deteriorate

The European Commission released last week its “Autumn 2015 Economic Forecast”, advertising ‘moderate recovery’ for the European Union and the euro area. Understandably, the Commission wouldn’t dig deeper in the economy, to highlight the negative aspects of the present status and the subdued prospects for next year. For a number of important reasons the executive […]

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

Mario Draghi’s statement of last Thursday from Malta that the European Central Bank’s “monetary policy accommodation will need to be re-examined at our December monetary policy meeting”, offered a strong support to all major capital markets, with stocks gaining a lot of ground and the euro receding slightly. Understandably, a generous increase of ECB’s monthly […]

China’s stock markets show recovery signs while EU is closely watching in anticipation of the €10bn investment

The recent turbulence of the Chinese stock exchange has caused great concerns not only to the second biggest world economy but also to the European Union (EU) as a whole. Junker’s European Commission (EC) is anxiously waiting for China to invest in the EU given the fact that not long ago the Chinese Premier promised to […]

The EU Parliament and the ECB unknowingly or unwillingly fail to protect our financial assets

This week the European Parliament and the European Central Bank rather unknowingly or unwillingly failed to protect the European citizens from the attacks of ‘money sharks’. In two different occasions the two most important European institutions secured the bankers reign on peoples’ money. Let us take one thing at a time. When the average hard […]

Negative inflation hits Eurozone, ECB to print and distribute one trillion euro earlier than expected

This week more indications emerged pointing to the possibility that the European Central Bank is to announce a government bond purchases programme sooner than expected. Negative inflation of -0.2% (deflation) in Eurozone during December (announced yesterday by Eurostat), brings this prospect much nearer. The latest information related to the government bond purchases by the ECB […]

ECB’s trillion has to be printed and distributed fast before Armageddon comes

The latest Eurostat data on employment and industrial production for the Eurozone economy point invariably to stagnation, if not recession, while the long-term tendency of household consumption, as a percentage of GDP, appears falling. In short all the key growth indicators of the economy are quite disappointing, to say the least. The economic problems of […]

France fails again the exams. Kindly requested to sit in on Commission’s class

France gets once more under the microscope. Apparently the second biggest economy of Europe is il for the past couple of years in trouble. Given its enormous political power historically in Brussels L’Exagone was getting away with it for quite some time but it seems that now the time has come for drastic medication. The Macron […]

Greece did it again

Last Monday, the Greek government scheduled an early Presidential election before the end of the year, which according to the constitution is to be held in the Parliament. If the Parliament proves unable to elect a new President of the Republic (180 votes are needed in a house of 300) a new legislative election must […]

Presentation of Juncker’s Investment Plan: Can 315 billion euros save the EU?

Jean Claude Junker, the president of the European Commission (EC), announced details of his 315 billion euros promising investment plan two days ago in Strasbourg. This three year project will use money from EU institutions in order to create a fund that will motivate investors to bring back their money in Europe and increase growth […]

Draghi: printing a full extra trillion non negotiable to help all borrow cheaply

European Central Bank President Mario Draghi speaking at the economic and monetary affairs Committee of the European Parliament last Monday, made at least two direct references to additional monetary measures, to confront the anaemic economic conditions in Eurozone, “if warranted to achieve price stability over the medium term”. He referred to this prospect once while […]

What can stop the ‘too big to fail’ bankers from terrorising the world?

Last Monday 10 November the Financial Stability Board, an international non-binding body based in Basel which comprises government and central bank officials from G20 countries had a bright idea for the lenders. They admitted that the 30 “too big to fail” major world banks should retain at least 20% of their risky assets in own […]