Germany and Europe prepare for Trump’s America

European Council - October 2016. The EU Heads of State or Government met on 20 October 2016 in Brussels. The leaders discussed relations with Russia and the situation in Syria. From left to right: Lars Lokke Rasmussen, Danish Prime Minister, Angela Merkel, German Federal Chancellor, Xavier Bettel, Luxembourg Prime Minister. In the background Teresa May, Prime Minister of Britain is seen. Shoot location: Brussels – Belgium. Shoot date: 20/10/2016. Copyright: European Union.

Germany, and more generally the EU, is now preparing in earnest to confront the groundbreaking changes in their relations with Trump’s America. Last week, both the German Chancellor Angela Merkel and her Federal minister for Finance Wolfgang Schauble, made direct and indirect statements about the policies now needed for Germany and the European Union. On […]

Deutsche Bank chased away from US, threatened with more fines

Davos, Switzerland, 20/1/2016 - Christine Lagarde, Managing Director, International Monetary Fund (IMF) and John Cryan, Chief Executive Officer, Deutsche Bank, captured during the session 'The Transformation of Finance' at the Annual Meeting 2016 of the World Economic Forum in Davos, Switzerland, January 20, 2016. IMF has labeled Deutsche Bank as a major risk to the global financial system. (WORLD ECONOMIC FORUM/swiss-image.ch/Photo Remy Steinegger. No changes made. Only some rights reserved).

The US Department of Justice settled its claims against Deutsche Bank, the biggest German lender, for packaging and selling toxic mortgage securities to uninformed customers prior to the 2008-2010 financial crisis. Initially, the Justice Department had asked for $14 billion, but it seems it settled for a fine of $7.2bn. However, this is not the […]

The Americans are preparing for the next financial crisis

Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, the central bank of the United States. (September 2014. US Governmnet work. No known copyright restrictions).

Last week, Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, in more than one ways revealed that the American central bank prepares to confront the next financial downturn. On Wednesday, 28 September, speaking at the House Financial Services Committee in Washington D.C. , she defended the Fed’s rigorous supervision over […]

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

Deutsche Bank Towers – Walkway from Tower A to Tower B. Headquarters in Frankfurt am Main. (Deutsche Bank Audiovisual Services, August 6, 2015).

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 […]

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

Deutsche Bank. Overview of the trading floor in Frankfurt am Main, Germany. (Deutsche Bank audiovisual Services).

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 […]

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

European Parliament. Workshop on granting Market Economy status for China after 2016. Discussion between Bernard O'Connor, Professor at Bocconi University, Jean-François Bellis, Professor at the Institute of European Studies of the University of Brussels, Lucien Cernat, Chief Trade Economist of the European Commission, Robert Scott, Director of Trade and Manufacturing Policy Research at the EPI Institute and author of the Study " Unilateral grant of market economy status to China would put millions of EU jobs at risk", Maurizio Zanardi, Associate Professor in Economics at the Lancaster University Management School and Schaake Marietje (ALDE, NL).
Event Date: 28/01/2016. City: Brussels. © European Union 2016 - Source : EP.

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 […]

Pumping more money into banks but leaving them unregulated doesn’t help

End of the signing ceremony of an EU/China key partnership on 5G: handshake between Miao Wei, Chinese Minister for Industry and Information Technology, on the right, and Günther Oettinger, Member of the EC in charge of Digital Economy and Society, 2nd from the left, in the presence of Ma Kai, Chinese Vice-Premier, 2nd from the right, and Jyrki Katainen, Vice-President of the EC. Date: 28/09/2015. Location: Beijing - Diaoyutai State Guesthouse. © European Union, 2015 / Source: EC - Audiovisual Service / Photo: Olli Geibel.

On Thursday 25 February, this newspaper concluded that “the other major central banks in Europe, China, Japan and elsewhere appear ready to fill the gap that the Fed plans to leave in the ‘money for nothin’ game”. This week’s developments completely justified this prediction. The immediate result is a new appreciation of the dollar with […]

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

Members of the European Parliament make a visit to the stock exchange in Shanghai, China. ( ©European Union EP/PE ).

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?

High-level seminar of the European Political Strategy Centre on the European Deposit Insurance Scheme (EDIS). From left to right, Mejra Festić, Vice-Governor of the Central Bank of Slovenia, Thierry Dissaux, Chairman of the Board of the Guarantee Fund for Deposit and Resolution, Dirk Cupei, Head of the Department "Financial market stability" at the Association of German Banks, Alex Kuczynski, Coordinator of the EU Committee of the European Forum of Deposit Insurers (EFDI), Giuseppe Boccuzzi, Director General of the Italian Interbank Deposit Protection Fund, and Joseph Delhaye, Chairman of the Guarantee Deposit Association Luxembourg. (Date: 03/12/2015, Location: Brussels – EC / Berlaymont, © European Union , 2015/Source: EC - Audiovisual Service/Photo: Etienne Ansotte).

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 […]

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

European Central Bank President Mario Draghi appears today at the European Parliament on the occasion of the plenary debate on the ECB’s Annual Report for 2014. (ECB Audiovisual Services. Snapshot from the video of ECB Press Conference of 21 January 2016).

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 […]