How the finance industry can save the world

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum. Author: Jonathan Wichmann, Co-founder, Wichmann/Schmidt For millennia, the finance industry has been a primary culprit in global warming. Now it’s time for finance to right its wrongs and provide the solution. It’s easy to read about the current and […]

Banks can fight financial crime. But we can’t do it alone

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum. Author: Erik Barnett Head of Financial Crime Threat Mitigation, Europe, HSBC A young woman walks into a bank branch in London. She is soon noticed by a teller, who sees that she is closely followed by a man, who […]

US-China trade war at point of no return: Washington’s demands go beyond tariffs

It seems the US-China trade conflict, if not full scale trade war, is entering the phase of no return. Nothing will be as before in the economic and otherwise relations between the two largest economies of the world. Washington appears ready to push its cause to the end, while Beijing still pretends not to understand […]

First-ever EU defence industry fund to finance joint development of capabilities

This article is brought to you in association with the European Parliament. For the first time, MEPs endorsed the setting up of a programme devoted to boosting innovation in European defence industry including cyber security on Tuesday. With a €500 million budget for 2019-2020, the new European Defence Industrial Development Programme (EDIDP) will help fund the […]

Germany readies to pay for the Brexit gap in EU finance

As expected, last Friday’s informal European Council of the 27 EU leaders didn’t produce any tangible result regarding its main agenda item; the future of Europe. The EU leaders just quarreled on who is to cover the hole in the budget, after Britain’s contribution ends with Brexit. In relation to this perennial question of money […]

‘Safe Eurobonds’: a new trick to betray the south euro area countries

All along the years after the 2008-2010 financial crisis, which in the European Union took the form banking/government debt breakdowns starting with Greece, there were cries for the creation of a solid Eurozone. In every respect, these calls amounted to demands that super prosperous Germany accepts some degree of risk-sharing with the rest of the […]

A Trumpist squad shook Davos and the world

Towards the end of last week, in Davos, a money devaluation war broke out. In the ‘magic’ Alpine mountains American Trumpist dignitaries did what was expected of them: they told the world they don’t give a damn about it…Trump himself, however, appeared a bit less Trumpist than his folk. Overall though, a US administration squad […]

Germany not famous for easy way outs from political stalemates

And now ‘Frau Bundeskanzlerin’ what? The truth is though whatever the future holds for the German political landscape, is no good. Chancellor Angela Merkel’s failure last weekend to form a government, with a viable parliamentary majority has irreparably stained the so far pristine scenery of the country’s politico-economic affairs. The unsuccessful attempts to convince liberal […]

Fed, ECB take positions to face the next global financial crisis; the Brits uncovered

The appointment of Jerome Powell as the next head of the US central bank, the famous Fed, is a reassurance to the financial world that the giant lenders will continue being favored by ample and very cheap money. Last Thursday, Donald Trump, the American President didn’t dare to change the cautious approach to monetary policy. […]

German political spillovers: ECB’s Draghi resists first attacks by AfD

Last Monday, Mario Draghi, President of the European Central Bank, speaking at the Economic Committee of the European Parliament had the opportunity to test the grounds and familiarize himself with the nature of political climate he may come across after the German elections. He had a heated exchange with the head of the AfD group […]

Berlin vies for a Germanic European Central Bank

Last week, the deep German state struck again targeting the heart of Eurozone. The hit was effectuated by Sabine Lautenschläger, a middle aged Stuttgart born ex BaFin (Federal Financial Supervisory Authority) employee and presently member of the powerful executive board of the European Central Bank. Sabine now wants the ECB to abandon its extraordinary monetary […]

Threats from mammoth banks and Brussels fuel May’s poll rates

The Theresa May brexiteer government has started feeling the heat about their choice to fight an electoral battle on a clear and loud plea, that a vote for Tories on 8 June is a vote for a hard Brexit. And mind you the closer we get to the polling date the more heated the controversy […]

Deutsche Bank: the next financial crisis is here and the lenders need €150 billion from taxpayers

Last Monday David Folkerts-Landau, the chief economist of Deutsche Bank, the ailing largest lender of Germany, in an interview with the prestigious newspaper ‘Die Welt’ stated that European banks must be subsidized with €150 billion in rescue money to recapitalize. Obviously, it will be the taxpayers to once more provide the capital the euro area […]

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 […]

Conflicting statistics and bad banks haunt the Eurozone

Last week, Eurostat, the EU statistical service, released its flash estimate of the GDP of the first quarter of 2016, finding it, in both the Eurozone and the EU28, to be 0.5% bigger in comparison to the previous period. In the fourth quarter of 2015, GDP had also grown by 0.3% and 0.4% respectively. Does […]

The Monetary Union drives Europe into dangerous paths, CoR demands an EMU of regional content

Last Thursday 7 April, the European Committee of the Regions (CoR) concluded that there is “No successful reform of the Economic and Monetary Union without a regional dimension”. Indirectly, this means the EMU remains a system just to support the banking industry. In other words, the banks are still completely unregulated, high flying and counting […]

ECB money bonanza not enough to revive euro area, Germany longs to rule with stagnation

During the days ahead of last Thursday’s 3 December meeting of the European Central Bank’s Governing Council, financial markets and market oriented media had been pressing for a stronger monetary accommodation (easing), than what President Mario Draghi finally announced in the afternoon of that day. As a result, the euro appreciated markedly with the dollar […]

Draghi rehabs ECB into a tool to support growth and employment; a departure from Teutonic orthodoxy

On Thursday 22 October Mario Draghi, the President of the European Central Bank delighted the world capital markets with his comment about the “factors that are currently slowing the return of inflation to levels below, but close to, 2% in the medium term” He added that “In this context, the degree of monetary policy accommodation […]

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 […]

A new global financial crisis develops fast; who denies it?

During the last two weeks the world’s largest stock markets had a wild time not seen since Lehman Brothers went bust on 15 September 2008. The New York stock exchange in Wall Street lost more than 8% of its capitalization in a few days and then recovered some of the losses to close last Friday […]

EU Commission: The banks are not obliged to finance the real economy

At a time when the Eurozone banks have received for free €4.5 trillion of taxpayers’ money and at least another €3 trillion from the ECB at close to zero interest rates, the Commission dares to ask the pension funds and the Internet to replace the banks in financing economic growth in the crisis stricken and […]

Predicting two more years of economic stagnation

Yesterday, as expected, the European Central Bank kept its basic interest rate unchanged at 0.25%. As usually, the decision was taken in the meeting of the bank’s Governing Council, the first of 2014. At this almost zero interest rate cost commercial banks get ample liquidity from the ECB and then lend this money to the […]

The financial sector cripples Eurozone growth prospects

According to a European Central Bank Press release published on 3 January 2014, Eurozone banks further reduced their overall outstanding balance of loans to the private sector during November 2013. Given that industrial multinationals and big services firms do not rely on bank loans for their financing, it’s mainly the SMEs that have been deprived […]

The Eurogroup protects Germany and blames others

Last week in Brussels, an unseen before procedure took place, during last Friday’s Eurogroup of the 17 euro area member states council of Finance ministers. The 17 politicians assessed the Commission‘s opinions on member states’ draft budgets, ahead of those draft budgetary exercises been discussed in national Parliaments. This is the EU’s ‘brave’ new economic […]

Forget about growth without a level playing field for all SMEs

Less than 24 hours after a widely advertised Press conference held by Barroso, Rehn and Andor, where all of them were talking about “strengthening the recovery”, recovery in Eurozone was reported as fading away, being one decimal point away from total freezing that is zero, or numerical death. It is as if reality wanted to […]

Commission’s feeble response to financial benchmarks fraud

On Wednesday 18 September the European Commission is expected to propose a draft legislation on financial benchmarks to protect their setting from fraud and collusion. The stakes are so big that surpass the wildest imagination. For example Libor, the London market interest rate benchmark, is used as a base for interest rates settlements all over […]

European Banking Union: Like the issue of a Eurobond?

If what the President of the European Central Bank, Mario Draghi, said yesterday to EU’s legislators is read together with the inspired speech the European Commissioner Michel Barnier, delivered in Rome’s Palazzo Farnese (the French embassy in Italy), then the conclusion is that the European Union cannot be a source of problems as the extremists […]

ECB offers plenty and cheap liquidity to support growth in all Eurozone countries

The rare and openly confirmed unanimity of European Central Bank’s Governing Council that interest rates should remain at their present or even lower levels for a long time, didn’t only gave a cause for celebrations in all European bourses, but it also induced some analysts to comment that Eurozone’s recession may be more persistent than […]

Inflation and interest rates indicate urgent need for action

Inflation indices are a measure not only of the rate of change of consumer prices. In organised economies like Eurozone inflation is a good indirect measurement of economic activities. A bit more inflation above the benchmark of 2% is a good indication that the economy is growing, the opposite for measurements below that level. Inflation […]

IMF: European banks do not perform their duty to real economy

During this week everybody took an interest on Europe’s and more so on Eurozone’s financial standing. During the last two days Jörg Asmussen, Member of the Executive Board of the ECB, the International Monetary Fund and the European Council Presidency came out to either criticise or reassure everybody that the European financial and banking system […]