Markets
Europe’s markets lose steam amid EU deadlock on Ukraine, trade tension
The rally in European stock markets took a breather as EU leaders struggled to secure a €5 billion funding package for Ukraine. Investor sentiment was further dampened by the ECB’s cautious outlook on the economy and inflation, triggering selloffs, particularly in the defence and automotive sectors.
Economy
Lagarde: Trade tariffs could push eurozone inflation up by 0.5%
A trade war could push up eurozone inflation by half a percentage point alone with detrimental effects on growth, ECB’s Lagarde warns. The ECB president said rising trade tensions and a weaker euro could complicate monetary policy.
Economy
ECB's Lagarde warns of severe economic hit from Trump's trade wars
ECB’s Lagarde warns Trump’s trade war could hit global growth, inflation. She indicates that escalating tariffs risk severe economic consequences, while stressing the ECB’s challenge in stabilising inflation amid record-high uncertainty.
Economy
Will the European Central Bank cut interest rates further this week?
The European Central Bank (ECB) is set to reduce its interest rate further this week due to economic concerns. Meanwhile, Donald Trump has vowed to impose 25% tariffs on the EU, sparking concerns of a further growth slowdown.
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Economy
ECB flags trade tariffs, competitiveness gap as risks for growth
The ECB sees rising trade frictions and regulatory barriers as risks to eurozone growth, with US trade policy uncertainty and global demand slowing. While inflation is easing, policymakers remain cautious, with no pre-commitment to rate cuts.
Economy
Lagarde hints at further ECB rate cuts, rules out Bitcoin reserves
The ECB cut rates by 25bps to 2.75%, with Lagarde signalling further easing if inflation declines. Growth risks persist amid weak confidence and geopolitical tensions. She ruled out Bitcoin as a reserve asset, stressing the need for liquidity and security.
Economy
Eurozone economy stagnates in Q4 as Germany and France contract
Eurozone GDP stagnated in Q4 2024 as Germany (-0.2%) and France (-0.1%) contracted, reinforcing expectations of more ECB rate cuts. The euro held at $1.04, while bond yields fell. The ECB-Fed policy gap widens as Powell signals "no rush" for rate cuts.
Economy
Europe must be prepared for shifting US trade policy, Lagarde warns
ECB President Christine Lagarde urged Europe to prepare for potential US trade policy shifts, warning of selective tariffs under Trump. Speaking in Davos, she stressed the need for economic reforms, defended the ECB's cautious rate cuts, and flagged energy prices as key to inflation.
Economy
Economists react to ECB’s rate cuts: What’s next for monetary policy?
The ECB cut rates by 25 basis points to 3%, dropping its commitment to keep policy “sufficiently restrictive” and signalling confidence in achieving its 2% inflation target. Economists expect gradual cuts to continue, with risks from trade tensions and geopolitical uncertainties looming.
Economy
ECB set to trim interest rates again: What's next and why it matters
The ECB is set to cut rates by 25 basis points to 3%, with further easing expected into 2025. Lower rates may provide a much-needed boost to borrowing, domestic consumption, and exports via a weaker euro, but geopolitical risks costs may limit the benefits.
Economy
Will the European Central Bank opt for a large rate cut in December?
Money markets see an increased likelihood of the European Central Bank (ECB) deepening its rate cuts in December following weak economic data. However, analysts expect the bank to maintain a gradual approach to rate reductions due to the persistent upside risks in inflation.
Business
Lagarde supports bank mergers as UniCredit-Commerzbank talks intensify
The ECB has indicated its support for UniCredit’s potential full takeover of Commerzbank, as cross-border banking mergers align with the single market’s unity strategy, enhancing the competitiveness of the European banking system on a global scale.
Economy
Will the ECB cut interest rates again in October? Analysts weigh in
Analysts are divided on whether the ECB will cut rates again in October, with some expecting a pause until December. Key factors include wage pressures, inflation data, and oil prices. Most agree on gradual easing, with more cuts likely into 2025.