Tuesday, 17 September, 2019

European Central Bank cuts key rate, approves new round of bond purchases

Germany Daily Life A party boat cruises over the river Main in Frankfurt Germany on a warm Saturday evening Aug. 31 2019. More
Russell Knight | 13 September, 2019, 08:20

The European Central Bank (ECB) on Thursday announced its key policy decisions to cut the deposit rate by 10 basis points to minus 0.50 percent and to restart net purchases under its asset purchase program (APP) at a monthly pace of 20 billion euros (about 21.9 billion US dollars) as from November 1.

That is a penalty rate that pushes banks to lend excess cash. On Thursday a measure of underlying US inflation accelerating by more than forecast in August, complicating the central bank's decision on whether to ease policy further. The central bank will buy EUR20 billion of bonds per month "for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates".

Such a formulation suggests that purchases could go on for years.

The Aussie share market rises for the third straight day. The ECB said it would compensate lenders for part of this charge to ensure they continued to lend to the real economy.

The 25-member governing council voted to cut deposit interest rates by 10 basis points to -0.05%, a record low, according to an European Central Bank statement on Thursday. But will it be enough to revive the eurozone's embattled banks and inflation prospects? The bank ended a previous bond-purchase stimulus only in December after buying 2.6 trillion euros [$2.9 trillion] in financial assets from banks.

Meanwhile, the Eurozone's largest economy is expected to fall into recession in the third quarter.

Although markets had priced in a revival of asset purchases, over half a dozen conservative policy-makers spoke out in public against such a scheme, leaving markets in doubt about how bold the ECB's measures would be.

Five people hurt in stabbing at Florida workplace
Brown tried to flee the building after the attack, said Steve Outlaw, the interim Tallahassee police chief. Police say Brown got into an argument with another employee when he clocked in at 8 a.m.

Core Consumer Prices Jump, Post Largest Annual Rise in Year
Hospital inpatient care prices increased 0.4% and the cost of doctor visits shot up 0.5%, reversing July's 0.5% decrease. There was also a jump in the costs of nonprescription drugs, but prices for prescription medication fell 0.2 per cent.

Fugitive married murder suspects recaptured in Arizona
The couple overpowered two guards, tied them up and put them in the back of the van with a third prisoner, who wasn't involved. Police said they may have stolen a cache of almost 100 guns before setting fire to his house, causing an explosion.

One Australian dollar is buying 68.73 U.S. cents.

But the euro quickly lost steam and European bond yields also rose as profit-taking set in.

Neil Wilson from Markets.com said: 'This was a kitchen sink job but the European Central Bank has kept a just a tiny bit back in the tank in reserve.

The ECB has persistently undershot its inflation target of nearly 2 per cent since 2013 so stimulus was essential to maintain credibility.

Over the in US, President Donald Trump also said he would consider an interim trade deal but would prefer a full agreement.

The bigger-than-expected stimulus will increase pressure on the U.S. Federal Reserve and Bank of Japan to ease policy next week to support a world economy increasingly characterized by low growth and protectionist threats to free trade. Council members including Jens Weidmann and Klaas Knot, central bank governors for Germany and the Netherlands, respectively, came out against the move.

'Draghi has done pretty much everything he could do with this one and is leaving the door open for Christine Lagarde to cut further'.

Recommended

Teen Allegedly Paid to Have Parents Killed Using Their Cash Teen Allegedly Paid to Have Parents Killed Using Their Cash Hatcher's parents reported the stolen card and the fraudulent transactions to the Umatilla Police Department on Sunday. While being interviewed by police, Hatcher admitted to stealing the card and making the transactions.

SNL adds Jewish comedian Chloe Fineman for upcoming season SNL adds Jewish comedian Chloe Fineman for upcoming season Change is a constant at SNL , which is helmed by Canadian executive producer Lorne Michaels. "Let the f-ing ch--s live there". TV Line reports that Bowen Yang , Chloe Fineman , and Shane Gillis will join the cast when it returns on September 28.

Jets sign Ficken to solve kicking woes, waive Vedvik Jets sign Ficken to solve kicking woes, waive Vedvik Despite using one of Rick Spielman's prized draft selections to acquire Vedvik, he didn't even make Minnesota's final 2019 roster. This time, however, would not prove to be as successful. "We can't be losing points on those areas of the field".

Netanyahu, Trump deny report of Israeli spying near White House Netanyahu, Trump deny report of Israeli spying near White House He later told colleagues that he had been "cultivated" by the Mossad, Israel's intelligence agency, to spy on the United States. In 1986, an American court found Jewish American citizen, Jonathan Pollard , guilty of espionage on behalf of Israel.

NFL Could Place Antonio Brown On Commissioner's Exempt List NFL Could Place Antonio Brown On Commissioner's Exempt List Taylor, the alleged victim, chose to file using her real name and identity, which advocates say can help the healing process. Zappala Jr. said Wednesday his office will investigate allegations made against Antonio Brown in a federal lawsuit.

Google Earth leads to remains of missing Florida man Google Earth leads to remains of missing Florida man A submerged vehicle, with the skeletal remains of William Earl Moldt, was found after being spotted on Google Earth. The exterior of the vehicle was heavily calcified and had apparently been submerged for a very long time.

Clijsters sets sights on 2020 comeback after seven-year absence Clijsters sets sights on 2020 comeback after seven-year absence In a phone interview with a small group of reporters, Clijsters said that her primary motivation was to challenge herself. With 41 titles to her name, Clijsters hung up her racket after the 2012 U.S.

Popeye's Jokes About Chicken Sandwich Shortage on Twitter Popeye's Jokes About Chicken Sandwich Shortage on Twitter While it won't have any of the other fixings like mayo and pickles, it's still technically a chicken sandwich. Remember that viral chicken sandwich that sold at Popeye's last month? And you just bring your own bun...

Gmail's Dark Theme Starts to Rollout Gmail's Dark Theme Starts to Rollout To access the Gmail app's dark mode, Pixel users with Android 10 need to download the latest version of Gmail on their phone. As you can see, Gmail adopts a dark grey color scheme rather than the OLED-friendly black seen on some apps with dark modes.

Meghan Markle returns from maternity leave to launch her new clothing line Meghan Markle returns from maternity leave to launch her new clothing line She chose the eve of London Fashion Week to launch her capsule fashion collection with the charity Smart Works . Meghan Meghan, the Duchess of Sussex , has made a handful of public appearances since son Archie was born.

Brexit legal challenge dismissed in Belfast High Court Brexit legal challenge dismissed in Belfast High Court The government rejected that argument during two days of legal proceedings in Belfast High Court, PA reported. The Appeal Court judges will sit again at 1pm on Thursday to consider the matter.

Google Pixel 4 hands-on videos and camera samples leak online Google Pixel 4 hands-on videos and camera samples leak online Google purposely leaked the Pixel 4's design in early June and then spent July and August successfully controlling the narrative. If you don't own a Pixel, this might not mean much, but for those that do, you'll notice this is a revamped camera app.

How to watch the third Democratic primary debate in Houston How to watch the third Democratic primary debate in Houston Beto O'Rourke will need something to happen as nothing he has tried seems to have jump-started his faltering campaign. It's worth noting that the debate this month is estimated to last 30 minutes to an hour longer than the July debates.

NASA joins ISRO to track Vikram lander ‘calling home’ NASA joins ISRO to track Vikram lander ‘calling home’ But sadly the lander could not control the velocity during the last two minutes due to which it couldn't soft-land on the moon. DSN supports Nasa and non-NASA missions that explore the furthest points of our solar system.

QuickTake Is Exclusive To iPhone 11, Plebs QuickTake Is Exclusive To iPhone 11, Plebs With a curated catalog that will chart over a hundred games, subscribers can enjoy game-play across a number of Apple devices. Apple fans' much-awaited wait ends today, as Apple successfully launches its latest iPhone handsets in the market this month.