Home Tags Euro
Italy and Spain will be the worst-hit major economies, contracting 9.5%, forecasts said in a statement on Wednesday.
The European Central Bank has launched a ‘bazooka’ $820 billion pandemic fund to aid markets. ‘There are no limits.’
The so-called Pandemic Emergency Purchase Programme (PEPP) comes six days after it announced policies which did little to provide comfort to traders.
The euro was introduced in many country's banking systems in 1999, and was launched as coins and banknotes in 12 countries on January 1, 2020.
Donald Trump wants negative interest rates. Rates in Europe just went to a record low, and this is the effect.
The European Central Bank's base rate has been negative since 2016. It cut a further 10 basis points to -0.5% and announced a fresh round of stimulus.
"We don't have a Tariff problem (we are reigning in bad and/or unfair players), we have a Fed problem," Trump said. "They don't have a clue!"
"We're starting to fear a Q2 GDP crash in Germany," says Pantheon Macroeconomics.
Trump’s right on the money: IMF finds the US dollar is overvalued, the Euro is undervalued for Germany
"Whilst Trump has never been the biggest fan of the IMF, he may very well be now!"
Trump just attacked Mario Draghi — accusing the European Central Bank chief of manipulating the euro
Draghi pledged stimulus if conditions don't improve. The lower euro is "making it unfairly easier for them to compete against the USA," Trump tweeted.
After weeks of wrangling, the two parties agreed to allow Italy to run a budget deficit of 2.04% next year. Stocks and the euro gained on the news.
The budget proposes increasing both Italy's overall government debt and its deficit in the short run, pushing the deficit as high as 2.4% of GDP over the coming years. This means Italy will fall foul of a previously mandated deficit level of 0.8% of GDP maximum.