The euro has battled countless threats to its existence over the past two decades, from debt crises to politicians hoping to tear the currency union apart. During the summer, a new risk emerged for the common currency. Not its plunge below parity with the US dollar, but the plan to dismantle an iconic blue sculpture … Read more
The US dollar is experiencing a once-in-a-generation rally. For the rest of the world, it’s a big problem. The dollar’s role as the primary currency used in global trade and finance means that its fluctuations have widespread effects. The currency’s strength can be felt in fuel and food shortages in Sri Lanka, in Europe’s record … Read more
European Central Bank President Christine Lagarde Photo: Alex Kraus/Bloomberg News The European Central Bank joined the 75-point club on Thursday, raising its three key interest rates by 0.75 percentage points each. That’s up 1.25 points since the ECB’s delayed start in July and comes amid growing fears of European recessions. ECB President Christine Lagarde had … Read more
Business activity in Europe and Japan fell in August, according to new surveys that point to a sharp slowdown in global economic growth as higher prices dampen consumer demand and the war in Ukraine disrupts supply chains. The second month of declining activity in Europe comes amid a renewed rise in energy prices due to … Read more
The world’s pool of negative-yielding debt has shrunk to a roughly seven-year low as an era of unusually loose monetary policy draws to a close in most major economies. The total stock of negative-yielding debt stood at $2.4 trillion last week, according to a Bloomberg Barclays index, an 87% plunge from the $18.4 trillion peak … Read more
The European Central Bank may have just gone from “what it takes” to “what it wants.” On Thursday, eurozone officials sought to signal their strong commitment to fighting inflation, raising interest rates for the first time since 2011. Ironically, Mario Draghi resigned as Prime Minister of Italy on the same day. This is the man … Read more
Updated July 21, 2022 at 8:51 a.m. ET Listen to the article (1 minute) FRANKFURT—The European Central Bank announced a bigger-than-expected half-percentage-point rate hike and unveiled a new plan to buy the debt of Europe’s most vulnerable economies, taking bold steps to protect the currency union as it navigates between the two threats. of rising … Read more
Updated July 21, 2022 at 8:51 a.m. ET Listen to the article (1 minute) FRANKFURT—The European Central Bank announced a bigger-than-expected half-percentage-point rate hike and unveiled a new plan to buy the debt of Europe’s most vulnerable economies, taking bold steps to protect the currency union as it navigates between the two threats. of rising … Read more
Updated July 21, 2022 at 8:51 a.m. ET Listen to the article (1 minute) FRANKFURT—The European Central Bank announced a bigger-than-expected half-percentage-point rate hike and unveiled a new plan to buy the debt of Europe’s most vulnerable economies, taking bold steps to protect the currency union as it navigates between the two threats. of rising … Read more
FRANKFURT — President of the European Central Bank Christine Lagarde faces a three-pronged challenge this week as she steers Europe’s currency union through an increasingly hostile landscape of rising prices, slowing economic growth and political turbulence. Mrs. Lagarde is expected to unveil the ECB’s first rate hike in more than a decade to combat euro … Read more