Euro Zone

Transaction tax would cost British savers 4.4 billion euros, report says

The City of London fears that the planned tax will cause  the values of household holdings of stocks and bonds to drop as prices adjust instantaneously to reflect the levy. Photo: Reuters

A planned tax on financial transactions in 11 euro-zone countries would cut the value of household savings in non-participating Britain by 4.4 billion euros (HK$46.8 billion), a report for the British financial sector said on Tuesday.

Tuesday, 18 February, 2014, 11:27am

Who's to blame for slack euro zone? Not Germany

German Chancellor Angela Merkel. Photo: AFP

The economic talking-head establishment has declared war on Germany.

The opening shots in this battle were fired by none other than the United States Treasury Department, which had the audacity to blame Germany for a weak euro zone recovery in its semi-annual foreign exchange report.

12 Dec 2013 - 2:08pm

Euro gains in Asia on Spain recession exit

Are the woes finally over for the euro? Photo: Reuters

The euro rose on Thursday as news that Spain exited recession boosted hopes for the battered euro zone, while the dollar faced headwinds over speculation the Federal Reserve would delay its monetary easing drawdown.

The single currency hovered near two-year highs against the dollar at US$1.3789, up from US$1.3775 in New York on Wednesday, while it rose to 134.18 yen, from 134.10 yen.

25 Oct 2013 - 11:46am

Euro-zone industrial output picks up

Conditions remain difficult for European manufacturers.

Industrial output from euro-zone factories defied market expectations of a month-on-month decline to rise in April, data showed yesterday, but the pace of expansion was slowed by a drop in production of energy and durable consumer goods.

13 Jun 2013 - 6:43am

The IMF's public mea culpa on that big fat Greek bailout

There are many disparate interests in the euro area.

It takes a big person to acknowledge he was wrong, and the International Monetary Fund has now repeatedly admitted to the failure of its euro-area rescue policies.

11 Jun 2013 - 4:39am

ECB says it has no set limit to bond-buying

France's President Francois Hollande. Photo: AFP

There is no limit to the European Central Bank's bond-buying programme, the bank said yesterday, a day after France's President Francois Hollande announced Europe's debt crisis was over.

10 Jun 2013 - 5:19am

ECB expects gradual recovery in euro zone

Mario Draghi, President of the European Central Bank (ECB). Photo: AFP

The European Central Bank expects a "very gradual recovery" in the debt-hit euro zone to start later this year, the bank's chief said yesterday.

4 Jun 2013 - 3:57am

Letters to the Editor, May 13, 2013

Angela Merkel's austerity measures are right. Photo: AFP

Thousands turned out for May day marches on May 1, because so many workers in Hong Kong believe they are being poorly treated.

13 May 2013 - 1:52am 4 comments

Euro-zone rate cut unlikely to boost lending

The European Central Bank could cut its interest rates from record lows and unveil new measures to kick-start bank lending, analysts say.

The European Central Bank, meeting in the Slovakian capital of Bratislava today, could cut its interest rates from record lows and unveil new measures to kick-start bank lending, analysts say.

2 May 2013 - 3:47am

Greece adopts bill to cut 15,000 civil servant jobs

Greek Prime Minister Antonis Samaras (centre) speaks with his party's deputies after a debate in parliament in Athens. Photo: EPA

The Greek parliament voted late on Sunday to adopt a law that provides for the dismissal of 15,000 civil servants as part of austerity measures imposed by the country’s international creditors.

After heated debate, 168 deputies voted for the bill, with 123 voting against and one abstaining.

29 Aug 2013 - 4:13am

Cyprus bailout cost jumps in threat to teetering economy

A Bank of Cyprus branch in central Nicosia. Photo: AFP

Cyprus confirmed on Thursday that the cost of its EU-IMF bailout has surged to 23 billion euros (US$30 billion) from 17.5 billion euros, putting the already teetering economy in danger of collapse and further endangering large bank depositors.

12 Apr 2013 - 1:57am

Asia at risk if insolvencies hit euro zone

Post-Cyprus fallout is adding to Europe's existing challenges. Photo: Reuters

According to IMF data, central banks in emerging economies cut their euro holdings by 8 per cent, or €45 billion (HK$450 billion) in 2012. The world economy is moving towards a multipolar currency regime.

8 Apr 2013 - 2:04am

Big Cyprus savers could lose 60pc

Big savers in Cyprus' largest bank face losses of up to 60 per cent. Photo: AP

Big savers in Cyprus' largest bank face losses of up to 60 per cent, far greater than originally feared under the island's controversial European Union-led bailout plan, officials said.

31 Mar 2013 - 6:22am

U.K. banks told to raise an extra £25b

The Bank of England recommended Wednesday that the nation's lenders increase their capital buffers by 25 billion pounds ($37.9 billion) by the end of the year to ensure they can cover potential losses and keep lending in the event of future crises. Photo: AP

Banks need to set aside more money to cover bigger potential losses on commercial real estate and from the euro area, possible fines for mis-selling and stricter risk models, the Bank of England said following a report by the Financial Services Authority.

28 Mar 2013 - 5:52am

Cyprus' bailout marks a turning point

The Governor of Central Bank of Cyprus Panicos Demetriades said in a press conference "a superhuman effort" is being made for the banks to open on March 28 and he also confirmed that a so-called haircut or levy on deposits over 100,000 euros ($130,000) at the stricken Bank of Cyprus and Laiki Bank would be 'around 40 percent.' Photo: AFP

What has set Cyprus apart is that it is one of the smallest members of the euro zone, with a failed banking system much bigger than its economy. Likewise, the €10 billion (HK$101 billion) rescue deal with international lenders, though more than half its GDP, is small change compared with the hundreds of billions in bailouts for Greece, Spain, Portugal and Ireland. But it marks a turning point in European leaders' approach to bailouts, with the balance of risk shifted from taxpayers to private investors.

27 Mar 2013 - 3:09am