Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

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Banks

Basel Committe fail to sign off on latest bank reform measures

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […]

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Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Categorized | Economy

Eurozone money supply growth hits slowest pace since pre-QE


Posted on November 28, 2016

Money supply in the eurozone grew at its softest pace since the European Central Bank began its bond-buying programme last month, with the central bank likely poised to extend its stimulus measures next week.

A measure of broad money, known as M3, expanded by 4.4 per cent in October, coming in lower than the 5 per cent forecast by economists and the slowest pace of growth since February 2015.

Usually seen as a forward indicator for economic activity, the money supply figures were coupled with a moderate rise in lending to households, which grew by 1.8 per cent – in line with expectations and unchanged from September.

Credit growth for businesses inched up by 2.1 per cent on a month on month basis, from 2 per cent in the previous month, according to figures from the ECB.

Eurozone policymakers are widely expected to announce a six-month extension to their quantitative easing measures first launched back in March 2015, and which could last until September 2017.

The meeting will be held on December 8 and comes after the ECB has already snapped €1.1tn of government bonds under the scheme.

President Mario Draghi is due to be quizzed on QE and the fallout from the UK’s Brexit vote when he addresses MEPs in the European Parliament later today (1400 GMT).