ECB’s Emergency Powers Must Be Limited, Policy Maker Says

by birtanpublished on September 29, 2020

the ecb risks legal trouble if it tries
to extend the emergency powers of its
pandemic bond buying plan
to its other asset purchase program well
that's according to executive board
member
ivmesh joining us now for more is paul
gordon who leads our ecb coverage who
also spoke to
mr manchester so paul what exactly is
the significance of these comments
um i would say it feeds into a debate
that looked like it might have been
getting started there were reports
earlier this week that some governing
council members
think the powers of the pandemic
emergency purchase program
are very useful and could be used after
the pandemic crisis perhaps in the
existing asset purchase program uh merch
is uh has been at the heart of ecb
policymaking uh since
the birth of the euro he's a lawyer and
he is responsible for these
legal services and he's warning of legal
trouble if you go down
that route he's pointing out that the
governing council
always links the pandemic program and
the special powers the extra flexibility
it has
um to the pandemic that was in the
monetary policy statement it was in the
legal text that went alongside it and
it's been in every speech since so
if you decide you're going to change
tech then you run a legal risk so it's
quite significant wording from him
um paul what does the economic outlook
actually warrant
you know in terms of more stimulus would
we get more stimulus in december
yes of course i mean this doesn't rule
out the to be deciding the pandemic
program needs to be bigger
or last longer and merch doesn't isn't
prepared to go that far at the moment
um he said that the outlook um for the
economy is in line with current
projections which pretty poor
and eight percent decline in gdp this
year and only a partial rebound next
year
he did say there are signs that perhaps
the outlook could be a little bit better
than that
and but this all depends on the health
situation and
he what he called a major caveat to any
projections if the health
uh situation deteriorates not just
infections but also the burden on the
health service
then that could derail those scenarios
and in fact we saw today as you
mentioned
uh pmi numbers coming out which were
really very poor
for the service sector which is the
biggest part of the economy in the
eurozone
so that is at risk and it does mean i
would say that
more cost of eating more pandemic
purchases could yet be announced as
economists predict
in december

Related Videos

from daily forex this is chris taking a look at the uh bitcoin market here you can see that we have uh found the market to be bullish we have broken above the ...
James fake revenue at deutsche bank has risen by 47 in the third quarter has this good momentum continued in the fourth quarter as well look we're continuin...
from daily forax this is chris taking a look at the um us stock indices this is the s p 500 and you can see that the s p 500 has uh rallied quite a bit did pul...
The capital position now and the confidence you have to deploy that dividend well indeed we have uh we've had a uh a very strong quarter um in which uh you ...
Hi everyone my name is adita and a few years ago i got divorced and became a single mom of two kids and that's when i started to look for ways to invest my ...
Have you ever thought of the true value of gold I mean really the value of something isn't its price it's what you can buy with it that is the true valu...
Hi this is vlad from effects empire euro dollar failed to settle above the resistance at 1.1870 and is trying to get below the support at 1.1830 if this attempt...
from daily forex this is chris taking a look at the uh crude oil marking cwti has gapped a little bit lower and then basically did nothing so uh at this point ...
Rupert what does this all mean for for equities but in general actually asset classes would you buy right now yeah so we are still broadly constructive on risk ...
Today I'm looking back at the Tesla stock on March 17th I did an analysis based on my ambassador diamond analysis the IDB a and I suggested that after its s...
The thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing money leaving money on the table ...
from fx empire this is chris taking a look at the euro dollar and you can see that we are reaching above 118 as new york gets on board and perhaps trying to ma...
from daily forex this is chris taking a look at the euro and the pound you can see the euro has fallen a bit during the trading session here on friday as there...
The crude oil price has had a great recovery off those april lows but it does appear to be struggling over recent weeks so given the resurgence of the coronavir...
The recovery in silver continued into july and in the last week uh the price went somewhat parabolic moving from 19 up to 26 and you can see the sort of volatil...
Now one of the things that almost all millionaires have in common is they have exceptional I mean exceptional communication skills because they recognize that c...
Hi this is vlad from effects empire silver is currently trying to settle above the nearest resistance level at 23.30 if this attempt is successful silver will g...
from daily forex this is chris taking a look at the gold and silver markets you can see gold has smashed into this little short-term downtrend line that i have...
So tell us a bit more about the survey what what are your clients telling you about the lessons learned from this pandemic and what does it tell us about the fu...
At first glance ichimoku charts um can seem somewhat intimidating with a lot going on when we're looking at markets but they're also a really powerful w...