Fed ready for more stimulus?

Published on Sep 12, 2012 by Euronews

http://www.euronews.com/ The financial markets are betting that the Federal Reserve is about to take action to stimulate the lacklustre US economy.

A growing number of economists believe Fed Chairman Ben Bernanke and his fellow policymakers will decide at their current meeting to go for a third round of purchases of US government bonds.

By printing money to buy bonds, the US central bank would lower borrowing costs and spur a stronger economy.

Reuters asked 51 economists for their views. Of those who put the chances of quantitative easing, or QE3, at greater than 50 percent, 39 expected the Fed to act this week.

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France backs Greek austerity delay - at a price

Published on Sep 13, 2012 by Euronews

http://www.euronews.com/ Greece must deliver on its reform promises. That was the message from French Finance Minister Pierre Moscovici who was in Athens on Thursday to meet Prime Minister Antonis Samaras and key members of his cabinet.

France has said it will back Greece's request for an extra two years to reduce its public deficit, but in return needs to see action not just words.

At the same time the International Monetary Fund said there are good arguments for granting that delay.

The question of whether Greece will need a third bailout package from the eurozone has also in play.

And the man who represents Greece at the IMF said it will. In an interview with the Wall Street Journal Thanos Catsambas said Greece's European creditors will have to find the money for that.

The Greek finance minister and an IMF spokesman said right now they are focused only the spending cuts needed to conclude the second bailout.

But more austerity measures risk pushing Greece into an even steeper spiral of economic decline.

The scale of the problem is illustrated by the latest Greek unemployment figures. As the economy slows the jobless rate jumped to 23.6 percent of the workforce in the second quarter of this year, up from 22.6 percent in the first quarter.

The young are suffering worst. For under 24-year-olds the unemployment rate was 53.9 percent.

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Brussels unveils new banking plan

Published on Sep 12, 2012 by Euronews

http://www.euronews.com/ The EU Commission has unveiled sweeping plans for the European Central Bank to supervise all of the eurozone's banking system.

The reforms, which still need approval from member states, would give the ECB responsibility for the bloc's 6,000 or so financial institutions.

In Strasbourg, the EU's financial services chief Michel Barnier said he hoped the new system would be up and running soon.

''When? After the text is approved we hope things will be in place before the end of the year and that the European Central Bank will have the power to directly supervise any banks that it believes are at risk,'' Barnier said.

The move is seen as a key step to creating a banking union in Europe, often regarded as one of the cornerstones for full fiscal integration.

But the Commission could face opposition. Both Berlin and London have raised objections to handing over so much oversight to the ECB.

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Euro zone steers debt crisis obstacles (2:31)

Sept. 13 - The Dutch election ended favourably for the euro zone chiefs who needed to keep their pro-Europe allies but the Greek austerity plan is yet to be approved. Joanne Nicholson reports

South Africa mining crisis escalates (1:56)

Sept. 13 - Anglo American Platinum, the world's biggest platinum producer closes four of its mines in Rustenburg over staff safety fears. Hayley Platt reports