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BENGALURU (Reuters) - The euro zone economy will contract again this quarter as renewed lockdown measures stifle activity, according to a Reuters poll which showed the bloc’s GDP would then return to pre-crisis levels within two years. FILE PHOTO: Containers and cars are loaded on freight trains at the railroad shunting yard in Maschen near Hamburg September 23, 2012. “We now assume vaccines will be rolled out in the euro zone next year and most restrictions on economic activity are lifted during Q2. The wider poll showed after contracting 2.6% this quarter, the economy would grow 1.1% in the first quarter of 2021 compared with 0.8% in the last poll. On an annual basis, the economy was expected to shrink 7.4% this year, and grow 5.0% in 2021 largely unchanged from the last poll.
Persons: Fabian Bimmer, , , Andrew Kenningham, Elwin de Groot Organizations: REUTERS, European Central Bank, Capital Economics, ECB, Rabobank Locations: BENGALURU, Maschen, Hamburg, Europe
Trump's Fed pick Waller to get confirmation vote Thursday
  + stars: | 2020-12-02 | by ( Reuters Staff | ) www.reuters.com sentiment -1.00   time to read: +1 min
FILE PHOTO: The Federal Reserve building is set against a blue sky, amid the coronavirus disease (COVID-19) outbreak, in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque(Reuters) - St. Louis Federal Reserve Bank research director Christopher Waller moved a step closer on Wednesday toward a seat on the U.S. Federal Reserve after a procedural move in the U.S. Senate cleared the way for a final vote on his nomination on Thursday. Senators voted 50-45 to end debate on outgoing President Donald Trump’s nominee for one of two vacant seats at the Fed. A confirmation on Thursday could leave enough time for Waller to be sworn in before the U.S. central bank’s next policy-setting meeting in mid-December. A similar procedural vote last month for a second Fed nominee, Trump former economic adviser Judy Shelton, failed to win enough support from the Republican majority in the Senate, and no new vote is scheduled.
Persons: Kevin Lamarque, Christopher Waller, Donald Trump’s, Waller, Judy Shelton Organizations: Federal Reserve, REUTERS, Louis Federal Reserve Bank, U.S . Federal, Senate, Fed, Trump, Republican Locations: Washington , U.S, U.S, bank’s
Visa backs the first-ever credit card to offer bitcoin rewards
  + stars: | 2020-12-02 | by ( Alexandria White | Megan Dematteo | ) www.cnbc.com sentiment -0.96   time to read: +1 min
It's about to get a lot easier to earn bitcoin thanks to a first-of-its-kind credit card: the Bitcoin Rewards Credit Card. While there are debit cards by Coinbase and Fold that offer bitcoin rewards, this is the first credit card that rewards you with the cryptocurrency, instead of points or miles. Visa and cryptocurrency financial tech company BlockFi have partnered to release the Bitcoin Rewards Credit Card to U.S. residents in all states except for New York (due to regulatory restrictions) in spring 2021. Cardholders will earn 1.5% cash back on all purchases that will automatically be converted to bitcoin and placed into a BlockFi account every month. The Bitcoin Rewards Credit Card will have a $200 annual fee, but it can be offset in the first year thanks to the card's welcome bonus: earn $250 in bitcoin after spending $3,000 or more on the card within the first three months from account opening.
Persons: Cardholders, bitcoin, it's Organizations: New, Evolve Bank & Trust Locations: New York, bitcoin
“Banking contacts in numerous Districts reported some deterioration of loan portfolios, particularly for commercial lending into the retail and leisure and hospitality sectors,” Fed officials reported. “A supplier to commercial aviation announced major layoffs over the summer and has not had any reason to revise those plans either up or down,” Boston Fed officials noted. In some states and cities that has led officials to impose new restrictions on businesses and social gatherings. Sharply rising COVID-19 cases triggered a “downward trend” in November in the Philadelphia Fed district, and the Minneapolis Fed reported signs of “softening.”St. Louis reported conditions “deteriorated” toward the end of the survey period, which went through Nov. 20. Kansas City reported a pullback in consumer spending in November in retail, restaurant, auto and tourism sales.
Persons: Carlo Allegri, St, Louis Organizations: WASHINGTON, . Federal Reserve, REUTERS, “ Banking, ” Fed, Boston Fed, Philadelphia Fed, Minneapolis Fed, Kansas City Locations: Manhattan, New York City , New York, U.S, Philadelphia, COVID, delinquencies, Boston, Cleveland
NY Fed's Williams: U.S. economic growth is slowing as fiscal aid fades
  + stars: | 2020-12-02 | by ( Reuters Staff | ) www.reuters.com sentiment -0.94   time to read: 1 min
(Reuters) - The U.S. economy was recovering faster than expected until recently, but growth is now slowing as the coronavirus spreads across the country and fiscal aid that supported many households expires, New York Federal Reserve Bank President John Williams said on Wednesday. “We are still in a very deep recession,” Williams said during a virtual event organized by the New York Fed. “One of the big question marks as we move forward about the economic recovery is how big the effects will be of this very large wave of COVID cases along with the expiration or diminishment of fiscal support.”
Persons: John Williams, , ” Williams, Organizations: Reuters, New, New York Federal Reserve Bank, New York Fed Locations: U.S, New York
LONDON (Reuters) - U.S. Treasury yields should rise from current levels but any major selloff is unlikely in a bond market that has been locked in a three-decade bull run, the CIO of public fixed income at M&G Investments said on Wednesday. Speaking to the Reuters Global Investment Outlook Summit, Jim Leaviss, who runs the widely read Bond Vigilantes blog, said he was “short duration”, even though he does not anticipate as a big a jump in U.S. bond yields as markets are pricing. “We are short duration at the moment, which implies that I expect bond yields to rise from here,” Leaviss said. Leaviss recommended increasing exposure to U.S. inflation protection given the very low levels of real yields - bond yields when adjusted for inflation. Still, U.S. stimulus headlines on Wednesday lifted the 10-year breakeven inflation rate to 1.84% - its highest level since May 2019.
Persons: Jim Leaviss, ” Leaviss, Leaviss, I’m, , , you’ve Organizations: Treasury, G Investments, Reuters Global Investment Outlook, U.S ., European Central Bank, , ECB, Bank of England Locations: dented, U.S
LONDON (Reuters) - Former London Stock Exchange boss Xavier Rolet has joined a newly-launched “blank check” company that is hunting for technology deals across Europe under the leadership of ex Barclays banker Makram Azar. REUTERS/Mike Blake/File PhotoThe special purpose acquisition company, named Golden Falcon Acquisition Corp, will be listed on the New York Stock Exchange with a fundraising goal of $250 million (187 million pounds), a filing to the U.S. Securities and Exchange Commission (SEC) showed. Rolet, who left the LSE in 2017, will serve as an independent director of the new vehicle, the SEC filing showed. Golden Falcon will focus primarily on companies in Europe providing a wide spectrum of technology expertise. The special purpose acquisition company is offering up to 28.7 million units - inclusive of a greenshoe option - at $10 apiece.
Persons: Xavier Rolet, Makram Azar, Mike Blake, Azar, Golden Falcon, Scott Freidheim, Golden, Dominique D’Hinnin, Mikael Breuer, Weil Organizations: London Stock Exchange, Barclays, REUTERS, Falcon Acquisition, New York Stock Exchange, U.S . Securities, Exchange Commission, SEC, LSE, KKR, Golden, EMEA, Barclays Bank PLC, Eutelsat, Marylebone Partners, UBS, Moelis, EarlyBirdCapital Locations: Europe, Beverly Hills , California, U.S, East, North Africa
Fed's Harker: U.S. economy 'plateauing' because of virus, lack of fiscal help
  + stars: | 2020-12-02 | by ( Jonnelle Marte | ) www.reuters.com sentiment -1.00   time to read: +2 min
Harker said he is expecting “moderate growth for the rest of this year and the first quarter of 2021” and for the economy to stay below pre-pandemic levels. “Indeed, we are currently seeing signs of plateauing in the economy,” Harker said during remarks prepared for a virtual discussion. Harker said more fiscal support is needed to get the economy to that point and to support low-income households. Speaking about the actions the Fed took to support the economy during the pandemic, Harker said he thought the central bank’s emergency lending programs should be extended beyond year end. “Until we get through this pandemic, the economy needs to be supported.”
Persons: Chris Wattie, Patrick Harker, Harker, ” Harker, , Steven Mnuchin, Organizations: Federal Reserve, REUTERS, Philadelphia Federal Reserve Bank, Fed, Locations: Washington , DC
Liberty Steel to start due diligence on Thyssenkrupp steel business
  + stars: | 2020-12-02 | by ( Reuters Staff | ) www.reuters.com sentiment -0.78   time to read: +2 min
REUTERS/Michaela Rehle/File PhotoLONDON (Reuters) - Liberty Steel, which last month announced a non-binding indicative offer for Thyssenkrupp Steel Europe, will soon start looking into its financial records, it said on Wednesday. “Liberty Steel will shortly begin a detailed due diligence and thus gain insight into key business data of Thyssenkrupp’s steel business,” Liberty said in a statement. Last week, sources told Reuters that Thyssenkrupp was likely to give Britain’s Liberty Steel, headed by metals tycoon Sanjeev Gupta, access to the books of its steel unit. Gupta’s hand has been strengthened due to consolidation talks between Sweden’s SSAB and Tata Steel that could result in a deal and potentially leave Liberty Steel as the sole bidder for Thyssenkrupp Steel Europe. Thyssenkrupp, which confirmed it had agreed to open its books to Liberty, has said it aims to make a decision on whether to sell or keep its steel unit by March.
Persons: Michaela Rehle, Liberty, Thyssenkrupp, Sanjeev Gupta, Sweden’s SSAB Organizations: REUTERS, Liberty Steel, Thyssenkrupp Steel, “ Liberty Steel, Reuters, Tata Steel, Liberty, Deutsche Bank, Salzgitter, Central Locations: Rottweil, Germany, Thyssenkrupp’s Duisburg
ECB's Lane plans to continue private investor meetings
  + stars: | 2020-12-02 | by ( Reuters Staff | ) www.reuters.com sentiment -1.00   time to read: +2 min
FRANKFURT (Reuters) - European Central Bank chief economist Philip Lane will continue to hold private meetings with investors after policy decisions, in spite of criticism they could give some large financial companies an unfair advantage, he told Reuters. “Our standing approach right now is to continue those calls,” Lane told the Reuters Global Investment Outlook Summit, 2021, defending the practice. “It very much conforms with the key principles of how to interact with the market in relation to already published information. It’s not to front-run future decisions,” Lane said, referring to the problematic practice of giving hints about policy moves ahead of their announcement. The ECB’s meetings take place before Lane, on the day after a policy meeting, published his occasional blog posts that often nuance the ECB’s policy message and guide markets.
Persons: Philip Lane, Gary, Lane, irking, ” Lane, Christine Lagarde’s, It’s Organizations: Central Bank, Reuters, REUTERS, Wall Street, Reuters Global Investment Outlook, ECB, U.S . Federal Locations: FRANKFURT, New York, U.S
ECB looking at more than two instruments to help euro zone: Lane
  + stars: | 2020-12-02 | by ( Balazs Koranyi | ) www.reuters.com + 0.00   time to read: +3 min
FRANKFURT (Reuters) - The European Central Bank will look at more than its two hallmark instruments to support an economy that faces permanent damage from a pandemic-induced recession, ECB chief economist Philip Lane told Reuters. FILE PHOTO: Executive Board member of the European Central Bank Philip Lane attends the Fortune Global Forum in Paris, France, November 18, 2019. REUTERS/Gonzalo Fuentes//File PhotoWith the bloc heading for a double-dip recession, the ECB has already promised help through emergency bond buys and liquidity facilities, but Lane said more instruments could be discussed when policymakers meet on Dec. 10. “I think it’s important not to infer that we are only looking at two programmes,” Lane told the Reuters Global Investment Outlook Summit, 2021. Lane also downplayed the significance of four straight months of negative inflation readings, saying much of the dip will be reversed automatically when the economy revives.
Persons: Philip Lane, European Central Bank Philip Lane, Gonzalo Fuentes, Lane, , ” Lane, Organizations: European Central Bank, Global, REUTERS, ECB, Reuters Global Investment Outlook, Reuters Locations: FRANKFURT, Paris, France
Teen banking app Step reaches for the stars to raise $50 million
  + stars: | 2020-12-02 | by ( Anna Irrera | ) www.reuters.com + 0.97   time to read: +2 min
Slideshow ( 2 images )LONDON (Reuters) - Teen banking app Step has raised $50 million (37.4 million pounds) from investors led by Coatue Management alongside celebrities such as singer Justin Timberlake, influencer Charli D’Amelio and former quarterback Eli Manning. San Francisco-based Step allows parents to view balances and real-time activity, add money to their teens’ accounts and manage and freeze cards. Other stars involved in the fundraising included The Chainsmokers, Kelvin Beachum, Larry Fitzgerald and Andre Iguodala, Step said in a statement on Wednesday. “We are making sure we are building scalable solutions and are able to handle the growth,” MacDonald said. Step is one of several new banking apps focused on children and teens in the U.S., as companies seek to capitalise on a global surge in digital payments and ecommerce.
Persons: Justin Timberlake, influencer Charli D’Amelio, Eli Manning, Kelvin Beachum, Larry Fitzgerald, Andre Iguodala, Step, CJ MacDonald, ” MacDonald, hasn’t, ” Smith Organizations: Teen, Coatue Management, CrossLink, Collaborative Fund, Reuters, JPMorgan Chase &, Dreamers Locations: San Francisco, U.S
U.N. refugee agency for Palestinians pays salaries, but crisis persists
  + stars: | 2020-12-02 | by ( Nidal Al-Mughrabi | ) www.reuters.com sentiment -1.00   time to read: +2 min
The agency said last month it had run out of money to pay salaries after two years of funding cuts by the United States and other donors, including Arab Gulf states. “The payment of December remains uncertain and we are in need of $38 million to pay the salaries of our 30,000 staff,” Abu Hasna told Reuters. Also on Wednesday, Israel handed over a backlog of billions of shekels in tax money to the Palestinian Authority. The PA has been unable to pay full wages of its 130,000 employees in the past months. Palestinian Prime Minister Mohammad Shtayyeh said this week it would pay full salaries once it received the tax money.
Persons: Donald Trump, Joe Biden’s, Adnan Abu Hasna, ” Abu Hasna, Israel, Benjamin Netanyahu’s, Mohammad Shtayyeh Organizations: United Nations, UNRWA, Reuters, West Bank, Palestinian Authority, Palestinian Locations: GAZA, United States, Gaza, Sweden, East Jerusalem, Israel
Breakingviews - Cox: Mediobanca could be UniCredit’s white knight
  + stars: | 2020-12-02 | by ( Rob Cox | ) www.reuters.com + 0.00   time to read: +6 min
ZURICH (Reuters Breakingviews) - Enrico Cuccia founded Mediobanca after World War Two as a bulwark for Italian capitalism against the confiscatory hands of an increasingly meddlesome government. A logo of Mediobanca is pictured at Mediobanca headquarters in Milan, Italy, November 12, 2019. Now that Mustier has gone, investors have concluded UniCredit will inevitably do Rome’s bidding and decimated its stock price. Mediobanca would likely need shareholder approval to issue a flood of new stock to UniCredit shareholders. For UniCredit, though, Mediobanca could be a kind of white knight, freeing the board from a shotgun marriage, brokered by Rome, with Monte Paschi and its concomitant black hole of legal liabilities and non-performing loans.
Persons: Enrico Cuccia, UniCredit, Jean Pierre Mustier didn’t, Intesa, Carlo Messina, Palazzo Chigi, Giuseppe Conte, Monte Paschi, Mustier, Mediobanca, Alberto Nagel, Nagel, There’s, Pier Carlo Padoan, Rome, Leonardo Del Vecchio, isn’t, Cuccia, Monte Organizations: Reuters, Bank of Italy, Treasury, Banca Monte dei, Intesa’s, Compass, Mustier, La Scala Locations: ZURICH, Rome, Milan, Italy, Siena, Monte, UniCredit, Paris, Germany, Austria, Europe, Montedison, Monte Paschi
WASHINGTON (Reuters) - U.S. private payrolls increased less than expected in November as soaring new COVID-19 infections led to a wave of business restrictions, adding to signs of slowing economic activity as a turbulent year winds down. Private payrolls rose by 307,000 jobs last month after increasing 404,000 in October. Economists polled by Reuters had forecast private payrolls would rise by 410,000 in November. The ADP report was released ahead of the government’s closely watched, and comprehensive, monthly employment report on Friday. According to a Reuters survey of economists, private nonfarm payrolls likely increased by 589,000 jobs in November after rising 906,000 in October.
Persons: Rose Carter, Bryan Woolston, Joe Biden, Donald Trump, , Chris Rupkey, payrolls, John Williams, Daniel Silver Organizations: WASHINGTON, Kentucky Labor, REUTERS, ADP, Republicans, Democrats, Congress, Jan, Reuters, United, York Federal Reserve Bank, Treasury, Moody’s, JPMorgan, Institute for Supply Management, Manufacturers Locations: Lexington, Frankfort , Kentucky, U.S, New York, United States, York
RIO DE JANEIRO (Reuters) - More than 20 armed robbers stormed a bank in a small Brazilian town on Wednesday, taking hostages, exchanging gunfire with police in the streets and killing one person before fleeing in a convoy of vehicles. The attack on Wednesday saw the group of men, armed with high-caliber weapons, storm a Banco do Brasil bank, the Para state security ministry said. The security ministry said it had found one abandoned getaway vehicle outside the town with explosives inside. The Cametá attack came a day after a similar heist in the southern city of Criciúma. Bank robbers there blasted explosives and fired high-caliber weapons at police, in a heist that injured two people and left reams of cash in the streets to be pocketed by locals.
Persons: , Waldoli Valente, Jair Bolsonaro Organizations: RIO DE, Reuters, Wednesday, Facebook, Authorities, Bank Locations: RIO DE JANEIRO, Cametá, Brazil, Brasil, Para, Criciúma
FILE PHOTO: A Royal Bank of Canada (RBC) logo is seen on Bay Street in the heart of the financial district in Toronto, January 22, 2015. REUTERS/Mark Blinch/File PhotoTORONTO (Reuters) - Royal Bank of Canada and National Bank of Canada beat expectations for fourth-quarter profit on Wednesday, as they set aside less capital than analysts had anticipated to cover potential loan losses. National Bank, the smallest of Canada’s six largest lenders, took provisions of C$110 million, versus the nearly C$160 million expected. Royal Bank’s gross impaired loans fell 17% from the previous quarter, while they rose 3% at National Bank. Royal Bank reported adjusted net income of C$2.27 per share, versus estimates of C$2.05.
Persons: Mark Blinch Organizations: Royal Bank of Canada, REUTERS, TORONTO, National Bank of Canada, Royal Bank, National Bank, Bank of Montreal, Bank of, Royal, National Bank . Royal Bank Locations: Toronto, Bank of Nova Scotia
Other Fusus clients, including police departments in Minneapolis and Rialto, California, said they are not interested in obtaining real-time footage from doorbell cameras. For more of NBC News' in-depth reporting, download the NBC News appTo some Jackson officials, the appeal of more real-time surveillance video is clear. “I don’t believe the government should be tapping into my Ring,” Jackson City Councilman De’Keither Stamps said, questioning whether there were enough safeguards to prevent the technology from being abused. The police, he said, cannot access a camera’s footage without the owner’s advance permission. At the ribbon-cutting for the Jackson surveillance center, Lumumba tried to assuage fears about how the technology would be deployed.
Persons: JACKSON, , ” Jackson, Chokwe Lumumba, Bracey Harris, Jackson, Fusus, ” Lumumba, , we’ll, , Stamps, Jackson Jackson, Lumumba, Anthony Longino, Sam Brown, Brown, ‘ We’re, Merchant, “ We’re, ” Merchant, , Vincent Ogburn, ” Ogburn, Matthew Guariglia, ” Guariglia, Guariglia, Livestreaming, Anthony Vega, isn’t, ” Vega, Scott Gerlicher, ’ Reed Hogan, Hogan, Felicia McClinton, McClinton, Aaron Banks, ” Banks, ” Jon Schuppe Organizations: Miss, Jackson, NBC, Fusus, NBC News, City Council, U.S . Department of Justice, Legislature, Justice Department, Department of Transportation —, Jackson Police Department, Commission, Police, Electronic Frontier Foundation, San Francisco Police Department, American Civil Liberties Union, Rialto, The Minneapolis Police Department, Belhaven Improvement Association, Jackson City Council Locations: Jackson, Georgia, Ocoee , Florida, Minneapolis, Rialto , California, ” Jackson, Atlanta, Detroit, New Orleans, Mississippi, Belhaven, Black, West Jackson, Washington, New York, Jackson , Mississippi
RAMALLAH, West Bank (Reuters) - Israel handed over a backlog of billions of shekels in tax money to the Palestinian Authority on Wednesday, both sides said, in another sign of warming ties between the sides after the U.S. presidential election victory of Joe Biden. The 3.77 billion shekels ($1.14 billion) transfer is the first since June, when the Palestinians snubbed the handover due to Israeli Prime Minister Benjamin Netanyahu’s plans, currently suspended, to annex parts of the occupied West Bank. “The #Israeli government transfers all financial dues of the clearance to the account of the #Palestinian Authority,” Palestinian Affairs minister of civil affairs Hussein al-Sheikh tweeted, giving the figure as 3.768 billion shekels. Palestinian Prime Minister Mohammad Shtayyeh said this week it would pay full salaries once it received the tax money. Israel froze its annexation plans in August as part of an agreement to forge diplomatic ties with the United Arab Emirates.
Persons: Joe Biden, Benjamin Netanyahu’s, Hussein, Sheikh, Mohammad Shtayyeh, Donald Trump, Mahmoud Abbas, Biden, Riyad al, Maliki Organizations: West Bank, Reuters, Palestinian Authority, U.S, Palestinian, Israeli Finance Ministry, United, United Arab Emirates, Israel, Biden, White Locations: RAMALLAH, West, Israel, United Arab, Palestine
A gloomy Christmas in store for Gaza handicraft workshop
  + stars: | 2020-12-02 | by ( Nidal Al-Mughrabi | ) www.reuters.com sentiment -1.00   time to read: +2 min
GAZA (Reuters) - It’s not going to be a very merry Christmas this year for a handicraft workshop in Islamist-run Gaza that has been an unlikely source of gifts for the holiday. A Palestinian woman wearing face veil, niqab, works on a Christmas-themed doll in a handicraft workshop, amid the coronavirus disease (COVID-19) outbreak, in the northern Gaza Strip December 1, 2020. REUTERS/Mohammed SalemCoronavirus lockdowns have made it difficult for the Zeina Cooperative Association to export its hand-crafted Christmas gifts from Gaza to Europe and to the Palestinian town of Bethlehem in the Israeli-occupied West Bank. “We have tried to make changes to some of our products to adjust to the current situation we are living amid the coronavirus (outbreak),” she added. Some 1,000 Christians, mostly Greek Orthodox who celebrate Christmas in January, live in Gaza, which is run by the Islamist Hamas movement.
Persons: It’s, Mohammed Salem Coronavirus, Claus, , Haneen Alsammak, Laila Tayeh Organizations: REUTERS, Zeina Cooperative Association, West Bank Locations: GAZA, Gaza, Europe, Bethlehem
Official data also shows industrial profits for large firms grew at their fastest pace since 2017 in October. Official data shows the recovery of factory activity for smaller firms has lagged well behind that of larger ones since the coronavirus stalled industrial activity earlier in the year. Small firms’ factory activity only accelerated in two of the past six months, and at a much slower pace than that of larger ones. Certain sectors, such as textiles, have seen factory activity continue to decelerate every month this year, Zhao added. Some firms reported that a strong yuan squeezed profits and reduced export orders in November, said Zhao.
Persons: , Dan Wang, Zhao Qinghe, Zhao, , Seng’s Wang, Bruce Pang Organizations: REUTERS, Caixin’s, Hang Seng Bank, National Bureau of Statistics, PMI Locations: BEIJING, Huzhou, Zhejiang province, China
Euro zone producer prices up in October, unemployment falls
  + stars: | 2020-12-02 | by ( Reuters Staff | ) www.reuters.com sentiment -1.00   time to read: +1 min
Slideshow ( 2 images )BRUSSELS (Reuters) - Euro zone producer prices rose more than expected month-on-month in October and unemployment fell as the economy continued to recover before the second wave of the COVID-19 pandemic struck, data showed on Wednesday. The European Union’s statistics office Eurostat said prices at factory gates in the 19 countries sharing the euro rose 0.4% month-on-month for a 2.0% year-on-year decline. Producer prices are an early indication of final prices paid by consumers, which the European Central Bank wants to keep below, but close to 2% over the medium term, but has failed to reach that target for the past eight years. Energy costs were the main factor driving producer price index in October, as energy prices rose 1.4% on the month for a 7.6% year-on-year fall. Separately, Eurostat said euro zone unemployment fell by 86,000 people to 13.825 million or 8.4% of the workforce from 8.5% in September.
Organizations: Reuters, European Central Bank, Energy, Eurostat Locations: BRUSSELS
EU banking watchdog revives relief measures for COVID-hit loans
  + stars: | 2020-12-02 | by ( Huw Jones | ) www.reuters.com sentiment -1.00   time to read: +1 min
The European Banking Authority (EBA) said that, due to the second wave of COVID-19 infections, guidance for banks that expired on Sept. 30 was being reactivated until March 31, 2021. As the first set of lockdowns from March closed businesses, banks began granting payment holidays on company loans, mortgages and other types of credit. Loans totalling 871 billion euros ($1.05 trillion) had benefited from the relief measures by June. Without guidance originally introduced by EBA in April, banks would have been required to start automatically provisioning for loans not being repaid 90 days after the due date, making them less likely to keep lending to the COVID-hit economy. Loans could only benefit from a repayment holiday for nine months in total and banks must spell out plans for assessing whether loans subject to payment holiday were likely to default, EBA said.
Organizations: Union, European Banking Authority, EBA
EU extends relief measures for COVID-hit loans to March
  + stars: | 2020-12-02 | by ( Huw Jones | ) www.reuters.com sentiment -0.99   time to read: +2 min
Without the EBA’s guidance, which was first introduced in April, banks would have to start automatically provisioning for loans not repaid 90 days after the due date, making them less likely to keep lending to the COVID-hit economy. As the first set of lockdowns from March closed businesses, banks began granting payment holidays on company loans, mortgages and other credit. By June, loans totalling 871 billion euros ($1.05 trillion) had benefited from the relief measures. Actual losses and capital requirements would also depend on mitigants such as state guarantees on some business loans and overall economic recovery, Overby said. The European Banking Federation, an industry body, said EBA’s announcement opened the door for EU countries to offer payment holidays again.
Persons: Lars Overby, Overby Organizations: Union, European Banking Authority, European Banking Federation,
Stocks Pull Back After S&P 500’s Tuesday Record
  + stars: | 2020-12-02 | by ( Will Horner | ) www.wsj.com sentiment -0.98   time to read: +1 min
U.S. stocks slipped Wednesday, pulling back from Tuesday’s record highs as rising coronavirus cases and a slowdown in private sector job creation weighed on investor sentiment. The S&P 500 fell 0.3%, a day after the benchmark set its 27th closing record of the year. The market has been propelled higher in recent weeks by optimism that Covid-19 vaccines will help accelerate the economic rebound. That has led to a jump in stocks that are sensitive to economic growth, including energy and banks. Stocks are likely to continue rallying in coming weeks, despite valuations that appear to be stretched, he added.
Persons: We’ve, , Derek Halpenny Organizations: Nasdaq, Dow Jones Industrial, MUFG Bank, Stocks
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