LONDON (Reuters Breakingviews) - Mario Draghi is channelling a new cartoon character. The outgoing European Central Bank boss, dubbed Super Mario for all he did to fight the euro zone crisis and revive growth, on Thursday unveiled fresh stimulus measures, including a rate cut and new asset purchases. The open-ended nature of the buying smacks of Toy Story’s Buzz Lightyear. Markets seem to think it will last to infinity and beyond.
LONDON (Reuters Breakingviews) - Germany could kill several birds by issuing one green bond. Raising money solely to manage a shift away from fossil fuels would underscore Berlin’s focus on making the transition. It would also give eco-friendly finance a crucial political boost. And it makes economic sense.
LONDON (Reuters Breakingviews) - European Central Bank President Mario Draghi has just been given a free pass to be bold. It comes from Germany’s statistics office, which said on Wednesday that Europe’s largest economy contracted in the second quarter. The development will lessen any Teutonic resistance to the monetary easing that Draghi is planning.
LONDON (Reuters Breakingviews) - European Central Bank President Mario Draghi has made many promises, and lived up to them. Yet this time, financial markets want to see the colour of his money upfront.
LONDON (Reuters Breakingviews) - Sterling is a collateral victim of the race to be Britain’s next prime minister. The frontrunner, Boris Johnson, has promised Britain will be out of the European Union by the end of October, “do or die”. What’s more, he and his rival, Jeremy Hunt, are vying with each other to take a harder stance on Brexit. Whatever good that does either man’s chances, it’s inflicting considerable damage on the pound. More pain probably lies ahead.
LONDON (Reuters Breakingviews) - A new breed of central bankers is emerging. They speak plainly and are less steeped in economic theories than recent predecessors. That has benefits but also means it is harder to predict how they will react.
LONDON (Reuters Breakingviews) - The winner of the European Union’s jobs jackpot will matter less during the next economic downturn than the one who got the consolation prize. After much unedifying horse-trading about who would head the European Commission, the bloc’s leaders on Tuesday agreed a package deal that included naming International Monetary Fund boss Christine Lagarde to replace Mario Draghi as European Central Bank president. The Frenchwoman brings more continuity than credibility to an institution that rescued the euro from an existential crisis.
LONDON (Reuters Breakingviews) - Britain looks like it will finally get the right fiscal policy, though for the wrong reasons. As they battle to become prime minister, Conservative party rivals Boris Johnson and Jeremy Hunt are both promising a post-Brexit splurge. Lower taxes and higher government spending would mark an overdue retreat from austerity, and relieve the Bank of England of some of the burden of propping up the economy.
LONDON (Reuters Breakingviews) - The race to become Britain’s next prime minister has the potential to spice up a different contest: the one to replace Bank of England Governor Mark Carney.
SINTRA, Portugal (Reuters Breakingviews) - The European Central Bank’s annual gathering in Portugal is this year as much a celebration of its outgoing president, Mario Draghi, as a deep dive into the euro’s first 20 years. The Italian leaves his as-yet-unnamed successor one big unfinished job: pushing up stubbornly low inflation. But he is helping as much as he can before he goes.