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ECB Chief Mario Draghi is rescued from the bell when the eurozone escalates – Axios



The eurozone is a growing mess and European Central Bank President Mario Draghi is sneaking out at the buzzer.

Moving news: Draghi made his last press conference as ECB chief on Thursday, keeping tariffs in the 19-member bloc unchanged after the controversial announcement of an interest rate cut of -0.5% and a 22-repurchase program billion dollars a month at the September meeting.

  • He will hand over control of the central bank to former IMF leader Christine Lagarde, who, without experience in central baking, will inherit not only a group of weakening economies but also a controversial 25-member board of directors, described by the Wall Street Journal as "belligerent fractions. "
  • The committee split largely based on Draghi's reported 11-hour decision last month to cut interest rates and restart bond purchases made in December.
  • Dear continued, the other central bankers of the ECB have been arguing over the already red politics institute, "everyone is waiting for Christine," said an unnamed WSJ official.

What's happening: The manufacturing sector in the euro area contracted for the ninth consecutive month, data showed on Thursday and remains on the verge of a direct contraction. In the bloc's largest economy, Germany, there are growing indications that a decline in production is beginning to affect employment.

  • Britain, the second largest EU economy, is embroiled in a three-year saga of failed attempts to leave the Union and the other major economies of the Union – France, Italy and Spain – are experiencing some of the worst economic and political unrest since the financial crisis.
  • While the UK is the only country to vote for leaving so far, political parties are skeptical or outright opposed to the European Union and the currency of the euro is growing in political power in each of the major EU countries.

Next: In addition to the onset of the recession, a divisive board of directors and a growing wave of opposing European unity, the ECB appears to be without bullets as even interest rates far below 0 and trillions of bond purchases have failed achieve their stated goals.

Deeper: Mario Drau ghi time is running out

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