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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/apr/10/uk-gdp-report-growth-february-brexit-ecb-draghi-eurozone-business-live
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| UK economy 'stronger than expected' in February; ECB holds interest rates - business live | UK economy 'stronger than expected' in February; ECB holds interest rates - business live |
| (32 minutes later) | |
| Draghi is then asked about Italy’s weak economy, after Rome slashed its 2019 growth forecast from 1% to just 0.2%. | |
| He says the move isn’t a surprise, and shows the need to boost growth in Italy...... without pushing up borrowing costs (that’s a criticism of its populist government, which spooked investors last year with its budget plans). | |
| Draghi on Italy: "The data on the Italian economy didn’t come as a surprise. There have been already downgrades in the forecasts. So from this viewpoint it is not a surprise" (1/3) #Draghi #ECB | |
| Draghi: "It is quite clear the priority is to restore growth and employment. Italy knows how to do it." (2/3) #Draghi #ECB | |
| Draghi: "It is very important that these priorities are pursued without causing an increase in interest rates, because increases in interest rates are contractionary. That should be the aim of economic policy there." (3/3) #Draghi #ECB | |
| Q: Might you intervene and promote the merits of European Union in the run-up to European parliamentary elections? | |
| Draghi say that central banks don’t usually get involved in elections (with good reason!), and it wouldn’t be right to intervene. | |
| Draghi: Central banks don’t usually intervene in the political debate. On occasion the ECB can defend the European framework and point out ways to complete it and remedy weaknesses. | |
| But on the broader point, the ECB president says the rise of global threats shows that European countries have “got to be together to be truly sovereign and masters of our destiny.” | |
| Q: European leaders may grant the UK a longer Brexit extension today - would you welcome this? | |
| Draghi says it depends whether the UK leaves the EU in a managed way, or a disorderly one. There could be serious consequences for eurozone companies, and supply chains, depending how Brexit plays out. | |
| Brexit is part of a broader uncertainty hanging over the continent, he adds. | |
| The risk of the eurozone falling into recession remains low, insists Mario Draghi, despite his earlier warning about weak economic data. | The risk of the eurozone falling into recession remains low, insists Mario Draghi, despite his earlier warning about weak economic data. |
| Piet P.H. Christiansen of Danske Bank agrees that Mario Draghi sounds cautiously dovish today. | Piet P.H. Christiansen of Danske Bank agrees that Mario Draghi sounds cautiously dovish today. |
| Draghi is overall on the soft side today. The assessment in inflation and growth are on the marginal soft side, i.e. more policy driven easing stance than data.TLTRO modalities will depend on the economic outlook and bank lending details | Draghi is overall on the soft side today. The assessment in inflation and growth are on the marginal soft side, i.e. more policy driven easing stance than data.TLTRO modalities will depend on the economic outlook and bank lending details |
| Donald Trump’s threats to impose tariffs on exports have hurt confidence in the eurozone, Draghi claims. | Donald Trump’s threats to impose tariffs on exports have hurt confidence in the eurozone, Draghi claims. |
| Draghi now referencing Trump threats. Just shows how much power Don's twitter has. One tweet on auto tariffs, along with those previously postulated, and that's it for Eurozone growth. | Draghi now referencing Trump threats. Just shows how much power Don's twitter has. One tweet on auto tariffs, along with those previously postulated, and that's it for Eurozone growth. |
| Draghi on Trump's protectionist threats: "Between words and deeds there is often a big gulf". Ouch! #Draghi #ECB | Draghi on Trump's protectionist threats: "Between words and deeds there is often a big gulf". Ouch! #Draghi #ECB |
| Asked about inflation expectations, president Draghi suggests that headline inflation may fall in the coming months. | Asked about inflation expectations, president Draghi suggests that headline inflation may fall in the coming months. |
| That’s quite a dovish statement, likely to weigh on the euro. | That’s quite a dovish statement, likely to weigh on the euro. |
| Draghi seems determined not to commit any news today. | Draghi seems determined not to commit any news today. |
| Asked about the upcoming TLTROs (cheap loans to eurozone banks), he says it’s “too early” to decide their terms. | Asked about the upcoming TLTROs (cheap loans to eurozone banks), he says it’s “too early” to decide their terms. |
| Draghi also says it’s too soon to decide whether to implement “tiering” for its negative interest rates (so that some banks excess reserves are exempt from the lowest rate) | Draghi also says it’s too soon to decide whether to implement “tiering” for its negative interest rates (so that some banks excess reserves are exempt from the lowest rate) |
| Mario Draghi ends his statement with his traditional call for more structural reforms in the euro area, and a renewed push to strengthen monetary union. | Mario Draghi ends his statement with his traditional call for more structural reforms in the euro area, and a renewed push to strengthen monetary union. |
| He makes this plea at every meeting, which gives you a clue about how much attention politicians pay to it. | He makes this plea at every meeting, which gives you a clue about how much attention politicians pay to it. |
| Striking a cautious note, Mario Draghi says that the risks to the eurozone economy remain tilted to the downside. | Striking a cautious note, Mario Draghi says that the risks to the eurozone economy remain tilted to the downside. |
| This has weakened the euro, and pushed investors into safe-haven German government debt, sending its price up and interest rate down: | This has weakened the euro, and pushed investors into safe-haven German government debt, sending its price up and interest rate down: |
| Mario Draghi speaks. German bunds listen. pic.twitter.com/5Ua1UROroA | Mario Draghi speaks. German bunds listen. pic.twitter.com/5Ua1UROroA |
| Draghi is now explaining that labour cost pressures in the eurozone have strengthened and broadened. | Draghi is now explaining that labour cost pressures in the eurozone have strengthened and broadened. |
| Good news for workers! | Good news for workers! |
| Draghi: wage pressures have strengthened | Draghi: wage pressures have strengthened |
| Mario Draghi warns that information received since the ECB’s last meeting has confirmed that eurozone growth has slowed. | Mario Draghi warns that information received since the ECB’s last meeting has confirmed that eurozone growth has slowed. |
| He blamed external factors (perhaps US-China trade wars, or Brexit?), plus specific problems in certain countries and sectors. | He blamed external factors (perhaps US-China trade wars, or Brexit?), plus specific problems in certain countries and sectors. |
| #Draghi says #ECB stands ready to adjust all monetary policy instruments as necessary. Says information since March meeting confirms slower growth. Says some domestic factors dampening Eurozone growth starting to fade but global headwinds continue to weigh | #Draghi says #ECB stands ready to adjust all monetary policy instruments as necessary. Says information since March meeting confirms slower growth. Says some domestic factors dampening Eurozone growth starting to fade but global headwinds continue to weigh |
| Over in Frankfurt, ECB president Mario Draghi is holding a press conference following today’s governing council meeting. | Over in Frankfurt, ECB president Mario Draghi is holding a press conference following today’s governing council meeting. |
| He confirms that the European Central Bank will leave interest rates on hold until at least the end of 2019. | He confirms that the European Central Bank will leave interest rates on hold until at least the end of 2019. |
| But what about the ECB’s new TLTRO loans (a new stimulus measure announced last month)? | But what about the ECB’s new TLTRO loans (a new stimulus measure announced last month)? |
| Draghi says details will be communicated at a forthcoming meeting (very helpful...), and that the ECB is looking into whether banks need more help to cope with negative interest rates. | Draghi says details will be communicated at a forthcoming meeting (very helpful...), and that the ECB is looking into whether banks need more help to cope with negative interest rates. |
| Back in the markets, the prospect of a takeover bid has sent shares in outsourcing firm G4S surging by almost 30%. | Back in the markets, the prospect of a takeover bid has sent shares in outsourcing firm G4S surging by almost 30%. |
| Canadian security firm Garda World has told the stock market that it is the “preliminary stages of considering an approach to the board of G4S regarding a possible cash offer” for G4S, or some parts of the company. | Canadian security firm Garda World has told the stock market that it is the “preliminary stages of considering an approach to the board of G4S regarding a possible cash offer” for G4S, or some parts of the company. |
| Garda World was forced to break cover by the Evening Standard, which reported its interest this morning. | Garda World was forced to break cover by the Evening Standard, which reported its interest this morning. |
| The Standard’s Simon English wrote rather gloriously: | The Standard’s Simon English wrote rather gloriously: |
| G4S’s treatment of its 570,000 staff, or ability to stop its vans being hijacked by armed gangs, might not win any awards, but City sources say that under different management it could be a cash machine. | G4S’s treatment of its 570,000 staff, or ability to stop its vans being hijacked by armed gangs, might not win any awards, but City sources say that under different management it could be a cash machine. |
| Headlines dubbing it “incompetent”, “amateurish” and “irresponsible” haven’t put the Canadians off, says the man in the City boozer who gets it right three times out of five, making him more reliable than G4S. | Headlines dubbing it “incompetent”, “amateurish” and “irresponsible” haven’t put the Canadians off, says the man in the City boozer who gets it right three times out of five, making him more reliable than G4S. |
| City reaction to the European Central Bank’s interest rate decision is muted. | City reaction to the European Central Bank’s interest rate decision is muted. |
| Naeem Aslam, chief market analyst of Think Markets, says: | Naeem Aslam, chief market analyst of Think Markets, says: |
| The ECB left the powder dry once again and the reason that the Euro is still in the positive territory is because a lot of bad news was already baked into the price. | The ECB left the powder dry once again and the reason that the Euro is still in the positive territory is because a lot of bad news was already baked into the price. |
| So, the ECB had to make significant changes to its monetary policy to push the euro lower (which we have not seen). All eyes will be on Draghi now, and if he adopts overly pessimistic tone, we could see the euro moving lower against the dollar | So, the ECB had to make significant changes to its monetary policy to push the euro lower (which we have not seen). All eyes will be on Draghi now, and if he adopts overly pessimistic tone, we could see the euro moving lower against the dollar |
| Foreign exchange consultant Marc-André Fongern of MAF Global Forex also sees little drama. | Foreign exchange consultant Marc-André Fongern of MAF Global Forex also sees little drama. |
| The most boring central bank acts soporific once again. The fact that the ECB sees ‘rates a present levels at least through the end of 2019’ should dampen any optimistic views on the Euro! | The most boring central bank acts soporific once again. The fact that the ECB sees ‘rates a present levels at least through the end of 2019’ should dampen any optimistic views on the Euro! |
| Bloomberg’s Lorcan Roche Kelly suggests the ECB is getting into the summer spirit early: | Bloomberg’s Lorcan Roche Kelly suggests the ECB is getting into the summer spirit early: |
| Does the @ecb think it's August or something? | Does the @ecb think it's August or something? |
| We’ll keep an eye on ECB president Mario Draghi’s press conference, starting in 20 minutes, for any extra drama. | We’ll keep an eye on ECB president Mario Draghi’s press conference, starting in 20 minutes, for any extra drama. |