FTG Blog - It's Five Years Since Draghi's 'Whatever It Takes'

It’s Five Years Since Draghi’s ‘Whatever It Takes’

Five years ago today, Mario Draghi was talking about bumblebees. The European Central Bank president’s speech in London on July 26, 2012, became instantly famous because of his pledge to do “whatever it takes” to save the euro. But for all the power and clarity of that phrase, he started his remarks more obliquely. Read more

FTG Blog - German Business Climate Hits Record as Economy Proves Robust

German Business Climate Hits Record as Economy Proves Robust

German companies are gearing up for a bumper season after the summer lull. The business climate in Europe’s largest economy improved for a sixth month in July, according to Munich-based Ifo institute. The index, based on a survey of 7,000 German companies from manufacturing, trade and construction, rose to 116.0 from a revised 115.2 in June. That’s the highest level since 1991 and compares with a median estimate in a Bloomberg survey for a drop to 114.9. Read more

FTG Blog - Bitcoin Options Will Be Available This Fall

Bitcoin Options Will Be Available This Fall

LedgerX LLC, a cryptocurrency trading platform operator, won approval from the U.S. Commodity Futures Trading Commission to operate as a federally-regulated exchange and clearing house for derivatives contracts settling in digital currencies (Bitcoin). Read more

FTG Blog - U.K.'s Fox in U.S. to Make Case for Quick Post-Brexit Trade Deal

U.K.’s Fox in U.S. to Make Case for Quick Post-Brexit Trade Deal

Trade Secretary Liam Fox will meet with his U.S. counterpart in Washington on Monday as the U.K. seeks to prepare for a trans-Atlantic trade deal as soon as possible after leaving the European Union. Fox, who said on Sunday it will be a “difficult discussion,” is expected to hold talks with U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross before meeting members of Congress during a two-day trip. He will then travel to Mexico and Texas in a search for post-Brexit trade partners. Read more

FTG Blog - Morgan Stanley Picks Frankfurt for Its New EU Trading Hub

Morgan Stanley Picks Frankfurt for Its New EU Trading Hub

Morgan Stanley has become the latest global bank to pick Frankfurt for its new trading headquarters inside the European Union after Brexit, according to people briefed on the decision. The firm plans to relocate some of its European broker-dealer business to the German city from London, while moving parts of its asset management operations to Dublin, said one person, who asked not to be identified because the matter is private. About 300 jobs will transfer to various cities across Europe, including Paris, with around 200 going to Frankfurt, the person said. Read more

FTG Blog - ECB Is Studying Stimulus Options for Possible Fall Decision

ECB Is Studying Stimulus Options for Possible Fall Decision

While European Central Bank (ECB) policy makers look forward to a summer break, the institution is quietly working on stimulus plans for them to consider on their return. The ECB’s Frankfurt-based staff are examining scenarios for the future path of quantitative easing ahead of a Governing Council decision that is expected to take place in September or later, according to euro-area officials familiar with the matter. The people asked not to be named as the work is confidential. An ECB spokesman declined to comment. Read more

FTG Blog - Citigroup Chooses Frankfurt as New European Trading Hub

Citigroup Chooses Frankfurt as New European Trading Hub

Citigroup Inc. has chosen Frankfurt as its newest trading hub in the European Union and plans to present that option to its board of directors this week for approval, according to a person with knowledge of the decision. Read more

FTG Blog - Draghi Can’t Stop Eastern Europe Bond Rally

Draghi Can’t Stop Eastern Europe Bond Rally

Not even Mario Draghi can stop the comeback this year in eastern European bond markets. Local-currency bonds from Poland to Hungary have advanced this month in the face of growing concern the European Central Bank is on the cusp of reducing its unprecedented stimulus. The rally extends a 6.7 percent return for the region’s debt in the second quarter, the best in emerging markets. Read more

FTG Blog - France Shouldn't Let Google Get Off Tax-Free

France Shouldn’t Let Google Get Off Tax-Free

It may be impossible to claim much in back taxes from the search giant, but new rules should stop tax avoidance. After Google settled for just 130 million pounds ($168 million) in back taxes with the U.K. last year, the French government swore it would get more money out of the search giant — based, as then-Finance Minister Michel Sapin said, not on negotiation but on application of the law. On Wednesday, that approach failed spectacularly. Read more

FTG Blog - U.K. Pay Falls Despite Lowest Unemployment Since 1975

U.K. Pay Falls Despite Lowest Unemployment Since 1975

British consumers are continuing to see their spending power eroded by feeble wage increases and the rising cost of living, despite unemployment falling to a 42-year low. Regular earnings rose 2 percent in the three months through May from a year earlier, up slightly from April but well behind the rate of inflation, the Office for National Statistics said. As a result, real pay fell by 0.5 percent. Read more