Thursday was a big day for the euro. European Central Bank (ECB) president Mario Draghi unveiled a plan that could see the central bank buying up unlimited amounts of bonds in a move he believes makes the euro irreversible and will draw a line under the euro zone debt crisis. Markets reacted positively to the news, but as always with the euro zone debt crisis, there is a snag.
Global markets are at an inflection point and the focus is about to shift from crisis in the euro zone to a crisis in the United States according to David Bloom, the global head foreign exchange strategy at HSBC.
Another day, and another EU official talks up the future of the euro zone and its besieged currency. On Monday EU Monetary Affairs Commissioner Olli Rehn used a speech to lawmakers to outline his vision for a monetary union 2.0. Outlining plans to put the supervision of the European banking system in the hands of the European Central Bank, Rehn said even Europe’s smaller banks needed to be monitored by officials in Frankfurt.
Following weeks of low volumes, slow news flow and steady gains for equity markets investors are braced for some big events in September which could make or break investor returns for 2012.
A lion, with 22,000 followers on twitter, is reportedly on the loose in the county of Essex to the east of London. With police marksmen and helicopters hunting for the large cat in the Clacton area of Essex, local residents have been warned to stay inside until the animal is caught.
Investors across the world are awaiting further news on whether the European Central Bank and the Federal Reserve will decide to turn the quantitative easing taps on and begin buying bonds aggressively in a bid to kick-start ailing growth in Europe and the United States.
Every morning Squawk Box Europe brings you the latest business news from across the world. Geoff Cutmore, Steve Sedgwick and Karen Tso spend three hours every weekday morning discussing the euro zone debt crisis, corporate earnings and the latest M&A deals. Sometimes though they can go a little off-message and focus on a story that does not really qualify as business news.