Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
German Chancellor Angela Merkel ended her silence on euro zone reform by showing some willingness to increase risk-sharing — a long-standing issue for many politicians in Berlin.
Merkel on Sunday revealed her vision for the future of the euro zone bailout fund — the European Stability Mechanism (ESM) — and for an investment budget to support euro countries with structural problems, in an interview with the Frankfurter Allgemeine Sonntagszeitung newspaper.
Her comments come a few weeks ahead of a key European Union summit, where many leaders, especially French President Emmanuel Macron, want to sign-off on specific policies to upgrade the euro zone. Macron went as far as asking for a euro zone finance minister.
Many politicians in Europe had criticized Merkel for not setting out clearly her thoughts on euro reform.
"This is Merkel's first attempt to lay out a position on euro zone reform," Constantine Fraser, Europe analyst at TS Lombard, told CNBC via email.
"She knows she has to engage with demands for more risk-sharing, but also has to bring onboard the conservatives in her CDU-CSU (coalition), and act, in a way, as the spokeswoman for the skeptical smaller northern European countries."
Merkel wants the ESM, which currently is responsible for lending money to economically fragile countries, to focus on strengthening budgetary discipline. Under her plans, the ESM would monitor each euro country to make sure they are following fiscal rules.
Other proposals, from the European Commission and France, have suggested the ESM should become an instrument to prevent future financial crises.
In Merkel's eyes, the future ESM should provide long and short-term loans. The former should only be awarded if the entire euro zone was at risk and on the basis of deep structural reforms within the recipient country. Short-term lending should only be granted to countries suffering from external circumstances, such as a recession.
Merkel was clear that the ESM should remain an intergovernmental institution. If Merkel receives support for her idea, then the different euro governments would have stronger powers when considering future bailouts.
Her second proposal, for a euro zone investment budget, seems less ambitious than an idea presented by France's Macron, who wants to build a euro zone tool able to deliver fiscal stimulus to respond to economic shocks.
Merkel, on the other hand, wants the investment budget to deal with issues only in countries with fewer economic problems, in other words to support innovation and technology. Such investments should never exceed a figure in the low double-digits of billions. This mechanism would be overseen by the different euro parliaments.
"Paris and Berlin are still a long way apart — and Merkel's proposals also still fall short of the architecture most economists think would be necessary to make the euro zone more robust," Fraser from TS Lombard said.
He added that Merkel's vision for an investment budget "is so small as to be macro-economically insignificant."
Holger Schmieding, an economist at Berenberg, said in a note Monday that "while Paris praised her comments as a significant step closer to the positions that French President Emmanuel Macron laid out 250 days ago, Merkel did not break much new ground."
The different European institutions and the French government want an agreement on euro zone reform at a summit on June 28. However, the differences of opinion between the two largest euro zone economies raise questions as to how far those reforms will go.
At the same time, recent government changes in Spain and Italy could also derail any significant achievements on euro reform.
"Italy's new government will not make it easier to achieve a lot at the EU summit on 28-29 June. It may take a while for the Italian radicals to find their place in the European reform discussions and for other EU leaders to find out how fast and far the radicals in Rome may back away from their fiery campaign rhetoric," Schmieding said.
Fraser also played down any significant achievements later this month. He said that "the June summit may be being billed — particularly by the French — as some kind of climactic moment in the debate on the euro zone, but with no hard deadlines or real sense of urgency I would be surprised if any particularly dramatic decisions are taken."