Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday.Marketsread more
The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Trump said oil would be released if needed to keep the market well supplied and he would expedite the approval of pipelines in Texas and other states.Marketsread more
Saudi Aramco is aiming to restore by Monday about a third of its crude output that was disrupted after drone attacks on two key oil facilities, The Wall Street Journal...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
— This is the script of CNBC's news report for China's CCTV on December 14, 2018, Friday.
The ECB announcement can be said a landmark for markets and for the ECB itself, the European central bank announced that it would end its quantitative easing (QE) policy at the end of December this year. That means, after four years of sticking to its bond-buying program, the European central bank has formally ended its attempt to save the Eurozone economy by improving its balance sheet.
Since its official launch in March 2015, the ECB has implemented three rounds of quantitative easing. This is seen as following the ultra-loose monetary policy adopted by the US during the financial crisis from 2008 to 2014.
As you can see from this chart, from the beginning of QE to the present, the ECB has purchased 2.6 trillion euros of bonds, most of which are purchased by the public sector.
That has fueled the ECB's balance sheet to about 4.65 trillion euros so far, second only to the bank of Japan among the world's major central Banks.
The ECB's December rate decision also left the three main interest rates unchanged, in line with market expectations. There is also concern about the ECB's rhetoric change on "reinvestment". We know that when the central bank operates QE policy, it reinvests the principal of maturing bonds, so the central bank's statement on reinvestment implies the degree of policy easing. Instead of saying "continue to reinvest after QE ends ", the statement said" continue to reinvest after the first rate rise". This is seen as a sign that the ECB's reinvestment will continue long enough to maintain favorable liquidity conditions and the abundance of monetary easing, meaning that the statement is dovish and monetary policy is likely to remain loose.
The ECB's decision to end QE was seen as the last option, For the European economy, both economic growth and underlying inflation have failed to reach satisfactory levels, and the outlook is considered negative and faces a series of risk factors. Some policymakers want to reinforce downside risks, fearing that the economy may not be strong enough to support a complete withdrawal of such unconventional stimulus measures.
President of the European Central Bank"the balance of risks is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets, and financial market volality."
The argument goes that the ECB signaled early that it would end QE, and therefore had to end QE in order to maintain its credibility. In his speech, the central bank's President, Mario Draghi, said there was no time to discuss a rate rise but that he expects to leave rates unchanged at least until the end of the summer of 2019. Although the ECB ended QE, monetary policy remains loose for now.