– Keynote Speaker Follow Comments Following Comments Unfollow Comments ( Kitco News )-The European Central Bank should continue to lower interest rates to help spur growth and help Europe out of its current recession, said Francesco Papadia, chairman of Primary Collateralized Securities and former director general for market operations at the ECB. Papadia was a keynote speaker at the global London Bullion Market Association/London Platinum Palladium Precious Metals Conference, being held in Rome, and talked to Kitco News Daniela Cambone about the state of the European economy. Papadia said there is a battle ensuing between the ECB and markets. Although the ECB provided forward guidance saying that it will keep rates low or even lower, he said markets continue to price in a rate hike. Im not clear how this tug-of-war will end who will win. My sense is if the governing council really wants to win this war then it should lower interest rates, he said. If they would lower [interest rates] to 25 basis points they would really impress on the market their will. During his speech at the LMBA, Papadia talked about whether Europe is in a position to grow and profit from its current crisis. Historical experience shows that Europe progresses in crisis, he said. The question that I put forward is whether Europe is indeed using this crisis to progress in the economic field, in the monetary and financial field and institutional field. To answer his question, Papadia said he likes the direction the euro zone is heading in, but the speed in which it has been progressing is only sufficient. He added it is too soon to tell if Europe will benefit from the crisis. However, Papadia said he is hopeful about the European economy. I find it easier to be optimistic now than I did maybe 12 or 18 months ago, he said.
Kitco News LBMA Coverage: Is Europe Wasting A Good Crisis? – Keynote Speaker
Before today, member companies in the Euro Stoxx 50 Index were trading at about 13 times this years estimated earnings, compared with more than 19 for companies on the Nasdaq Stock Market and the Nikkei 225 Stock Average, data compiled by Bloomberg show. U.S. Funds U.S. funds that invest in European equities attracted $13.1 billion in the six weeks through Sept. 18, Societe Generale SA and EPFR Global data show, even as investors withdrew $16.9 billion from funds buying U.S. stocks. This is the year of the European equities story, said Klaus Hessberger, co-head of equity capital markets for Europe at JPMorgan Chase & Co. in London . It helps that there is still a valuation discount here versus in the U.S. and Asian markets. The last quarter should see about 10 to 15 more IPOs with an average deal size of as much as $500 million, he said. Italian clothing maker Moncler plans to list shares as early as November in a sale that could raise about 1 billion euros ($1.35 billion), people familiar with the matter have said. French cable-TV operator Numericable SAS also plans an IPO in the third quarter and could be valued at as much as 5.5 billion euros in the sale. Moncler, Numericable Gross domestic product in the 17-nation euro area rose in the second quarter, bringing to a close six straight quarters of contraction, the longest slump since the euros debut in 1999. The euro meanwhile had gained 5.5 percent against a basket of nine major peers in 2013 before today, the biggest jump in the group and poised for its first annual gain in five years, Bloomberg Correlation-Weighted Currency Indexes show.
Europe’s green movement fading after a string of election setbacks
FAIR WEATHER MOVEMENT? Generation change has also caught up with the Greens. The activists in jeans and T-shirts whose playful insolence blew a gust of fresh air into parliaments and local assemblies across Europe in the 80s and 90s have become pillars of the establishment in many countries. Green ministers have held cabinet seats in Paris, Berlin and half a dozen other EU capitals on-and-off since the late 1990s and not just for the environment. Joschka Fischer, once an anarchist firebrand, was a widely admired German foreign minister in 1998-2005, who justified his countrys first participation in military action since World War Two in NATOs campaign in Kosovo in 1999. Ecologists sit on regional executives and city councils around continental western Europe. One large, prosperous German state, Baden-Wuerttemberg, even has a Green premier. But there is a flipside to such success. Green members and voters have aged with their leaders and become more bourgeois and reconciled with the market economy. Surveys show they have a higher than average education level and income. The German Greens alienated some of that electorate by campaigning for higher taxes, prompting Fischer to observe that the party leadership had gotten older but not yet grown up. Drawing lessons from defeat, new parliamentary floor leader Katrin Goering-Eckardt said: Our task is to make ourselves more able to connect with the middle ground in society. That, however, makes the party less attractive to young people seeking a radical alternative in a period of economic crisis and mass youth unemployment. From Greece to Italy, and Ireland to Spain, disaffected youngsters have either turned apolitical or preferred radical anti-austerity parties of the far left or hard right. In Italy, the anti-establishment 5-Star Movement that surged to prominence in this years election includes some former Greens.