Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a621259

Germany questions ECB rescue plan; Spanish bond yields rise

by Caelainn Barr on Sep 25, 2012 at 13:15

Germany questions ECB rescue plan; Spanish bond yields rise

13.15: Spanish bond yields moved up as questions have arisen about the legality of proposed bond buying programmes from the European Central Bank (ECB) in its efforts to stem the eurozone sovereign debt crisis.

Reports that Germany’s Bundesbank has called for an inquiry into the legality of the ECB’s plans for bond purchases under Outright Monetary Transactions (OMT) have stirred up peripheral bond markets, as prolonged purchases could breach EU treaties.

The yield on Spanish 10-year bonds rose 4 basis points to 5.71% in Tuesday afternoon trade following an auction of three-month bills, at significantly higher yields of 1.2%, up from 0.94% at the end of August.

Spain is in talks with the European Commission and is expected to unveil plans for economic reform on Thursday. It has been speculated that the country could also make a late request for a bailout from the European Stability Fund (ESF), which would kick-start the ECB’s bond buying programme.

FTSE ticks up as German consumer confidence steadies

 

08.20: Britain’s FTSE 100 opened flat as consumer confidence in Germany, the engine of eurozone growth, failed to improve in September.

The FTSE 100 shed 3.6 points, or 0.05%, to 5,837 points and the FTSE 250 gave up 2 points, or 0.03%,to 11,901 points.

A survey of German consumers revealed they are cautious on the outlook for the country’s economy, as actions taken by the European Central Bank haven’t impacted on consumer confidence in the country.

In the UK newspaper group Daily Mail and General Trust (DMGT.L) released full year profits in line with expectations.

Diageo (DGE.L), meanwhile, is in talks with Indian company United Spirits to buy a stake in the business.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • Diageo PLC (DGE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Daily Mail and General Trust PLC (DMGO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Glencore International PLC (GLEN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Close Brothers Group PLC (CBRO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet