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Banks' confidence to ease turbulence -ECB's Paramo
Reuters: [2008-05-19 22:01:00]
MADRID, May 19 (Reuters) - The current turbulence in money markets can only ease when banks recover mutual confidence, European Central Bank Executive Board member Jose Manuel Gonzalez-Paramo said on Monday.
Gonzalez-Paramo told a seminar in Madrid that the ECB had been able to reduce liquidity problems and stabilise the financial system but could not be expected to solve banks' inherent problems.
"The current market difficulties will only attenuate when banks recover mutual confidence and uncertainty over their liquidity needs is reduced," Gonzalez-Paramo said.
Average inflation in the euro zone in the past 10 years had slightly overtaken the ECB's target of 2 percent despite pressure in recent years from rising food and oil prices, he added.
"The important thing is for price stability to be maintained in the medium term, i.e. once the disturbance has gone, so the medium- and long-term inflationary outlook must be held below 2 percent," Gonzalez-Paramo said.
For the full text of Gonzalez-Paramo's speech in Spanish, click on: http://www.ecb.int/press/key/date/2008/html/sp080519.es.html (Reporting by Martin Roberts; Editing by Jonathan Oatis) ((martin.roberts@reuters.com; +34 91 585 2130; Reuters Messaging: martin.roberts1.reuters.com@reuters.net)) Keywords: ECB/GONZALEZPARAMO
UPDATE 3-No end in sight to market woes say Trichet, Buffett
Reuters: [2008-05-19 17:26:00]
(Adds details, Buffett quotes)
LONDON/FRANKFURT, May 19 (Reuters) - The end to the credit crunch is still not in sight, European Central Bank President, Jean-Claude Trichet and Warren Buffett, the world's most famous stock market investor, warned on Monday.
"These are demanding times, challenging times... It is an ongoing, very significant market correction," Trichet told BBC radio in Britain.
Buffett, whose years of shrewd investing have earnt him a fortune estimated at $62 billion by Forbes magazine and the nickname "the sage of Omaha", struck a similar tone at a news conference in Frankfurt.
"I'll talk about the United States. I don't think the effects of the credit crunch are far from over at all. I think there will be rippling secondary, tertiary effects."
Trichet and Buffett's comments come after U.S. Federal Reserve Chairman Ben Bernanke said last week the healing process from the credit crisis would take some time.
Deutsche Bank's <DBKGn.DE> Chief Executive Josef Ackermann was more upbeat however in an interview over the weekend.
"I think that we are getting closer to the end of the financial crisis," Ackermann told the Swiss Sunday newspaper Sonntagsblick. "It is not fully over yet, but the signs from the United States are encouraging."
With market turbulence persisting, Trichet added governments and financial decision makers needed to keep an iron grip on oil and food price fuelled inflation.
"We have this accumulation of the oil shock, the food and agro-products shock... Price stability and credibility in price stability in the medium term is the best way to have a high level of sustainable (economic) growth and sustainable job creation."
OIL SLICK
Trichet also warned governments not to make the wrong moves and risk the knock-on "second round effects" of inflation, such as higher wages, which followed the last oil price shock in the 1970s.
These, he said, had "enshrined the high level of inflation for a long period of time" and led to mass unemployment in Europe.
Oil prices <CLc1> <LCOc1> remain within sight of $130 a barrel because of unrelenting demand, speculative buying, global tensions and supply snags.
The surge is causing widespread headaches for the global economy by pushing up the price of almost everything and is creating a number of problems for Trichet's ECB and other central banks.
While some of the 15 euro zone countries look in danger of following the U.S. into a sharp economic slowdown, near record inflation in the region has given the Frankfurt-based central bank little room for manoeuvre with regards to interest rates which have been on hold at 4 percent for the last 11 months.
(Reporting by Kate Kelland and Jonathan Gould. Writing by Marc Jones and Mike Shields, Editing by Tim Castle/Gerrard Raven) ((kate.kelland@reuters.com; +44 (0)207 542 7947; Reuters Messaging kate.kelland.reuters.com@reuters.net))
Keywords: ECONOMY EUROPE/TRICHET
*TOP NEWS* Central banks
Reuters: [2008-05-19 16:47:00]
............................................................... For news and data, double-click on the codes in brackets. Access to some items may depend on subscription level. .............................................................. > ***SNAPSHOT - WORLD KEY OFFICIAL INTEREST RATES*** [INT/RATE] > FACTBOX-Global interest res [GLOBAL/INT] ............................................................... > ECB's Trichet sees ongoing, significant correction [nL1926285] > "More resilient" German economy set for growth-Buba [nL194042] > French Q2 growth to slow, confidence dips-c.bank [nL19554743] > ECB's Kranjec says euro zone economy is sound [nFAT004183] > BOJ to keep rates on hold with clouds over economy [nT305710] > PREVIEW-BoE minutes expected to show 8-1 vote to ho[nL1998785] > Swedish rates seen on hold in July, cut by end-yr [nL19618229] > Polish MPC should hike in May, probably won't-Noga[nWAR006888] > Poland has room for one more hike-MPC's Wojtyna[ID:nL19497788] > Czech c.banker Hampl: one more rate hike may help [nL19504004] > Serb cbank ups '09 core inflation target to 3-6 pc[nL19637963] > Ghana ups prime rate 175bp to curb fuel,food price[nL19195687] ............................................................... > The outlook for Federal Reserve policy [FED/AHEAD] > Reuters coverage of Basel II accord [ID:nL10281706] ............................................................... UPCOMING CENTRAL BANK MEETINGS, EVENTS | Fed June 24/25 | BOJ May 19/20 | | ECB June 5 | BoE June 4/5 | | BOC June 10 | RBA June 3 | | Riksbank* July 2 | RBNZ June 5 | | Swiss Nat Bank June 19 | Norges Bank May 28 | * Announcement July 3 > Major central bank events [CEN/DIARY] > Diary of emerging market central bank events [CEN/EMRG] ................................................................ REUTERS POLLS | US Fed Funds rate [FED/R] | ECB rates [ECB/INT] | | British rates [BOE/INT] | Canadian rates [CA/INT] | | Japanese rates [BOJ/INT] | Chinese rates [CNY/POLL] | | Australian rates [AU/INT] | Swiss rates [SNB/INT] | | Swedish rates [SE/INT] | South African rates [ZA/INT] | | Top poll news [POLL/] ............................................................... LATEST NEWS ON CENTRAL BANKS | Central bank news [CEN] | U.S. Federal Reserve [FED] | | Bank of Japan [BOJ] | European Central Bank [ECB] | | Swiss National Bank [SNB] | Bank of England [BOE] | | All forex news [FRX] | Economic indicators [ECI] | | Central Bank index<CENTRAL1>| Central bank rates<KEYRATES/1> | T ............................................................... CENTRAL BANKERS' COMMENTS | Federal Reserve[FED/QUOTES] | ECB [ECB/QUOTES]| | Bank of England[BOE/QUOTES] | Swiss National Bank[SNB/QUOTES]| | Sweden Riksbank[RIK/QUOTES] | ............................................................... DIARIES | Fed diary [FED/DIARY] | ECB diary [ECB/DIARY] | | Today's FX market[MI/DIARY] | Financial events [KEY/DIARY] | | Diary index [IND/DIARY] | Polling diary [POLL/DIARY] | .............................................................. WEB ADDRESSES Federal Reserve: http://www.federalreserve.gov/ Bank of Japan: http://www.boj.or.jp/en/index.htm European Central Bank: http://www.ecb.int/index.html Bank of England: http://www.bankofengland.co.uk/ Bank of Canada: http://www.bankofcanada.ca/en/ Swiss National Bank: http://www.snb.ch .............................................................. ((David Stamp; London Treasury Desk +44 207 542 7716))
DIARY - European Central Bank (ECB) events to July 2008
Reuters: [2008-05-19 15:31:00]
======================================================
This diary includes speeches and public appearances by members of the ECB's
Governing Council, which sets monetary policy for the 15-nation euro zone.
Refinancing tenders are listed at the bottom of this diary.
Some ECB events are also listed at
http://www.ecb.int/events/html/index.en.html
All details of events are provisional, and inclusion of an event on this diary
does not necessarily mean Reuters will cover it.
For euro zone economic data, please double-click on:
<EUROLANDMAY> for indicators released this month or
<EUROLANDJUN> for indicators released next month
For other related diaries, please double-click on:
[CEN/DIARY] - Major central bank events for 2008
[M/DIARY] - Top economic events worldwide,
[IND/DIARY] - Index of all Reuters diaries.
[MI/DIARY] - Highlights of today's top events of interest
to money markets.
-----------------------------------------
GENERAL / ECONOMIC EVENTS
WEDNESDAY, MAY 21
FRANKFURT- ECB Governing Council meeting. No interest rate
announcements scheduled. Any announcement about other issues to
be released at 1230 GMT.-
THURSDAY, MAY 22
ELTVILLE, Germany - ECB Governing Council member Axel Weber
opens 10th Bundesbank Spring Conference on central banks and
globalisation (0700-0730 GMT).-
SATURDAY, MAY 24
JERUSALEM- Israel to host the Group of Thirty (G30) Spring
Meeting (to May 26). Attendeed include; ECB Governor Jean-Claude
Trichet and Bank of England Governor Mervyn King as well as the
central bank chiefs of India and China.-
TUESDAY, MAY 27
VIENNA- ECB Governing Council Member and Austrian Central Bank
governour Klaus Liebscher to hold news conference at the general
assembly (09:15)-
FRIDAY, MAY 30
LUXEMBOURG- Luxembourg Prime Minister and Eurogroup chairman
Jean-Claude Juncker hosts the Luxembourg Financial Forum 2008.
Themes include: Financial markets: trapped in a global crisis?
Confidence and competence: the future of private banking.
Eurogroup: an assessment of the first 10 years with ECB
Executive Board member Juergen Stark (1300 GMT)-
FRANKFURT- ECB Governing Council member Axel Weber opens a
symposium to mark the 10th anniversary of the ECB-
FRANKFURT- ECB Governing Council member Axel Weber attends the
opening of the University of Frankfurt's House of Finance with
German Finance Minister Peer Steinbrueck-
SATURDAY, MAY 31
TRENTO- Continuation of five-day economy event on "Markets and
Democracy". Among expected attendees are ECB Executive Board
member Lorenzo Bini Smaghi, employers' association Confindustria
for Sicily region Chairman Ivan Lo Bello, Gruppo Editoriale
L'Espresso <ESPI.MI> Chairman Carlo De Benedetti, Mediaset
<MS.MI> Chairman Fedele Confalonieri- 0800 GMT
ROME- ECB Governing Council member and Bank of Italy Governor
Mario Draghi presents annual report - 0830 GMT
SUNDAY, JUNE 1
FRANKFURT- 10th Anniversary of the founding of the European
Central Bank. Link: www.ecb.int-
CANNES, France- ECB Executive Board member Jose Manuel
Gonzalez-Paramo to give keynote speech at the Global ABS 2008
conference (1600 GMT) (to June 4). Link: http://secure.imn.org/-
JUNE 2008
ATHENS- ECB governing council member and governor at the Bank of
Greece Nicholas Garganas to step down in June.-
MONDAY, JUNE 2
FRANKFURT- EuroGroup Finance Ministers meeting.-
FRANKFURT- Ceremony to mark 10th anniversary of the European
Central Bank. Speakers include ECB President Jean-Claude
Trichet, European Parliament President Hasn-Gert Poettering,
European Union Council President Janez Jansa, European
Commission President Jose Manuel Barroso, Eurogroup President
Jean-Claude Juncker, German Chancellor Angela Merkel (1330-1530
GMT)-
TUESDAY, JUNE 3
PARIS- Organisation for Economic Co-operation and Development
(OECD) Forum 2008. 'Reform to Perform - Towards a more
prosperous, stable and sustainable future' and Climate Change,
Prosperity and Stability (to June 4). Speakers include European
Central Bank President Jean-Claude Trichet, WTO Director-General
Pascal Lamy, and OECD Secretary-General Angel Gurria-
LUXEMBOURG- EU Economic and Finance Ministers (ECOFIN) meeting.-
THURSDAY, JUNE 5
FRANKFURT- ECB Governing Council meeting, followed by interest
rate announcement 1145 GMT. News conference follows at 1230
GMT.-
FRIDAY, JUNE 6
FRANKFURT- ECB Executive Board member Juergen Stark addresses a
FORUM institute conference on "The subprime crisis: challenges
for monetary policy" (0715 GMT)-
LONDON- ECB Governing Council member Axel Weber speaks at
Financial Markets Group public lecture on "Financial Market
Stability"- 1700 GMT
TUESDAY, JUNE 10
HELSINKI- ECB Governing Council member Erkki Liikanen to speak
at a Bank of Finland quarterly event (0800 GMT).-
WEDNESDAY, JUNE 11
MONTREAL, Canada- ECB Governing Council member Christian Noyer,
IMF Managing Director Dominique Strauss-Kahn to speak at an
economic forum.-
THURSDAY, JUNE 12
FRANKFURT- ECB publishes its monthly Bulletin - 0800 GMT
THURSDAY, JUNE 19
FRANKFURT- ECB Governing Council and General Council meeting. No
interest rate announcements scheduled. Any announcement about
other issues to be released at 1230 GMT.-
WEDNESDAY, JUNE 25
BRUSSELS- ECB President Jean-Claude Trichet testifies before the
European Parliament's Committee on Economic and Monetary Affairs
(0930-1230 GMT).-
THURSDAY, JULY 3
FRANKFURT- ECB Governing Council meeting, followed by interest
rate announcement 1145 GMT. News conference follows at 1230
GMT.
SUNDAY, JULY 6
AIX-EN-PROVENCE, France- (TENTATIVE - CHK DATES) Aix-en-Provence
- Economic Forum 2008- 1345 GMT
THURSDAY, JULY 10
FRANKFURT- ECB publishes its monthly Bulletin - 0800 GMT
------Main (7-Day)-------- ----Long-term (90-Day)-----
Announce- Allot- Settle- Announce- Allot- Settle-
ment ment ment ment ment ment
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05 06 07
12 13 14
19 20 21
26 27 28 27 28 29
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09 10 11
16 17 18
23 24 25 24 25 26 30
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07 08 09
14 15 16
21 22 23
28 29 30 29 30 31
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11 12 13
18 19 20
25 26 27 26 27 28
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08 09 10
15 16 17
22 23 24 23 24 25 29
30
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06 07 08
13 14 15
20 21 22
27 28 29 28 29 30
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10 11 12
17 18 19
24 25 26 25 26 27
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08 09 10
15 16 17 16 17 18
19 22 23
29 30 30
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SOURCE: European Central Bank (ECB).
LINK: http://www.ecb.int/events/calendar/caleu/html/index.en.html
*TOP NEWS* Central banks
Reuters: [2008-05-19 14:41:00]
............................................................... For news and data, double-click on the codes in brackets. Access to some items may depend on subscription level. .............................................................. > ***SNAPSHOT - WORLD KEY OFFICIAL INTEREST RATES*** [INT/RATE] > FACTBOX-Global interest res [GLOBAL/INT] ............................................................... > ECB's Trichet sees ongoing, significant correction [nL1926285] > "More resilient" German economy set for growth-Buba [nL194042] > French Q2 growth to slow, confidence dips-c.bank [nL19554743] > Swedish rates seen on hold in July, cut by end-yr [nL19618229] > BOJ to keep rates on hold with clouds over economy [nT305710] > BoE's Lomax to not serve second term-Treasury [ID:nL18135604] > Polish MPC should hike in May, probably won't-Noga[nWAR006888] > Poland has room for one more hike-MPC's Wojtyna[ID:nL19497788] > Czech c.banker Hampl: one more rate hike may help [nL19504004] > Serb cbank ups '09 core inflation target to 3-6 pc[nL19637963] > Financial markets still distorted-BIS exec [ID:nL1786902] ............................................................... > The outlook for Federal Reserve policy [FED/AHEAD] > Reuters coverage of Basel II accord [ID:nL10281706] ............................................................... UPCOMING CENTRAL BANK MEETINGS, EVENTS | Fed June 24/25 | BOJ May 19/20 | | ECB June 5 | BoE June 4/5 | | BOC June 10 | RBA June 3 | | Riksbank* July 2 | RBNZ June 5 | | Swiss Nat Bank June 19 | Norges Bank May 28 | * Announcement July 3 > Major central bank events [CEN/DIARY] > Diary of emerging market central bank events [CEN/EMRG] ................................................................ REUTERS POLLS | US Fed Funds rate [FED/R] | ECB rates [ECB/INT] | | British rates [BOE/INT] | Canadian rates [CA/INT] | | Japanese rates [BOJ/INT] | Chinese rates [CNY/POLL] | | Australian rates [AU/INT] | Swiss rates [SNB/INT] | | Swedish rates [SE/INT] | South African rates [ZA/INT] | | Top poll news [POLL/] ............................................................... LATEST NEWS ON CENTRAL BANKS | Central bank news [CEN] | U.S. Federal Reserve [FED] | | Bank of Japan [BOJ] | European Central Bank [ECB] | | Swiss National Bank [SNB] | Bank of England [BOE] | | All forex news [FRX] | Economic indicators [ECI] | | Central Bank index<CENTRAL1>| Central bank rates<KEYRATES/1> | T ............................................................... CENTRAL BANKERS' COMMENTS | Federal Reserve[FED/QUOTES] | ECB [ECB/QUOTES]| | Bank of England[BOE/QUOTES] | Swiss National Bank[SNB/QUOTES]| | Sweden Riksbank[RIK/QUOTES] | ............................................................... DIARIES | Fed diary [FED/DIARY] | ECB diary [ECB/DIARY] | | Today's FX market[MI/DIARY] | Financial events [KEY/DIARY] | | Diary index [IND/DIARY] | Polling diary [POLL/DIARY] | .............................................................. WEB ADDRESSES Federal Reserve: http://www.federalreserve.gov/ Bank of Japan: http://www.boj.or.jp/en/index.htm European Central Bank: http://www.ecb.int/index.html Bank of England: http://www.bankofengland.co.uk/ Bank of Canada: http://www.bankofcanada.ca/en/ Swiss National Bank: http://www.snb.ch .............................................................. ((David Stamp; London Treasury Desk +44 207 542 7716))Next: UPDATE 1-"More resilient" German economy set for growth-Buba