Michael Noonan meets ECB’s Mario Draghi in Frankfurt
FINANCE Minister Michael Noonan has met the European Central Bank’s Mario Draghi in Frankfurt on the heels of the bank’s so-called u-turn on burning bondholders.
The Wall Street Journal reported yesterday that Mr Draghi told EU finance ministers that the ECB would insist that no losses would be forced on bondholders in Spain’s worst affected banks.
Ireland’s bondholders have been paid off in the main so the question remains would the issue of burning bondholders be retrospective.
Mr Draghi’s proposal for the Spanish banks was reported knocked-down amid concerns over market reaction.
Meanwhile, European shares made fragile gains early today but kept within their tight short-term range, in case recent weak US economic data prompts the Federal Reserve to give fresh clues about further stimulus later in the session.
The FTSEurofirst was up 0.90 points, or 0.1pc, at 1044.61, adding to the previous session's 0.1 percent rise as the index remained stubbornly within its range between 1,030 and 1,050.
"Until we get a clearer outlook on key economies (markets, we) are going to go nowhere fast," Richard Jeffrey, chief investment officer at Cazenove Capital Management, said.
"I think people are going to be tempted to be more defensive in this sort of environment and the key call will be when to take on more risk and that will be later on this summer," he said