European Central Bank hurls cash at sluggish euro zone economy, seeks to force bank lending

FRANKFURT (Reuters) – The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds.

By John O’Donnell and Eva Taylor

FRANKFURT (Reuters) – The European Central Bank launched a raft of measures on Thursday to fight low inflation and boost the euro zone economy, cutting rates, imposing negative interest rates on its overnight depositors and offering banks new long-term funds.

The ECB cut all its main rates to record lows in a drive to fight off the risk of Japan-like deflation and bring down the euro’s exchange rate. For the first time, it will charge banks 0.10 percent for parking funds at the central bank overnight.

It stopped short of large-scale asset purchases known as quantitative easing for now, but ECB President Mario Draghi said more action would come it necessary.

Draghi outlined a four-year 400 billion euro ($544.86 billion) scheme giving banks that have been holding back credit due to looming stress tests an incentive to increase lending to businesses in the euro zone.

“Now we are in a completely different world,” Draghi told a news conference, citing “low inflation, a weak recovery and weak monetary and credit dynamics”.

The package, adopted unanimously, was aimed at increasing lending to the “real economy”, he said.

Other steps included extending the duration of unlimited cheap liquidity for euro zone banks, injecting about 170 billion euros by stopping tenders that withdrew funds spent on past government bond purchases, and preparing for possible future purchases of asset-backed securities to support small business.

Read more » MSN
http://money.ca.msn.com/investing/news/breaking-news/ecb-hurls-cash-at-sluggish-euro-zone-economy-seeks-to-force-bank-lending

“Are we finished? The answer is no.” – Mario Draghi, president of the European Central Bank says

Draghi Unveils Historic Measures to Counter Deflation Threat

Mario Draghi, president of the European Central Bank (ECB), reacts whilst speaking at a news conference where he unveiled historic measures to face down inflation in Frankfurt, Germany, on Thursday, June 5, 2014.

Bloomberg News reported:

The ECB today cut its deposit rate to minus 0.1 percent, becoming the first major central bank to take one of its main rates negative. In a bid to get credit flowing to parts of the economy that need it, the ECB also opened a 400-billion-euro ($542 billion) liquidity channel tied to bank lending and officials will start work on an asset-purchase plan. While conceding that rates are at the lower bound “for all practical purposes,” he signaled the the ECB is willing to act again.

“We think it’s a significant package,” Draghi told reporters in Frankfurt. “Are we finished? The answer is no.”

Courtesy: Bloomberg

No more English, Modi chooses Hindi for talks with foreign leaders

ModiWritten by Pranab Dhal Samanta | New Delhi

Prime Minister Narendra Modi, it appears, has taken a call to hold his diplomatic conversations in Hindi, with interpreters being deployed in almost all his meetings, including those where the dignitary on the other side speaks in English.

While Modi is quite conversant in English given that many New Delhi-based diplomats have met him and never found language to be an impediment, sources said he seems to have decided to stick to the national language in his interactions. That he is reasonably comfortable with the English language is clear by the fact that interpreters are not required to translate from English to Hindi.

For instance, Sri Lankan President Mahinda Rajapaksa spoke in English during his bilateral meeting with Modi and at no stage did the PM require the interpreter’s assistance to understand what the Lankan President was saying. However, his responses were always in Hindi for which the services of the interpreter were used. In fact, he followed the same protocol with the Special Envoy of the Sultan of Oman, who spoke in English.

But with those who spoke Hindi or Urdu, the interpreter was not required, like the one-on-one with Pakistan Prime Minister Nawaz Sharif. In fact, Afghanistan President Hamid Karzai, who has studied in India, also spoke in Urdu with some Hindi words and so a translator was not needed.

Read more » The Indian Express
http://indianexpress.com/article/india/politics/no-more-english-modi-chooses-hindi-for-talks-with-foreign-leaders/#.U49a19yYHAc.facebook

Three police officers shot dead in Canada – BBC

Canada shooting: Manhunt as police officers killed in Moncton

Constable Damien Theriault: “People should stay inside and lock their doors”. A manhunt is under way in the Canadian city of Moncton after three police officers were shot dead and two hurt.

Police said they were searching for Justin Bourque, 24, who was “armed and dangerous”, and tweeted a picture of a suspect with weapons. Officials have warned people to stay inside and lock their doors.

The Royal Canadian Mounted Police (RCMP) told the BBC the officers were shot responding to reports of an armed man wearing camouflage clothing.

Read more » BBC
http://www.bbc.com/news/27709330