Eurozone fragmentation: special focus

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The breakdown of the eurozone's market functioning has imperiled the ECB's monetary policy, the cross-border banking business model and economic convergence. Euromoney investigates the economic, capital market and policy fallout.



ECB QE: special focus


Awards for Excellence 2015: Banker of the year
July 2015
John Hourican-600

John Hourican, the Bank of Cyprus chief executive, will move on this summer after restoring the bank to health. The rapid recovery of the bank led to a net increase in deposits in Cyprus in the fourth quarter of 2014 for the first time since the bail-in in March 2013, a trend that has continued into 2015 despite uncertainty in Greece and the full abolition of capital controls.

Country Awards for Excellence 2015: Western Europe – Cyprus
July 2015
Best bank: Bank of Cyprus.

Euromoney Country Risk survey results H1 2015: In search of safe havens with Greece on the brink
July 2015
The latest quarterly round-up from Euromoney’s crowd-sourcing country risk survey – a unique poll of more than 440 expert participants – shows no fewer than 80 of the world’s 186 sovereigns becoming riskier during the first half of 2015.

Portugal and Hungary to reclaim investment grade, says risk survey
July 2015
Euromoney’s crowd-sourcing, survey-based approach to evaluating country risk successfully predicted a similar path for the Philippines two years ago. In addition to these two European borrowers, however, there are a handful of others with longer-term prospects for investors to keep an eye on.

Banking in Italy: Economies of scale
July 2015
Only structural change, not tweaks, will bring a recovery across Italy’s banking sector.

Portugal debate: Portugal perks up
June 2015
The country’s economic recovery continues to gather momentum, underpinned by strengthening domestic demand and robust exports. The government has regained access to the international capital markets and concerns about contagion have receded. There are still vulnerabilities: debt levels are high and the banking system is weak. But Portugal has a spring in its step that it has not had since before the crisis.

Against the tide: UK politics – Dependent and independent
June 2015
The newly elected Tory party must wrestle with an invigorated SNP and its old bête noire, the EU. The proposed in/out referendum will cast a long shadow over the UK.

Crisis in Greece still threatening the eurozone
May 2015
Euromoney’s risk experts weigh up the various options as the 'end-game’ nears.

Against the tide: Greece – the joker in the pack
May 2015
The eurozone recovery looks increasingly secure but the low growth rate is still a big cause for concern.

Tsipras prepares the ground for compromise as Greek deal inches closer
May 2015
As the race to reach an agreement on Greek reforms and the latest instalment on the European aid package enters its final weeks, prime minister Alexis Tsipras looks set to make the necessary concessions to secure European assistance.

How eurozone QE is reshaping the bond markets
April 2015
If Europe’s economy remains in crisis, then someone please tell the bond markets. The ECB’s asset purchase programme has driven half of the EU’s sovereign debt pile into negative yield territory. And Draghi’s plan has only just started. Funds see little choice but to follow the QE monster on its path of destruction through the yield curve. Will that lead to the surreal outcome of all EU sovereigns yielding the same, regardless of credit quality?

Against the tide: Glow of recovery in Europe
April 2015
At times the ECB seems to lurk so far behind the curve that it appears to be using some sort of random monetary-policy generator.

Baltic bonds are expensive – get used to it
April 2015
It should be no surprise that Latvia is trading well inside Italy. The fiscally disciplined Baltic states would fare better than the eurozone’s southern periphery in the event of a Greek exit.

Risk experts adopt a nuanced position on Austria
March 2015

The credit implications of resolving failed lender Hypo Group Alpe Adria (HGAA) are not what they seem. The upshot is Austria is not about to suffer the same fate as Cyprus, Iceland or Ireland.

Against the tide: The fragmentation of Europe
March 2015
Political pressures and lack of growth have put the European project under threat. Reform is urgently needed to set Europe back on course.

Portugal’s 'Syriza’ faces uphill battle
February 2015
A relatively stable political climate has boosted Portugal’s economic recovery and secured record low borrowing costs. But are markets too complacent? Euromoney interviews anti-austerity advocate Rui Tavares, a leftist founder of Livre and an ally of Greek finance minister Yanis Varoufakis, as the ruling centre-coalition seeks to secure its position ahead of the September elections.

ECB commences covered bonds amid intrigue
February 2015
The ECB commenced its covered bonds purchasing programme last week, but no sooner had it started than rumours surfaced about a new plan to purchase corporate bonds. The fevered speculation demonstrates the lack of confidence in the ECB's existing plan, reviving questions about full-scale QE and its seniority in bond holdings.

Failed ECB asset purchases plan has wrought 'malign impacts' for the market
February 2015
The corporate bond market fears crowding out as quantitative easing looms.