First intervention on rates in seven years by the Bank of England. The institute headed by Canadian Mark Carney announced that it has reduced the benchmark rate from 0.5% to 0.25% setting a new low for the cost of money.
The measure, already announced but then postponed surprise on July 14, is interpreted as a British economic stimulus in the background of the Brexit uncertainties and new alarm about a possible recession.
UniCredit participated in the 2016 stress tests conducted by the European Banking (European Banking Authority – EBA), finishing fourth worst place among the 51 European banks for on a transitional basis the capital, and the sixth worst adverse scenario, surpassing however the exam.
The result has led the leadership to issue a statement reassuring on the next steps that will perform "to understand the extent to which credible management actions can offset part of the scenario adverse impact, to assess the impact of the results on forward looking capital plans UniCredit and its ability to meet the needs of their own funds and to determine whether additional measures or changes in the UniCredit capital plan are necessary".
The Swiss National Bank could return to action in the foreign exchange market. This was stated by President Thomas Jordan during a conference on the Indonesian island of Bali who added that the institute, although the situation is difficult, has a certain room for maneuver.
Jordan has referred in particular to a negative inflation rates and an overvalued franc. The SNB wants to prevent the national currency will further strengthen against the euro, as this occasion "poison" for the country’s economy. Moreover, the Swiss currency "suffering" particularly of its status as a safe haven in times of severe turbulence.
The Swiss National Bank (SNB) posted a profit of 21.3 billion francs in the first half of 2016. In the same period last year, the central bank had suffered a loss of 50.1 billion, due to the strong franc .
The gold reserves have generated an increase of 7.6 billion francs, now it indicates the monetary issuing bank in a statement. In late June, the price of the precious metal stood at 41’408 francs per kilogram, compared to 34’103 francs in the same period of 2015.
The 85-year-old financier George Soros, interviewed by the Italian newspaper Corriere della Sera, has intervened in the debate on the situation of Italian banks: "I agree that Italy represents a question mark to the euro in this moment. In particular, it is for the weakness of its banking system. It is something that Matteo Renzi must find a way to solve. I believe there is the will, certainly on the part of Germany, to be cooperative. Germany supports the efforts of Italy and this is important to get to a solution. "
The ECB announced that, in the first half of 2016, it had withdrawn from circulation about 331,000 counterfeit euro banknotes, 25% less than in the second half of 2015. The data covers the entire Eurozone.
In relation to the increasing number of genuine banknotes in circulation (over 18.5 billion in the first half of 2016), the proportion of counterfeits remains at very low levels. About 80% of counterfeits concerned the 20-euro and 50-euro banknotes.
Today the ECB board should not disclose specific news. Analysts do not expect it new monetary stimulus, especially after not even the Bank of England cut rates, postponing the loosening of its monetary policy probably in August. The press conference of the Governor Mario Draghi will be important, however, because his words will express the intentions for September, when it is expected the strengthening of the apparatus of stimulus already being implemented.
For the Germans, the old love, D-mark, you never forget. In a note, the Bundesbank announced that, although 14 years have passed since the introduction of the single currency, 12.8 billion D-marks (6.53 billion euro) are still in the homes of the population in the form of banknotes and coins.
