http://www.zerohedge.com/news/2013-05-10/weidmann-slams-french-savings-widening-franco-german-divide
Submitted by Tyler Durden on 05/10/2013 08:01 -0400
http://www.telegraph.co.uk/finance/business-news-markets-live/10048288/Business-news-and-markets-live.html
I'm just going to refer back to the ground rules and the fact that we've made clear that we'll keep an eye on that.
The Co-op, which last month pulled out of a deal to buy 630 branches from Lloyds Banking Group, said Rod Bulmer would replace him temporarily until a permanent replacement was found.
Weidmann Slams French 'Savings' - Widening Franco-German Divide
While German finance minister Schaeuble 'blessed' the French two-year grace-period for 'missing the deficit targets', adding that "he trusts France.. and is aware of its duties and responsibilities," it is his fellow countryman that is making headlines.
Though the pains to which the politicians are going to convince an increasingly gullible public that the Franco-German divide is strong, German central bank head Jens Weidmann has strongly criticized French efforts to reduce its budget deficit warning that French delays could damage the credibility of euro-zone rules. The real money man exclaimed, "you can't call that savings, as far as I am concerned," adding that France (as a 'core' member of Europe) must strive to set a positive example, and not"damage their credibility by taking advantage of the built-in flexibility."
We have been vehement (here and here) that France is on the cusp of a very serious depression and this 'verbal' pressure from Weidmann will not go down well with France's Moscovici who begged, "we don't want excessive consolidation for our country, we don't want austerity beyond what is necessary," but the broad fear is that France is setting a bad example, "only a question of time before other highly-indebted countries demand concessions."
...Jens Weidmann, the president of Germany's central bank, the Bundesbank, said he is adamantly opposed to the move. "You can't call that savings, as far as I am concerned," he told the daily Westdeutsche Allegemeine Zeitung in an interview. "To win back trust,we can't just establish rules and then promise to fulfil them at some point in the future. They have to be filled with life," Weidmann said.France had originally hoped to reduce its budget deficit below the 3 percent limit this year, but with its economy suffering, the deficit is likely to be closer to 4 percent and slightly higher in 2014.As a euro-zone "heavyweight", Weidmann said, France must strive to set a positive example. "Particularly now, at a time when we have strengthened the rules regarding deficit reduction, we shouldn't damage their credibility by taking advantage of the built-in flexibility. What we need is trust in our ability to clean up state finances."...French Finance Minister Pierre Moscovici said that Paris planned to scale back its austerity measures."We don't want excessive consolidation for our country, we don't want austerity beyond what is necessary,"...German Finance Minister Wolfgang Schäuble likewise seems to be at pains to counter the widespread perception that France and Germany are at odds... "they are on the right track. France is a strong country and is aware of its duties and responsibilities." Earlier this week, Schäuble said he found the two-year grace period for France to be "appropriate." "I trust the Commission," he said, "but most of all I trust France."...France is in danger of "once again becoming the greatest transgressor of EU stability rules" and said it is "only a question of time before other highly-indebted countries demand concessions."...
http://www.telegraph.co.uk/finance/business-news-markets-live/10048288/Business-news-and-markets-live.html
12.46 It looks like the avoidance of a currency war might feature strongly on the G7 agenda today and tomorrow.
Although Bank of Japan governor Haruhiko Kuroda insists his monetary policy is not aimed at driving down the value of the yen - which hit a new four-and-a-half year low against the dollar overnight - US Treasury Secretary Jack Lew has warned that it is pushing the boundaries of international agreements to avoid competitive currency devaluations.
Speaking to CNBC ahead of the G7 meeting of finance ministers and central bankers, Mr Lew:
I'm just going to refer back to the ground rules and the fact that we've made clear that we'll keep an eye on that.
12.31 Dipping back to Japan, the IMF has said it is keeping a tight eye on the effects of the new cash supply unleashed by the BoJ, since such massive flows of cash could lead to asset bubbles or overheating in some emerging markets. New cash supply from monetary easing in the US and Europe could also contribute.
12.19 Bank of Japan governor Haruhiko Kuroda has insisted that thecentral bank's aggressive monetary easing, which will see Japan's money supply double by the end of the year, is not aimed at driving down the value of the yen. Even so, the yen has fallen to a four-and-a-half year low against the dollar, breaching the 100-to-a-dollar mark overnight.
His comments will strike a chord at the G7 today, where he plans on repeating his assertion. He told reporters ahead of the meeting that his monetary policy is targeted at hitting Japan's 2pc inflation goal in two years.
BoJ governor Haruhiko Kuroda. Photo:AP
10.22 Finance ministers and central bankers from the G7 gather near London today to discuss the fragile global recovery. Here's a look at how each of the G7 nations have fared on growth since 2007, courtesey of the IMF.
10.08 Banking editor Harry Wilson has more on the resignation of Co-op Bank boss Barry Tootel, who quit today after the business had its credit rating downgraded by Moody's.
The Co-op, which last month pulled out of a deal to buy 630 branches from Lloyds Banking Group, said Rod Bulmer would replace him temporarily until a permanent replacement was found.
Mr Tootell took over as chief executive to lead the bank's potential acquisition of the Lloyds' Protect Verde Business.
"Following the recent decision by The Co-operative Group and Banking Group Boards to withdraw from the Verde process, Barry has decided that the time is now right for him to stand down from his role," the Co-op said in statement.
Rod Bulmer had been with the Co-op for six years and held several senior executive roles within the Banking Group, including its retail banking arm. Before joining the company he headed up UK Retail Distribution for Santander.
Read his full story here.
07.45 G7 finance ministers and bank governors gather near London today. The group is likely to split over differing approaches to economic recovery with representatives from the US pushing for their European peers to ease up on austerity measures.
Yesterday at the Global Investment Conference, George Osborne said the focus will be on how to "nuture recovery" with a particular focus on free trade.
Banking reform, the eurozone debt crisis, Japanese "Abenomics", global quantitative easing, and of course the long-running saga of the financial transaction tax (FTT) are also likely to be on the agenda.
And Ben Bernanke, chairman of the US Federal Reserve, who will be absent from the meeting, said it is likely to involve a confirmation of the stance agreed by the larger Group of 20 nations that monetary policy would not be directed at currency rates but used for purely domestic purposes.
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