Central bank

Completing banking union and capital markets union is crucial, ECB report shows

Retrieved on: 
Tuesday, June 18, 2024

- PRESS RELEASE Completing banking union and capital markets union is crucial, ECB report shows 18 June 2024 - Disappointing progress in euro area financial integration since start of monetary union - Policies urgently needed to mobilise savings, develop euro area bond and equity markets A better integrated euro area internal market for financial services is necessary to secure European economic and financial resilience, the European Central Bank (ECB)’s latest report on Financial Integration and Structure in the Euro Area shows.

Key Points: 
  • - PRESS RELEASE Completing banking union and capital markets union is crucial, ECB report shows 18 June 2024 - Disappointing progress in euro area financial integration since start of monetary union - Policies urgently needed to mobilise savings, develop euro area bond and equity markets A better integrated euro area internal market for financial services is necessary to secure European economic and financial resilience, the European Central Bank (ECB)’s latest report on Financial Integration and Structure in the Euro Area shows.
  • Indicators of financial integration have declined significantly over the past two years, with no sizeable increases since the start of monetary union.
  • ECB staff will present the report on Financial Integration and Structure in the Euro Area on 18 June 2024 at the high-level conference on European financial integration.
  • Notes - The biennial ECB Financial Integration and Structure in the Euro Area report focuses on financial integration and selected policy issues, notably the European banking union and capital markets union.

The impact of environmental regulation on clean innovation: are there crowding out effects?

Retrieved on: 
Tuesday, June 18, 2024
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Key Points: 

    Financial Integration and Structure in the Euro Area

    Retrieved on: 
    Tuesday, June 18, 2024
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    Other factors, such as supply chain disruptions, adverse energy supply shocks and monetary tightening have also negatively contributed to the drop in automotive production.

    Key Points: 
    • Other factors, such as supply chain disruptions, adverse energy supply shocks and monetary tightening have also negatively contributed to the drop in automotive production.
    • Despite intensified foreign competition, the euro area automotive industry has defended its global positioning by focusing on profitable market segments.

    Productivity-enhancing reallocation during the Covid-19 pandemic

    Retrieved on: 
    Tuesday, June 18, 2024

    The focus is on the reallocation channel and productivity-enhancing reallocation of jobs, following Foster et al., 2016.

    Key Points: 
      • The focus is on the reallocation channel and productivity-enhancing reallocation of jobs, following Foster et al., 2016.
      • Our study builds upon prior research concerning the impact of crises on productivity growth and labour reallocation, contributing to the comparative analysis of Covid-19?s effects on productivity.
      • Were heightened levels of labour reallocation observed amidst the economic downturn of the pandemic?
      • Did the trajectory of productivity and reallocation amid the pandemic diverge from patterns observed during other crises?
      • Moreover, did the extensive policy interventions aimed at supporting firms during the pandemic adversely affect productivity and productivity-enhancing reallocation?
      • However, a longitudinal perspective reveals that productivity-enhancing reallocation, on average, exhibited somewhat subdued trends during the Covid-19 pandemic compared to the Great Recession.
      • In this paper, we ask what the impact of the pandemic was on labour reallocation and thereby on productivity.
      • The substantial policy measures that were taken to mitigate the shock of Covid-19 might have reduced productivity-enhancing reallocation.
      • We follow this line of research and contribute by studying productivityenhancing reallocation and job retention support in a much larger set of 11 European countries.
      • We apply the approach of Foster et al., 2016 by estimating productivity-enhancing reallocation as the sensitivity of a firm?s employment growth to its lagged relative productivity.
      • We take the approach of Foster et al., 2016 in this paper as it allows direct comparison of our results with many empirical papers on productivity-enhancing reallocation.
      • However, productivity-enhancing reallocation was somewhat weaker on average during the Covid-19 pandemic than during the Great Recession.
      • The relationship between the intensity of the job retention support and the change in productivity-enhancing reallocation is negative at the country level in 2020, suggesting that reallocation contributed less to productivity in countries that gave more widespread support for jobs.
      • After conditioning on participation, the relationship between firm productivity and relative support size is negative in all the sample countries.
      • Combining the results for participation in support with the size of the support and productivity-enhancing reallocation suggests that the countries that supported relatively more low-productive firms recorded lower increases in productivity-enhancing reallocation during the pandemic.
      • This means that the characteristics of the job retention support, and in particular its extent and effectiveness in targeting highproductivity firms, played a part in productivity-enhancing reallocation during the pandemic.
      • Our findings on the link between weaker productivity-enhancing reallocation in the pandemic and the potential role of job retention support are subject to many limitations.
      • We can provide the long-run comparative evidence on reallocation and productivity for only eight sample countries and estimate the targeting of the support for only five countries.
      • The estimates of the productivity-enhancing reallocation have occasionally large confidence bounds and changes in the reallocation pattern are rarely statistically significant.
      • Section 4.1 shows the results of productivity-enhancing reallocation, Section 4.2 connects the reallocation with pandemic job retention support and Section 4.3 provides details on the distribution of job retention support by firm productivity.
      • The decomposition of productivity growth shows a negative within-firm margin and a positive between-firm reallocation margin; see Figure 2.
      • We follow Baily et al., 1992 and decompose overall productivity growth into within-firm growth and the reallocation between firms3 .
      • The between-firm labour reallocation channel lifted aggregate productivity in the euro area by 1-3 percentage points in 2020.
      • Bloom et al., 2020 estimate that only half or two thirds of the contribution of between-firm reallocation to productivity came from inter-industry reallocation, so that intra-industry reallocation also played a substantial role.
      • Further analysis is needed to understand the role of within-sector reallocation and the extent of productivity-enhancing reallocation, and we conduct this analysis in the forthcoming sections.
      • The descriptive statistics of the variables used in the estimates of productivity-enhancing reallocation are shown in Table 1 and the size of sample firms in Table A2.
      • These results confirm that high-productivity firms had higher employment growth on average than low-productivity firms from 2015 to 2020, and the reallocation remained productivity-enhancing.
      • Supplementary estimates from an unbalanced panel of firms for 2015-2020 (Table A4) show a similar degree of productivity-enhancing reallocation.
      • The reallocation to productivity contributes more in other countries and is highest in 2015 to 2020 in Latvia, where it contributes 5.2 log points.
      • Back-of-the-envelope calculations show that the slow-down in reallocation is in the magnitude of half of the decline in aggregate productivity growth.
      • Observations R2 Firm size Sector Year Relprodi,t?1 ? Cycler,t Cycler,t Relprodi,t?1 EE Table 2: Productivity-enhancing reallocation, OLS model estimates for the balanced panel, 2015-2020 Next, we examine the cyclicality of productivity-enhancing reallocation, taking the increase in productivity-enhancing reallocation during the recessions as evidence of creative destruction or the cleansing effect.
      • While there ECB Working Paper Series No 2947 19 is only one country out of ten where the productivity-enhancing reallocation increased during the Covid-19 crisis7 .
      • Figure 3 suggests that the countries that supported more workers had a smaller increase in productivity-enhancing reallocation in 2020.
      • The design of the job retention support may also explain why the reaction of reallocation was different in different countries.
      • However, the intensity of support cannot explain the majority of the variation in crosscountry differences in productivity-enhancing reallocation.
      • The COVID-19 shock and productivityenhancing reallocation in Australia: Real-time evidence from Single Touch Payroll (OECD Economics Department Working Papers No.

    The wage-price pass-through across sectors: evidence from the euro area

    Retrieved on: 
    Tuesday, June 18, 2024

    Abstract This paper studies the pass-through from wages to producer prices using sectoral disaggregated data for the euro area.

    Key Points: 
      • Abstract This paper studies the pass-through from wages to producer prices using sectoral disaggregated data for the euro area.
      • We find a positive and statistically significant wage-price pass-through that reaches 50% after three years, which differs across sectors.
      • Instead, the estimates hint at an important role for international competition in the domestic market for the tradeable sector.
      • They also suggest that the sales destination matters: wage growth contributes to domestic inflation for goods but not to export inflation.
      • Finally, we also provide evidence of an increase in the wage-price pass-through after 2020, particularly in private services.
      • This illustrates how the link between wages and prices, the so-called wage-price pass-through, is a key element in understanding inflation developments.
      • Our results highlight a sizeable wageprice pass-through in the euro area, which stabilises at around 50% after two to three years.
      • In particular, we show that a higher import penetration in the domestic market lowers the wage-price pass-through in the industrial sector.
      • Overall, our results underscore the importance of considering sectoral heterogeneity when formulating a monetary policy response to wage pressures.
      • ECB Working Paper Series No 28xx 2 1 Introduction As inflation made a come back with the post-pandemic re-openings in 2021, wage developments also took centre stage.
      • This illustrates how the link between wages and prices, the so-called wage-price pass-through, is a key ingredient to understand inflation developments.
      • Our paper is the first to study the pass-through from wages to producer prices in the euro area using sectoral disaggregated data.
      • We highlight a sizeable wage-price pass-through in the euro area, which stabilises at around 50% after two to three years.
      • (2022), we also identify a new international channel at play: the wage-price pass-through in industry matters for domestic sales but not for exports.
      • Evidence for the euro area also shows that the wage-price pass-through is smaller in recessions than in expansions (Hahn, 2020).
      • In the United States, Peneva and Rudd (2017) find little evidence that changes in labor costs have a substantial effect on price inflation in recent years.
      • (2021) document a weakening of the wage pass-through in the United States, and attributes it to better-anchored inflation expectations.
      • Their results also document a weakening pass-through over time, in particular in the goods sector prior to the Covid-19 crisis.
      • (2023) show in a theoretical model that a combined increase in input prices and in wages amplify the total pass-through to prices.
      • Chin and Lin (2023) also find a rising ECB Working Paper Series No 28xx 4 pass-through from wages to consumer prices after the pandemic.
      • (2023) document an increasing inflationary effect, both to producer prices and consumer prices, of supply-chain constraints in manufacturing industries after Covid.
      • Similar evidence has been found for the United States (LaBelle and Santacreu, 2022).
      • The next section describes the data and highlights some salient stylized facts regarding inflation and wage dynamics across sectors.
      • 2 Data collection and stylized facts 2.1 Data collection We rely on dissagregated economic data at the sectoral level for the euro area from Eurostat.
      • More specifically, we gather indices on producer prices (PPI)2 , import prices of industrial goods3 , turnover, gross wages and salaries and hours worked.
      • 5 Specifically, we take the difference in log terms between the indices on gross wages and the indices on hours worked.
      • 9 Domestically produced goods or services can be sold domestically or exported, and the selling prices can differ depending on the sales destination.
      • However, the PPI series for goods sold domestically are only available for the industry sector in Eurostat.
      • ?Full sample? corresponds to the 2009Q1-2023Q2 sample, ?Pre-Covid? to the 2009Q1-2019Q4 sample and ?Post-Covid? to 2020Q1-2023Q2.
      • Table 1 provides summary statistics of the four-quarter change in producer prices, wages per hour worked and input prices.
      • The second and third vertical panels display the figures for the pre-Covid sample (2009Q1-2019Q4) and for the post-Covid sample (2020Q1-2023Q2), respectively.
      • Hence, for any given 2-digit sector s, we employ the change in labour productivity growth of the corresponding 1-digit sector s?.
      • Specifically, a 10% increase in input prices is associated with an increase in 6.9% in producer prices after one year.
      • , 20 quarters whereas the right-hand side panel reports the estimates of ?h from equation 2 separately for industry and private services.
      • We investigate this question for the euro area by estimating our baseline equation 2 separately for the industrial and for the private service sectors.
      • 4.1 Sectoral labour shares Private services sectors tend to be more labour-intensive than industrial sectors (see evidence for the euro area in Figure A1 in Annex).
      • The following columns further suggest that the wage-price pass-through remains non-significant, irrespective of whether the goods are exported to other euro area countries or outside the euro area.
      • Overall, these results provide evidence of an increasing wage-price pass-through in the euro area after Covid.
      • Globalisation and inflation: New cross- ECB Working Paper Series No 28xx 29 country evidence on the global determinants of domestic inflation.
      • More specifically, it asks the following question How do you expect your selling prices to change over the next 3 months?
      • Information on all of the papers published in the ECB Working Paper Series can be found on the ECB?s website.

    Cairn Homes Plc: Total Voting Rights

    Retrieved on: 
    Monday, June 17, 2024

    Dublin/London, 4 June 2024: In conformity with Regulation 20 of the Transparency (Directive 2004/109/EC) Regulations 2007, (as amended) Cairn Homes plc (the “Company”) (Euronext Dublin/LSE: CRN) confirms that the total number of Ordinary Shares of €0.001 each in issue as at 3 June 2024, was 645,385,802.

    Key Points: 
    • Dublin/London, 4 June 2024: In conformity with Regulation 20 of the Transparency (Directive 2004/109/EC) Regulations 2007, (as amended) Cairn Homes plc (the “Company”) (Euronext Dublin/LSE: CRN) confirms that the total number of Ordinary Shares of €0.001 each in issue as at 3 June 2024, was 645,385,802.
    • Each Ordinary Share carries one vote, therefore the total number of voting rights is 645,385,802.
    • Cairn Homes plc (“Cairn”) is an Irish homebuilder committed to building high-quality, competitively priced, sustainable new homes and communities in great locations.
    • A new Cairn home is expertly designed, with a focus on creating shared spaces and environments where communities thrive.

    Dalata Hotel Group PLC: HOL-Holding(s) in Company*

    Retrieved on: 
    Monday, June 17, 2024

    In case of proxy voting: [name of the proxy holder] will cease to hold [% and number] voting rights as of [date]

    Key Points: 
    • In case of proxy voting: [name of the proxy holder] will cease to hold [% and number] voting rights as of [date]
      Done at London on 03/06/2024.
    • iii Other reason for the notification could be voluntary notifications, changes of attribution of the nature of the holding (e.g.
    • As the disclosure of cases of acting in concert may vary due to the specific circumstances (e.g.
    • Dissemination of a Regulatory Announcement, transmitted by EQS Group.

    Banks are making climate commitments, but are they actually making a difference?

    Retrieved on: 
    Tuesday, June 11, 2024

    Some applaud these climate-committed financial institutions for seemingly moving faster than policymakers to transition the economy away from carbon-intensive activities.

    Key Points: 
    • Some applaud these climate-committed financial institutions for seemingly moving faster than policymakers to transition the economy away from carbon-intensive activities.
    • But the amounts loaned aren’t significantly less than loans made by banks with no voluntary climate commitment.
    • NZBA-aligned banks are required to set net-zero emissions-related targets for credit and investment portfolios within 18 months of joining the alliance.
    • Still, with initial targets currently several years away, there is time for banks to reverse course and make true progress.

    Early Signals by WOO X: BTC Eyes $72K Amid Rate Cut Speculations; BTC Spot ETFs See $15.32B Net Inflow

    Retrieved on: 
    Friday, June 7, 2024

    For August, the probability of maintaining rates is 78.5%, with a cumulative probability of a 25 basis point cut at 21.1%.

    Key Points: 
    • For August, the probability of maintaining rates is 78.5%, with a cumulative probability of a 25 basis point cut at 21.1%.
    • As of June 6, updated data shows a total net inflow of $15.32 billion into BTC spot ETFs, with a single-day net inflow of $215 million and a daily trading volume exceeding $600 million.
    • FBTC: Single-day net inflow of $3 million, cumulative net inflow of $10 billion, daily trading volume of $245 million, current net asset value of $12.28 billion.
    • ARKB: Single-day net outflow of $97 million, cumulative net inflow of $3 billion, daily trading volume of $79.96 million, current net asset value of $3.46 billion.

    Hamilton Insurance DAC Appoints Ross Reynolds as Chief Executive Officer

    Retrieved on: 
    Tuesday, June 11, 2024

    Hamilton Insurance DAC, the designated activity company of Hamilton Insurance Group, Ltd. (“Hamilton” or “the Company”) (NYSE: HG) registered in Ireland and regulated by the Central Bank of Ireland, today announced that Ross Reynolds has been appointed as Chief Executive Officer, subject to regulatory approval.

    Key Points: 
    • Hamilton Insurance DAC, the designated activity company of Hamilton Insurance Group, Ltd. (“Hamilton” or “the Company”) (NYSE: HG) registered in Ireland and regulated by the Central Bank of Ireland, today announced that Ross Reynolds has been appointed as Chief Executive Officer, subject to regulatory approval.
    • View the full release here: https://www.businesswire.com/news/home/20240611943670/en/
      Reynolds is based in Dublin and will report to Adrian Daws, Chief Executive Officer of Hamilton Global Specialty.
    • “I am very pleased to congratulate Ross on his promotion to CEO of Hamilton Insurance DAC,” said Daws.
    • I wish her all the best in her future endeavors.”
      At the same time and subject to regulatory approval, Matthew Saunders has been appointed, on an interim basis, as Chief Underwriting Officer of Hamilton Insurance DAC, reporting to Reynolds.