The central bank also decided to hold its interest rates at record lows.
The extra bond buying «is likely to push European government bond yields even further into negative territory, and investors in search of positive returns will be forced to take more risk,» said Rachel Winter, associate investment director at investment firm Killik & Co.
The bond purchases are often referred to as Quantitative Easing (QE). When central banks buy bonds with printed money, the value of the bonds rise and borrowing costs drop.
Some market commentators wonder how much money can safely be printed without causing the value of money to decrease.
‘Fiscal box’
«Although inflation is currently very low, these levels of asset purchases are causing some concern about inflation further down the line,» said Ms Winter.
«Economic theory tells us that that inflation is linked to the supply of money in the economy, and if the money supply is being drastically increased to fund quantitative easing then long-term inflation ought to rise too. These fears of long-term inflation have stoked demand for gold recently.»
Gold is trading at about $1,717 (£1,368) an ounce, down from highs of $1,766 earlier in the month, but up compared to a price of $1,324 one year ago.
In many ways, the ECB is playing catch-up with other central banks, said Neil Williams, senior economic adviser at US-based money manager Federated Hermes.
«After lagging the US and UK, the fiscal box is now opening, he said. The planned spending works out at about €100bn a month, higher than the €80bn spent in the wake of the European sovereign debt crisis, he points out.
Debenhams is to reopen its first stores in Northern Ireland on Monday, followed by 50 shops in England the week after.
It says three stores with street access in Belfast, Newry and Rushmere will be able to open following updated guidance from the NI Executive.
Debenhams collapsed into administration for the second time in a year in April after coronavirus ramped up the pressures facing the business.
It has struck deals with landlords to keep 120 stores open.
However, 17 stores will remain closed for good when coronavirus lockdown restrictions are lifted. It is still in discussions over a «handful» of others.
The future of its five main stores in Wales has been secured after it reached agreement on business rates. Debenhams had threatened to close them if it did not get the same level of support enjoyed by its stores in England.
Steven Cook, managing director of Debenhams, said: «We are delighted to be welcoming customers back to our stores in the coming weeks.
«From the installation of perspex screens at till points to the roll-out of social distancing procedures and PPE, we have been working hard to ensure our colleagues and customers can work and shop with confidence.
«Our reopening plans follow the successful conclusion of lease negotiations on 120 stores, meaning that the vast majority of our stores will be reopening.»
Meanwhile, the administrators have written to creditors with an update.
When Debenhams collapsed into administration, the business owed £155m to creditors, including many suppliers.
It is still unclear how much will be paid and to whom.
Debenhams has also been cutting jobs at its head office and closing the majority of its store cafes in a bid to cut costs and become a leaner business.
A total of 4,000 jobs will be lost as a result of these changes, as well as the 17 store closures.
The key question now is whether the chain can be rescued from administration as a going concern.
It is in what is being described as a «light touch» administration, where the current management has remained in place.
Its lenders are said to remain supportive. They took control of the chain after it collapsed into administration last year, after struggling for years to keep up with the competition.
The business may not exit administration until the new year.
Administrators and lenders will no doubt want to see how the business performs post-lockdown, as well as the crucial Christmas trading period, in order to be confident it has a viable future in its current form.
Future store closures are still possible.
Debenhams will be back in business on the High Street along with its rivals this month, but it still has a long and difficult journey ahead.
Germany’s coalition government has agreed a €130bn (£114bn) fiscal stimulus package which cuts tax and hands €300 per child to every family.
The move is designed to kick-start the economy which has been severely hit by the coronavirus crisis.
Germany is heading for its worst recession in 70 years with GDP expected to shrink 6.3% this year.
«We must now succeed in boosting the economy,» said Chancellor Angela Merkel.
She said the fact that Germany had seven million temporarily furloughed workers «shows how fragile the situation is».
As well as a cut in VAT and cash for families with children, the measures include new incentives for buying electric cars.
The package was announced late on Wednesday after 21 hours of negotiations between the partners in Mrs Merkel’s governing grand coalition – which comprises her own Christian Democratic Union, its Bavarian sister party the CSU, and the left-of-centre Social Democrats.
Boosting spending
To boost consumer spending, VAT will be cut from 19% to 16% from 1 July to 31 December this year, a move that will cost the German government €20bn alone.
Families will receive a one-time transfer of €300 for each child.
Meanwhile those who buy electric cars will see the government rebate – an incentive designed to encourage consumers to switch to cleaner vehicles – doubled to €6,000.
Businesses will benefit too. Companies in sectors hardest hit by the crisis – such as hospitality, tourism and entertainment – will receive «bridging help» worth €25bn from June to August.
Restaurants, hotels or event management companies could get up to 80% of their fixed operating costs reimbursed if their revenues have plunged more than 70% compared to a year ago.
The new stimulus package comes on top of a €1.1 trillion rescue package agreed in March, which comprised loan guarantees, subsidies and a shorter-hours programme to avoid job cuts.
Mrs Merkel said the support programme would help «the economy to find its feet and grow again».
Image copyrightDonaldson CollectionImage caption The 1961 film Breakfast at Tiffany’s film, starring Audrey Hepburn, made the store famous
The world’s biggest luxury goods firm, LVMH, has cast doubt over its planned $16bn (£12.5bn) takeover of US-based jeweller Tiffany.
LVMH agreed to acquire Tiffany last November, but coronavirus-induced turmoil on financial markets has overshadowed the deal.
After days of speculation, LVMH said on Thursday that it would not buy Tiffany shares on the open market.
It could be a sign that LVMH wants to renegotiate a cheaper price.
Tiffany’s share price tumbled in March on the back of expectation that sales of its luxury jewellery would fall. Although the stock recovered, it has fallen again this week on speculation LVMH’s bid was in doubt.
LVMH’s billionaire chief executive Bernard Arnault has long coveted buying Tiffany, a brand that hit global fame in the Audrey Hepburn romance Breakfast at Tiffany’s.
He agreed to pay $135 a share, but the price has sunk to about $114 a share. LVMH’s statement on Thursday comes ahead of Tiffany’s quarterly results, due out next week.
Image copyrightGetty ImagesImage caption Tiffany is known for its signature robin’s-egg blue packaging
LVMH said that during its board meeting on Tuesday, the firm «notably focused its attention on the development of the pandemic and its potential impact on the results and perspectives of Tiffany & Co with respect to the agreement that links the two groups».
It added: «Considering the recent market rumours, LVMH confirms, on this occasion, that it is not considering buying Tiffany shares on the market.»
It gave no further details.
Tiffany is something of a New York institution and its flagship store is next to Trump Tower on 5th Avenue.
Founded in 1837, it employs more than 14,000 people and operates about 300 stores – 12 of them in the UK.
LVMH has 75 brands, 156,000 employees and a network of more than 4,590 stores. Its brands include Louis Vuitton, Kenzo, Tag Heuer, Dom Pérignon, Moet & Chandon and Christian Dior.
The boss of the UK’s biggest airport services company Swissport has warned quarantine rules could deliver a «killer blow» to the travel sector.
From 8 June all passengers arriving in the UK must self-isolate for 14 days.
Swissport chief executive Jason Holt said the plan would deter people from travelling and put ground staff jobs at risk as a result.
Meanwhile Ryanair’s boss Michael O’Leary said it would «significantly reduce European visitors».
Mr O’Leary said most countries in Europe have a lower rate of coronavirus than the UK.
At a time when «Italy, Greece, Spain and Portugal are removing visitor restrictions, the UK is imposing them,» he told the BBC.
Swissport’s Mr Holt questioned why the rules were being put in place now.
Speaking to the BBC’s Today programme, he said: «If it’s so important and it’s so relevant to the virus, and we all want the country to be safe, why wasn’t this done in March? That’s why everybody’s quite confused on this.»
More than 200 travel companies have written to the government asking for the new rules to be scrapped, while some MPs have also raised concerns.
But the government says the quarantine period is a «proportionate and time-limited approach» to protect public health.
On Wednesday, Home Secretary Priti Patel told Parliament imported coronavirus cases now »pose a more significant threat».
«We are past the peak but we are now more vulnerable to infections being brought in from abroad,» she said.
‘Irredeemable damage’
Swissport which earned more than €3bn in revenue in 2019 (£2.8bn) has furloughed most of its 6000 UK staff. Mr Holt said they will remain on the Job Retention Scheme until the government’s future travel policies became clear.
He said Swissport had lobbied the government to avoid introducing quarantine, but the company is now hoping the rules will only be in place for short time.
«We’re really hoping no more than three weeks,» he said. If it goes beyond that it could do «irredeemable damage to the sector».
From Sunday, all passengers arriving in the UK by plane, ferry or train will have to provide an address where they will remain for 14 days.
Surprise visits will be used to check they are following the quarantine rules. Those in England could be fined up to £1,000 if they are not at home.
El israelí Shy Dahan, requerido por la justicia de Panamá, fue capturado en Ecuador en un punto de control policial el pasado lunes 1 de mayo.
Dahan fue aprehendido en la ciudad de Santa Elena cuando viajaba en un vehículo junto a otro extranjero. Llevaban 100 mil dólares en efectivo y documentos diplomáticos falsificados, que los acreditaban como supuestos agentes de la Drug Enforcement Administration (DEA).
Publicidad
Al verificar su identidad se descubrió que pesaba sobre él alerta roja de Interpol. En allanamiento realizado posteriormente en su residencia, se decomisaron 200 mil dólares y otros vehículos de alta gama.
La ministra ecuatoriana de Gobierno María Paula Romo reveló este miércoles que ambos detenidos están «vinculados con la venta, la oferta de pruebas rápidas y de insumos médicos a propósito de la pandemia», en referencia a investigaciones iniciadas por autoridades de ese país por delitos de de peculado, tráfico de influencias y delincuencia organizada, relacionado a la venta de insumos médicos a hospitales.
Por esta investigación, la Fiscalía y la Policía de Ecuador realizaron 37 operativos de allanamiento entre el martes y miércoles, que resultó con otras detenciones, entre éstas la del expresidente ecuatoriano Abdalá Bucaram.
«En #SantaElena se detuvo a dos ciudadanos israelitas que se hacían pasar como miembros de la DEA, a quienes se les encontró dinero en efectivo. Uno tenía tarjeta roja. Ambos estarían involucrados con hechos de compra de insumos médicos en la emergencia», dijo @mariapaularomo. pic.twitter.com/uS2rnIB1Ze
Dahan se evadió del centro penitenciario La Joyita en junio de 2018, donde permanecía mientras enfrentaba un proceso por delito contra el patrimonio económico.
A raíz de su fuga del penal, se removió al entonces director y al subdirector de La Joyita, se inició una investigación judicial a ambos, a tres unidades de la Policía Nacional y a un custodio. Posteriormente otras dos personas fueron vinculadas a esta investigación, enfrentando cargos por falsedad y delitos contra la fe pública.
Dahan había sido extraditado de España a Panamá en marzo de 2018 por un caso de estafa de más de medio millón de dólares, razón por la que se mantenía detenido en La Joyita hasta su evasión.
Se ofrecía una recompensa de B/.10,000.00 por información que llevara a su captura.
