Refinancing of the ECB

The European Central Bank preferred to keep its 0% refinancing rate intact early Thursday afternoon. The same applies to its marginal lending rate of -0.5%. It reports on its emergency long-term refinancing operations (PELTROs) for financial institutions. Similarly, the ECB allows for an easing of the terms and conditions of the targeted long-term refinancing operations (TLTROs).

 

Statement by the President of the ECB

In addition, the President of the ECB, Christine Lagarde, hosted a press briefing on Thursday. During this session, some information was made available to the public. The President of the ECB informed that the emergency coronavirus pandemic procurement programme could be extended until next year. And this is only possible by following the evolution of the Covid-19 health crisis.

Moreover, according to the latest ECB forecasts, the euro zone should expect a decline in its Gross Domestic Product (GDP). This decline in GDP is estimated at 5% to 12% for 2020. It should be noted that over the first three months of the year, the area experienced a 3.8% decline in its GDP.

 

Some effects of the crisis in the United States

The impact of the health crisis, particularly containment and unemployment, has led to a drop in wages and consumption in America. In addition, the number of registered unemployed per week is becoming increasingly high and is estimated at 3.8 million.

 

The fall in values

The situation was very complicated for the financial stocks to follow on the various stock markets during the day on Thursday. Société Générale finished last with an 8.62% decline in the CAC 40 index. This decline occurred following the publication of the company's loss for the first quarter of 2020. Similarly, the French company Amundi also fell by 6.05% after a fall of 3.2 million euros.

BNP Paribas and Crédit Agricole fell 6.60% and 5.99% respectively in the market. After the publication of the results for the first three months, companies such as Suez, Orange, Safran, recorded losses in the market. Suez got -2.55%, Orange fell -058% and Safran took -3.53%.