June 5 - A day after G7 finance ministers hold emergency talks, pressure for more ECB stimulus is likely to rise if the bank downgrades its economic forecasts. But Draghi may find it hard to act, after placing the onus firmly on euro zone leaders.
The pressure is on the ECB -- a day off to G-7 finance ministers held an emergency conference tournament prizes tomorrow Central Bank meeting. The toughest yet the president -- dragging. He's already cold for -- to banking union and Europe. -- are rising peripheral yields have stoked speculation the ECB could -- drop more emergency measures long term cheap loans modified collateral rules. And more bond buying just a few of the options moves -- by analysts. IMF chief Christian and gone batted her voice today saying the Arizona should become. More of a fiscal and financial union she also said the ECB has room to cut rates Reuters Christy Freeman -- a panel discussion with my daughter in Latvia. You can find that on the monde right now. 20% of economists polled by Reuters now expects 25 basis point cut from the Central Bank. A lot of course hinges on the ECB's latest economic full calls or so out tomorrow. And according to Eric Chaney chief economist at acts that deteriorating numbers that may well prompt a cut. I think the ECB we'll take humbled the fact that all of a sudden. The cyclical indicators. Really turn for the worse in Europe. And the surprise came from Germany which is really. Those strong the Pollard economy in Germany now companies are saying we are going to cut production so the city would have that they got humbled. Probably in -- this season that could send a message to the markets but I would not even exclude the rate cut by the ECB tomorrow. Whatever its decision on raise the ECB is expected to keep the liquidity taps open that's and the Euro -- bank to bank lending rates of fresh two year lows today. Spanish bond yields slipped but remain about 6%. Madrid's treasury minister sending out a dramatic distress signal in a radio interview earlier -- about mom -- says at current rates financial markets. Are effectively shot to Spain. Michael -- to our race strategist at. -- some things they have no other choice but to sort of keep them liquid given the already high level of exposure. By the obvious GM as you've seen them in other countries so I'm and then increase -- -- about. And this is not really sustainable all the -- a year or two what about that for a couple of months. Europe's also for growth may be snuffed out tomorrow -- German industrial output figures full cost suggest a 1% drop in outputs. And orders about follows disappointing PMI figures today would show all of the Euro -- major economies. In various states of decline the private sector shrinking in May have cost displaced. In nearly three years. That is it for now. Imus has problems.