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BUSINESS Friday 11 OctOber 2019
A25

European Central Bank minority opposed bond-buying stimulus

FRANKFURT, Germany (AP) how much difference an-
— European Central Bank other blast of monetary
officials haggled exten- support will make. Many
sively over several parts of bonds issued by eurozone
the stimulus package de- governments, for instance,
cided at their last meeting, trade at negative interest
with dissenters objecting to yields.
bond purchases that pump Several ECB council mem-
newly created money into bers have publicly ex-
the economy. pressed disagreement with
The written account of the the extent of the stimulus
meeting released Thurs- package backed by Presi-
day backed up recent dent Mario Draghi. They in-
evidence of an unusual cluded Klaas Knot from the
amount of opposition to a Netherlands and Jens Wei-
key decision at the Sept. dmann of Germany, while
12 meeting — divisions that German official Sabine
could be a challenge for Lautenschlaeger, a mem-
incoming ECB head Chris- ber of the top six-member
tine Lagarde. executive committee that
The account says that "all runs the bank day to day,
members" agreed on the voiced opposition to bond
need for some kind of ad- The European Central Bank is seen next to the river Main in Frankfurt, Germany, late Wednesday, purchases ahead of the
ditional stimulus for the Oct. 2, 2019. meeting and resigned af-
19-country eurozone econ- Associated Press terward - more than two
omy. years before the end of her
But "a number of members The 25-member governing keep rates low indefinitely any rate cut. term - without publicly stat-
assessed the case for re- council in the end decided until inflation is clearly com- The export-focused euro- ing a reason.
newed asset purchases as by "clear majority" to start ing back in line with the zone economy is suffering "It is not the first time in ECB
not sufficiently strong," ac- 20 billion euros ($22 billion) bank's goal of just under a drop in growth due to the history that there have
cording to the account. in purchases a month and 2%. trade dispute between the been dissenting voices in
The dissident members to cut a key interest bench- Some members pushed for U.S. and China, among oth- the Governing Council,
were quoted as saying that mark, the rate on deposits a different wording for the er things. Yet with market but they have rarely been
bond purchases would the ECB takes from com- interest rate promise or for interest rates already very as loud and persistent as
either be ineffective or mercial banks, to minus an even bigger rate cut low after years of central they are now," said Carsten
should be held back as a 0.5% from minus 0.4%. The but without the bond pur- bank stimulus efforts, a de- Brzeski, chief economist for
last resort. bank also said it would chases. Others opposed bate has broken out about Germany at ING.q

Stocks move broadly higher on trade talk optimism

By DAMIAN J. TROISE Apple and Microsoft led KEEPING SCORE: The S&P a concern and top Euro- officer to be its new CEO
Associated Press the technology sector high- 500 rose 0.6% as of 10 a.m. pean Central Bank officials and president. Mark Trit-
NEW YORK (AP) — Stocks er. The sector is particularly Eastern time. The Dow are united over the need ton, a 30-year-retail indus-
moved broadly higher in sensitive to any news com- Jones Industrial Average for more economic stimu- try veteran, will assume the
early trading Thursday as in- ing out of trade negotia- rose 157 points, or 0.6%, to lus, according to the writ- top role on Nov. 4 and suc-
vestors wait to see whether tions because many of the 26,501. The Nasdaq rose ten account of their last ceed interim CEO Mary A.
the U.S. and China make companies rely on China 0.7%. meeting. Winston.q
any progress in negotia- for sales growth and supply OVERSEAS: Stocks in Eu- Asian markets were mixed
tions aimed at ending their chains. rope edged lower. Britain as the U.S. and China head
ongoing trade war. Bank of America rose said that economic growth into a new round of trade
The markets were encour- 1.6% and led bank stocks held up in the three months negotiations.
aged by an early tweet higher. The sector bene- through August and it will FRESH SHEETS: Bed Bath &
from President Donald fited rising bond yields on avoid running into a reces- Beyond surged 27% after
Trump saying that China a report showing inflation sion in the run-up to its exit the struggling home goods
wants to make a deal, was muted in September. from the European Union. chain named Target's for-
though he did not say Higher yields allow banks Economic growth remains mer chief merchandising
whether he was also willing to charge more lucrative
to come to an agreement. interest on loans.
Envoys from each nation The yield on the 10-year
start their 13th round of Treasury rose to 1.63% from
trade negotiations Thurs- 1.58% late Wednesday.
day since the feud started Energy companies bene-
15 months ago. Markets fited from a rise in crude oil
have been jittery all week prices.
as investors continue to as- Investors backed away
sess the potential for a deal from safe-play sectors in
amid the latest escalation another sign that they were
from the U.S. and China's feeling optimistic about
recent rifts with the NBA economic growth. Utilities
and U.S. companies over and real estate companies
free-speech issues. fell.