What's going on?

The European Central Bank (ECB) can�t exactly lay eyes on its new enemy, but the support it�s expected to announce on Thursday should help the eurozone keep swinging anyway.

What does this mean?

The ECB started its $840 billion bond-buying program back in March, with the aim of cushioning the economic blow of the coronavirus pandemic on eurozone countries. And since it�s only spent a third of that earmarked money so far, it might seem unnecessary to increase that pot by, say, $560 billion. But according to Bloomberg, that�s exactly what most investors are expecting the ECB to do � and if it doesn�t, there could be a sharp sell-off of the region�s assets.


Those investors probably just like the idea of a safety net. Just look at the US, which previously promised unlimited bond-buying: the Federal Reserve (the Fed) hasn�t bought a single bond as part of the program, but just the talk of it seems to have been enough to keep investors from panic-selling and inspire companies to issue their own new bonds.

Why should I care?

For markets: Thanks but no thanks.

The Fed � which is still hashing out the finer details of its bottomless bond-buying � hasn�t actually launched the initiative yet, but some analysts aren�t sure markets actually need its extra support anymore. In any case, companies might be reluctant to take its help for fear of looking needy while rebounding markets as a whole look strong. Equally, they may snap up the offer just in case they need some cash for a rainy � or, er, COVIDy � day.

Zooming out: Can�t we all just get along?

The Bank of England this week warned the country�s commercial banks to prepare for the UK to leave the European Union (EU) without a long-hoped-for trade deal (tweet this). This week�s negotiations between the two haven�t shown much progress, which makes it all the more likely British banks will lose their easy access to Europe�s financial markets.