| | | An International Politician Needed to Resolve EU's Economy | | As the new president of the European Central Bank, Christine Lagarde will replace Mario Draghi, who has held the role since 2011 and whose term ends on Oct. 31. Men and economists have predominated among the 19 euro-area central banks that make up the E.C.B. Lagarde is neither, yet many people felt she would be the ideal E.C.B. president. | | She has an impressive background. As a corporate lawyer, she was the first woman to rise to the top job at Baker McKenzie, a Chicago-based law firm. Then, as a politician, Lagarde was France's first woman finance minister (or any of the G7 industrialized democracies, for that matter). She was also the first woman to lead the International Monetary Fund, and is now the first non-economist to head a major central bank. What sets her apart as a successful politician is her ability for consensus-building among central bankers at a time of unprecedented monetary policies. She has great political instincts and a deep understanding of global macroeconomics. Besides her strong connections with the international community, she also is a gifted communicator. | | Even so, Lagarde confronts stiff challenges when she officially takes the role on Nov. 1. First and above all, she needs to reboot EU economic growth. Its gross domestic product is an anemic 1.2 percent this year with further signs of weakness, and inflation is stubbornly low (just under 2 percent). Lagarde labeled the eurozone as having a "delicate moment." | | Watch the video | | If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. | | Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! | | | | | | | Follow City National Bank on social media: | | | | | | Non-deposit investment products: | | • | Are not FDIC insured, | | • | Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and | | • | Are subject to investment risks, including possible loss of the principal invested. | | | | | This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. | | | | | | |
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