M&G's Riddell: ECB acts but liquidity no cure for insolvency

M&G's Mike Riddell has warned the European Central Bank's latest grand plan to buy government bonds will not prevent a wave of selling if countries' economies continue to deteriorate.

Delivering the news the markets have been waiting for - namely that the central bank will buy government debt from countries like Italy provided countries adhere to strict rules - the ECB kept equity markets afloat, and bought down bond yields, this afternoon. However, Riddell pointed out the liquidity injection would not solve major economic hurdles facing countries such as Spain, which could deteriorate far enough to lose its investment grade status. "The ECB's measures without doubt ease the liquidity pressures, and we have purchased short dated eurozone debt through the summer in ...