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ECB stimulus may promote buyback boom, not growth

FUNDING GROWTH? With the European Central Bank starting a one trillion euro stimulus programme on Monday, political pressure will probably grow on companies to use ultra-cheap funding for creating jobs rather than simply buying back their own shares.


EUROPEAN companies are likely to join a boom in share buybacks as central bank cash floods the economy, risking criticism that they are recycling capital rather than investing to promote growth.

European firms are already cheering financial markets by increasingly following...

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