Tag Archives: ECB

Meet the Scapegoats Last week, an Irish court sentenced three prominent banksters for their roles in the 2008 financial crisis.  Judge Martin Nolan, who pronounced judgment, said that the bansksters had committed “a very serious crime.”  He continued: “The public is entitled to rely on the probity of blue chip firms. If we can’t rely on the probity of these banks we lose all hope or trust in institutions.”* Meet the...

Summary: Draghi does not show the kind of urgency many bank economists do over the shortage of bonds to buy. Draghi kept options open and suggested a review in September when new staff forecasts are available and more data will be seen. The euro firmed, mostly it seemed on sell the rumor buy the fact, and/or possibly some disappointment that no fresh action was taken. Draghi said nothing that surprised the...

The assassination of the Jo Cox has broken the powerful momentum in the markets.  Investors recognize that the tragedy potentially injects a new element into consideration for the outcome of next week’s referendum.   The campaigns will be resume over the weekend, and new polls will be available.  Investors will place more weight on polls conducted after the assassination. The UK referendum is the big event next week. ...

In March, the ECB decided to increase its asset purchases from 60 to 80 bln euros a month and to include corporate bonds.  The corporate bond buying program begins this week.   We use an FAQ format to discuss the key issues. What is the ECB doing?   The ECB will buy euro-denominated, investment grade bonds from companies incorporated within the eurozone. What is the duration of the corporate bonds that the ECB will...

 ECB press conference June 2 2016 Held in Vienna with Governor Nowotny Keep key ECB interest rates unchanged Will be kept at present or lower for an extended period of time, exceeding asset purchase program (80bn per month) which will end March 2017 sector program will start June 8 TLTRO start in June New measures will strengthen growth in euro area through credit expansion Very low inflation must not become entrenched in second round effects through effects on wages and prices. ECB...

The US dollar bottomed against nearly all the major currencies on May 3.  The hawkish April FOMC minutes that began swaying opinion about the prospects for a summer rate hike were not published until two weeks later, and the confirmation by NY Fed President Dudley was not until May 19.  Nevertheless, the shift in expectations for a resumption of the Fed’s gradual normalization of monetary policy is a potent force that has fueled the greenback’s recovery.  The place to look for investors’...

The US dollar bottomed against nearly all the major currencies on May 3.  The hawkish April FOMC minutes that began swaying opinion about the prospects for a summer rate hike were not published until two weeks later, and the confirmation by NY Fed President Dudley was not until May 19.  Nevertheless, the shift in expectations for a resumption of the Fed’s gradual normalization of monetary policy is a potent force that has fueled the greenback’s recovery.  The place to look for investors’...

It might not be on investors’ calendars, but European officials will take steps toward addressing two issues tomorrow.  First, the EC will make a preliminary recommendation of visa-free travel in the Schengen area for Turkish passport holders.  Second, the ECB governing council will hold a non-monetary policy meeting.  It is expected to discuss the future of the 500-euro note. In exchange for implementing previously agreed upon measures to address the refugees going from Turkey to...

Takeaways from the press conference following the ECB's policy meeting of 21 April 2016 Read the full report here The 10 March ECB meeting was all about bold action and strong signals. The main message from the 21 April meeting was one of continuity, consistency and cohesion. The ECB’s assessment of economic conditions has not changed materially in the past few weeks, with the view that existing and upcoming policy measures will help to push inflation higher over the medium-term. In the...

The ECB meeting is the session’s highlight.  In recognition of the risk that ECB President Draghi expresses displeasure with the premature tightening of financial conditions through the exchange rate channel is encouraged a modest bout of euro selling.  The single currency has drifted back toward the lows seen at the start of the week near $1.1275.   The euro has held above last week’s lows, which were set April 14 near $1.1235.  A retracement target of the euro’s gains since March 10 ECB...