Category Archives: Europe

Two-Speed Recovery: US vs. EU

The August 2013 gross domestic product report by the US Bureau of Economic Analysis drew little attention, but it contained a fairly remarkable piece of data: Inflation-adjusted GDP per capita in the United States hit a new all-time high in the second quarter of 2013, the first time a new high had been reached since 2007. Real consumer spending has hit a new high, too, and auto sales are at levels not seen since before the financial crisis. Millions of Americans are still searching for work and suffering financial hardship, but on average, by the broadest measures of economic performance, America’s Great Recession is over.

 

http://www.worldaffairsjournal.org/

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  • 90
    It certainly could be, but the odds do not favor it. Statistically speaking, it is far more likely that a run-of-the-mill correction is now underway and working its way through each sector of the market, to varying degrees of severity. Counter-trend rallies are sharp and short (think Wednesday), which is…
    Tags: fairly, average, usa, uk, europe, economy
  • 84
    För 10 år sedan verkade den globala ekonomin att vara på bättringsvägen.  Räntorna gick ner till 1 %, Storbritannien var i sitt 12:e år av oavbruten tillväxt, Kina var en del av WTO och alla trodde på att marknaderna själva kunde korrigera sig. Den monetära systemkrasch som kom var oförutsedd…
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  • 77
    If trade and financial sanctions were imposed on Russia, the cost to the UK might well exceed the cost to Russia. That is presumably why the Foreign Office wrote - in a document carelessly (or deliberately?) displayed yesterday for the lenses of photographers - that "the UK should not support…
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  • 73
    The pound rose the most in two months versus the dollar this week as manufacturing and production data signaled the U.K. recovery is on track, boosting bets the Bank of England will raise interest rate and is going to nudge higher throughout the course of this month The pound gained…
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  • 71
    10 years ago, the global economy seemed to be on the mend. Interests rates down to 1%, UK was in its 12th year of uninterrupted growth, China was a part of WTO and everyone firmly believed in self correcting markets. The monetary system crash was unforeseen and a surprise. IMF…
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The Biggest Threat To Markets That Is Most Likely To Happen Has All But Fallen Off The Radar

Richard McGuire, head of rates strategy at Rabobank, warns in a weekly note to clients that the groundwork is being laid in Europe for a crisis accelerant down the road.

Friday, Germany’s constitutional court refrained from issuing a ruling on the legality of the European Central Bank’s Outright Monetary Transactions (OMT) program, which has been credited with restoring calm to eurozone financial markets since the summer of 2012.

Read more: http://www.businessinsider.com/the-most-likely-threat-to-markets-2014-2

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    Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited"  bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
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  • 74
    Here is what you need to know now as Greece enters a pivotal week in its testy relationship with the Eurozone: 1.       Greece’s most immediate – as in first thing Monday morning – source of danger is its banking system. To compensate for accelerated deposit flight, the European Central Bank…
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  • 70
      Sorry, if you’ve heard this before, but it is crunchtime for Greece and its international creditors. Indeed, things haven’t been this dire since the last time they were this dire. But cynicism aside, it is clear that Greece is running out of money and eventually default will be unavoidable…
    Tags: european, eurozone, central, monetary
  • 62
    The European Union is experiencing an existential crisis, as the European elections will soon brutally remind us. This mainly involves the eurozone countries, which are mired in a climate of distrust and a debt crisis that is very far from over: unemployment persists and deflation threatens. Nothing could be further…
    Tags: european, eurozone, europe, crisis, financial
  • 53
    Can you guess where most Chinese nationals are in Europe ? The answer is Italy. Who lives where in Europe? Nationalities across the continent mapped People of many different countries are now living in Europe, with the continent's residents coming everywhere from Jamaica to Tuvalu. Using data from 2011 censuses we have mapped…
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German judges refer ECB’s bond-buying to European Court

Germany’s Constitutional Court will refer a complaint against the European Central Bank’s flagship “unlimited”  bond-buying plan to the European Court, removing the prospect of it curbing the program.

The court said on Friday there was good reason to think the scheme “exceeds the European Central Bank’s monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget”.

The ECB’s Outright Monetary Transactions (OMT) programme, announced by ECB chief Mario Draghi in September 2012 at the height of the sovereign debt crisis, is widely credited with stabilising the euro.

Euro/Usd drop on this news

screenshot.24

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    . ECB and BOE interest rates remain on hold. ECB keep at 0.25 % UK keep at 0.5% The press conference  with ECB President - Mario Draghi - and Vice President -Vito Constâncio - will tells us more
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  • 84
    European Central Bank President Mario Draghi hoped never to see this moment: Consumer prices in the euro region have dropped by 0.2 percent, according to December figures just published: Deflation -- a sustained period of falling prices that discourages consumers from spending and businesses from investing -- threatens to worsen the…
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  • 70
    None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days. The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB…
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  • 68
      It was almost exactly five years ago that the euro crisis erupted, starting in Greece. Investors who had complacently let all euro-zone countries borrow at uniformly low levels abruptly woke up to the riskiness of an incompetent government borrowing money in a currency which it could not depreciate. There…
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  • 68
    Runners have target times, golfers judge themselves by their swing, while Mario Draghi watches a technical measure of inflation expectations used by financial markets. Just one problem: it suggests the European Central Bank president is not achieving his objective – and that markets’ fears of eurozone deflation are mounting. Since…
    Tags: draghi, central, ecb, mario, euro, european

ECB Webcast of the press conference 6 February 2014

Press conference following the meeting of the Governing Council of the European Central Bank on 6 February 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET:

  • Introductory statement by Mario Draghi, President of the ECB.
  • Question and answer session. Registered journalists pose questions to Mario Draghi, President of the ECB, and to Vítor Constâncio, Vice-President of the ECB.

 

Watch it here :: ECB Webcast of the press conference 6 February 2014

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    . ECB and BOE interest rates remain on hold. ECB keep at 0.25 % UK keep at 0.5% The press conference  with ECB President - Mario Draghi - and Vice President -Vito Constâncio - will tells us more
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    None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days. The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB…
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  • 99
    Press conference following the meeting of the Governing Council of the European Central Bank on 4 September 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario Draghi, President…
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  • 98
    Press conference following the meeting of the Governing Council of the European Central Bank on 6 March 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario…
    Tags: ecb, president, mario, draghi, press, conference, session, registered, answer, question

ECB and BOE interest rates remain on hold

UK-ECB.

ECB and BOE interest rates remain on hold.

ECB keep at 0.25 %

UK keep at 0.5%

The press conference  with ECB President – Mario Draghi – and Vice President -Vito Constâncio – will tells us more

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    Mario Draghi’s habit of springing surprises means that few can say what he’ll do when European Central Bank officials decide on monetary policy today. Inflation at a four-year low and volatile market rates speak for further action by the Governing Council, even after it cut official rates to record lows in November.…
    Tags: draghi, rates, ecb, will, president, hold, mario
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  • 69
    Press conference following the meeting of the Governing Council of the European Central Bank on 6 March 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario…
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  • 64
    Press conference following the meeting of the Governing Council of the European Central Bank on 6 February 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario Draghi, President…
    Tags: ecb, conference, press, mario, president, draghi, constâncio
  • 59
    Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited"  bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
    Tags: mario, ecb, draghi, will

Tomorrow the ECB decision will surely bring some volatility.

None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days.

FX moves

The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB decision will surely bring some volatility.

Draghi & Co can opt to do nothing or take action in three different ways:

  1. A 10-15 basis point cut in the main refi rate
  2. Switching to unsterilized bond purchases (QE)
  3. Negative deposit rates

The legality of option #2 is questionable. Any of those move would spark euro selling, partially because it implies more future action.

Ten days ago, the market was comfortable with a wait-and-see decision but soft inflation readings have put pressure on the ECB to act.

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  • 70
    Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited"  bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
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  • 69
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  • 68
    The European Central Bank is poised to impose negative interest rates on its overnight depositors, seeking to cajole banks into lending instead and to prevent the euro zone falling into Japan-like deflation. At its meeting on Thursday, ECB policymakers may also launch a loan program for banks with strings attached…
    Tags: ecb, euro, rate, deposit, rates, cut, negative, inflation, will
  • 64
    European Central Bank President Mario Draghi hoped never to see this moment: Consumer prices in the euro region have dropped by 0.2 percent, according to December figures just published: Deflation -- a sustained period of falling prices that discourages consumers from spending and businesses from investing -- threatens to worsen the…
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How Investors Can Play Europe in 2014

Europe is back. In 2013, the economies of the Continent picked themselves up off the mat, many buoyed by the continuing pledge that the European Central Bank and its president, Mario Draghi, would do “whatever it takes”

Source URL 

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    Press conference following the meeting of the Governing Council of the European Central Bank on 4 September 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario Draghi, President…
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  • 70
    The Swiss National Bank's foreign exchange reserves inched higher in August, data showed on Friday. The SNB held 453.799 billion Swiss francs in foreign currency at the end of August, compared with 453.353 in July, revised from an originally reported 453.391 billion, preliminary data calculated according to the standards of…
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  • 68
    Can you guess where most Chinese nationals are in Europe ? The answer is Italy. Who lives where in Europe? Nationalities across the continent mapped People of many different countries are now living in Europe, with the continent's residents coming everywhere from Jamaica to Tuvalu. Using data from 2011 censuses we have mapped…
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  • 66
    The following article will appear in The New York Review’s November 20 issue. Europe is facing a challenge from Russia to its very existence. Neither the European leaders nor their citizens are fully aware of this challenge or know how best to deal with it. I attribute this mainly to…
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