Key news today: Bundesbank opposes further bond purchases by the ECB. Markets are not reacting to that seemingly. Leaked or planted reports in French press that there will be a big policy response from the governments and the ECB coming. So why is everyone on holiday? As before, when there is no immediate EU or ECB meeting ahead, the policy makers are playing announcement games with the markets. Draghi has not done that previously. Either he means business, or they are very desperate. The markets are now truly binomial, but I think this is good. Everyone is getting tired of this muddle-through. I wish it went away.
GDP out in fifteen mins. Last calls. Everyone trying to hide and forget that Spain is looking for some bailando-money to the tune of 300bn.
Quote of
the Day: As I write this, it seems that news of Mario’s super human jawboning
efforts have finally reached Angie’s ears and she’s quickly placed a call to
whoever it is minding the fruit stall in her absence. Cue the Bundesbank, with
headlines hitting the wires that their stance (Angie’s stance) has not changed
and the concept of buying sovereign toilet paper (government bonds) is no
better an idea today than it was the last time some central banker suggested it
was and thus they do not support the concept. Hand slapped for Mario? These
guys should really talk to one another more often. – Ken
Veksler / Saxo Bank
Previously
on MoreLiver’s:
News &
Recap – RanSquawk / ZH
Frontrunning
– ZH
The Lunch
Wrap – FT
Emerging
N.Y. headlines – FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
Why the Olympics might let Draghi stay at the
beach – alphaville
/ FT
UBS notes that while the calendar seems empty, there are plenty of sources
for surprises
Spiking Skywards? Tackling rising yields in
the Eurozone – re-define
The discussion in this policy brief has
focussed on what can be done in the near-term. The fundamental problems we face
are two-fold. First, whatever is economically workable does not seem
politically feasible and second, that without a broader more comprehensive
solution to the Eurocrisis any steps to address spiking yield would only have a
temporary impact.
You say Rettung, I say imposición – bruegel
Germany vs. Spain in newspapers
Research euro area: Revising down euro area
growth – Danske
Bank (pdf)
Bavarians are getting increasingly restless
over eurozone bailouts – Open
Europe
Draghi In A Box – ZH
Premia, there and everywhere – alphaville
/ FT
Who went back and read Mario Draghi’s full,
market-moving remarks in London on Thursday — beyond the “whatever it takes”
and “yields” bits?
What’s the ECB going to do next? – alphaville
/ FT
JPM’s David Mackie has complied a list of possible actions, in descending
order of likelihood as he sees it
Mr Draghi, are you wearing any clothes? – Capitalists@Work
As Europe Desperately Attempts To Talk Down Bond Yields Further, Bundesbank
Finally Says "Nein" – ZH
USA
Earnings season: Analysts cut forward
estimates; upside limited – Saxo
Bank
OTHER
Eight Observations about the Yen – Marc
to Market
Weekly Credit Update: 27 July 2012 – Danske
Bank (pdf)
IN FINNISH
EKP laulamassa korot
suohon – Henri
Myllyniemi / US Puheenvuoro
Mennyt maailma – Hannu
Visti