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Thursday, October 2

2nd Oct - ECB presented no surprises

Previously on MoreLiver’s:

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Weighing Odds of a Catalonian Exit from SpainWSJ

Vaclav Klaus: the West’s lies about Russia are monstrousThe Spectator
An interview with the former Czech president, possibly the West’s last truly outspoken leader

(for previews, see this)
Introductory statement to the press conferenceECB
Operational details of ABS- and CB purchase programmesECB

Draghi Says ECB Will Buy Assets Over at Least Two YearsBB
ECB will buy assets for at least two years to boost inflation and economic growth in the euro area.

ECB's Draghi says rise of Eurosceptism is understandableReuters

No Shock and Awe from DraghiMarc to Market
This seems to be the among the first time in several months that ECB President Draghi has been rather anti-climactic.

ECB targets bundled-debt market to boost economyReuters
It was, nonetheless, one of the last arrows in the ECB's quiver before the broad buying of assets known as quantitative easing.

ECB shows some of the moneyMerkelnomics
Without purchases of the riskier ABS tranches, the programmes will be handicapped before they start. In the official text, the ECB only said that details of purchases of mezzanine tranches will be published at a later stage. In general, the ECB refrained from answering two important questions on the ABS and covered bond purchasing programmes: will there be a country distribution and what will be the total volume?

Draghi’s Lack of Stimulus Target Disappoints InvestorsBB
Mario Draghi disappointed investors seeking a firm target for how far he’s willing to go to revive the euro-area’s faltering economy.

ECB Stimulus Is Unlikely to Spur Growth, Eagle’s Camp SaysBB
Further European Central Bank stimulus will fail to boost inflation and revive the region’s economy, putting a ceiling on how high U.S. yields can climb, said James Camp, a money manager with Eagle Asset Management.

Draghi Opens Door to Buying $18 Billion of Portuguese, Greek ABSBB
Mario Draghi’s decision to allow the European Central Bank to buy asset-backed securities from junk- rated nations gives him an extra 14 billion euros ($18 billion) of debt for his purchase program.

ECB to wait until December as Draghi buys timeTradingFloor
ECB provided details on the ABS and covered bond purchase programmes but markets were hoping to hear more. The lack of reaction to recent bad data and the limited success of the ECB's action suggests that bad news will be ignored once more. By the end of the fourth quarter, the ECB and Germany cannot continue pretending that everything is working out just fine.

ECB meeting: QE in sovereign bonds not just around the cornerDanske Bank
Draghi is downplaying 1) the likelihood of QE in sovereigns in the near term and 2) the expectations for balance sheet expansion.

5 Takeaways From Mario Draghi’s October PresserWSJ
Draghi said it is now clear that the most recent declines in the inflation rate reflected “another component,” namely high unemployment rates and low demand.

Mario Draghi’s Spoken. Everyone Happy?WSJ
Roundup of views from banks

BlackRock bond head says speculators on ECB QE making "mistake"Reuters

Can Europe’s mini-QE save it from a lost decade?WaPo
The ECB, in effect, is becoming the lender-of-last-resort to the real economy. That's because, with one hand, the ECB is giving banks basically free money if they promise to lend it out, and, with the other, it's buying up their new loans.

5 Things To Watch in the U.S. Jobs Report – WSJ
Preview: Employment Report for September – Calculated Risk

BOJ Considering Signaling Flexible Time Frame for 2% TargetWSJ
BOJ is likely to start playing up the flexible nature of the time frame for its 2% inflation target, as doubts spread that the central bank will achieve that level by a widely perceived deadline of spring next year.

Daily MacroWSJ
Two very different conflicts are the focus of markets as the U.S. trading begins: the standoff between authorities and student protesters in Hong Kong, and the struggle to set the direction of monetary policy with the European Central Bank.

Daily Central BanksWSJ
Hilsenrath’s Take: World Torn Between ECB and Fed Paths, WSJ Survey Shows * Draghi Says ECB Hopes to Get at Root of Eurozone’s Economic Problems * What to Watch at the ECB Meeting * Bank of England Asks Government for New Powers Over Housing * Argentina’s Central Banker Replaced

More than the ECBMarc to Market
The ECB meeting and details about the asset purchase plan is the key event of the day.   However, there is something else happening.  A string of disappointing US data and the sell-off in equities have sparked a bond market rally that again has caught many participants wrong-footed. 

EMEA WeeklyDanske Bank

Alpo Rusi tölvii kirjassaan SDP:n poliitikkojaMTV
Dramaattinen keskustelu Tuomiojan kanssa käänsi suunnan

Sekoilu jatkuu: Meneekö Junckerin komissio heti uusiksi?TE