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Thursday, January 22

22n Jan - ECB published a 60bn/month QE



Previously on MoreLiver’s:

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EUROPE
BOE’s Miles Says No Urgency to Lift Interest Rates in U.K.WSJ

EuroblundersKrugman / NYT
On doing everything wrong.

European sovereign debt hypocrisyFT
Speaking at Davos this morning, Angela Merkel and Alexander Stubb argued that European creditors should not be held responsible for their poor lending decisions. Well, that’s not exactly how they phrased it

Denmark - DN cuts key policy rate to all-time low Danske Bank

Danish Central Bank Cut Rates For A Second Time This WeekZH
Intervenes In Market To Preserve Peg

  EUROPEAN CENTRAL BANK (see also ECB Preview Special)
Introductory statement to the press conference – ECB
Expanded asset purchase programme – ECB
Modification to the TLTRO interest rate – ECB

ECB QE Reaction: "Disappointment"ZH
Crude Clubbed, Gold Glistens, EUR Tumbles, EU Bond Risk 'Rises', US Treasuries Rally

US Treasuries Are Soaring, Stocks Fading As European Bond Risk SurgesZH

Six Key Elements of ECB DecisionMarc to Market

Finally the details . . .The Big Picture

The ECB’s New Macroeconomic RealismProject Syndicate
The ECB has finally crossed the Rubicon and launched a bold policy of quantitative easing, which may help arrest Europe’s slide into stagnation. Even if it is not an effective growth strategy, QE should be welcomed; indeed, the ECB should be encouraged to do everything in its power to ease monetary conditions.

ECB Delivers: What The Market ThinksWSJ

Merkel warns Europe not to stray from reform path after ECB moveReuters

A message from Davos: Quantitative easing alone won't solve Europe's illsReuters
Business leaders, policymakers and celebrity academics gathered at the World Economic Forum in Davos had a message for all the "quantitative easing" (QE) enthusiasts: don't count on the ECB to resolve Europe's economic woes.

ECB launches last-ditch program to revive euro economyReuters

Draghi's "QE Dream" Is Finally Over, And Now The Questions BeginZH

ECB QE larger than expected, but unlikely to solve Eurozone woesOpen Europe
The ECB today unveiled its widely anticipated Quantitative Easing programme. But can it really boost inflation and growth in the Eurozone? Has the ECB compromised on the structure of the plan too much?

ECB’s new bazookaDanske Bank

ECB goes for blast off, but risks falling shortTradingFloor
It's been a long time coming, but the ECB has finally started a QE programme. However, it has a feeling of experimentation about it and details are lacking, warns Stephen Pope.

ECB QE: get rid of ‘but below’ to sharpen open ended promiseTony Yates

SocGen: Since ECB's QE will fail, it will have to be increased to1 trnZH

Here Are The Negatives In Today's ECB QE AnnouncementZH

5 Things to Know About Eurozone QEWSJ

No Magic Bullet in Mr. Draghi’s BazookaWSJ

The ECB finally actsScott Sumner

ECB’s Bond Buying Program Expected to Boost Commercial Real Estate SalesNYT

ECB: Open-ended QE with limited risk-sharingNordea
The ECB Governing Council had the courage to launch quite a bold asset purchase programme, in our view. The programme lasting until at least September 2016 equals 11% of Euro-area GDP or EUR 3400 per inhabitant, and it can be extended if inflation remains too low. We find the programme credible and continue to think that as the dust settles, long yields will rebound in the near-term, and so will semi-core spreads. That said, the general yield level will remain depressed for a long time.
https://nexus.nordea.com/#/article/17658

ECB market take: Good, bad, and bothNordea
Today QE came. The size and pace of the program is a positive surprise to us. The low risk-sharing and the TLTRO-tinkering are not. Despite Draghi’s stance, it actually does matter whether risk-sharing is 20% or 100%. In scenarios, Germany will perform on this. Violent moves in the market, especially on long yields and break-evens.

ECB’s bazooka: buy over 1 trillion euros of bondsWaPo

The ECB has fired its bazookaBruegel

"QE already Working" Says IMF Lagarde Mish’s

Who Owns the Government Bonds the ECB Will Buy?WSJ

Draghi: "Statute of limitations for inflation warners"Calculated Risk

ECB Unveils Stimulus to Boost EconomyWSJ
European Central Bank to Purchase €60 Billion in Assets Each Month Starting in March -

European Central Bank unleashes quantitative easingFT

REGULARS
Daily Central BanksWSJ
Hilsenrath’s Take: ECB Says Measures Coming Later This Morning, QE on the Way * ECB to Announce More Easing Measures at Draghi Press Conference * China’s Central Bank Injects $8 Billion Into Banking System * Bank of Canada Shocks With Rate Cut * Brazil Central Bank Raises Rate to Highest Level In More Than 3 Years

Daily MacroWSJ
The ECB is at long last expected to launch what counts as conventional quantitative easing – buying debt from the region’s governments on a major scale. Figures bandied about suggest from EUR600 billion to more than EUR1 trillion in balance sheet expansion. Whether that’s enough to overcome the eurozone’s significant fundamental problems – not least bad demographics – is another matter.

Danske DailyDanske Bank

Eye-OpenerNordea
Finally a QE announcement from the ECB – we hope * Long yields finally rebound – but not in the UK or Canada * ECB setting the market tone today

Race Lower in Interest Rates is Preferable to Currency WarsMarc to Market

Daily Shot: Why Canada's rate cut is justifiedTradingFloor
The Bank of Canada's rate cut yesterday was unexpected. But given the nation's economy, it’s a sensible move and more cuts are likely.

US OpenZH
Futures Unchanged As Algos Patiently Await The ECB's "Monumental Decision"

FX Update – TradingFloor
The Bank of Canada shock rate cut triggered the largest drop in CAD in years, with collateral damage for the other commodity dollars. Cue today’s ECB, where the market reaction will likely be large in this nervous environment.

From the floor: D-day for DraghiTradingFloor
The big story from the floor today, of course, is the upcoming European Central Bank meeting and its effects on various markets and asset classes. Canada's surprise rate cut and the US crude inventory report, however, will also be swaying markets today.

FINNISH
AamukatsausNordea
Tänään selviää, uskooko edes EKP euroalueen tulevaisuuteen | Englannin keskuspanki yllättävän kyyhkymäinen | Kanadan keskuspankki laski ohjauskorkoa

  EKP-KOKOUS
EKP:n iltapäivän päätös on jo kaikissa koroissa ja hinnoissa – TE
Euroopan keskuspankki aloittaa eurovaltioiden velkakirjojen ostot – PS
EKP alkaa elvyttää 60 miljardilla joka kuukausi – TalSa
EKP paljasti jättimäisen elvytysohjelman: 60 miljardia euroa kuukaudessa – YLE
Professori EKP:n ilmoituksesta: Yläkanttiin suhteessa odotuksiin – YLE
Analyytikot: EKP:n ostojen suuruus hyvä – TalSa

Teollisuuden investoinnit Suomeen ovat vilkastumassaVerkkouutiset