W/E: Weekly Support (updated)
Follow ‘MoreLiver’ on Twitter
EUROPE
An
interview with the former Czech president, possibly the West’s last truly
outspoken leader
EUROPEAN CENTRAL BANK
(for
previews, see this)
Introductory
statement to the press conference – ECB
Operational
details of ABS- and CB purchase programmes – ECB
Draghi
Says ECB Will Buy Assets Over at Least Two Years – BB
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 understandable – Reuters
No Shock
and Awe from Draghi
– Marc
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 economy – Reuters
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 money – Merkelnomics
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 Investors – BB
Mario
Draghi disappointed investors seeking a firm target for how far he’s willing to
go to revive the euro-area’s faltering economy.
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 ABS – BB
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 time – TradingFloor
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 corner – Danske
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 Presser – WSJ
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
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.
UNITED STATES
EMPLOYMENT REPORT
Preview: Employment
Report for September – Calculated
Risk
ASIA
BOJ Considering
Signaling Flexible Time Frame for 2% Target – WSJ
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.
OTHER
Daily
Macro – WSJ
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 Banks – WSJ
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 ECB – Marc 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
Weekly – Danske
Bank
FINNISH
Alpo Rusi tölvii kirjassaan SDP:n poliitikkoja – MTV
Dramaattinen keskustelu Tuomiojan kanssa käänsi suunnan
Sekoilu jatkuu: Meneekö Junckerin komissio heti uusiksi?
– TE