2-OCTOBER
Weaker
euro buys time for Draghi’s ECB – FT
Draghi is
unlikely to talk much about the euro on Thursday when he sets out details of an
asset-buying plan intended to deliver an adrenalin shot to Europe’s faltering economy.
Only a
weak euro can save the ECB now’ – FT
It is
practically impossible to bring the size of the ECB’s balance sheet back to 2012
levels without directly purchasing non-senior tranches of ABS and government
bonds.
Draghi
tries to keep show on the road – Reuters
Traders on
average expect the ECB to buy a total of 200 billion euros of ABS and covered
bonds over a year.
ECB
Sovereign Bond Purchases Remain Unlikely – PIIE
Only a new
and unforeseen emergency is likely to persuade the ECB to launch sovereign bond
purchases anytime soon.
1-OCTOBER
Germany Throws Up Over
Draghi Plan To Buy Greek Junk – ZH
The ECB’s
executive board will propose that existing requirements on the quality of
assets accepted by the bank are relaxed to allow the eurozone’s monetary
guardian to buy the safer slices of Greek and Cypriot asset backed securities,
or ABS, say people familiar with the matter.
No
mystery: ECB has already announced quantitative easing – TradingFloor
Details of
the ECB's plan to buy private sector assets will be announced Thursday * The
real intention is to lower the exchange rate * Indications point to a lack of
ABS and covered bonds available to achieve goal
What is the ECB to Do? – Marc
to Market
The focus
is on the details of the asset-backed securities and covered bond plan that was
announced last month. There are three key issues related to this new
initiative: What instruments will be
purchased, how much will be bought, and
how long will the purchase program last?
No
mystery: ECB has already announced quantitative easing – TradingFloor
Despite the
ongoing speculation about whether the European Central Bank will announce a
quantitative easing program, it's clear from Mario Draghi's comments earlier
last month that it already has. However, Thursday's announcement will provide
specific details regarding its asset purchase plan.
New ECB
Steps Unlikely; ABS Buying Details Sought – WSJ
5
Details to Watch at the ECB’s October Meeting – WSJ
ECB's
Draghi repeats call for reforms, fiscal action – Reuters
Draghi
urged euro zone governments on Wednesday to do their part to boost economic
growth through structural reforms, saying monetary policy alone was not enough
to revive confidence and spur investment.
Draghi
Says ECB Hopes to Get at Root of Eurozone’s Economic Problems – WSJ
30-SEPTEMBER
ECB
Faces Inflation Expectations Test – WSJ
ECB
preview – Danske
Bank
Draghi will
reveal details on ABS and covered bond programmes
Base
Effects Give ECB More Food for Thought – WSJ
29-SEPTEMBER
Political
reticence blunts ECB’s asset purchase plan – FT
ECB will
this week unveil details of its plan to save the eurozone from economic stagnation
by buying hundreds of billions of euros-worth of private-sector assets. But one
of the most crucial questions surrounding the purchases of bundles of loans,
known as asset-backed securities, looks set to remain unanswered for some time.
Draghi
Devaluing Euro Cheers ECB as Inflation Seen Fading – BB
Mario
Draghi’s strategy for reviving the euro area looks like devaluation.
Could
governments be blackmailed to commit to ECB's ABS programme? – TradingFloor
The ECB is
expected to announce details of its plans to purchase asset-backed securities.
Without government guarantees for them, the ECB will be unable to meet its
policy goals. If the ECB's plans would require such guarantees, the ECB would
be effectively blackmailing the governments: "give the guarantees, or
there will be government bond purchases, like it or not".
28-SEPTEMBER
ECB preview: Buy what, how much and how fast? – Nordea
From the
ECB policy meeting next Thursday, we expect more details on the ABS and covered
bond purchase programmes but no full clarity about size and time horizon. The
door will be open to whatever further it takes, which will allow the market to
continue to price in further easing. Sovereign QE is not our base case.
26-SEPTEMBER
It’s
Mario Draghi’s Next Big Show – WSJ
Next
Thursday ECB’s Draghi gets his next big gig in the spotlight
Coene
Says ECB Willing to Weigh More Stimulus If Needed – BB
Draghi
May Discover Weaker Euro Doesn’t Buy Enough Recovery – BB
ECB's
Coeure sees stronger demand for TLTROs from December – Reuters
ECB expects
to see stronger demand for its new long-term loans once it has completed an
unprecedented round of health checks on lenders, after which they should also
be in a stronger position to lend, a top policymaker said on Friday.
25-SEPTEMBER
ECB's
Draghi says Russian downturn to affect European demand – Reuters
Draghi said
the downturn of the Russian economy would affect Europe, although the impact was likely to
be limited given the relatively small scope of Europe's trade with Russia.
Euro
Shows Draghi Succeeding Where Loans Fall Short – BB
Traders are
showing confidence in Mario Draghi’s ability to weaken the euro and stave off
deflation, even as the initial results of a key part of the European Central
Bank president’s plan fell below estimates.
Germany's Schaeuble unhappy at debate on
ECB buying ABS, bonds
– Reuters
Former German top judge says ECB could face more legal challenges – Reuters
The ECB
could face more legal challenges over the policy tools it has deployed to shore
up confidence and boost growth in the euro zone, Udo di Fabio, a former judge
of Germany's Constitutional Court, said on Wednesday.
ECB's test may not be final word on health of Europe's banks – Reuters
It has been
billed as a make or break moment for Europe's banks: the publication of
rigorous industry-wide health checks next month after three previous tests
failed to spot problem lenders.
24-SEPTEMBER
ECB's plans to revive bank lending leave economists unconvinced – Reuters
Bank
lending to private euro zone businesses needs to grow at a 3 percent annual
rate on a sustained basis in order to stir inflation, according a Reuters poll
Will German Weakness Pave the Way for QE? – WSJ
Europe should fear German retreat:
Ambrose Evans-Pritchard – TradingFloor
European hopes
for central bank-led quantitative easing have retreated even further with the
success of Germany's anti-euro Alternative für
Deutschland party.
Who’s
afraid of the AQR?
– Bruegel
Banks have
incentives to recapitalize in socially undesirable ways and to hide losses on
their balance sheets. Will the comprehensive assessment solve these issues by
forcing significant European banks to recognize losses and to recapitalize by
issuing new equity instead of deleveraging?
23-SEPTEMBER
Even the
ECB thinks Germany needs to start spending more – WaPo
Haushaltspolitik:
Schickt endlich die Helikopter! – Spiegel
Wolfgang
Münchau: Der Bankenrettungsschirm ESM soll jetzt helfen, Unternehmen mit
Krediten zu versorgen. Ein Vorschlag von beeindruckender Mutlosigkeit.
Wesentlich wirksamer wäre es, das Geld per Hubschrauber über der Eurozone
abzuwerfen.
Why Europe needs to give up on QE – TradingFloor
In our
view, there are two factors behind the euro's continued weakness. Firstly, it
is not really all that weak...the dollar is just on a tear. Secondly, markets
have been pricing in expectations of an ECB-led QE programme for a long time,
but this does not look ready to materialize. In light of all this, could the
euro have finally hit bottom?
TLTRO
effect is the ECB’s Waiting for Godot – Reuters
European
QE is Not a Given — BlackRock – WSJ