Europe - ECB (May 08 - Dec 25)

[Chinaman]

5/7/12 @1415hr gmt
draghi is now addressing a press conference

eur/usd tanks...

draghi ...bro k, who is this chap?

china just cut rate....seem like too much toilet paper flooding the market.

[kennynah]

bro

he is barcelona footballer

[kennynah]

but later, he became ECB chairman

[winston]

Markets risk ECB disappointment after Draghi remarks by Simon Morgan

Financial markets will be waiting with bated breath to see if the European Central Bank announces any new policy moves next week, but analysts warned they could be disappointed.

ECB chief Mario Draghi sent stock markets soaring and helped bring down Spanish borrowing costs sharply last week when he said the central bank was "ready to do whatever it takes to preserve the euro. And believe me it will be enough."

http://www.newsmeat.com/news/meat.php?a ... &buid=3281

[winston]

ECB Meeting next Thursday, Aug 2nd

[winston]

Are u excited ?

ECB breaks new ground in crisis fight by Ouerdya Ait-Abdelmalek

The European Central Bank has broken new ground in the eurozone crisis. with hints that it could start unlimited buying of stricken member states' bonds to drive down their crippling borrowing costs.

After initial disappointment at ECB head Mario Draghi's failure to take immediate action to help ailing countries at a meeting Thursday, many analysts were more encouraged after giving his remarks a second reading.

Draghi said the central bank could intervene directly in the bond markets under a programme known as SMP , to help countries left high and dry in the crisis but this depended on governments holding up their end of the bargain.

He also said the ECB might consider additional measures to calm markets which have driven borrowing costs for Italy and Spain back near to levels that forced Greece, Ireland and Portugal to seek massive bailouts.

Under the SMP programme launched in May 2010 and suspended four months ago, the ECB had said its purchase of sovereign bonds was limited in both time and amount.

Draghi's comments Thursday disappointed markets expecting immediate action but on Friday, it was the complete reverse with Madrid and Milan soaring by 6.0 percent and more -- albeit helped too by better-than-expected US jobs data.

The ECB chief also stipulated that it would only intervene if Europe's rescue fund, the European Financial Stability Fund, and its permanent successor, the European Stability Mechanism, were also involved.

This would require countries in dire straits asking for bailouts, which go hand-in-hand with strict reform conditions and targets -- hard to swallow medicine for any government.

However, the principle of conditionality is important, especially for the German central bank, the Bundesbank, which has repeatedly stressed its opposition to the bond-buying programme.


Source: AFP Global Edition

http://www.newsmeat.com/news/meat.php?a ... &buid=3281

[winston]

September 6: European Central Bank's next meeting.

[winston]

I was listening to the speech by Drahi live last night.

The Dow was fluctuating but no big deal.

Then a powerful force came into the market and blew everyone away.

BTW, were you really that excited by the speech by Drahi ? Did he really announce any game-changer ?

So why were the US markets so excited by it ?

[kennynah]

Ya lor. Oso duno how come US mkt so gancheong spider

[winston]

TOL:-

Do you really think that the ECB has the cash to do an unlimited bond buying ?
,
This Drahi guy talks very big.

So why has the Big Boys not taken him out yet ?

Maybe the Big Boys are just waiting for their time to take him out.

Or maybe the Big Boys are not that big anymore, as there has been an increased in supervisions, regulations, fines etc.

If I'm a BB, I would not think twice about taking this Drahi guy out. And I'm sure the real BBs out there are just waiting and waiting ...

"Unlimited Bond Buying", "Do what it takes"....... tcss