How Weidmann confounded currency market investors

LONDON- THE WEEK THAT WAS | By Victor Jiménez | Did Bundesbank president Jens Weidmann just had a Mario Draghi-like moment? In July 2012, while bets against the survival of the Eurozone community of countries remaining whole piled up to stress levels that presaged a self-fulfilling prophesy, the president of the European Central Bank (ECB), Mario Draghi, let go in his now famous London speech a “we’ll do whatever it takes” to protect the common currency whose deterrent consequences have rippled to today: we might be messy, the message conveyed by Draghi came to mean in the British City and Wall Street, but we know how to make the anti-euro speculative bubble burst; and it is an easy thing to do.

No Picture

Investors bet on Europe despite the deflation risk

MADRID | By Francisco López | Investors keep betting on European actives, even though the eurozone economies are facing some serious problems: deflation risk, unemployment records and even a possible war in Ukraine. Why does the European stock exchanges dominate analysts’ recommendations?

No Picture

The Japan macro trade: Watch Japanese investors in 2014

LONDON | By Jim McCormick, Anando Maitra and Sree Kochugovindan at Barclays | Nearly a year ago to the day, the LDP and its leader, Shinzo Abe, won a landslide victory in the Japanese elections. Since then, it has been an extraordinary twelve months for Japan. GDP growth is set to be the highest of all major economies, by a good margin. Inflation and inflation expectations are at the highest levels in some time. The equity market has surged 75% since the election, and the trade-weighted yen has fallen 30%.

Rating Italy (and others)

MADRID| By Luis Martí | Lower ratings undermine market confidence, and weak market conditions are displayed as a major cause of your own lack of confidence. Looping the loop. No wonder investors rely less and less on ratings agencies.