The Corner | May 22, 2015 | Three main market drivers to watch today: German IFO confidence index, which is expected to disappoint following the ZEW steps; a lower US inflation, far from the Fed’s 2% target –which would serve as a catalyst so that the bags are listed the lack of arguments to raise interest rates this year. Besides, Mario Draghi could address the unemploment issue.
The Corner | May 20, 2015 | Monetary policy issues will not be adresses at the ECB’s Governing Council meeting today. However, markets will be very attentive to comments that individual members make, especially given the impact of Coeuré and Noyer’s words on Tuesday (the euro fell against other currencies and European stocks rallyied on ECB bond comments).
May 18, 2015 | UBS | Q1 reporting season is roughly 75% complete and the European cycle keeps rolling on with FX and a domestic recovery feeding through.
ATHENS | May 18, 2014 | By Manos Giakoumis via MacroPolis | The ongoing and troubled negotiations between Greece and its lenders, as well as the weekly meetings of the European Central Bank’s governing council mean that there is growing concern about the extent to which Greek banks will continue to be able to draw emergency liquidity to cover the outflow of deposits.
MADRID | May 17, 2015 | By Luis Arroyo | Against all odds, the Dodd-Frank law is working reasonably well, says Krugman. It was enacted by the US Congress in order to avoid another financial crisis like the one in 2008. The economy is divided between those who agree with Krugman that the blame for the disaster was deregulation initiated in the 1980s, with neocons getting power, and those who still believe (or say they believe) that markets are efficient.
ATHENS | May 16, 2015 | By Manos Giakoumis via MacroPolis | Since December, the Greek banking system has been suffering from extended deposit outflows, which reached 26.8 billion euros at the end of March. Almost 90 percent of these withdrawals stemmed from time deposits, while only around 600 million euros was taken from savings accounts.
MADRID | May 14, 2015 | BNP Paribas | Net issuance of sovereign bonds will exceed ECB purchases in May by c.EUR50bn. We believe this is why yields are going up. We also believe this is why they will come down again from June when ECB QE will again significantly outpace sovereign bond issuances (by c. EUR8bn in June and EUR90bn in July)
MADRID | May 14, 2015 | By Ana Fuentes | In the second part our his interview with The Corner, Glasgow University Professor John Holland suggests Europe adopts America’s tough stance on criminal activities in the financial industry.
May 13, 2015 | By Miriam L. Campanella and Alicia Garcia-Herrero via Caixin | The global financial crisis gave China the opportunity to push use of its currency abroad, but the need to address debt issues puts the central bank in an interesting position.
MADRID | May 12, 2015 | By Ana Fuentes | Easy money and negative yields are fueling an unprecedented, dangerous bubble: prices of assets, stocks, bonds and houses are more inflated than ever. Central bankers are noting (and warning against) it. Some market makers are following suit and recommend to reduce exposure to risk.