Search Results for QE

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Inverseguros’ Alberto Matellán: “The Euro could go below $1.20”

By Alfredo Aranda, in Madrid | The course of the euro seems to be clearly bearish, according to some analysts. However, in contrast with previous situations, the depreciation of the single currency is more the result of the actions of the ECB than due to traditional factors such as monetary or economic policies. According to Alberto Matellán, the liquidity injection carried out by both the Fed and the ECB are directly…


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Barclays: “US vulnerable to markets’ attacks like the EU”

A note from Barclays Spain: “The Fed’s double mandate (inflation and employment) has probably contributed to the present crisis. Greenspan, faced with the necessity to improve the anemic growth, but probably to a greater extent faced with the pressure exerted by Congress and American society to create employment, (which still has not picked up despite the GDP’s increase) maintained interest rates low for too long, promoting together with other factors…



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Madrid’s financial City: “EU pacts inspire willing optimism, but were not yet there”

By Julia Pastor, in Madrid | The Spanish financial analysts received the news that arrived from Brussels with a certain degree of optimism, not without disappointment, but recognising that the pacts that were achieved imply a step forward. Banco Sabadell experts give an outline summary of the conclusions reached at the meeting. “Starting with the fact that expectations were low and that the market’s sentiment was negative, the final balance is…





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De Jager: "Definitive summit? The Anglo-Saxon press made that up"

Passing on a clarifying (!?) note from Citi analysts… “The first comments, which anticipate a much discussed and possibly without clear conclusions summit in Europe today, were disappointing. Especially on two, at the moment, important issues: banking and the EFSF. Also, the markets themselves were disappointing. Gold has again gone up sharply ($ 1,714 an ounce) as well as raw materials (crude oil $ 111.35 per barrel). This rise is…


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De Jager: “Definitive summit? The Anglo-Saxon press made that up”

Passing on a clarifying (!?) note from Citi analysts… “The first comments, which anticipate a much discussed and possibly without clear conclusions summit in Europe today, were disappointing. Especially on two, at the moment, important issues: banking and the EFSF. Also, the markets themselves were disappointing. Gold has again gone up sharply ($ 1,714 an ounce) as well as raw materials (crude oil $ 111.35 per barrel). This rise is…


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Markets love inflation

By Luis Arroyo, in Madrid | Look at the USA. In the graph above, left scale, the yields (spreads of Treasuries) of BB corporate bonds (red line), and B (green line). Right scale, blue line, inflationary expectations (type of bond at 10 years minus the same inflation protected). A functional relationship can be detected between the variations in inflation expectations and private bond yields. The higher the expected inflation, the…