Posts Tagged ‘ECB’

Two factors dominating the global economic scene

The October 2012 issue of Perspectives is now available for downloading. Today we preview the macroeconomics section of the magazine. The world economy is being tossed between the frying-pan and the fire: the first risk factor is cyclical, with economies progressively slowing down; the second is systemic, with the eurozone debt crisis acting as the […]

Euro area: What to expect after the respite (2/2)

The developments of early September, notably the interventions carried out by the ECB, including the announcement of the features of the OMT and Mario Draghi’s commitment to do what is necessary to salvage the euro zone, responded to investors expectations. However, their positive impact is now running out of steam and tangible action is required […]

Euro area: What to expect after the respite (1/2)

The developments of early September, notably the interventions carried out by the ECB, including the announcement of the features of the Outright Monetary Transactions (OMT) and Mario Draghi’s commitment to do what is necessary to salvage the euro zone, responded to investors expectations. However, their positive impact is now running out of steam and tangible […]

A new monetary era

The October 2012 issue of Perspectives is now available for downloading. In his editorial outlook, Chief Investment Officer Yves Bonzon explains that the unlimited QE of the US and its European cousin OMT differ significantly in terms of the likely monetary consequences on the two continents. The US and European central banks are widely perceived […]

The ECB in wait-and-see mode

Yesterday’s press conference held in Slovenia did not add much new information. It was mostly an occasion for Mario Draghi to clarify some aspects of the Outright Monetary Transactions (OMT) programme. It confirmed that the ECB has entered a wait-and-see mode that could unnerve financial markets if the Spanish government does not soon take the […]

Risks of euro falling apart forcing the ECB out of its shell

The September 2012 issue of Perspectives is now available for reading and downloading. Here is September’s topic of the month: unless interest rates fall swiftly round the eurozone’s periphery, the eurozone will be fated to come apart at the seams. By hinting at the possibility of buying up sovereign debt, the ECB is making its […]

Mario Draghi’s soothing words

The September 2012 issue of Perspectives is now available for reading and downloading. In this month’s strategy section, Pictet’s analysts explain the sheer power a few words uttered by the head of a central bank can have. Mario Draghi, the European Central Bank’s President, offered a master-class in the power of rhetoric when his choice […]

At last, the ECB announces unlimited intervention!

Mario Draghi has finally delivered what was very close to investors’ expectations. In announcing the Outright Monetary Transactions (OMTs), the ECB will put up its almost unlimited balance sheet to serve as a backstop in this crisis. The main key word in yesterday’s announcement was “unlimited”. The key points of the ECB’s announcement are the […]

ECB press conference: Mario Draghi disappoints despite announcement of quasi-QE

Mario Draghi disappoints owing to excessively high expectations. Nevertheless, the ECB has decided to include sovereign bond interventions (a sort of QE) in its regular toolbox. Large-scale government bond purchases could result from Thursday’s decision. Moreover, the ECB is willing to give up its seniority status. First ECB intervention unlikely before October. Despite limitations, Thursday’s […]

European Central Bank: “There is no silver bullet for this crisis”

The ECB Governing Council decided yesterday to leave interest rates unchanged, as expected. Mario Draghi, President of the European Central Bank, leaked however to the press that a few members were in favour of a rate cut. His assessment of the economic situation was slightly more bearish than one month ago. The euro area appears […]

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