Posts Tagged ‘ECB’

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 […]

US bonds: risks mounting

Financial markets are still in a hesitant frame of mind, alternating rally and correction phases depending on how powerful the effects of two quite distinct and opposing influences are on the global economic outlook. On the one hand, US banks and households are entering the closing stages of their orderly deleveraging drive, with the upshot […]

Europe a drag on the world economy

Deflationary forces continue rumbling menacingly in the background to developed economies. They stem from the significant deleveraging being pushed through, most strikingly in Europe which, according to our calculations, is probably running about 3 years behind the US in the whole process of dismantling the wall of debt. Deflationary pressures in Europe are being aggravated […]

The European Central Bank stays on hold

Mario Draghi was expected to address three points at yesterday’s press conference: i) a possible third 3Y LTRO, ii) hint on the probability of a monetary policy decision, and iii) details on its new concept of “Growth Compact”. The market proved fairly disappointed  with what Mario Draghi had to say. On a possible new LTRO, Mario […]

Gold and the S&P 500: heading for a shift in regime?

The April 2012 issue of Perspectives is now available for reading and downloading. We start previewing the articles of this edition with the opening column by Chief Investment Officer Yves Bonzon. Gold and the S&P 500: heading for a shift in regime? The first quarter of 2012 ended on a uniformly positive note for risk assets. They […]

Gold and the S&P 500: heading for a shift in regime?

The April 2012 issue of Perspectives is now available for reading and downloading. We start previewing the articles of this edition with the opening column by Chief Investment Officer Yves Bonzon. Gold and the S&P 500: heading for a shift in regime? The first quarter of 2012 ended on a uniformly positive note for risk assets. They […]

We revise our forecast for the EUR/USD cross to 1.40 in 6 months

We have updated our view on the EUR/USD cross strengthening towards 1.40 in the next 6 months, due to four indicators suggesting that the single currency should appreciate:   1. Central banks on both sides of the Atlantic have lengthened their balance sheets via two quantitative easing (QE) programmes and an operation Twist in the […]

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