Couple of
good speculations on the ECB’s plans in this post. If you’re not familiar with
the Fistful of Euros-blog or Edward Hugh, take a look. He had balls to call Finland a possible closet Greece already several
months ago. Markets are dull and in waiting mode. The video choice is explained by the Chuck
Norris-effect in central banking. We will see soon.
Previously
on MoreLiver’s:
Weekender: Views & Off-Topics
(my thoughts)
Weekender: Weekly Support (updated!)
News &
Recap – RanSquawk / ZH
Frontrunning
– ZH
The Lunch
Wrap – FT
Emerging
N.Y. headlines – FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
Morning
MarketBeat: A Dose of Reality, A Dollop of Hopium – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
AM Dear
Dairy: – Macro and Cheese
– TF
MarketAdvisors
Currencies
Consolidate Awaiting Key Events – Marc
to Market
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EUROPE
Goldman: We forecast that the ECB will permit
NCB purchases of private sector assets – ZH
What’s Up Doc? – Fistful of Euros
Buying bonds in the secondary market, on the
other hand, although not actively welcomed by the Bundesbank is simply termed
“problematic” and “not the most sensible way” while using the EFSF to buy in
the primary markets is very straightforwardly “unproblematic”. Now, since the
Bundesbank understands very well that Mr Draghi needs to do something, this
looks very much like a road map to me – a dose of problematic, but not
prohibited, SMP in secondary markets and backing full use of EFSF firepower (such as it
is) in the primary ones.
Draghi'ing the wool over our eyes? Thoughts on
the ECB and euro – Saxo
Bank
…whether the ECB determines that the current
level of Spanish (or indeed any other nation’s) debt is disrupting the
transmission mechanism for monetary policy. If the answer is ‘yes’ then the
opposition of Germany is irrelevant. In reality, however, any ECB purchases of Spanish bonds
will not solve the ills of the eurozone.
Bunds’ Worrying Disbelief Over Euro Rescue – The
Source / WSJ
It’s often said that bond markets are for
professionals while equities are for amateurs. Europe’s equity investors
swallowed the rescue deal hook, line and sinker. Its bond investors remain much
more cautious.
A New Idea to Save the Common Currency – Spiegel
Germany's Left Party is not often associated with neo-liberalism. But a new
proposal from a senior party member could provide a way out of the cycle of
bailouts and bank aid. Why not just reboot the market economy and then cushion
the fall?
Euro-saving operations due within 'days,' says
Juncker – euobserver
The European Central Bank: a hamstrung
firefighter – euobserver
Citigroup: We believe that the 1.20 floor will continue
to be vigorously defended meaning that SNB reserves could quite easily climb
to 100% of GDP and beyond. If so, market chatter about diversification will persist
and probably continue to weigh on the euro crosses where the SNB is presumed to be active.
OTHER
Things that make you go hmmm – Grant
Williams / The Trader
Direct pdf