ECB cuts recovery estimates, Dragons enhances “bazooka” – AGI – Agenzia Journalistic Italy

21:00 3 September 2015

(AGI) – Rome, Sept. 3 . – Inflation and the recovery in the eurozone have proved most ‘weak forecasts because of increased downside risks, mainly related to the slowdown of the Chinese economy. And ‘the picture painted at the press conference by ECB President Mario Draghi, who announced the downward revision of the estimates of GDP and inflation and recalled the availability’ of Frankfurt to extend the program of ‘quantitative easing’ beyond the deadline (but flexible) in September 2016. A first initiative in the sense ‘expansive’ ‘already’ been taken today: the ceiling on government bonds of a Eurozone country purchased by the ECB in any single issue, and ‘was raised from 25 % to 33% and the number one Eurotower ensured that bond purchases will be implemented to reach the maximum amount of 60 billion monthly. Words that drive the markets in a session is not affected, for once, the volatility ‘of Chinese squares, closed today and tomorrow. European shares ended the session in sharp rise (+ 2.68% Frankfurt, Milan + 2.62%, Paris + 2.17%, London + 1.82%, + 1.05% Madrid, Athens +3, 55%). Uncertain Wall Street, after a robust start supported by the price lists of the old continent, has subsequently lost share despite some positive macroeconomic data. The euro meanwhile, touched a low seat to below $ 1.11, a decided drop. The numbers reported by the Dragons, on their own, they would not have given a positive impetus to the markets: the estimates of the Eurosystem on the growth of GDP in the Eurozone, compared to the forecast of last June, down from 1.5% to ‘ 1.4% for 2015, from 1.9% to 1.7% for 2016, from 2% to 1.8% in 2017. Inflation, however, looks set to grow by only 0 , 1% this year (+ 0.3% estimated in June) and appears likely to fall into negative territory in the coming months before recovering (+ 1.1% in 2016, 1.7% in 2017). Responsible for braking are emerging markets, as has also warned the IMF in the document released this night.
“The recovery continues at a pace more ‘weaker than expected in the face of the slowdown in emerging markets, which weighs on growth global and exports of the euro area, “Draghi said, stressing that the downward revision of forecasts is closely linked to” the most ‘weak external demand. ” And at the center of concern of all the operators there ‘course Beijing, invited by Draghi to continue with reforms to make the exchange rate of the yuan more’ susceptible to market dynamics. At the time, concluded the president of the ECB, although it is still present risks for the stability of ‘financial, the Chinese crisis is having tangible effects on confidence and volumes of international trade.
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