Bags in the swing. Draghi: “We will need to increase inflation” – Il Sole 24 Ore

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This article was published on November 20, 2015 at 9:10.
The last change is the November 20, 2015 at 17:38.

Performance swinging for European equity markets, on a day-conditioning once the possible moves of central banks on interest rates, with many bankers ECB and Fed (beginning with Mario Draghi) engaged in public appearances. The FTSE MIB fluctuated throughout the day to close at 0.23%, while the other lists of the Old Continent have moved better. To give boost helped the positive start on Wall Street (follow the indexes live). The BTP-Bund spread dropped back to 100 basis points, with the return on ten-year Italian 1.48%. The euro remains weak around $ 1.07 (euro / dollar rate and currency converter).

Flurry of activities between Frankfurt and Washington
Pending appointments crucial December (the day 3 for the ECB, on 15 and 16 for the Fed) rhetoric used by central bankers it is being followed more closely for clues useful to future rate moves. After the release of the minutes of the last Council of the ECB (yesterday) morning at the European Banking Congress 2015 in Frankfurt spoke Dragons, Peter Praet, Benoit Coeuré and Vice President Vitor Constancio. Also expected the speeches of German banker Jens Weidmann and Finance Minister Wolfgang Schaeuble. Use side are attended by the president of the St. Louis Fed, James Bullard and the president of the New York Fed, William Dudley.

Weidmann reply: ‘ultra expansionary policies have less and less effect “
Draghi for the time reiterated the concepts of recent days, explaining that the ECB” will do what is need to increase inflation as quickly as possible “and naming possible means, including the adjustment of the plan of repurchase of government bonds (PSPP) and the level of interest rates on deposits. The euro, already weakened after data on producer prices in Germany (-2.3% in October), has further lost ground immediately after the words of the president of the ECB. The yield on German government bonds to two years (Schatz) has updated the lows at -0.39%. Rather mild for the time being the usual counterpoint of “hawk” Weidmann: “The longer you stay a situation ultra-expansionary monetary policies are less effective,” said the German banker.

Focus Square Business
The list Milan, meanwhile, there was a weak trend especially for banks (UBI and Unicredit Bank in particular). Eni also down (-1.3%), which has concluded the sale of its stake in Galp (4%) to 325 million euro. Well instead Telecom (+ 1.5%) thanks to the growing expectations for the meeting of December 15.

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