Bags weak. Dragons, “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 13:05.

Performance weakness 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. At midday the FTSE Mib yields 0.6%, negative the other lists of the Old Continent (follow indexes live). Previously Tokyo finished close to the values ​​of Eve (-0.1%). The BTP-Bund spread dropped back to 100 basis points, with the return on ten-year Italian 1.48%. The euro remains weak little under $ 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 in Frankfurt in 2015 are predicted from the 9 interventions 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 will speak in the afternoon 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, have seen a mild weak 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. Salt instead Telecom (+ 1.5%) garzie also to the growing expectations for the meeting of December 15.

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