Effect on the ECB Bags flying after the decision of the Eurotower to leave rates unchanged and after the words of Dragons.
Milan was the star of Europe with a rise of 4.2% to 18,723 points for the FTSE Mib, including exchanges for 4 ultra bright, 2 billion euro of turnover, in excess of half a billion since the last session . About the rescue of the banking stocks, penalized in recent sessions, starting from the MPS (+ 43,14%) back above 2 billion capitalization. But to close positive were also other places such as Paris where the CAC 40 index gained 1.97% to end the session at 4,206 points and with the London FTSE 100, which marked a + 1.77% to 5,773 points
Wall Street accentuates the rise in the wake of the rebound in oil prices. The Dow Jones earns now the 1% and the Nasdaq 0.71%. Well even the S & amp; P 500 rising 0.84%.
WORDS OF MARIO DRAGONS :
rates remained still and they will remain so for a long period of time . He said the ECB president Mario Draghi . With the start of the downside risks have increased again, there ‘volatility and inflation in this environment remains weak, said Draghi still citing emerging countries and geopolitical risks. In the light of developments beginning of the year, the ECB will review its monetary policy in March, said ECB President Mario Draghi. “The asset purchase plan is proceeding well, with positive effects on the cost of credit to households and businesses,” said ECB President, reiterating that the measures put in place by the Central Bank from mid-2014 “are working”. In addition, he explained that the decisions taken in December to extend “at least until March 2017″ the Qe and to reinvest the proceeds of the bonds matured “until necessary”, were “entirely appropriate”.
The expectations for inflation over the year have weakened compared to December, then Draghi said, explaining that rates may slip into negative territory in the coming months and go up in the second half of the year.
The recovery in the eurozone must be supported by structural reforms, which must accompany the policy accommodative ECB President Draghi reiterated, adding that all countries need to adopt a fiscal policy more pro-business.
ECB “is ready to act” and “put in place all the means at its disposal within its mandate” to achieve the goal of an inflation rate below but close 2% : reiterated the Dragons.
“We are adapting our tools to changing conditions and we are doing all that is necessary to complete our mandate and will not give up in front these new factors “: so Draghi stressed that The Board is unanimous in reviewing monetary policy in March .
At the time” we do not see any signal about a potential financial instability as seen before the crisis. ” Draghi stressed that she was “aware” and stressing that “there are no limits” to the action of the ECB within its mandate.
“In Italy the banks have capital levels in the eurozone average and a high level of guarantees and collateral, “said ECB President. “No new and unexpected appropriation or new demands for more capital for banks” will be put forward by the European supervision.
“It is an initiative that wants to push banks to urgently resolve the issue of credits, we know that it takes a long time.” So ECB President Mario Draghi is back on the questionnaire sent by the supervision to several banks in the euro area (including the Italian) that provoked strong tensions on the stock exchange. The sense of the questionnaire, he said, is part of good practices on the management of non-performing loans and “was sent to many banks in different countries.”
European Central Bank has left its main rate refinancing at a record low of 0.05% . The rate on bank deposits remains at -0.30% and the rate on the marginal lending to 0.30%.
Schaeuble, banks overlooking? Bail-in, it was decided together – European governments have decided “together” that would no longer be the taxpayers having to bear the burden of bank bailouts, opting for the involvement of private creditors. He recalled the German Finance Minister Wolfgang Schaeuble commenting on the bank collapses in the stock market. “Now the bail-in is creating a lot of instability because member states were not prepared. But if we want to make Europe stronger, the secret is to put into practice what has been decided and I love to say ‘is the implementation, stupid’.”
It welcomes the intervention of the president of the ECB Premier, Matteo Renzi : “Fine words of Draghi, today was better,” he told Doorstep. “Very difficult to expect something from the markets because they are fickle. In recent days has run on some Italian banks a series of tensions difficult to read. This morning, after meeting with the governor and the minister of economy and after the words of the delegate banks of the EU Commission, who said that there is no further action required, I imagined that things were better. “
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