Friday, January 23, 2015

Effect Draghi: euro BTP yields and lows. Berlin skeptical … – Quotidiano.net

Effect Draghi: euro BTP yields and lows. Berlin skeptical … – Quotidiano.net

Rome, January 23, 2015 – The euro still updates the lowest levels in over 11 years and falls to below $ 1.13, a level not seen since September 2003. The rate of the 10-year BTP touches a new low slipping below the threshold of 1.5%, all’1,492%. And ‘the effect Quantitative easing (CARD) in the aftermath of day of the launch of the measure by the ECB. L and European stock markets closed positive Milan Stock , who yesterday marked the biggest increase today is more shy and marks a +0.23% with the FTSE Mib at 20519.75 points. Rally in Athens instead, that leaps of 6.56% due to the conditions of ‘Qe’, which do not cut Greece off from buying despite the rating ‘junk’ of its debt although the winner of the elections of January 25 will be forced to find a agreement with the ‘troika’ by July. Robust even Frankfurt (Dax + 2.05% to 10649.58 points) and Paris (CAC 40 + 1.93% to 4640.69 points). The FTSE 100 in London rises 0.53% to 6832.83 points, the Madrid Ibex gained 0.63% at 10576.8 points.

THE MEASURE – “Sixty billion purchase titles a month, “at least” until September 2016 “or, better said,” until you serve. ” The new project will encompass the previous programs of purchases of bank loans securitized (Abs) and bonds guaranteed bank (covered bonds). The objective of the whole maneuver expansive: open the tap of liquidity, placing money in the real economy, fight deflation and restart the loans to citizens . But there is a downside. The new plan of securities purchases private and public ECB provides a risk-sharing only “20 percent” . The 80% of the risk will therefore remain in the hands of the national banks.

Renzi – The premier Matteo Renzi , from Florence , where he met Angela Merkel said the decisions of the ECB talking about “positive signs” but noting that “we must not block the reforms” in the individual states. Renzi has also warned Qe is “an important step forward but not decisive to exit the situation of stagnation and deflation. Not just a single measure to change Europe.”

I DOUBTS BERLIN – Eco to the words of Prime Minister by the German Chancellor Angela Merkel. “The choices of the ECB are very important. I think everything will be put in place will give a boost” to the recovery, Merkel said that, however, has also stressed that “the decision of the ECB must not restrain the fervor for reform and this applies to everyone, not just for Italy.” In contrast, all European governments will have to work even more determined to clear the barriers to growth. Even more direct German Economy Minister Wolfgang Schaeubl , and: “I understand – said in Davos – that even the president of the ECB, Mario Draghi, does not believe that the growth is dependent on the operation of Qe “. Even the president of the Bundesbank, Jens Weidmann , has placed emphasis on the risks of Qe “Do not is a tool lik e the others – he said – and carries risks, especially one that does not make sound fiscal policies. ” So he urged: “The purchases reduce the pressure” on the need to continue with the reforms, “also on countries like Italy and France . But it would be dangerous not to pursue the path of reform.”

VISCO – As a very different view, however, the governor of the Bank of Italy Ignazio Visco. “We must share the risks” , said talking to Bloomberg TV : “The plan of the ECB shows determination” and “has an open end” he stressed. A move that confirms that within the board there have been “discussions about when to start shopping.” In any case – he added – the Qe “work in practice.” This is because the ECB “work with the task of achieving price stability.” “First – Visco said, explaining that in any case the EU is still far from the target of inflation – the discussion yesterday has determined that these instruments are legitimate. Secondly that should be used now. Third that the risks are shared, because we are a Union, and we must trust and build confidence. However there is also to consider the question that We are not a Union budget . And this, in someone’s mind, has been an important condition. At the same time they are not worried about these risks, because in the end we will cover them, and we will have enough assets “. “However – he concludes – we have to make progress as a Union” and the start of QE “is a good starting point.”

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