Markets, the German industry slows but the bags are not discouraged. Waiting for the moves of the ECB – The Messenger

The markets do not unbalance. But behind the cautious optimism of the stock markets, not caring for the collapse of the German industrial prosuzione, there’s the wait for two central events to read the forthcoming months. One is set tonight (September 8) with the Beige Book, the report on the health of the US economy prepared by the Federal Reserve, while tomorrow will be meeting the Governing Council of the European Central Bank. Not a date whatsoever, the latter, given that comes after a series of worrying signs on the European economy and the fact that many have invoked the intervention of the magician-Dragons. It is not so easy, though. The ammunition available to the ECB have fallen substantially and also the low rates policy is proving to be a boomerang, for banks and the entire financial system. Not surprisingly, the head of the ECB supervision (an arm separate from that of the monetary policy), Daniele Nouy, ​​returned to reiterate the concept by the Financial Forum in Bratislava: “The banking sector in Europe is going through a difficult period ‘and the way out “is all uphill.” That is why the banks’ need to accept the fact that the environment in which they operate has changed and that there will be other structural changes. ” The crux of the matter is’ fit today, and not tomorrow, in order to maintain their profitability and take advantage of these changes. ” Why “only the profitable BANKS” insists Nouy, ​​”can preserve and improve their buffer capital and remain resilient.”

Despite the blunt weapons of the ECB, markets expect “something.” And, therefore, seen by them it is just to see when this “something” will come from Frankfurt, which is an extension of the bond purchase plan (QE3, that the practical extension of six to nine months of the purchase plan public and private securities by 80 billion per month than the due date of March 2017) or that it is a new Qe all about the action.

Meanwhile Gero Jung, chief economist at Mirabaud Asset Management, is among those who in many, do not expect the ECB to announce a further easing of monetary policy during the meeting of 8 September.
 Because, he says, “the resilience of the economic data is significant, suggesting an unchanged economic recovery.” This is laid down Gero Jung, chief economist at Mirabaud Asset Management, in the run tomorrow. In short, although, “with the current asset purchases by the European Central Bank that have exceeded the threshold of one million Euros, it is possible that you will experience further easing”, but not immediately. For Jung total ‘economic data have not changed much. ” In particular, core inflation in August remained unchanged at 0.8% over the same period of 2015, “with a steady slowdown in prices in the service sector.” And Inflation “could recover in the coming months, thanks to the contribution from the energy sector.”
 

 09/07/2016 16:34:26

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