One of the bigger news this morning is the so far unconfirmed report that Bundesbank President Axel Weber, who has been in the running to replace Jean Claude Trichet, has decided against an ECB future, and instead wants to make money at Deutsche Bank. The sudden about turn in the process has left many wondering why so late in the process, and just what about the ECB is it that makes Weber leery of affixing his fate to the central bank without a unified bond printing facility. From BusinessWeek: "Deutsche Bundesbank President Axel Weber will step down and wants to
join Deutsche Bank AG, Deutsche Presse-Agentur reported today, without
saying where it obtained the information."
There is always of course the chance that the news is a red herring. Reuters reports:
There is no agreement in place for German central bank chief Axel Weber to switch to Deutsche Bank (DBKGn.DE), a senior banking source familiar with the matter told Reuters on Wednesday.
Deutsche Bank declined to comment on whether Weber could join Germany's biggest lender.
"We don't comment on rumours," a spokesman for Deutsche Bank said.
European sources had told Reuters on Wednesday that Weber will not be a candidate to replace European Central Bank President Jean-Claude Trichet.
Despite being favourite to succeed Trichet, Weber has also been reported previously to be a possible candidate to succeed Deutsche Bank Chief Executive Josef Ackermann.
"It is very unlikely that Ackermann will be succeeded by an external candidate," the senior banking source also said.
Judging by the EURUSD reaction, which dropped by 50 pips on the news, and has since recovered, this latest piece of (non) news is now fully "priced in."