Watch The ECB's Most Anticipated Press Conference Live At 8:30 am Eastern
All who wish to watch the ECB's 8:30 press conference during which Trichet will finally reveal the size of his pocket bazooka (if one is revealed at all), can do so here.
- ECB's Trichet says ECB to continue to conduct 1-week, 1-month as fixed rate, full allotment until 3rd maintenance period of 2011
- "Overall the current monetary stance remains accommodative"
- ECB's Trichet says monetary policy stance, liquidity provision and allotment modes will be adjusted as appropriate
- ECB narrows range of 2011 GDP expectation from 0.5%-2.3% to 0.7%-2.1, 2010 seen in range of 1.6%-1.8 compared to 1.4%-1.8% prior
- 2011 inflation projected between 1.3%-2.3%, higher than September's 1.2%-2.2%.
- Notes flattening of yield curve.
- The teleprompter just broke here: says banks have stabilized balance sheets. What he means here is that the ECB's take over of the European banking system is proceeding on plan.
- ECB's Trichet says all Euro area countries should pursue ambitious multi year consolidation programmes: in other words, "plutocrats around the world, globalize."
- Prepared remarks end - no announcement on expected monetization. EURUSD sliding.
- Appropriate response is keeping full allotment on 1 and 3 Month MROs. SMP program is ongoing.
- Will not comment on market participants' commentary on what the ECB is or should be doing
- Will keep sterilizing bond purchases
- Question on whether ECB has Ireland's best interest in mind or that of euro: "it goes without saying it has been the decision of the government of Ireland" actually it does not go without saying
- Assessment on level of disruption in markets: "SMP is our only hope"
- Trichet comment on Iceland case study: "will not discuss it", also will not say anything about the hundreds of European banks bailed out by the Federal Reserve: "we are all interconnected obviously - it is extremely imporant we have an interconnected playing field" so we can crash the world all over again in a few months.
- Responding to what happens if circumstances get worse: "We are injecting enough liquidity, and that's all i have to say about that"
- On whether ECB is doing QE: "We are not doing QE"
- Are national central banks able to make emergency bank loans outside of ECB backstop programs: "I have nothing to add to that"
- On question that pretty much everyone in Germany wants the DEM back and hates the EUR? "In Germany it is better. The price stabiliteee is 1.5% (whatever that means). If you aks real question versus fancy question, you would get different answer. Germany is totally never going back to Deutsche Mark. Blah blah blah."
- Most Germans fear there will be a transfer union where Germans will have to pay for other economies: what is response? "Something long winded, without an answer."
- Altogether total waste of time. The old man refuses to answer any question about anything.
In other words: the two rumors that drove the market up 2.5% yesterday are both proven to have been lies. And the market couldnt't give a shit.