Mario Draghi Press Conference - Live Webcast

Tyler Durden's picture

The all important ECB press conference is set to begin momentarily. Will Draghi answer questions regarding the readiness of the OMT's use in Portugal whose short end has exploded this morning, or will he be forced to wait for the German court's decision first? Or maybe Draghi will finally have some comments on either the ongoing Monte Paschi scandal or the recently revealed Italian derivative debacle which took place under Draghi's watch. We somehow doubt it...


Most importantly, the ECB is also considering forward guidance, just like the BOE, and as was somewhat expected. Not that it will do or change much if anything...


Draghi's full prepared remarks. Note the "extended" language appearing for the first time ever.

Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council, which was also attended by the Commission Vice-President, Mr. Rehn.

Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. Incoming information has confirmed our previous assessment. Underlying price pressures in the euro area are expected to remain subdued over the medium term. In keeping with this picture, monetary and, in particular, credit dynamics remain subdued. Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. At the same time, recent confidence indicators based on survey data have shown some further improvement from low levels. Our monetary policy stance is geared towards maintaining the degree of monetary accommodation warranted by the outlook for price stability and promoting stable money market conditions. It thereby provides support to a recovery in economic activity later in the year and in 2014. Looking ahead, our monetary policy stance will remain accommodative for as long as necessary. The Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time. This expectation is based on the overall subdued outlook for inflation extending into the medium term, given the broad-based weakness in the real economy and subdued monetary dynamics. In the period ahead, we will monitor all incoming information on economic and monetary developments and assess any impact on the outlook for price stability.

Let me now explain our assessment in greater detail, starting with the economic analysis. Real GDP declined by 0.3% in the first quarter of 2013, following a contraction of 0.6% in the last quarter of 2012. At the same time, labour market conditions remain weak. Recent developments in cyclical indicators, particularly those based on survey data, indicate some further improvement from low levels. Looking ahead to later in the year and to 2014, euro area export growth should benefit from a gradual recovery in global demand, while domestic demand should be supported by the accommodative monetary policy stance as well as the recent gains in real income owing to generally lower inflation. Furthermore, notwithstanding recent developments, the overall improvements in financial markets seen since last summer should work their way through to the real economy, as should the progress made in fiscal consolidation. This being said, the remaining necessary balance sheet adjustments in the public and private sectors will continue to weigh on economic activity. Overall, euro area economic activity should stabilise and recover in the course of the year, albeit at a subdued pace.

The risks surrounding the economic outlook for the euro area continue to be on the downside. The recent tightening of global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions. Other downside risks include the possibility of weaker than expected domestic and global demand and slow or insufficient implementation of structural reforms in euro area countries.

As stated in previous months, annual inflation rates are expected to be subject to some volatility throughout the year owing particularly to base effects. According to Eurostat’s flash estimate, euro area annual HICP inflation was 1.6% in June 2013, up from 1.4% in May. This increase reflected an upward base effect relating to energy price developments twelve months earlier. However, underlying price pressures are expected to remain subdued over the medium term, reflecting the broad-based weakness in aggregate demand and the modest pace of the recovery. Medium-term inflation expectations remain firmly anchored in line with price stability.

The risks to the outlook for price developments are expected to be still broadly balanced over the medium term, with upside risks relating to stronger than expected increases in administered prices and indirect taxes, as well as higher commodity prices, and downside risks stemming from weaker than expected economic activity.

Turning to the monetary analysis, recent data confirm the subdued monetary and, in particular, credit dynamics. Annual growth in broad money (M3) decreased in May to 2.9%, from 3.2% in April. Moreover, annual growth in M1 decreased to 8.4% in May, from 8.7% in April. The annual rate of change of loans to the private sector remained negative. While the annual growth rate of loans to households (adjusted for loan sales and securitisation) remained at 0.3% in May, broadly unchanged since the turn of the year, the annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) weakened further to -2.1% in May, from -1.9% in April. As in April, strong monthly net redemptions in May were concentrated in short-term loans, possibly reflecting reduced demand for working capital against the background of weak order books in early spring. More generally, weak loan dynamics continue to reflect primarily the current stage of the business cycle, heightened credit risk and the ongoing adjustment of financial and non-financial sector balance sheets.

Since the summer of 2012 substantial progress has been made in improving the funding situation of banks and, in particular, in strengthening the domestic deposit base in a number of stressed countries. This has contributed to reducing reliance on Eurosystem funding, as reflected in the ongoing repayments of the three-year longer-term refinancing operations (LTROs). In order to ensure an adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets continues to decline further and that the resilience of banks is strengthened where needed. Further decisive steps for establishing a Banking Union will help to accomplish this objective. In particular, the future Single Supervisory Mechanism and a Single Resolution Mechanism are crucial elements for moving towards re-integrating the banking system and therefore require swift implementation.

To sum up, the economic analysis indicates that price developments should remain in line with price stability over the medium term. A cross-check with the signals from the monetary analysis confirms this picture.

With regard to other economic policies, the Governing Council notes the initiatives taken by the European Council of 27-28 June 2013 in the areas of youth unemployment, investment and financing of small and medium-sized enterprises, as well as the European Council’s endorsement of the country-specific recommendations of the 2013 European semester. The Governing Council stresses that implementation of these recommendations is essential to contribute to a sustainable recovery in the euro area. Moreover, the new European governance framework for fiscal and economic policies should be applied in a steadfast manner and much more determined efforts should be pursued to carry forward structural reforms to foster growth and employment. In this respect, the Governing Council deems it particularly important to target competitiveness and adjustment capacities in labour and product markets. Finally, the Governing Council welcomes the setting-out of a number of steps towards the completion of the Banking Union as moves in the right direction, but also urges that they be implemented swiftly.

We are now at your disposal for questions.

* * *

Live webcast:


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GMadScientist's picture

Is it me? Or does just about everyone from Goldman look like an actual rat?

Except Jimmy O...he just looks like a potato.

YuropeanImbecille's picture

No, you are right. That is because they only attract people from the right clan. 

DaddyO's picture

Once the scales of the Keynesian blindness fall away, the lies become appearant no matter who utters them.


knukles's picture




Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit
Horseshit Horseshit Horseshit Horseshit

If real growth, butterflies, flowers, rainbow colored Skittles shit by magic Uunicorns was right about the corner, financial markets would rally on the P/E expansion, growth etc., prospects as opposed to the cheap methamphetamine high from free money overwhelming the baking system, leaking into financial markets, in a Liquidity Trap.

Casus Belli, for fucks sake

It's an illusion of good brought about as a propaganda effort in an attempt to make people think the markets are forecasting anything but economic malaise.

GMadScientist's picture

Like masking a serious infection by gobbling grams of liver-torturing ibuprofen instead of seeking medical care.

I feel grea---ow.

Go Tribe's picture

This is becoming hilarious, almost like listening to obama now. The markets might pop a little, but there's no commitment behind it. Short at will.

Reptil's picture

horseshit: yes
casus belli? everyone's on holliday?

BARROSO says he has "work groups" that work in parallel to tackle the issue of NSA spying on european citizens.
In a few more words, he informs us, that he's given souverignity to a trading partner (the USA gov) in this TTIP "free trade agreement.

Just like the TTP it's a method to allow outside forces "right" of making descisions. Both the European Commission and Barroso are unelected civil servants. They are acting without even consulting the european population (nor the americans).
I think this is the moment these people want to assert dominance.

context: Barroso meets Draghi who assures him everything is peachy in Italian banking and finance (28th feb 2013)

Monedas's picture

ECB "round table" meeting .... a circle jerk with furniture !  

aint no fortunate son's picture

monster short squeeze setting up for US stocks tomorrow when the (already disseminated to the elite) jobs news hits a very thin market already juiced by Draghi and Carney - guess we know why stocks ramped late morning into the close yesterday, the fix was in, as always

Go Tribe's picture

Monster, eh? S&P will not even close over its 50.

max2205's picture

Trickle down policy has slowed to IV drop policy 

Sudden Debt's picture

it might seem so for a Low Level Non Elite Person (LLNEP in short) like you...


rubearish10's picture

They've started early with this mornings vapor ramp +13 handles! 

thestarl's picture

Every time i listen to this prick Draghi the same shit keeps dribling out of his mouth.

Lebensphilosoph's picture

Careful now. The Talmud bashers might give you a down arrow.

mr66's picture

Draahaghi, a totally untrustwirthy corksacker.  (a corsacher is a guy that worked at Coca Cola in the 50's putting corks in coke bottles.  he had a sack around his waist with corks and would hammer corks into the filled bottle, hence the term corksacker)  all you guys didn't know what a corksacker was?  Old school stuff..66 out

slaughterer's picture

Draghi you know what to do: time to come out with the bad news. 

CPL's picture

Draghi: "Well really what happened in the last month was..."


Here it comes.

CPL's picture

Draghi:  " around...apologise...finger question."

He is a master at recycling oxygen and making noise with no meaning.

Tinky's picture

"people think...well, not all people..."

– MD 9:16 EST

spaceduck's picture

it's my imagination, or this man say always the same things in every conference? bla bla bla

Sudden Debt's picture

99% of the people have a attention span of 2 seconds and a goldfish memory of 3 seconds... so whatever he says is news.

PaperBear's picture

When one of the criminals speak it's time for honest money, gold and silver, the enemy of these criminals to be naked short sold into oblivion.

Iocosus's picture

With many words, this banking creature never answers a question.

SDRII's picture

Draghi doesnt need to comment. The Fed gave GS a waiver at 5.30pm in the tradition of Indpendence day. Comments on derviatives and swaps will have to wait 2 more years...

knukles's picture



Jesus Herman Fucking Christ!
Please dear God, make it stop already!
Has Satan truly won?
What the hell, just bring on the apocalypse, Nibru, the Last Coming, End of Days, surveillance state and incompetents everywhere, Money Changers Regaining the Temple....

oh wait....


Don't ask for what I really don't want because I just might get it good and hard, mommy told me?

overmedicatedundersexed's picture

4th of july some how rings hollow, a shell, but all our pols will speak how great our freedom ..while DHS and .gov goons frisk and fondle the crowd, glower at us with bullet proof vests and fully auto rifles..for us common people of the world- this is our freedom, enjoy. the rulers will make a mistake, here in the USA. watch for random acts aginst authority, not in the MSM, but in media. The Military is watching Egypt like we all are. do you feel the rush of history as I do?

Confundido's picture


ptoemmes's picture


There's that stinkin' thinkin' on display.

Atlantis Consigliore's picture

Print a Trillion, be a stud, Like the Berstinky;  print a trillion, you wuss. 

France is counting on you, Portugal, Greece?   F  em.  Fuggettabout it.

Iam Yue2's picture

He is the archetypal Lizard King.

RideTheWalrus's picture

Don't stare directly into his eyes

Lebensphilosoph's picture

Does he turn to stone when he looks in the mirror?

GMadScientist's picture

While I can't blame you for mistaking the EZ for a Medusa, I believe he merely fails to cast a shadow and the averting of eyes is to avoid being hypnotized into ill-advised bond purchases.

Racer's picture


Liar, liar, pants on fire

Go Tribe's picture

Wait a minute, aren't improvements in the economy suppose to reach the financial markets?

Escapedgoat's picture

You mean to say that he plucks the figures out of his arse as well?????????

Like his brethren in Ireland too?????????......Well I would never.....................

Itch's picture

"I dont care about the udders". Me neither Mr Draghi, im more of a leg man.

Monedas's picture

Ask him if Amanda Knox will be retried .... before Captain Francesco "boat jumper" Shettino .... goes to trial ?   Just askin' ?

spanish inquisition's picture

Finally, we don't need to wait for the German court. The OMT is designed for jawboning Euro area tailrisk and we don't need to add anything, because it was all covered already.

TJ00's picture

He came out and said the OMT term sheet will only appear when someone applies for OMT,  which is not what was said previously, and makes it look like OMT is and always was DOA and is nothing more than smoke and mirrors. 

Mototard at Large's picture



Just like they have in the USA and Japan?


Monedas's picture

Boycott Italy .... buy Turkish pasta !

BurningBetty's picture

I've kind of given up on this. No matter how shitty the economy gets, these f***ers will just go out in the media and say what the market wants to hear. Regardless of the real situation. What does it matter if the unemployment is at 10% or 50%. All they can do is say: more funny money to the banks, and then these banks put all the money they get into the stockmarket and drive the prices even further up. This can last for years! It has already lasted for 4-5 years. I am sure they will be able to push this another 5 if they really want to.

bentaxle's picture

Don't mention Portugal!