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Mario Draghi's "If You Like Your Negative Rates, Here's More" ECB Press Conference - Live Feed

Tyler Durden's picture




 

Mario Draghi broke new ground once again this morning by pushing rates even negative-er. We are sure the ECB's top man will further explain how ABS purchases, TLTRO, and even sovereign QE are just around the corner (so keep buying)...

 

ECB Prss Conference

 

Here are five questions from Bloomberg for Mario Draghi this morning...

Is more easing on the way?

After the ECB unveiled an unprecedented stimulus package in June, most analysts had expected officials to hold off on new measures until the end of the year. An economy that stalled in the second quarter, slowing inflation and the crisis in Ukraine changed the picture. Draghi acknowledged these developments, and their effect on inflation expectations, in a speech at Jackson Hole, Wyoming on Aug. 22, setting the stage for more stimulus, including quantitative easing.

Will there be changes to the TLTROs?

The ECB may make the terms of its targeted longer-term loans, the centerpiece of its June package, more attractive by cutting its benchmark rate or erasing the premium it plans to charge banks, analysts say. The current plan -- aimed at supporting the recovery by boosting lending -- offers funding at 0.10 percentage point above the benchmark rate. A rate cut would make what is already, according to Draghi, a “very, very attractive” offer even more appealing.

The first round of the TLTRO operation is due this month. Estimates of take-up in a Bloomberg News survey fell in August as the economic outlook for the euro area clouded. Italy’s seven biggest banks will ask to borrow as much as 30.3 billion euros ($40 billion) this month, according to a Bloomberg News report.

What’s happening with inflation?

A key thing to watch for is any change in the inflation wording of Draghi’s opening statement. In August, he said officials see “both upside and downside risks to the outlook for price developments as limited and broadly balanced over the medium term.”

The ECB will also issue new economic forecasts. It currently predicts price growth will gradually accelerate over the next 2 1/2 years, climbing from 0.7 percent this year to 1.1 percent in 2015 and 1.5 percent in the last quarter of 2016.

Inflation, which the ECB aims to keep just under 2 percent, has been below 1 percent since October and fell to 0.3 percent in August, the lowest in almost five years. In Jackson Hole, Draghi reaffirmed that most factors pushing down inflation -- from the exchange rate and geopolitical tensions to food and energy prices -- are temporary. Core inflation edged up in August to 0.9 percent.

Still, the ECB President recognized that “if this period of low inflation were to last for a prolonged period of time the risk to price stability would increase,” and said inflation expectations had “exhibited significant declines.”

Let’s cut to the chase, is quantitative easing coming?

After Draghi’s Jackson Hole speech, when he said the Governing Council “will use all the available instruments needed to ensure price stability over the medium term,” analysts from Berenberg to JPMorgan Chase & Co. said the chances of large-scale asset purchases have increased. While most analysts think QE, if it happens, will come in 2015, Citigroup Inc. economists predicted last month the central bank will unveil a QE program in December valued at 1 trillion euros.

At the same time, the technical, political and legal hurdles to asset purchases remain high, especially if they involve government bonds.

The ECB is also accelerating preparations to buy asset-backed securities. The central bank hired BlackRock Inc., the world’s biggest money manager, to advise on a program with the twin aims of reviving the shrinking European securitization market and providing another liquidity tool. ABS purchases may form part of a larger QE program.

What has Draghi been telling Europe’s leaders?

The ECB President met with France’s Francois Hollande and Italy’s Matteo Renzi in recent weeks and spoke on the phone with German Chancellor Angela Merkel. While such contacts are not news in themselves, they came as France and Italy have called for more flexibility in European Union deficit rules, something Germany opposes.

In Jackson Hole, Draghi also said governments’ “fiscal policy could play a greater role” in supporting euro area’s growth, alongside monetary policy and structural reforms.

 

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Thu, 09/04/2014 - 08:35 | 5179203 BaghdadBob
BaghdadBob's picture

How's that 'Recovery' going for ya...?

Thu, 09/04/2014 - 08:58 | 5179304 Bangin7GramRocks
Bangin7GramRocks's picture

Just buy stock. Duh!

Thu, 09/04/2014 - 09:02 | 5179325 PartysOver
PartysOver's picture

Yep, just kep playing the "Idiots Game" and collect your Fair Share.   Just don't be the last Idiot holding the bag.

Thu, 09/04/2014 - 09:08 | 5179346 PR Guy
PR Guy's picture

 

 

Here's the real reason Mario wants low/negative interest rates over there:

 

https://www.youtube.com/watch?v=zV3UuMOfiaQ

 

 

Thu, 09/04/2014 - 09:15 | 5179375 SumTing Wong
SumTing Wong's picture

Spend, spend, SPEND already, damnit!!!!

Didn't you figure it out yet?

Spend, we can't have deflation. SPEND!!!!!

Thu, 09/04/2014 - 09:34 | 5179445 eclectic syncretist
eclectic syncretist's picture

Print that shit up you little bitch Dragass.  If a little bit of counterfeiting is good a whole fucking buttload of it must be great, right??!!!  Your sorry ass will be making Jeffrey Dahmer look like a saint in comparison, when the effects of your counterfeiting kick in hard on the populace.

Thu, 09/04/2014 - 12:07 | 5180251 PT
PT's picture

So how long till I can refi my home with negative interest rates?
No?

Thu, 09/04/2014 - 08:37 | 5179206 schatzi
schatzi's picture

Seeing that most of my assets are € denominated and seeing how the € is currently freefalling, it does not make me a happy panda.

Thu, 09/04/2014 - 08:38 | 5179211 molecool
molecool's picture

Opposite for me - earn in Dollars and live in Europe. Mwwwuuuhhuuuhaaaaaa :-)

Thu, 09/04/2014 - 08:55 | 5179292 Keyser
Keyser's picture

Draghi just announced that the ECB will begin a quantitative easing program in October, comprised of asset-backed securities and Euro-denominated covered bonds.

Read more: http://www.businessinsider.com/mario-draghi-press-conference-september-4-2014-9#ixzz3CLpTsxsI

Right.......Down.......The........Toilet.........

 

 

Thu, 09/04/2014 - 09:01 | 5179319 Haus-Targaryen
Haus-Targaryen's picture

Get ready for the entire country of Germany to turn into one huge construction zone. 

 

The last resurfacing before drowning just started.

Thu, 09/04/2014 - 09:09 | 5179356 molecool
molecool's picture

The Schwarzwald has to go!

Thu, 09/04/2014 - 09:08 | 5179350 molecool
molecool's picture

Sorry for my neighbors but it's good for me.

Thu, 09/04/2014 - 09:34 | 5179451 Bangin7GramRocks
Thu, 09/04/2014 - 08:40 | 5179225 buzzsaw99
buzzsaw99's picture

I can't believe youse guyz weren't buying USTs all along. You would have made a killing by now. Is there some kind of law against that where you live?

Thu, 09/04/2014 - 09:43 | 5179486 buzzsaw99
buzzsaw99's picture

Your ass is happy. [/Mr. Roboto]

https://www.youtube.com/watch?v=EYvEKuy01rw

Thu, 09/04/2014 - 08:38 | 5179207 molecool
molecool's picture

Draghi SMAAAASHH!!! 

Thu, 09/04/2014 - 08:38 | 5179214 buzzsaw99
buzzsaw99's picture

It's a-me, Mario!

Thu, 09/04/2014 - 09:18 | 5179386 j0nx
j0nx's picture

I'ma Luigi!

Thu, 09/04/2014 - 08:38 | 5179215 zeroheckler
zeroheckler's picture

Last week GS lowered their outlook on the €:

Goldman Slashes EURUSD Forecast To 1.20

They knew it what Draghi had in mind - no, those bastards told Draghi what to do!

Lesson: perhaps short-term one should listen to GoldmanSucks

Thu, 09/04/2014 - 08:44 | 5179240 buzzsaw99
buzzsaw99's picture

don't listen. watch what they do instead.

Thu, 09/04/2014 - 09:42 | 5179481 zeroheckler
zeroheckler's picture

When you see - its too late

Thu, 09/04/2014 - 09:48 | 5179496 buzzsaw99
buzzsaw99's picture

true, however, one can infer by what they say that they are doing the opposite. http://www.zerohedge.com/news/2013-10-16/stolperd-out-muppets-slayed-usu...

Thu, 09/04/2014 - 08:40 | 5179217 firstdivision
firstdivision's picture

So having a savings account is like 'investing' in TV's.  Sounds like everything is going to be just fine in Euroland.

In other news, USMint needs to update their pricing on silver and gold.  Perhaps they can help Yellen in her endevour of improving the economy by offering the Eagles and Buffalos at 30% below spot. 

Thu, 09/04/2014 - 08:39 | 5179221 LawsofPhysics
LawsofPhysics's picture

ZIRP/NIRP is effectively a "Let the majority eat cake while we chosen few can access as much money for free (no interest) as we want"

 

Such "let them eat cake" approaches have been tried before, this time will be no different.

Thu, 09/04/2014 - 08:44 | 5179235 Dr. Engali
Dr. Engali's picture

So......... things are fixed again, yes?

Thu, 09/04/2014 - 08:45 | 5179239 Winston Churchill
Winston Churchill's picture

Tomorrow is another day.

Thu, 09/04/2014 - 08:44 | 5179237 ENTP
ENTP's picture

So what happens when the road ends, where do these fuckers kick the can?  

Thu, 09/04/2014 - 08:46 | 5179244 Tenshin Headache
Tenshin Headache's picture

Straight into your face.

Thu, 09/04/2014 - 09:16 | 5179381 SumTing Wong
SumTing Wong's picture

Straight into the house of cards they have constructed. Uh oh.

Thu, 09/04/2014 - 12:15 | 5180292 PT
PT's picture

The original can rusted away in 1998.  Every time they need to tell you what they are doing, they drag out the old can-kicking footage.  If you want to know what they are really doing, the first step is to get out of the cinema.

Thu, 09/04/2014 - 09:37 | 5179461 Australian Economist
Australian Economist's picture

Then they start to kick the bucket

Thu, 09/04/2014 - 08:48 | 5179249 fukidontknow
fukidontknow's picture

 

 

MOAR!!!!!

Thu, 09/04/2014 - 08:47 | 5179250 Everybodys All ...
Everybodys All American's picture

Credit and more importantly European antional and international trade is going to grind to a complete halt because of this policy. The trust of many once certain credit lines is now broken in my estimation.

Thu, 09/04/2014 - 08:49 | 5179262 buzzsaw99
buzzsaw99's picture

it's the Kobayashi Maru scenario

Thu, 09/04/2014 - 08:48 | 5179255 cn13
cn13's picture

With all the central bank interventions world-wide, we need to come up with a new word for what used to be called "markets".

On an off note, Draghi on camera looks like one slimey bastard.  We have nothing but complete crooks in control of our "free markets."

Thu, 09/04/2014 - 08:50 | 5179264 TabakLover
TabakLover's picture

I know I sound insane............. but I'm calling a Draghi Top.

Thu, 09/04/2014 - 09:06 | 5179326 CHX
CHX's picture
  • Or a Draghi bottom for rates (YIKES - did I just say that ?).
Thu, 09/04/2014 - 08:52 | 5179275 falak pema
falak pema's picture

Toothless France is the new slogan; based on Valerie Trierweiler's revelations in her "just out" steaming hot book about her stint with Hollande.

It's got the media buzz going frantic in France.

Now Draghi, not to be outdone, has made the Euro a toothless hag; with its Gucci bag and an insatiable appetite to get phony-baloney ABSs between her toothless hot lips!

I was right when I used that analogy some days ago.

At least Valerie thinks so too; as too does Draghi ! 

And Hollande now has two MIC amphibious buses worth 1.6 Billion Euros he can't sell to Putin ! Mamma mia! 

 

Thu, 09/04/2014 - 08:57 | 5179305 ejmoosa
ejmoosa's picture

Well, at least they edmit the economy  sucks.  

More than they are willing to do here.

 

Thu, 09/04/2014 - 08:58 | 5179311 poor fella
poor fella's picture

Janet Yellen wants her crack pipe back.

Thu, 09/04/2014 - 09:00 | 5179315 CHX
CHX's picture

I'm always amazed at the capability of those CBers to explain their ponzi scheme with serenity and a straight face. #Super Mario

Thu, 09/04/2014 - 09:01 | 5179320 ignl
ignl's picture

Its logical. With QE without reforms in south of europe new money would still end up in Germany causing further divergence of economies and causing inflation there (germans really don't like that). Negative interest rates should lower yields even more which is good for indebted south and hopefully forces more lending and investments. Also it will speed up eur devaluation which is needed for europe to be more competitive. Unfortunately thats probably last thing ECB could do and now outcome depends on currently socialist countries policies. Can they do needed reforms, lower taxes, remove regulations cut on beaurocracy etc to become more competitive both against germany and in the world markets...

Thu, 09/04/2014 - 09:01 | 5179323 barre-de-rire
barre-de-rire's picture

blaaa blaaa blaaaa

 

boring. notin happen, when the fuck will us shoot each others for can beaf & candle  middle streets. !

Thu, 09/04/2014 - 09:05 | 5179334 jose.six.pack
jose.six.pack's picture

"growth-friendly"

Thu, 09/04/2014 - 09:12 | 5179354 THE DORK OF CORK
THE DORK OF CORK's picture

The “west” has been going backwards since the Cecils started whispering sweet nothings into Lizies ears.

Why were many English fascinated with little island economic ecosystems of the early 20th century such as The Great Blasket somewhat divorced from the Tudor capitalistic experiment ?
The people seemed somewhat familiar yet different.
Many of us have come to realize that we are the abenormal types and people with distance from this demonic scarcity engine hold a certain humanity.
Basic human scale exchange is now as dead as a dodoin Europe.
These islands were finally changed by the Keynesian war experiment known as the Great war – the debris from various sinkings produced such a physical goods surplus that money in large quanity was needed to express the bounty in monetary terms.
Totally changing the island dynamic within a few short years.
The last boy who left the island in 1953 (known as the Lonelist boy in the world) was recently interviewed in a Dingle pub .
He had become westernized as people like to  call it and wanted to leave the place.
He expressed fascination with the lights of mainland buses across the barrier of water and equated this with “progress”
Well progress as we define it in the post enclosure period is nothing more then a illusion.
The product of a bargain with Mephisto.

The mainland town of Dingle is now a materialistic wreck of a gaff without enough material.
A anti cultural hole of place with neither culture nor internal money to bind it when once it had 52 pubs in which you could have a quiet or musical pint.
Now you cannot have either music or quietness , just Mammon without the good stuff in between.

The Middleclass life was / is a consumer serfs life.
A living suburban hell projected on us poor misfortunate banking conduits.

http://www.irishexaminer.com/lifestyle/features/loneliest-boy-in-the-world-is-sole-survivor-of-blaskets-evacuation-269424.html

 

Thu, 09/04/2014 - 09:09 | 5179355 Hubbs
Hubbs's picture

Two rasons to go even more negativer

 

1.)The governments are in deep do-do and this is the beginning of the agonal gasps

2.) Some insiders stood to make a lot of money by this stunt

Thu, 09/04/2014 - 12:37 | 5180399 PT
PT's picture

3.)  Because they can.

 

 

 

Who's gonna stop them?  And what army?

Thu, 09/04/2014 - 09:11 | 5179362 maneco
maneco's picture

Mr Draghi is losing it. Fiat money R.I.P.

Thu, 09/04/2014 - 09:26 | 5179414 Rip van Wrinkle
Rip van Wrinkle's picture

Fucking insanity

 

'Nuff said.

Thu, 09/04/2014 - 09:29 | 5179428 THE DORK OF CORK
THE DORK OF CORK's picture

Structural reforms means a further hollowing out of the domestic and local economy.

This frees up energy to be used in the european "value added" entrepot which most people cannot afford to buy as almost all energy goes into trade rather then consumption itself.

manic trade should not be a goal , its perhaps a outcome of exchange but it is not a goal unless you want to see the destruction of humanity.

Draghi represents the total evil of the money power in its demonic efforts to create the illusion of scarcity.

Thu, 09/04/2014 - 09:29 | 5179431 wisefool
wisefool's picture

Dragi just now "would telling the truth be a risk? No we dont think so."

This is going to piss off CNBC's Cramer. "The slaves have no idea how bad is is out there. No idea. They can't handle the truth."

Thu, 09/04/2014 - 09:39 | 5179471 poor fella
poor fella's picture

Caught that too. AMAZING actually. Things are so bad they're going to tell the truth. Wondering if we ever reach that point in the USA.

The media tells me "no".

Thu, 09/04/2014 - 09:42 | 5179466 THE DORK OF CORK
THE DORK OF CORK's picture

Although the irish national experiment was a illusion which made national banking extraction more politically sustainable.......(painting the HMs post boxes green) and thus destroying local market towns and culture via the then mainly local (Dublin)  centrifugal force of interest bearing money

It is well to understand that the irish national anthem was taken off irish state airwaves in the 1990s for a reason.

It depicts the sun going down over the Blasket islands and a deep connection with the land rather then Mammon.

http://www.youtube.com/watch?v=krZEfzKAhD4

 

Thu, 09/04/2014 - 10:51 | 5179834 medium giraffe
medium giraffe's picture

WTF is he doing?

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