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Mario Draghi's Panic Button, Birthday Presser - Live Feed
Now that the formalities are out of the way with rates unchanged, the fireworks can begin as Mario Draghi gets set for his post-meeting presser where markets hope to hear that the ECB is set to expand QE in the face of collapsing EMU inflation expectations, mounting global headwinds, rising volatility, and EM chaos.
- DRAGHI SAYS ISSUE SHARE LIMIT FOR QE RAISED TO 33% FROM 25%
- ECB CUTS EURO-AREA INFLATION FORECASTS FOR 2015-2017
- DRAGHI SAYS MAY SEE NEGATIVE INFLATION RATES IN COMING MONTHS
- ECB CUTS GDP FORECASTS FOR 2015-2017
- GERMAN BUNDS EXTEND GAIN AS DRAGHI RAISES QE ISSUE SHARE LIMIT
- NEW DOWNSIDE RISKS TO GROWTH AND INFLATION
- DATA ALSO SHOW SLOWER RECOVERY OF INFLATION
- DATA SHOW CONTINUED, SOMEWHAT WEAKER RECOVERY
- BUT SUBJECT TO NO BLOCKING POWER FOR EUROSYSTEM
- DRAGHI: ECB CAN ADJUST SIZE, DURATION OF QE IF NEEDED
Full preview is here, watch live below.
(live feed)
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Full opening remarks:
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. As usual, let me start with the decisions taken.
Based on our regular economic and monetary analysis, and in line with our forward guidance, the Governing Council decided to keep the key ECB interest rates unchanged.
Our asset purchase programme continues to proceed smoothly. Regarding non-standard monetary policy measures, following the announced review of the public sector purchase programme’s issue share limit after the first six months of purchases, the Governing Council decided to increase the issue share limit from the initial limit of 25% to 33%, subject to a case-by-case verification that this would not create a situation whereby the Eurosystem would have blocking minority power, in which case the issue share limit would remain at 25%.
Underlying our monetary policy assessment was a review of recent data, new staff macroeconomic projections and an interim evaluation of recent market fluctuations. The information available indicates a continued though somewhat weaker economic recovery and a slower increase in inflation rates compared with earlier expectations. More recently, renewed downside risks have emerged to the outlook for growth and inflation. However, owing to sharp fluctuations in financial and commodity markets, the Governing Council judged it premature to conclude on whether these developments could have a lasting impact on the outlook for prices and on the achievement of a sustainable path of inflation towards our medium-term aim, or whether they should be considered to be mainly transitory.
Accordingly, the Governing Council will closely monitor all relevant incoming information. It emphasises its willingness and ability to act, if warranted, by using all the instruments available within its mandate and, in particular, recalls that the asset purchase programme provides sufficient flexibility in terms of adjusting the size, composition and duration of the programme.
In the meantime, we will fully implement our monthly asset purchases of €60 billion. These purchases have a favourable impact on the cost and availability of credit for firms and households. They are intended to run until the end of September 2016, or beyond, if necessary, and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.
Let me now explain our assessment of the available information in greater detail, starting with the economic analysis. Real GDP in the euro area rose by 0.3% in the second quarter of 2015, which was somewhat lower than previously expected. The latest survey indicators point to a broadly similar pace of real GDP growth in the second half of this year. Overall, we expect the economic recovery to continue, albeit at a somewhat weaker pace than earlier expected, reflecting in particular the slowdown in emerging market economies, which is weighing on global growth and foreign demand for euro area exports. Domestic demand should be further supported by our monetary policy measures and their favourable impact on financial conditions, as well as by the progress made with fiscal consolidation and structural reforms. Moreover, the decline in oil prices should provide support for households’ real disposable income and corporate profitability and, therefore, private consumption and investment. However, economic growth in the euro area is likely to continue to be dampened by the necessary balance sheet adjustments in a number of sectors and the sluggish pace of implementation of structural reforms.
This assessment is also broadly reflected in the September 2015 ECB staff macroeconomic projections for the euro area, which foresee annual real GDP increasing by 1.4% in 2015, 1.7% in 2016 and 1.8% in 2017. Compared with the June 2015 Eurosystem staff macroeconomic projections, the outlook for real GDP growth has been revised down, primarily due to lower external demand owing to weaker growth in emerging markets.
The risks to the euro area growth outlook remain on the downside, reflecting in particular the heightened uncertainties related to the external environment. Notably, current developments in emerging market economies have the potential to further affect global growth adversely via trade and confidence effects.
According to Eurostat’s flash estimate, euro area annual HICP inflation was 0.2% in August 2015, unchanged from June and July. Compared with the previous month, this reflects a further decline in energy price inflation, compensated for by higher price increases for food and industrial goods. On the basis of the information available and current oil futures prices, annual HICP inflation rates will remain very low in the near term. Annual HICP inflation is expected to rise towards the end of the year, also on account of base effects associated with the fall in oil prices in late 2014. Inflation rates are foreseen to pick up further during 2016 and 2017, supported by the expected economic recovery, the pass-through of past declines in the euro exchange rate and the assumption of somewhat higher oil prices in the years ahead as currently reflected in oil futures markets. However, this increase in annual inflation rates is currently expected to materialise somewhat more slowly than anticipated thus far.
This assessment is also broadly reflected in the September 2015 ECB staff macroeconomic projections for the euro area, which foresee annual HICP inflation at 0.1% in 2015, 1.1% in 2016 and 1.7% in 2017. In comparison with the June 2015 Eurosystem staff macroeconomic projections, the outlook for HICP inflation has been revised down, largely owing to lower oil prices. Taking into account the most recent developments in oil prices and recent exchange rates, there are downside risks to the September staff inflation projections.
In this context, the Governing Council will closely monitor the risks to the outlook for price developments over the medium term. We will focus in particular on the pass-through of our monetary policy measures, as well as on global economic, financial, commodity price and exchange rate developments.
Turning to the monetary analysis, recent data confirm robust growth in broad money (M3). The annual growth rate of M3 was 5.3% in July 2015, compared with 4.9% in June. Annual growth in M3 continues to be increasingly supported by its most liquid components, with the narrow monetary aggregate M1 growing at an annual rate of 12.1% in July, compared with 11.7% in June.
Loan dynamics continued to improve. The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) increased to 0.9% in July, up from 0.2% in June, continuing its gradual recovery since the beginning of 2014. Despite these improvements, the dynamics of loans to non-financial corporations remain subdued. They continue to reflect the lagged relationship with the business cycle, credit risk, credit supply factors, and the ongoing adjustment of financial and non-financial sector balance sheets. The annual growth rate of loans to households (adjusted for loan sales and securitisation) increased to 1.9% in July 2015, after 1.7% in June. Overall, the monetary policy measures we have put in place since June 2014 provide clear support for improvements both in borrowing conditions for firms and households and in credit flows across the euro area.
To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis indicates the need to firmly implement the Governing Council’s monetary policy decisions and to monitor closely all relevant incoming information as concerns their impact on the medium-term outlook for price stability.
Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic activity. However, in order to reap the full benefits from our monetary policy measures, other policy areas must contribute decisively. Given continued high structural unemployment and low potential output growth in the euro area, the ongoing cyclical recovery should be supported by effective structural policies. Further product and labour market reforms, and particularly actions to improve the business environment, including an adequate public infrastructure, are vital to increase productive investment, boost job creation and raise productivity. The swift and effective implementation of these reforms, in an environment of accommodative monetary policy, will not only lead to higher sustainable economic growth in the euro area but will also raise expectations of permanently higher incomes and accelerate the benefits of reforms, thereby making the euro area more resilient to global shocks. Fiscal policies should support the economic recovery while remaining in compliance with the Stability and Growth Pact. Full and consistent implementation of the Pact is crucial for confidence in our fiscal framework.
We are now at your disposal for questions.
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Jazz improvisations as intro to the presser!
How telling. They're making shit up as they go.
And the obligatory mini gold smash as a sign of confidence.
As Draghi is speaking, there are the tops of two unopened green glass bottles of water to the bottom right of his desk. Why are those bottles there? Is there some sort of Freudian significance to the bottles? I could not make out the brand of the bottled water from the labels. Is the bottles' placement advertising for a bottler owned by Goldman Sachs or Warren Buffet?
As for the very clear feed of Draghi's speech, the words did not matter, he had a flop sweat look to him as he read his presentation.
Ok Sweden you'Re up. Looking at Denmark too.
While the Chinese are off celebrating victory week, the FED and ECB are acting, trying to look relevant. Don't worry the Chinese will put their hands back on the controls soon enough.
"Will somebody please cut off Mr Daghi's microphone?"
No need to worry as long as you are fullly prepared to die.
Well I do have life insurance.
The interesting thing is that these bozos have been predicting higher than reality inflation all this time and now they are predicting lower inflation/uninflation/disinflation/lowflation/negative inflation (anything but deflation).
They've been wrong so far. Is there any reason to believe they are correct now? If past performance is any indication then we should start looking for higher inflation to come as a result.
Of course, I've been saying we will see deflation then massive inflation (hyper?) as TPTB react to the deflation with their favorite hammer.
its all getting very predictable really. anyone willing to predict the breaking point, 1 month 6 month year???
www.teamramgold.com/about-us
10 years. Minimum.
Maybe 20 - a new generation. Because it is not just the TOP men that determine the course of history.
Price Stability, Price Stability, Price Stability…..
Price Stability, Price Stability, Price Stability…..
Price Stability, Price Stability, Price Stability…..
Price Stability, Price Stability, Price Stability…..
Price Stability, Price Stability, Price Stability…..
Price Stability, Price Stability, Price Stability…..
Gold and Silver are prepared to drop whatever he says.
"Somewhat weaker economic recovery" - there's a shocker...
What recovery?
Oh yeah, I forgot, 1.2% GDP is considered an overheating economy in Europe, 0.3% long term post war growth trend. (Or close enough)
Just wait until the EU suffers the impact of the Flood of Refugees and the incumbent increase in productivity and rise in taxes through gains in employment and refugee led Consumer Spending, let alone vast growth in upscale homes and cars they'll all be buying. (Do I really need the sarc tag anymore?)
Its all well and truly fucked. The whole thing is a mountain of lies and incompetence. Not a whit of responsible social, fiscal or monetary policies ....
Thanks, Goldman ... Somehow I know you're in there.
Is mankind really is trying to commit species suicide?
http://vhemt.org/
It's your gvt trying, and now we have the PROOF!.
He looks like that Mexican with the 19" pecker!...except on top of his shoulders of course.
I love that picture of him wincing when that girl jumped up on the desk to confront him
I wonder if anyone will jump on his desk and scare him again. What an assclown.
So...."everything we've tried has failed, so we're going to do more of it." Lovely.
Mr Asshat, Do you think the massive migration of refugees to Europe from the Middle-East and Africa have anything to do with extrodinary policies of the last 7 years by the ECB and the FED?
And a big pizza pie for alla my friends!
Thanks for the laugh on that one!
I cannot bear to hear these central bankers.
I am marshalling all my powers to cause a Confetti Girl intercession.
Helicopter Mario to the rescue
Chopper city
I will give my bankster pals lotsa more money
QE....is it the last trick of the shitshow?
No, as the bank has military toys for the last trick.
No.
The Clown Car form Outer Space his limitless capacity for your enjoyment ...
The only way not to participate is to look the other way and pretend ...
And yet we are to believe that Mr. Yellen is going to raise rates in 2 weeks. What a fucking Farce !!!
One day soon the USD will collapse ......and maybe then Gold will be free again.
Absolutely disgusting.
I am glad my speakers are turned off, I don't feel like puking right now
"The rate of the recovery may slow due to EM..." Yeah, blame it on that. Communist.
Is it me or does he sound like Count from Sesame Street. I keep waiting to hear him say...1 trillion, 2 trillion, etc
I wonder if he has a newsletter I can subscribe to?
"Slower recovery of inflation"
Inflation is a TAX and shouldn't 'recover' because it is BAD, you thieving CON merchant
George Carlin: How language is used to mask truth and Israeli terrorism
https://www.youtube.com/watch?v=vAj6cXHrWdQ
Well they face a LOT of head choppers. And suicide bombers.
Suicide bombers? Israel, in possession of several hundred operational nuclear devices, has never signed the Nuclear Non-Proliferation Treaty. Why? For fear of Gaza?
“The submarines are a strong, strategic tool for the IDF. The State of Israel is ready to act anytime, anywhere – on land, sea and air – in order to ensure the security of Israel’s citizens (Netanyahu),”
RT reported on April 30, 2013:
Israel has inaugurated its fifth Dolphin-class submarine, allegedly capable of launching cruise missiles with nuclear warheads. A German shipyard in Kiel has a contract to build a sixth sub “to ensure the security of Israel’s citizens,” the PM said. …
In June 2012, Der Spiegel … claimed that Dolphin-class submarines are equipped with hydraulic ejection systems that enable the underwater launch of Israeli Popeye Turbo SLCM long-range cruise missiles, believed to have nuclear warheads…a range of up to 1500km and carry a 200kg payload, enough to fit in a nuclear warhead. The first launch of the missile was carried out in 2002 in the Indian Ocean. …
The first two submarines were donated to Tel Aviv for free while the third came with a 50-per-cent discount, informs International Defense News. Berlin also shared about a third of the costs for the fourth and fifth submarines….for a sixth and the last Dolphin-II class submarine...Berlin allocated about 135 million euro (US $175.8 million) of the overall 600-million-euro cost of the sub.
http://www.globalresearch.ca/the-security-of-israel-fifth-nuclear-capable-submarine-cruise-missiles-with-nuclear-war
I note you didn't refute my point about suicide bombers.
Look at the attitude towards Mexicans in the US. What would we be doing if they were suicide bombers? More than a fence.
It is my OL's birthdat today.
I have no idea what draghi is talking about, what I know is about an opportunity to buy gold NOW, for a short term up swing. 1-2 dayz, its so obvious. But I still say, gold is worthless, fair value is $400, but hey, go with the flow
Which is it redart? Is gold worthless or do you value it at $400? Make up your mind, I'm hanging on your every word with my finger over the sell button.
I must seem like an uneducated rube to you to even ask this, but would you please explain your rationale for these "obvious" short term moves so that I may be enlightened.
BTW, I do have some idea what Draghi is talking about and it goes a long way to prove the old saying that 'ignorance is bliss'.
Consider yourself lucky redart.
Well I might admit its a paradox, thinking on gold to 400 and buying it for a short term swing. But yes, for me gold is worthless, too hyped. Short term swings are based on tape imbalances, to see them you need a nanex feed and some c++ written sodtware with some ultra magic allien formulae :)
Fundamentally speaking I have no idea on the fair price of gold, global demand for gold is shrinking, as well as for diamonds
Thanks for your reply.
To state the, what should be obvious, one more time: How much more blatantly insane does
it get,than, "We [in this case ECB] hereby announce we're about to do more of what has patently failed to work so far..." Tic Toc..
It's the rehab center that puts syringes in the recovery rooms.
It emphasises its willingness and ability to act, if warranted, by using all the instruments available within its mandate...
It emphasises its willingness and ability to act, if warranted, by using the instrument available within its mandate...
Fixed.
Let me get this straight...
Mario will monetize 33% of any EU Bond offering, meaning that any Government that chooses to can issue 50% more debt and know that at least that extra 50% is going to be bought by the ECB no questions adsked?
The heroin junkie analogy is getting downright scary.
Unfortunately I've know some heroin junkies. Upping the boot a full 50% more to keep from crashing is an absolutely torrid, and seriously dangerous escalation. IF this were a human being I'd pretty much be expecting them to end up blue in the bathtub in very short order...
They shouldn't be propping the banking system at this point: they should be writing off existing unpayable government debt and lowering tax burdens as fast as possible.
Ding, ding, ding. We have a winner.
You know it´s a shitty news day .... when Mario Draghi is featured .... in three stories .... fuck it .... me and my Kia Soul .... are going to San Carlos baños termales .... have a nice day with Mario, Nigguz (replacement for the pase´Bitchez) !
Fuck you Draghi
Sounds bullish for stocks, and isn't that the whole point of it all?
Is this Count Floyds monster chiller horror theater?
sounds like he just lost it big time - no more confetti for you Draghi!!!
Given continued high structural unemployment and low potential output growth in the euro area, the ongoing cyclical recovery should be supported by effective structural policies...
Well lets see. New tech to lower the cost of energy. Raise the efficiency. Or invent new ways of doing things that will lower costs. Or invent new stuff that will improve things. Except that will hurt incumbents. Who have political power.
I can tell him one thing. Cannabinoid medicine will lower medical costs. Which is why the incumbents like it illegal.
The world is barking mad. How can any unnacountable group with branches in over sixty countries under one umbrella that of the Bank for International Settlements be allowed to counterfeit their own money to buy business shares and how exactly is that supposed to help the economy or create productive jobs?
The great transfer of assets proceeds at an even more frantic pace. In a great financial collapse who will own these companies or the properties whose deeds have been pledged to the purveyors of the worldwide ponzi money system.
You must think like a psychopath. They have no real conscience and do not know it nor can they. They believe the lies they tell themselves, such as I am superior and the masses are inferior. They love the lusts of the world, the lust of the eyes and the pride of life as they experience it.
Ordinary people are puns to be used for their goals and that is okay & even necessary. They spend their lives for the thrill of doing lawlessness and putting burdens on all. Remember, this is "normal" thinking for all of them and some of that same thinking applies to everyone except for very few. Who are among the few? That cannot be known by the natural man, the many whose religion is humanism or naturalism, for that is foolishness to them.
Lowering inflation expectations = Here comes the hellicopter
Debt is the instrument used to enslave a world of hypocrites from the top to bottom.
Let me be perfectly clear, while being being as vague and as cryptic as the assembled bunch of paid for press can follow.
The issuance of this failure of not just leadership, but complete balls-up of financial shenanigans, regulatory capture, and total ruination of nearly all Europe just hasnt received enough magical debt yet.
We here at lunatic central have therefore decided, the best course of action rather than writing the fucker off, is to fix the un-payable debt, with even MOAR un-payable debt, to the cryptic tune of 33%, fucking maniacal lunatics what we are.
That should fix it quick smart see? The cleverestest man in the room said.
And they call us fuckers crazy?
;-)
You do not understand the overall goal. Increase the debt 100 fold until it implodes; this will quickly usher in the One World Economic System. Draghi may be the King of Europe, while Obama becomes the King of America. Look at the actions of these people and the acceleration; the acceleration means that time is running out and when this falls the world as we know it will be forever changed until the world is destroyed; the entire universe.
This is ultimately divine judgment on the world and rightly so, for we all participate in it in one way or another. The US has done what Europe did long ago and that is to rid themselves of the godly restraints that are for our good and substituted with a truth that is a lie because it comes from man and the ruler of this age, Satan. We all love our sin because we are, by nature, sinners from birth; which is why we must rid ourselves of God's restraints; yet we are still in bondage; just we are told/warned. It will never get better, for it is written that not only is the direction of man, but that direction continues at an accelerated rate and that is indeed what we are seeing. Yet we have not seen anything yet. You believe these times are crazy now; in 5-10 years we will look back to this day and say those were good days. It is written it it cannot be broken; so what should each individual do?
Today is Mario Draghi birthday,
Today he turned 68 years.
Today all say aloud
FUCK YOU Mario Draghi on yours birthday.
Jim Sinclair:
“What is coming up in front of us is the Great Reset where currencies wear their gold like ladies wear a necklace, and the most beautiful necklace will be the strongest currency. The ladies without the necklace won’t be invited to the ball. Huge changes are coming. The dollar is always going to be with us, and the yuan and all of the currencies are still going to be there. We are not going to one single currency. The SDR (Special Drawing Rights) is nothing more than a glorified index of currencies. It’s a cure to nothing. How can a package of junk cure the problem of junk? It can’t. The two last men standing will be gold and gold on steroids—silver.”
http://usawatchdog.com/plunge-protection-team-losing-control-of-markets-jim-sinclair/
Debt is not the cause of slavery. The desire to live beyond one's means is the cause of slavery.