This page has been archived and commenting is disabled.
Following Epic FT Snafu, ECB Cuts Deposit Rate By 10bps To -0.30% As Expected
In what may have been the most shocking ECB announcement in recent history, moments ago the ECB cut its deposits rate by 10 bps to -0.30%, just as expected.
From the ECB press release:
At today’s meeting the Governing Council of the ECB decided that the interest rate on the deposit facility will be decreased by 10 basis points to -0.30%, with effect from 9 December 2015.
The interest rate on the main refinancing operations and the interest rate on the marginal lending facility will remain unchanged at 0.05% and 0.30% respectively.
Further monetary policy measures will be communicated by the President of the ECB at a press conference starting at 14:30 CET today.
But while the rate cut was not unexpected, and was very much in line with consensus, what shocked the markets is that precisely 9 minutes before the ECB's official announcement, the Financial Times, now owned by the Nikkei, reported that instead of a rate cut, the ECB had left its rate unchanged:
Policymakers on the governing council left the deposit rate, which applies to a portion of banks’ reserves parked at central banks across the currency area, at minus 0.2 per cent.
Markets had priced in a cut of between 0.1 and 0.2 percentage points.
The main refinancing rate remained at 0.05 per cent.
The article can be seen below.
The commentators could not believe it:
What happened?
It appears the FT had prepared an article in case the ECB did not cut rates and mistakenly hit publish.
However, a few minutes later, the ECB did cut as expected, and the outcome was that everyone who had stops in either FX or stocks, was stopped out first to the upside, then to the downside, and then to the upside again. All thanks to the FT's poor editorial discretion.
So for those who lost millions on the FT article, apologies.
Correction: please ignore earlier tweet headlined "ECB leaves rates unchanged in shock decision". This was published in error.
— Financial Times (@FinancialTimes) December 3, 2015
Meanwhile, to all those who sold EURUSD to Goldman in hopes of a prompt 300 pips collapse, sorry you've been FT'ed.
And now we await the FT to release another article on what Mario Draghi will not announce in 40 minutes during his press conference.
»
- 33 reads
- Printer-friendly version
- Send to friend
- advertisements -
So the FT punked the world? Too funny.
I expected it.....sorry about the rest of the world.
Maybe we can get some artists to do a charity thingy.
After expenses......we'll be able donate.....umm OK zero.
It's all fun & games until somebody does that with the LAUNCH NUKE button.
Didn't Draghi say the last negative rate cut was going to be the last negative rate cut at the previous press conference ?
I will donate all the interest earned on my savings after I move these to an ECB affiliated bank.
Everything means less than zero.
This little stunt cut a EUR/USD campaign from 2+R profit to 0.5R. Actually we got lucky to get out so quickly! You don't need to wear a tinfoil hat in order to suspect that someone profited from this...
Operation "Hit all Stops"
Good Morning CD: Hope you and the Family are well. 20 years we will be old men and will look back and chuckle over all the lies, double-lies, overt manipulation, and bullshit all of these CBs spewed upon the public.
We're at a point in this movie that it is comical -- literally. Central Bankers are nothing more than "whore mongering, greedy, small-minded" corporate managers in Men's Warehouse suits who will do, and say, anything for an annual salary (since they create no real value in society) plus some side money under the table (which in our era, our Fathers and Uncles called "bribe money").
The real joke placed on hard working normal people in society, is that so far (though it's seems to be finally waning) the CON still "sort of" works. In another 2-3 years (if it even takes that long), they literally will run out of ink and paper to print the deflated fiat money on, and the system will self-implode.
NOW... on to more important things, how are your Grand Kids? You be well my old friend...
As we know, the world has been punked for quite a while now with the FT fronting as the globalist rag of choice. NOthing FT has in print inspires to surprise as it is a recognizable part of the manipulation.
kind of like wtc7 which had fallen down, no wait, it's still up, nope, it's down. we're gonna have to pull it bitchez.
Well, the difference is...........uh..........um.........I'll get back to ya.
ZH fail! Rates unchanged
LOL
The question is, "who is laughing now?"
Same as it ever was.
Oops my bad!! I'm cancelling my FX news service!!
And your ZH membership?
Which.....BTW.....is free.
If you don't like it......it didn't cost anything.
Not that it won't keep you from throwing a bitch fit.....but I'm just sayin.
awesome nic imo
This is a test, This is only a test of the emergency broadcast system...
Those poor feeble minds are getting spoofed by their own tricks. /hahaahahaaa
EBN - Homocidal Schizophrenic
Dewey Wins!!!
Dewey got Gored.....be thankful for your blessings.
As bad as Bush was......Gore......ten times worse.
And yes.....Bush was bad.....I give you that.
For those that don't realize Obama is worse......I'm sorry.....you get nothing from me. Not even a penny.
I love it when people try to assert Gore wouldnt have had us in Iraq, Afghanistan, etc
only difference would be we'd have had cap and trade rammed illegally into "law"
Yes, Dewey wins, but it is John Dewey, not Thomas Dewey, who claims the victory.
Mr. Algo is about to hit the big red button for gold, after all, who would won't to own gold with negative interest rates?
Mistakenly hit publish, yeah right. I'll bet that "mistake" made some tidy profits in somebody's trading account.
It's amazing how many people will believe that it was a mistake.
Blame it on IT. Works every time.
Some folks were still in IT maintenance mode.
Europe is fixed now, right? Bwahahahahahahaha, no it isn't.
Never trade what should happen if people had common sense - gave up on that over five years ago and I'm happier (and richer) for it.
Somebody just bought their "PRIVATE ISLAND" in Bahamas
with the luxury bunker to store all your sheckels (I mean 'sea shells')
Ha ha ha ha sure this will fix things
Snafu? Or planned dump n pump?
If you haven't already, click on the Financial Times link in the paragraph above the FT pic. It's a hoot... :)
Why wasn't this page found?We asked some leading economists...
http://www.ft.com/intl/cms/s/7e95a234-99b7-11e5-987b-d6cdef1b205c,Author...
Too late, already pulled. :)
Right, I'm not referring to the actual page where they erroneously published the headline--that's gone. But, rather, there is a Page Not Found message which refers to asking leading economists about why the page is not found. They then provide various fake answers based on the school of thought to which the economist belongs.
It's the best Page Not Found I've seen.
Annnnnnnd......it's gone.
I would have doubled down....but that's just me.
Just the khazars teaching the japs about who really owns the systems. "You can buy the FT japs, but we still own the flow of spice".
Proof that all news reporting is FAKE!
https://www.youtube.com/watch?v=fvQKH1O4Hkw
Anyone with stops in today's market is an idiot and is nothing more than "algorithm food". Given that the only thing driving markets is Central Bank chatter, you just have to bet on Red or Black and let it ride.
Or you can be smarter than most of the hedge funds in 2015 - and invest your money in a mattress!
+1 for algorithm food.
Like.. algorithm algae
Yes, stops make you a muppet algorithms eat for breakfast. These days options must be used in lieu of stops. And muppets don't understand them or use them. How convenient.
Where's all those greenshoots Drahgi and the latest IMF revised down growth projections LeGarde?
You know, I'm not an investor, I'm not rich, hell, I'm not even in the shrinking middle class. I've zero money to invest, but with fools like these in (presumed) high places, I don't think it would make a damn bit of difference if I did...........
Shouldn't the headline and story be more about the fact that some half-assed "market" owned financial publication can swing "markets" that much with a fucking blog post. Are you fucking kidding me!
"Psst, hey fella. Yeah you! I want to give you some inside information I just saw on the Internet. It's real juicy! Empty the bank account and liquidate your assets. It's going to be huge."
Hackers now have a wonderful new target. Just put out some words on some magaxzine frontpage, that may not be correct and you win millions.
Whatever you think of these policies, they cannot be implemented for the stated goal of stimulating demand for credit, since they don't - there's simply not much demand for credit.
They also cannot be implemented for the (unstated) goal of helping 'Main Street', since they don't - Main Street in Europe depends much more than in the US on return on capital since Europe saves much more.
Thus either the ECB are idiots, or these policies are implemented for other than the stated reasons, such as recapitalizing overleveraged banks. I don't know which is worse.
If you are not inside, you are outside.
Looks like Claire Jones just had her 9 minutes of journalistic fame.
The Central Bank Shitshow just went round the bend. Fuck their collective asses and the dumbass, fucked up markets they attempt to permabull!!!!!
FT is going to publish that US unemployment filings unexpectedly hit 5,000,000 this week. Wait for "accidental" publish in 3,2,1.
Financial Times gets caught red handed making up news, not reporting it.
Everyone try to act surprised
gets caught red handed making up news
Show me a media outlet that doesn't these days....it's all the rage.
If reporting the news is good.....making up the news is even better.
How do you think ZH publishes these lengthy articles interpreting events minutes after news is released? All financial publishers have to prepare alternative articles for different scenarios in advance. This way they are able to just insert the details into the correct one after the news is released so they can quickly release the article. SOP.
Forecasting (even if done accurately) and reporting are not the same thing.
"Forecasting", when used to promote a particular political ideology, is more commonly known as propaganda. It is not reporting.
Many people have stopped trusting traditional "news" sources (not just the financial times) because they no longer report the news, they make it up to suit their political ideologies.
Yes, I have heard the political spin about the internet and the abominable snowman devastating newspaper sales -- but there is still plenty of room for a trustworthy news source, if one existed. Rushing to put out a fictional work should not be confused with reporting.
Lying to get clicks may be SOP (standard operating procedure?) in the short term, but that doesn't mean its a smart business plan. Especially since the media outlets aren't fooling enough people to keep NYTimes or WaPo or FT solvent.
Even in less time sensitive stories, the FT (and NYTimes and WaPo and Bloomberg and WSJ and ...) have been caught making up news. Its not because they prepped multiple versions of spin, its because they lack integrity and honesty -- they are too busy spinning stories for political advantage.
ZH does this too, but that doesn't make it right. And ZH relies more on tin-foil hat readers than do the traditional media outlets... which is funny since ZH gets the story accurate about as often as the companies that purport to be mainstream (they both get stories right/wrong at about the same rate). If the traditional outlets were doing there jobs (they are not) -- there should be an enormous difference in accuracy, and ZH shouldn't "scoop" the companies with massive headcounts.
Has anyone got the frogs phone number?
Trial balloon for some future day.
FT was just messing with people; they should be sued for the "mistake", which would likely be enough to sink them, but they are part of the propaganda machine that has created the surreal world in which we dwell.
How people live in this world apart from Christ and the fixed moral law of God as their guide is beyond my understanding; for what is ones purpose in life?
People work for a lifetime with no guarantees that their labors will be fruitful knowing it can be taken away in many ways.
I would like to hear other views on how they view the purpose of their life is; from those who reject the gospel of Jesus Christ. What happens when you die in your view & is there a basis for such a belief? Just a discussion; no need for expressing dislike on differences of the purpose of life. Thank you all. Off topic; yes, but who cares about FT?
If Jesus comes back and massacres the Synagogue of Satan, I'll believe in him. 'Til then, I believe in Adolf Hitler.
Went long GBP at around 12 GMT. Thanks FT, I think you scored me some extra pips on that one!
Even money says the FT minion responsible for pressing the wrong button will be out of a job by the time markets close today.
It's obviously a 21st century thing and I'm too old for this shit but negative rates make ZERO sense to me.
earns zero cents as well
Negative rates make perfect sense. It is a license to steal from savers and to give "free"money to bankstas.
Big banks borrowing money at positive interest rates from central banks need to pay back with interest.
Big banks borrowing money at negative interest rates from central banks get to keep the interest as profit.
The key is that the central banks can say they are "lending" money to the bankstas and not "giving" money to the bankstas.
My only objection to negative rates is that they won't allow just anybody to get into the game.
I'd be absolutely delighted to let people loan me money at -.5%. I'd borrow every cent I could get my hands on and then sue them when they were late in paying me for the privilege of accepting their cash.
You can be sure Goldman made out like bandits. If not, trades would be reversed.