Draghi Said To Address Jackson Hole Followed By ECB QE Tapering Announcement

Tyler Durden's picture

Just in case traders haven't gotten whiplash from all the hawkish-to-dovish-to-hawkish shifts in central bank posturing over the past month, here is the WSJ which reports that for the first time in three years, ECB's Mario Draghi is scheduled to address the Fed's Jackson Hole conference in August, "in a speech that is expected to give a further sign of the ECB’s growing confidence in the eurozone economy and its reduced dependence on monetary stimulus."

While the Fed debates whether to hike rates in December (market odds are now roughly 50%) and announce the winddown of its balance sheet in September, the biggest question facing the global market is the future of the ECB’s €60 billion QE program, currently due to run through December, and when it will start tapering. Technically, according to Deutsche, even more important is the BOJ's QE but that particular monetization program is likely to continue well into 2018 as the Nikkei reports. As such the marginal flow of liquidity in global markets is in the hands of Mario Draghi.

Just as importantly, the WSJ reported that shortly after Draghi's scheduled address, the ECB officials "is likely to signal at its Sept. 7 policy meeting that the bond-buying program... will be gradually wound down next year."

Mr. Draghi’s speech in Jackson Hole will take place less than two weeks before the ECB’s September meeting, providing an obvious opportunity to signal a policy shift before the blackout window closes a week ahead of the meeting.

Jackson Hole has a symbolic meaning for Draghi: during his last speech at Jackson Hole, in August 2014, the ECB president hinted at the start of the ECB's QE "Signaling the end of the program at the same event would have a certain symmetry, a person familiar with the matter said."

Of course, this - like so many other trial balloons - course may be promptly discarded: ECB officials "caution that the timeline could yet change if economic data turn out weaker than expected. They will gather in Frankfurt on July 19-20 for the ECB’s next policy meeting, but aren’t expected to announce any major changes yet." In other words, if the Stoxx 600 were to tumble between now and then, all bets are off.

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DavidC's picture

My head! My head!

DavidC

Arnold's picture

I was going full snark about Jessee Jackson's hole, but I held back.

Took Red Pill's picture

Maybe the super volcano will blow in Yellowstone while they're in Jackson hole.

Arnold's picture

"Earth Shaking News Release from Jackson Hole"

I had better cover my tomatoes.

PrayingMantis's picture

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... appears pornographic ;) ... Jackson might feel a little sting from behind ...

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...

Hopeless for Change's picture

Am I the only one that saw the word "Tampering"?

Rocco Stiffereli's picture

Hole? An Italian? I need to know more. Why am I not invited?

Putrid_Scum's picture

I don't know much about Draghi...but I can tell you the true elite have no confidence left. 

Our System is collapsing.

Conversation with Rothschild

www.beforethecollapse.com/2017/07/08/conversation-with-rothschild/

 

Cordeezy's picture

Now the ECB is going Hawkish while Yellen goes Dovish, no market manipulation here right

www.escapeamazon.com

TuPhat's picture

They coordinate it and take turns.

Bill of Rights's picture

Jackson Hole has a symbolic meaning for Draghi

Yes, fresh male Oracle for all...

shizzledizzle's picture

Tapering Announcement you say?! Looks like he'll be talking again before the end of the day because the markets "misunderstood his message". 

RenoCarlino's picture

He'll keep jawboning ad infinitum even when it was not scheduled for him to speak until he can get to see Euro move in value without the central bank actually doing anything. Apparently it wasn't enough for central bankers to have so many friggin presses, speaking events and testimonials per month that they have to send out trial balloons in between while at it.

Robert Paulson's picture

Bingo.  So extend and pretend has become pretend and extend.

AlexCharting's picture

Market needs drugs. Buy hey, with Trump as leader of the world, they find it a perfect time to trigger bear market.

Ghordius's picture

nah, the "perfect time to trigger" would be after the renewal of the Chinese leadership

which is in September, this year (as the German federal elections)

Arnold's picture

The gestation period for Sacrificial Goats is 150 days.

https://en.wikipedia.org/wiki/Goat

Schmuck Raker's picture

Come ooooooonn, super vulcano!

Gimme a V!

Gimme a U!

....

Davidduke2000's picture

Game over, all central banks are caught in their own game, now all big investors are forcing them to raise rates or simply would not buy a single bond.

wmbz's picture

Jackson Hole should be re-named Ass-Hole while these douche bags are in town, stinking up the place.

Ghordius's picture

the ECB will wait and see what the FED really does

and that's of course something Draghi can't say, it would be undiplomatic

RenoCarlino's picture

Hey Dickhead Draghi, tired of your waning ability to shittalk the markets up and down by your words that you have to send out 'trial balloons' too? 

LawsofPhysics's picture

Bankers and finanaciers are going to stop printing/stealing? LMFAO!!! I call bullshit!

gatorengineer's picture

Greece 23 percent unemployment, spain 18, france 9.6, italy 12..... yep, europe is doing just fucking great.......

Ghordius's picture

if you were talking about the US, you could be seen as advocating more QE

then for the FED, it was always two targets: price stability and full employment

meaning, still for the FED, that if unemployment is high, rates have to go down, or even QE starts to be necessary

just saying, mind

buzzsaw99's picture

i've seen this movie before.  it sucks.

globalintelhub's picture

Just invest in a decent strategy and forget about it www.alphazadvisors.com

small axe's picture

Maybe TSA can put a crosshairs tattoo on Draghi's forehead when he goes through biometrics at the airport. 

JailBanksters's picture

QE Tapering !

Your still plucking money out of your Ass and giving it your Buddies while the rest of Europe has to actually work to earn Money.

Talk about a shit dollar.

Tappering just means your not giving your Buddies as much free money this year as last year, but they're still getting free money.