Live Webcast Of Draghi Press Conference - Draghi Punts, ECB "MAY" Act In Coming Weeks

Tyler Durden's picture




 

Summary of what has been said so far: Nothing, just as we said last week. Draghi basically repeated the June 29 summit bottom line that the EFSF should buy PIIGS bonds, the ECB "May" act, which means Germany is still not on board, and that after talking markets up by 5%, he has delivered nothing but a delay. This is a huge blow to his and the ECB's credibility.

* * *

With speculation ripe out of everyone from Reuters to the FT about what Draghi may or may not say, with or without Germany's blessing, the best at this point is just to hand over the microphone to the former Goldmanite. Here is the live webcast of Draghi's press conference. Pay attention as a word out of place will send the EURUSD plunging by 200 pips. Or soaring.

Key prepared highlights on the economy:

  • DRAGHI SAYS UNDERLYING PACE OF MONETARY EXPANSION IS SUBDUED
  • ECB'S DRAGHI SAYS INFLATION EXPECTATIONS ARE FIRMLY ANCHORED
  • DRAGHI SAYS INFLATION SHOULD DECLINE FURTHER TO BELOW 2% IN '13
  • DRAGHI SAYS EURO-REGION GROWTH REMAINS WEAK
  • DRAGHI SAYS HEIGHTENED UNCERTAINTY WEIGHING ON EURO SENTIMENT

And now on to monetary policy:

  • DRAGHI SAYS EXCEPTIONALLY HIGH RISK PREMIUM IN SEVERAL NATIONS
  • DRAGHI SAYS RISK PREMIUM NEED TO BE ADDRESSED
  • DRAGHI SAYS EURO IS IRREVERSIBLE
  • DRAGHI SAYS HIGH YIELDS ARE UNACCEPTABLE
  • DRAGHI SAYS POLICY MAKERS NEED TO PUSH AHEAD WITH CONSOLIDATION

The punchlines begin: Draghi punts to governments:

  • DRAGHI SAYS GOVERNMENTS MUST STAND READY TO ACTIVATE EFSF

And now the open ended:

DRAGHI SAYS ECB MAY UNDERTAKE OUTRIGHT OPEN MARKET OPERATIONS.

"MAY" and more:

  • DRAGHI SAYS ECB MAY TAKE FURTHER NON-STANDARD MEASURES

And the dud:

  • DRAGHI SAYS OVER COMING WEEKS ECB WILL DESIGN MODALITIES

So nothing today.

 

And now the Q&A:

  • Draghi says ECB governing council discussed rate cut, not the right time
  • "Largely unchartered waters" regarding negative deposit rates
  • Draghi: "THE ECB CAN NOT REPLACE GOVERNMENTS. UP TO GOVERNMENTS TO ASK FOR INTERVENTION"
  • "Monetary policy is independent"
  • Draghi: "any bond buying will be focused on the short part of the yield curve." Forget 5 Year LTRO
  • Draghi "Surprised by amount of attention ESM banking license has received" Uhm, maybe talk to your colleage Nowotny about starting the "attention"
  • Draghi: "Current design of ESM does not allow it to be recognized as a suitable counterparty" And more cold water.

And the punchline again:

  • Draghi says even if we were ready to act now, would not have grounds to do so

Take home: the ECB is now merely a branch office of Buba.

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Thu, 08/02/2012 - 08:31 | 2671551 malikai
malikai's picture

Watch this chump's effect on gold:

https://www.quantsig.net

Thu, 08/02/2012 - 08:42 | 2671596 Gief Gold Plox
Gief Gold Plox's picture

Draghi's speech in 5 words: May, Maybe, Could, Discuss, Future.

The End.

Thu, 08/02/2012 - 08:57 | 2671684 Xibalba
Xibalba's picture

and he was coached by Tiny Tim all week. 

Thu, 08/02/2012 - 09:16 | 2671778 Muppet of the U...
Muppet of the Universe's picture

I would like to thank mr Draghi for buying my next car.  I would also like to thank the fine work from the gentlemen at Knight Capital for buying me a new house.  Ok.  I'm going to go get drunk.

Thu, 08/02/2012 - 09:21 | 2671801 Gief Gold Plox
Gief Gold Plox's picture

You seem to have quite specific and expensive prerequisites for getting drunk. I'm not as sophisticated, the thought "Shit, I'm sober again" suffices.

Thu, 08/02/2012 - 09:37 | 2671825 Muppet of the U...
Muppet of the Universe's picture

I live in a 550 rent a month apartment and I drive a civic.  In a few months that will change.  I've spent the past 4-5 months going from learning that things can be freaking shorted, to making my own strategies.  I sleep 1 hours for every 8, and my record is 170/25 hours of wake/sleep.  This wasn't a fuckin cakewalk, this was a precursor to prepare to buy as much gold silver land and food as possible.  guns too.

Thu, 08/02/2012 - 09:38 | 2671894 saturn
saturn's picture

Do you think you can stand against "the goverment"?

Thu, 08/02/2012 - 09:56 | 2671989 Muppet of the U...
Muppet of the Universe's picture

I can hide in Brazil or Ecuador :D  I've always wanted to live around the Andes.

Thu, 08/02/2012 - 10:04 | 2672029 saturn
saturn's picture

Ok, sounds kinda cool!

 

edit: i hope that half of the world is not going to meet there, lol.

Thu, 08/02/2012 - 11:50 | 2672479 steve from virginia
steve from virginia's picture

 

If yr five feet tall long black hair and speak Quechua you'll do just fine.

Otherwise yr a f**king gringo and will stick out like a thumb/target.

The Ecs don't have to steal anything, simply refuse to let you back on the country. 'Persona non-grata' and back to gringo-land you go.

 

: )

Thu, 08/02/2012 - 09:39 | 2671901 Gief Gold Plox
Gief Gold Plox's picture

Good on ya, mate. Just don't burn yourself out too soon with that sleep/awake cycle.

Thu, 08/02/2012 - 09:03 | 2671703 malikai
malikai's picture

Seriously. But his words have been used as a perfect setup for the Stop-Hunt Chainsaw.

Faded.

Thu, 08/02/2012 - 09:18 | 2671783 bank guy in Brussels
bank guy in Brussels's picture

Indeed, Draghi is kicking the can, while it can still be kicked ...

Don't think this is so much of a 'downer' for Draghi's credibility as the ZH meme is claiming ... he is playing an almost expected role in the continuing play-act of the euro-game ...

Sophisticated players are quickly figuring Draghi is setting up the post-severe-crisis fix ... and crisis is not severe enough yet

QE and bond-buying and ESM banking licence etc. will indeed come when there is a real Urgent PUSH to do that ... when German banks and insurers and pension funds need to be saved, as well as Spain and Italy ... a much bigger 'crisis' is needed before Germany will 'reluctantly' climb aboard to save its own butt

Germans and Draghi are not even necessarily real 'opponents' here ... just partners with temporarily 'opposing'  roles in the ongoing euro-farce ... somewhat fake 'opponents' like Obama and Romney in USA ...

As Jim Sinclair has long said:

« QE is coming. About that there is no doubt. ... but not on anyone's schedule ... »

Thu, 08/02/2012 - 09:27 | 2671823 disabledvet
disabledvet's picture

This is a site that loves their gold. More so it would appear than their country. "country wins"...and there is no do-over this time.

Thu, 08/02/2012 - 11:05 | 2672282 JeffB
JeffB's picture

I think you're painting with a very broad brush there, disabledvet.

It's hard to turn away from a trainwreck one can see coming far ahead of time. The vast majority of those on here have no power to stop that trainwreck, but are probably taking steps to mitigate the carnage in the aftermath.

I would bet the vast majority wish those in control would come to their senses and at least do what they could to slow the trains down. In fact, many have tried jumping up and down and screaming to get their attention, and have gotten more politically involved among other things, but it's still basically out of our control at the moment.

In such situations gallows humor is quite common. Trying to make the best of a bad situation shouldn't be a crime. Of course there may be a few who might try to take advantage of the situation in a criminal or immoral way, but I would hardly paint the whole crowd with such a broad brush, especially so while waiting for the crash.

Thu, 08/02/2012 - 09:43 | 2671895 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Draghi is a cheapskate...another deadbeat. Debt Deflation is going to eat the EU bankers alive; maybe even knock a million (or two) off their Mega-Bonuses this year.

However, imho, there is no doubt he will print Trillions to bail out the banks eventually. There is really no other way for him.

Thu, 08/02/2012 - 14:25 | 2673275 MillionDollarBoner_
MillionDollarBoner_'s picture

Stoppit with the "former Goldmanite" already!

Nothing "former" about him.

Once a Made Man, always a Made Man

Thu, 08/02/2012 - 08:33 | 2671556 OttoMBMP
OttoMBMP's picture

Italian is a beautyful language.

English with a Draghi accent sounds awful to me.

Thu, 08/02/2012 - 08:43 | 2671590 Zero Govt
Zero Govt's picture

neither Draghi nor Bernanke speak English, it's called "snakeoil" spoken out both sides of the mouth

..it was perfected in banking and large global accountancy practices who provide consultancy services to our brilliant political leaders for €billions in taxpayer fees whose results can be seen coming to fruition all around Europe right now 

you might know this languages more common name as "bullshit" 

Thu, 08/02/2012 - 08:46 | 2671628 fonzannoon
fonzannoon's picture

Sing it loud fellas

You can't hide your lyin' eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide your lyin eyes

On the other side of town a bernak is waiting
with a printing press no one could steal
Draghi drives on through the night anticipating
'Cause he makes him feel the way he used to feel

He rushes to his arms,
They fall together
he whispers that it's only for awhile
he swears that soon he'll be comin' back forever
he pulls away and leaves him with a smile

You can't hide your lyin' eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide you lyin' eyes

Thu, 08/02/2012 - 08:33 | 2671557 Jlmadyson
Jlmadyson's picture

WE WILL SAVE EURO. CAN I GET 500 ON DJIA PLEASE.

WORDS COME OUT OF MY MOUTH BUT DO NOT KNOW WHAT I SAY.

Utter bullshit.

Thu, 08/02/2012 - 09:41 | 2671917 saturn
saturn's picture

ECB is the guardian of price stability. Did you know?

Thu, 08/02/2012 - 08:35 | 2671564 westboundnup
westboundnup's picture

Tepid. 

Thu, 08/02/2012 - 08:57 | 2671682 Mr. Poon
Mr. Poon's picture

I wouldn't say it's "tepid"; it's actually a very active decision.

You see, if they act now, that will move the market once.  But once it's over, it's over, and it's unlikely that they will act again soon.

But if they in effect say "maybe" as they just did, they can then move the market any time they want, just by hinting that they're ready to make good on that "maybe".

In other words, they had the choice between a one-and-done market put, and a renewable option to move the markets, and they clearly chose the latter.

Thu, 08/02/2012 - 08:35 | 2671565 Nussi34
Nussi34's picture

Soeone bomb the ECB please!

Thu, 08/02/2012 - 08:36 | 2671566 Blopper
Blopper's picture

Fuck you, Mario. Fuck youuuu.....

Thu, 08/02/2012 - 08:38 | 2671568 Hype Alert
Hype Alert's picture

And the Algo's go wild.  Do they scan for promises, promises and more promises?

Thu, 08/02/2012 - 09:29 | 2671838 disabledvet
disabledvet's picture

NO. The market SCANS FOR MONEY. "Only in America." Bernanke can light up the cigar...AND ENJOY IT.

Thu, 08/02/2012 - 08:36 | 2671571 LULZBank
LULZBank's picture

Draghi would announce winds and markets will levitate... like it ever was.

Just a hype, "this time its different," when it wont be.

Thu, 08/02/2012 - 08:36 | 2671572 fonzannoon
fonzannoon's picture

we may this we might that we could this.

Thu, 08/02/2012 - 08:40 | 2671597 LULZBank
LULZBank's picture

English is not his first language, you know.

Thu, 08/02/2012 - 08:36 | 2671573 piliage
piliage's picture

In the coming weeks we will design something to do something we need to do to help something. How revolutionary... What a surprise, a load of BS, hot air, and platitudes.

Thu, 08/02/2012 - 08:37 | 2671575 Peter K
Peter K's picture

Plan to plan bitchezzzzzz :)

Thu, 08/02/2012 - 08:38 | 2671583 Jlmadyson
Jlmadyson's picture

No doubt about that!

Thu, 08/02/2012 - 08:39 | 2671582 LULZBank
LULZBank's picture

 

  • DRAGHI SAYS UNDERLYING PACE OF MONETARY EXPANSION IS SUBDUED
  • Co-ordinated non-intervention Bitchezz!!!

    Thu, 08/02/2012 - 08:38 | 2671584 Meesohaawnee
    Meesohaawnee's picture

    italy bagdad bob says all is well. Algos go rip!! problem fixed. all time highs.

    Thu, 08/02/2012 - 08:39 | 2671587 timbo_em
    timbo_em's picture

    Weidmann FTW!

    Thu, 08/02/2012 - 08:42 | 2671589 Vincent Vega
    Vincent Vega's picture

    I hope we get a word cloud on this. Promise, ensure, must act, will address, coordinated effort, save the whales, blah blah blah blah blah....

    My grandmother use to tell me: one showing is worth a thousand tellin's.

    Thu, 08/02/2012 - 08:39 | 2671591 chubbar
    chubbar's picture

    He's lost all credibility after all that bluster and nothing to show for it. What a loser. What would make someone in his position say those things when he knew he wouldn't deliver?

    Thu, 08/02/2012 - 08:39 | 2671593 The Axe
    The Axe's picture

    show me the money!!  bitch     who pays??/    gold telling me  its bullshit!!!

    Thu, 08/02/2012 - 08:40 | 2671594 Jlmadyson
    Jlmadyson's picture

    What happened to the Bazooka?

    Not even a pea shooter!

    Thu, 08/02/2012 - 08:40 | 2671598 piliage
    piliage's picture

    And the DAX just dropped like Paris Hilton's panties.

    Thu, 08/02/2012 - 08:40 | 2671599 Piranha
    Piranha's picture

    bend over Draghi

    Thu, 08/02/2012 - 08:41 | 2671601 Seorse Gorog fr...
    Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

    I've heard enough. Fading this.

    Thu, 08/02/2012 - 08:41 | 2671602 Mr_Wonderful
    Mr_Wonderful's picture

    A big nothing. Red  day ahead.

    Thu, 08/02/2012 - 08:41 | 2671605 TheHamburglar
    TheHamburglar's picture

    ES plummeting with every word that comes out of his mouth

    Thu, 08/02/2012 - 08:42 | 2671610 Hype Alert
    Hype Alert's picture

    Ok, so now that big nothing has been served up, we can wait in suspense for tomorrow's labor numbers. 

    Thu, 08/02/2012 - 08:43 | 2671611 Jim in MN
    Jim in MN's picture

    Secret Decoder Ring Special Translation:

     

    "Last night, the zee wee hours of zee morning time, I ***Mario*** saved the Euro.  I performed this feat in my bathtub with my impressive fleet of rubber dinghies...I call them 'triremes' but you know....

    You missed this, my Euro saving?  Ooooh but it was really something.  Those Persian duckies never stood a chance.

     

    Water, please...."

    Thu, 08/02/2012 - 08:43 | 2671615 moskov
    moskov's picture

    I wonder How Bottomless can Euro goes in exchange rate. How much can average Europeans suffer inflation.

    Thu, 08/02/2012 - 08:52 | 2671617 RobotTrader
    RobotTrader's picture

    Wow, I bet thousands of HFT hedge funds blow up today.

     

    Insane volatility.

    Bonds and USDX are going completely vertical!!!

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