Merkel & Monti Mumble Sweet Nothings; Market Moves Higher

Update: But then she somewhat spoiled the party:

• *MERKEL SAYS EU TREATIES DON'T ALLOW ESM BANK LICENSE (nope!)
  

although:

• *MERKEL SAYS SHE AGREES WITH DRAGHI ON ESM BANK LICENSE (cover for German judgment fail?)

With GDP not providing the kind of dismal print that assures NEW QE, market eyes rotate back to Europe and just in time as Merkel and Monti complete their meeting and mumble a few generic (yet entirely market moving) un-newsworthy headlines, via Bloomberg:

• *MERKEL SAYS EURO AREA NEEDS MORE COHERENCE (yes, thank you, water is wet)
• *MERKEL SAYS ESM OF PRIMORDIAL IMPORTANCE FOR EURO AREA (indeed - with all its conditionality)
• *MERKEL SAYS EURO AREA HAS AMBITIOUS AGENDA IN WEEKS AHEAD ('ambitious' is one word!)
• *MERKEL SAYS SHE, MONTI DISCUSSED GERMAN COURT CASE AGAINST ESM (ya think)

and sure enough S&P 500 futures jump 4 points to overnight highs, Treasury Yields up 2bps, and EURUSD pops 25 pips.

Comments

[lizzy36]

So same regional policy differences that were present in May, exist today?

Quelle Suprise.

[williambanzai7]

DAS BIEBER FRAU

[john_connor]

The German court challenge of ESM is simply a set-up for a short squeeze.  You know they are going to approve it.  The real question, as it has been for a while, is the implementation and acceptance of "conditionality" by the beggars. 

[mrktwtch2]

maybe the sps hit 1550 after the election then crash to 950 over the next year as they finally adress the euro mess once and for all??

[Rip van Wrinkle]

Finally address the euro mess?

2013 is an election year in Germany. Not an f'ing chance.

[gjp]

What about the US mess?  It's a lot bigger and nobody's even talking about it.

[ptoemmes]

So, primordial, coherence, ambitious, and maybe discussed are words that trigger algos?!  Who woulda thunk it.  Might be able to figure this out (rolls eyes).

Try to use them in one sentence starting with "Merkel says..."

Or maybe just a simple "Merkel says" is all that is needed.

[monopoly]

This isn all so ridiculous. Like a bunch of children trying to out do each other with wild tales of fantasy. When will it ever end?

[i-dog]

Adults outdoing each other: http://www.youtube.com/watch?v=Xe1a1wHxTyo

[negative rates]

How about we let them whisper sweet nastys in each others ears until their teeth fall out. 

[dcb]

for the past two days when I check the computer there has been this huge sell off in europe, but then near the opening it isn't nearly as much. there seems to be a lot of funny business in the pre,arklet hours now

[Scalaris]

Verbum concisum Frau Merkel.

Well played.

[booboo]

Primordial Ooze flows out of the mouth of the pond scum that holds the beginning building blocks of life eternal. Maybe that is what she meant to say, just trying to help the busty kraut out of the pickle barrel and into my waiting arms.

Keep stretching her head, she's looking better, perk up the boobies and nix the crows feet and she's a keeper.

[insanelysane]

When the euro was initially devised, they knew that they needed a unified governing body with power over the sovereigns.  It wasn't possible then and.......it isn't possible now.  The expectation was that when the shit hit the fan, people would cede power to a unified body.  That isn't going to happen because the citizenry of the North believe that the citizenry of the South is getting something for free.  

This is the basic problem with socialism.  To each according to their needs and to each according to their ability.  However, people start figuring out that if they say they have no ability, they don't have to work but they remind the workers they still have plenty of needs.

And in the good old USSA, we are seeing 49% not paying taxes and the number of "disabled" increasing exponentially.  We are close to the tipping point.