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Wall Street Analysts Respond To Mario Draghi

Tyler Durden's picture




 

Confused by the implications of Draghi's pre-leaked speech? Don't worry, you are not alone. As the following sampling of opinions by Wall Street experts via Reuters confirms, opinions range from the positive to the negative, to the completely clueless.

IOAN SMITH, STRATEGIST, KNIGHT CAPITAL

"With regards to seniority this point is important. Pari passu will not apply to existing SMP holdings which suggest dealing with Greece remains a problem. A precedent was set in Greece, and they haven't as yet accepted a haircut there so why should an investor believe them that they'll be ranked pari passu?

"The ECB decision to not have seniority in its bond purchasing plan will increase the liabilities of core European nations to the likes of Spain. We'll have to see how effective the anchoring of the short-end of the curve will be, but as it stands it's not an attractive proposition for encouraging 'real' investment back into the periphery."

PETER WESTAWAY, CHIEF ECONOMIST FOR EUROPE, VANGUARD

"Generally I think it's a positive, it's met those expectations, it's the minimum that he could have said to make people think that he really is serious to bring yields down. The conditionality is key to this ... but for now these measures, in conjunction with any other purchases from ESM or EFSF would be very significant.

"This is just the good news that was priced by the markets already, and it has now been confirmed. There is a long-term question of whether this will be enough to meet the long-term financing needs of Italy and that probably remains."

ION-MARC VALAHU, FUND MANAGER, CLAIRINVEST, GENEVA

"The disappointment comes from the fact that the conditionality remains. Nothing can be activated until countries such as Spain or Italy request a bailout.

"European stock markets are still up because the tail-risk has been alleviated. You no longer have a situation like last August."

ANDREW COX, G10 STRATEGIST AT CITIFX, DIVISION OF CITIGROUP, NEW YORK

"Everything Draghi said was very much in line with expectations that have evolved in recent days as a result of a number of leaks. Looking beyond the initial reaction, we expect that the direction of the euro in the days and weeks ahead will be driven by demand for European assets.

"The details for the Outright Monetary Transactions released today add to the credibility of the safety net taking shape in the Eurozone and should support demand for Eurozone assets."

ERIC VILORIA, SENIOR CURRENCY STRATEGIST, FOREX.COM, NEW YORK

"The overall sentiment is that a lot of this was priced in because we got a lot of the leaks of the program in the past few days. Also the downward revision to the GDP growth forecasts for this year and next suggests that there's further contraction ahead in the euro zone and that growth hasn't bottomed. That's also weighing the euro."

RICHARD HUNTER, HEAD OF UK EQUITIES, HARGREAVES LANSDOWN

"I think the market had been building itself up for a much more concrete resolution, and though the snap reaction from the market has been pretty sanguine, it certainly hasn't sent the markets off to the races. As Draghi's speech is digested further I wouldn't be surprised to see a tinge of disappointment creep in, and I wouldn't be surprised to see the market dropping off slightly as there don't appear to be any magic bullets in there."

HANS PETERSON, GLOBAL HEAD OF INVESTMENT STRATEGY, SEB PRIVATE BANKING

"He delivered more or less what was expected by the market. In total it's a positive, but it's not moving the markets a lot. You buy the rumour, sell the fact and this is the fact. It was in line with what most people had expected, but it's good that it happened."

JOHN HARDY, FX STRATEGIST, SAXO BANK

"The details are nothing new but the question is: Will peripheral bond yields continue to fall? What this has done is hand over the process to the political system. Next up is what the German constitutional court rules next Wednesday about the euro zone's rescue fund. So even if the euro does manage to rally from here, it will be temporary."

FRANCOIS SAVARY, CHIEF INVESTMENT OFFICER, REYL, GENEVA

"Nothing new came out from yesterday. It means a lot depends on the country asking for help through the ESM, and Spain doesn't seem to be ready. It means that a lot remains in the hands of politicians. The Germans can put tough conditions on a potential Spanish plan that would impede Rajoy to accept it.

"The dissenting vote shows again that divisions remain and that Germany is not convinced."

MICHAEL SNEYD, FX STRATEGIST, BNP PARIBAS, LONDON:

"It was pretty much in line with the reports we saw yesterday, there were not really any surprises. The fact they clearly stated the programme will be sterilised weakens the risk it will be seen as QE and should stop people using the euro as a funding currency.

"A certain amount of expectations had been built up after we had a lot of details yesterday, but I do not think this weakness in the euro is going to last."

EDWARD SMYTH, INVESTMENT MANAGER, JN FINANCIAL, LONDON

"It doesn't look like he's done enough to bring back confidence at this juncture. It's not bad, but it's expected."

RICHARD MCGUIRE, RATES STRATEGIST, RABOBANK, LONDON

"IMF involvement sought in monitoring/setting conditions for ECB bond market intervention - possibly a bitter pill to swallow for Spain given Rajoy has made it clear the country already meets the necessary conditions.

"We wonder whether the 'Troika-esque' appearance of the ECB's Outright Monetary Transactions (OMT) might result in Spanish resistance to petitioning for such a bailout. If so, market pressure may be needed for Spain to agree to a programme.

 

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Thu, 09/06/2012 - 09:51 | 2767934 GetZeeGold
GetZeeGold's picture

 

 

I've got this thrill running down my leg!

Thu, 09/06/2012 - 09:59 | 2767972 No Euros please...
No Euros please we're British's picture

Yeah, made me pmsl too.

Thu, 09/06/2012 - 11:11 | 2767989 Aziz
Aziz's picture

Central planners and markets are learning the same thing every drug addict has learned. Once you're hooked on easy slush — whether it's heroin or ever-lower rates and money printing — anything other than a full hit of the drug is going to leave you weak and shaken. 

Thu, 09/06/2012 - 09:51 | 2767938 kito
kito's picture

opinions range from the positive to the negative, to the completely clueless.......

 

no tyler, wall street analysts range from the completly clueless to the utterly hopeless........

Thu, 09/06/2012 - 09:57 | 2767963 LawsofPhysics
LawsofPhysics's picture

Indeed, to quote a follow ZHer "Paper promises, bitchez!"

Thu, 09/06/2012 - 09:52 | 2767940 Jlmadyson
Jlmadyson's picture

More of the same. This is no savior.

Thu, 09/06/2012 - 09:54 | 2767942 bdc63
bdc63's picture

The only thing I wanna know is when is the next time Merkel is expected to be behind a microphone?

Her "opinion" of this is the only one that really matters at this point .... screw the analysts (no ... seriously ... SCREW THE ANALYSTS)

Thu, 09/06/2012 - 09:57 | 2767964 JPM Hater001
JPM Hater001's picture

Rumor: Draghi and Merkle had a high school love child and it's name is Michael Moore.  Discuss.

Thu, 09/06/2012 - 10:15 | 2768019 Janice
Janice's picture

Absolutely true. I went to elementary school with him. As I remember, he was a stocky kid, always had a twinke in his hand. He used to brag about how one day, he would be the golden boy of the liberal movement. Said that he could distort the facts as well as the professional politicians. We all thought he had the mentality be a janitor. Who knew?

Thu, 09/06/2012 - 10:40 | 2768124 Troll Magnet
Troll Magnet's picture

False. It was a girl and her name was Oprah...

Thu, 09/06/2012 - 10:46 | 2768137 Janice
Janice's picture

Sex-change, race-change. The fashion rage in France. Michael Moore IS Oprah. Have you ever seen a photo of them together?

Thu, 09/06/2012 - 09:58 | 2767971 fonzannoon
fonzannoon's picture

Here, I will give you and advanced copy of Merkel's next speech. "Germany is committed to the future of the Euro. We will work together to impliment a plan to ensure it's success. We will not reward profligate behavior and will oversee the process. This will take time and effort but in the end we believe the outcome will be a stronger eurozone and an economic model that the world will be proud to do business with"

Good luck trading off that.

Thu, 09/06/2012 - 10:24 | 2768062 kito
kito's picture

hmm, i think i heard that somewhere before...........

Thu, 09/06/2012 - 09:53 | 2767947 JPM Hater001
JPM Hater001's picture

It was the best of times it was the worst of times...

Thu, 09/06/2012 - 09:53 | 2767954 Sudden Debt
Sudden Debt's picture

Morgan stanley just went over 16$!

I think I'm going to puke... I'm that happy with all this news...

 

Thu, 09/06/2012 - 09:59 | 2767976 JPM Hater001
JPM Hater001's picture

JPM is up a buck.  I'm gonna go short them excuse me...

Thu, 09/06/2012 - 09:54 | 2767955 NotAMathWhiz
NotAMathWhiz's picture

Yeah, right, whatever.  Didn't I see a picture of a cheerleader around here somewhere?

Thu, 09/06/2012 - 09:55 | 2767958 Manthong
Manthong's picture

“DRAGHI SAYS ECB WILL HAVE A FULLY EFFECTIVE BACKSTOP”

He said two components are needed, but he didn’t hit on the right ones. The two components needed are 1) Vast sums of credit extended that are impossible to repay under even the most optimistic scenarios 2) enough people criminal enough or ignorant enough to allow these credit instruments to be implemented.

Thu, 09/06/2012 - 09:55 | 2767959 Juan Wild
Juan Wild's picture

How does one derive a clue from something that is purely a lie?

Thu, 09/06/2012 - 09:57 | 2767965 lsbumblebee
lsbumblebee's picture

More useless commentary from the jackals, explaining the reaction instead of questioning it. 

Thu, 09/06/2012 - 09:57 | 2767966 JenkinsLane
JenkinsLane's picture

Here's mine - He's not the Messiah, he's a very naughty boy.

 

Thu, 09/06/2012 - 09:59 | 2767974 alien-IQ
alien-IQ's picture

so...when in doubt send everything skying?

Gold, Silver, Oil, USD, SPX, DOW all up.

What the fuck man...what the fuck.

Thu, 09/06/2012 - 10:03 | 2767982 LawsofPhysics
LawsofPhysics's picture

sell the news (providing you bought the rumor, as many here did I am sure).

Thu, 09/06/2012 - 10:06 | 2767990 alien-IQ
alien-IQ's picture

the only thing I'm buying today is a fresh bottle of tequila. It's the only guaranteed winner I can see.

Thu, 09/06/2012 - 10:43 | 2768139 Troll Magnet
Troll Magnet's picture

Fuck tequila. Nasty ass hangover, man.

Thu, 09/06/2012 - 09:59 | 2767975 asteroids
asteroids's picture

I don't understand how it's going to be fullly sterilized. Is the ECB going to buy $300B Spanish bonds and sell what exactly?

Thu, 09/06/2012 - 10:07 | 2767995 adr
adr's picture

Bottled farts and spoiled wine.

Thu, 09/06/2012 - 10:11 | 2768008 kito
kito's picture

you dont have to understand what he says....always know that A) there is no money available to give, take, trade, swap, collateralize, borrow, lend, deposit, withdraw unless B) its printed by the ecb........absolutely nothing else to know...................

Thu, 09/06/2012 - 10:00 | 2767977 Jlmadyson
Jlmadyson's picture

Oh look at that EURO!

He saved it!!!!!

Thu, 09/06/2012 - 10:04 | 2767986 Long-John-Silver
Long-John-Silver's picture

for at least an hour.

Thu, 09/06/2012 - 10:07 | 2767994 Jlmadyson
Jlmadyson's picture

Look at that chart for the last two hours it is amazing.

A real battle taking place right before our very eyes.

Thu, 09/06/2012 - 10:02 | 2767980 Zero Govt
Zero Govt's picture

Roundup: garbage in, garbage out

 

...if you're expecting anything to come up a bed of roses from the EC/EU/ECB then you just haven't been paying attention for the last 20 years

Thu, 09/06/2012 - 10:02 | 2767981 Long-John-Silver
Long-John-Silver's picture

He speaks babel with perfection.

Thu, 09/06/2012 - 10:04 | 2767984 ebworthen
ebworthen's picture

"A very merry un-birthday!  To you!"

"To me?"

http://www.youtube.com/watch?v=KVzyGQPgVN8

Thu, 09/06/2012 - 10:06 | 2767991 adr
adr's picture

I wish I could run my business like this world theater of the absurd. Instead of actualy selling a product, I could just talk about selling a product, and sell stock instead.

I get to be rich and I'll never actually have to make or sell anything.

Does that sound right?

The principles of sound business have been buried so far in the ground, it will take archaeologists 1000 years to find the first trace of them.

Thu, 09/06/2012 - 10:06 | 2767993 20-20 Hindsight
20-20 Hindsight's picture

What this really boils down to is the perpetual game of Banksters vs. "Prosti-ticians".  Does it really matter who wins ultimately?  They fellate each other every day, and then stick up Joe Schmuck's ass before taking their champagne and caviar to bed. Unless the clueless Joe Schmucks of the world wake up and realize what's going on, this fuckfest could go on for a long, long time.

Thu, 09/06/2012 - 10:17 | 2768029 adr
adr's picture

You are right, and it will. At least there are riots in Europe. Every government in the world should be toppled right now, but in America, land of the begging fool, nobody will protest unless the gravy train is cut off. Then they will only protest to have someone turn the gravy train to 11, not to stop the madness.

Look at the bullshit at the conventions. Obama gets a new backstory, like the last 4 years didn't actually happen. He's not the guy raised by a white banker grandmother in Hawaii anymore, and he wasn't a rich law partner. Barack had to fend for himself on the street, and couldn't afford new clothes. He drove a rusted out car and his prized possesion was a coffee table from a dumpster.

See Barack is just like you, in fact he lived worse than you. He knows your pain and Michelle doesn't believe in material things.

Ahhhhhahahahahhhahhhaaaaaha

HE SAD PART IS PEOPLE DON'T CARE TO KNOW THE TRUTH. When lies are more effective than the truth, you know it is over.

You have two choices. Get a gun and shoot someone or shoot yourself.

Thu, 09/06/2012 - 10:09 | 2767997 fuu
fuu's picture

IOAN SMITH, STRATEGIST, KNIGHT CAPITAL

http://uk.linkedin.com/pub/ioan-smith/14/113/bb4

Vice President Sales Trading Bear Stearns

 

June 2005 – August 2007  (2 years 3 months)


Research Associate / Desk Analyst Lehman Brothers Holdings Inc.

Public Company; 201-500 employees; LEHMQ; Financial Services industry

2000 – 2005 (5 years) London, United Kingdom

Thu, 09/06/2012 - 10:13 | 2768011 JenkinsLane
JenkinsLane's picture

Third time's the charm.

What do you expect from someone who can't spell Ian properly?

Thu, 09/06/2012 - 10:19 | 2768032 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

.

Thu, 09/06/2012 - 10:09 | 2768001 XtraBullish
XtraBullish's picture

I love the smell of BBQ'd shorts in the morning! All the bears out there are gnarling and gnashing their teeth as the margin calls flood in! Squeeze them shorts til they SQUEAL like tiny little piggies! Yeehah! 

Never understimate the replacement power of equities within an inflationary spiral.

Short cash, long stocks and gold/silver - makin' serious coin in here. BTFD.

Thu, 09/06/2012 - 10:09 | 2768003 MillionDollarBoner_
MillionDollarBoner_'s picture

Jaw Jaw Jaw...

Bore Bore Bore...

Thu, 09/06/2012 - 10:11 | 2768007 buzzsaw99
buzzsaw99's picture

confused = bullish

Thu, 09/06/2012 - 10:14 | 2768016 scatterbrains
scatterbrains's picture

What message is copper sending in here ? We know gasoline rides high in the waters of this bankster flood but how come copper isn't trying to feel the love ?

Thu, 09/06/2012 - 10:15 | 2768023 Vince Clortho
Vince Clortho's picture

You can tell from the quotes who is in on the game.

Hint:  Start with anyone who is "inspired" by what Drageeech said.

Thu, 09/06/2012 - 10:19 | 2768035 Vince Clortho
Vince Clortho's picture

Let the Rape of Europe Commence!

Thu, 09/06/2012 - 10:23 | 2768057 GetZeeGold
GetZeeGold's picture

 

 

.......again!

Thu, 09/06/2012 - 11:00 | 2768217 Vince Clortho
Vince Clortho's picture

Let's see how much the old girl can take.

Thu, 09/06/2012 - 10:23 | 2768059 CharlesH
CharlesH's picture

I'm verry sad that i can not open a factory here in europe and pay the working man.

I'm not for slave labor that is happening all over the world just to make more profit "to be one of the group" and destroying whole cultures and countries.

I'm for fair play if it comes to countries and nations, not parasitic.

It's a shame to what we have come to. This is not a new order, this is a new idiocracy indeed.

I wish that i would wake up and it was all a dream. This upsidedown world needs to stop.

Let's slam a hammer on my hand and see if i wake up :)

 

Thu, 09/06/2012 - 10:27 | 2768071 Wags
Wags's picture

That's one small step for a Goldman Sachs man, one large kick the can down the road. Unfortunately it will only give a shart amount of time. The EU is going into a full blown recession and nothing will save it but pain, sweat, and time.

Thu, 09/06/2012 - 10:34 | 2768096 CharlesH
CharlesH's picture

Who was that guy saying that "we need a crisis like this every 100 years" ?

Thu, 09/06/2012 - 10:35 | 2768102 ptoemmes
ptoemmes's picture

I am waiting for...

- MERKEL SAYS....

Thu, 09/06/2012 - 10:48 | 2768159 CharlesH
CharlesH's picture

I heard of a documentary called "Goldrausch - Die Geschichte der Treuhand" that is going to be viewed in german cinema's.

Here is the trailer

http://www.youtube.com/watch?v=r0xIy09AMxw

I want to see that one.

 

Thu, 09/06/2012 - 10:43 | 2768142 MFLTucson
MFLTucson's picture

More lies from the Goldman pupett as he does his part to milead the American public and influence this election.

Thu, 09/06/2012 - 10:51 | 2768167 Confundido
Confundido's picture

Am I the only retarded that understood the ECB will purchase from the EFSF? Why then the condition that the EFSF be in the primary mkt?

Thu, 09/06/2012 - 10:57 | 2768178 CharlesH
CharlesH's picture

Europe as well as America want the Chinese labor model.

This is just a buildup to it.

Edit: You are forgetting the ESM.

http://www.youtube.com/watch?v=gls3pO-94b4

Thu, 09/06/2012 - 10:54 | 2768185 Bay of Pigs
Bay of Pigs's picture

Gold at all time highs in the Euro.

Who'd a thunk it? LOL.

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