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.