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ECB’s Presidnet Draghi Speaking


  • Steadfast commitment to price stability
  • Governments need to compliment the work of the ECB
  • In his speech he will focus on competitiveness
  • Continued signs of ECB stabilization
  • The situation in the financial markets has improved after LTRO
  • Countries should use this phase to make progress
  • Banks should retain earnings
  • Financial system should serve real economy
  • Growth will be supported by low short term rates

ECBs Stark on the Wires

ECBs Stark on the Wires

Stark Says:

  • Draghi is right on whats needed in Euro economies
  • The risk of Euro area breakup is exaggerated
  • The euro will continue, absolutely
  • There’s progress in Euro area institutional reform
  • Italy, Spain, Portugal, Ireland aware progress is needed
  • 500 Bln firewall is sufficient
  • Market impact of me quitting was short lived
  • Central bank shouldn’t do monetary financing
  • Europe will overcome crisis will be stronger
  • Buying of government bonds by the ECB postponed needed adjustments in higher debt countries



ECB Headlines Jens Weidmann, President of the German Bundesbank

  • Strict and clear formulation or rules decisive, and German economic growth temporarily paused
  • Eurosystem’s price stability mandate must be untouched
  • Germany economy growing 0.6% in 2012, and condition on financial markets has eased somewhat
  • IMF growth for Germany for 2012, 2013 too pessimistic, and expects sideways movement in German economy in Winter
  • Solving crisis via printing press is not in-line with the ECB’s mandate

ECB Headlines

All comments made by Chief Economist of the European Central Bank, Peter Praet:

  • 3-year LTRO has reduced risks of fire sale of assets by Euro-zone banks
  • Recapitalization of ECB, Euro-zone national central banks not on agenda
  • No options for countries to leave the Euro-zone
  • Signs currently pointing to Euro-zone economic stabilization
  • Credit conditions to remain tight in winter half-year
  • No long phase of weak economic growth in Euro-zone

ECBs Merkel on the Wires


  • ‘very close agreement’ between France, Germany
  • Talks about making EFSF ‘more efficient’
  • ECB can help bolster on EFSF
  • EU fiscal pact may be completed as soon as January 30
  • May be able to sign pact in Jan or Mar the latest
  • Merkel and Sarkozy want Greece to stay in Euro
  • EU ready to back Greek tranche if conditions met


ECB’s Juncker on the Wires:


  • He ‘thinks’ EU will meet deadline for IMF loans
  • Eurogroup may meet next week on crisis
  • To decide today on possible Eurogroup meeting
  • Hasn’t spoken with Weidmann on IMF loan package
  • Taking with Luxembourg central bank on IMF loans
  • ‘Too soon’ to discuss details of fiscal compact
  • Expects EU to meet deadline on channeling loans to IMF



ECBs Weidmann Speaks in Berlin


  • Monetary analysis may gain importance at ECB
  • Stable prices should be key goal for central bank
  • Line between fiscal, monetary policy being blurred
  • Leveraging EFSF with currency reserves is prohibited
  • Hyperinflation showed why, monetary financing is wrong
  • Musn’t lose sign of inflation goal during crisis
  • ECB may extend monetary policy horizon
  • German government should not weaken fiscal stance
  • Aim is to apply policy symmetrically over cycle
  • Best not to overburden central banks
  • Cant print money to finance public debt


ECB’s Nowotny on the Wires


  • Inflation fears are not justified as prices peaked
  • Fear is ‘justified’ on real economy
  • Bank state aid should be limited to emergencies
  • Don’t have problem of Euro
  • Have problem of individual countries
  • Euro is working
  • Countries with problems have to set measures


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