Asking the Right Questions
ECB monetary policy: key comments from Draghi
Following the European Central Bank’s latest monetary policy committee meeting, ECB President Mario Draghi reassured investors of his commitment to do more if needed to achieve “a sustained adjustment in the path of inflation consistent with its inflation aim”. Interest rates to stay low:…
Key points from Janet Yellen’s speech
In April I wrote a blog “Central banks and the certain uncertainty paradox”, reminding everyone that these institutions are no more certain than anyone else about how economic conditions will unfold. Still, market participants continue to hang on every word from the leaders of…
Central bank policy has its limits
Central bank policy remains the predominant theme in financial markets, hence when the leaders of these institutions speak everyone listens. Last week, ECB President Mario Draghi gave a speech entitled “The International Dimension of Monetary Policy”, in which he subtly warned of the risk…
US Fed Policy: A Much More ‘Gradual’ Path
Global equity markets sold off sharply last week, as weak economic data outweighed the recent positivity generated by the prospect of more easing from the Bank of Japan (BOJ) and the European Central Bank (ECB). Much of the focus was on the US, as…
Weekly Market Update: January 25th 2016
Market Recap After a difficult start to the week, most of the major equity indices ended the week in positive territory. As expected, ‘Super Mario’ Draghi came to the rescue for markets with reassuring comments that fuelled hope of more aggressive monetary policy from…
Weekly Market Update: January 18th 2016
Market Recap Sentiment in global equity markets last week resembled the atmosphere in Anfield yesterday after the final whistle. Like most equity investors, transfixed by the continuous stream of red as market participants rushed for the exits, Liverpool fans were left with the same…
Lofty Expectations: The ECB & LFC
Just as market participants were guilty of getting carried away, in terms of their expectations of the next round of monetary policy measures from the European Central Bank on Thursday, I must admit a similar guilt in being overly exuberant about Liverpool’s title hopes…
Weekly Market Recap: W/E November 13th 2015
Market Recap Many of the major equity indices ended last week sharply lower, as some of the issues that caused the market sell-off in the third quarter came back to the fore. Economic data – a mixed picture from China, slower than expected Q3…
Mario Draghi and the lower “lower bound”….
In September 2014, ECB President Mario Draghi cut interest rates on their main refinancing operations, the marginal lending facility rate and the deposit facility to 0.05%, 0.30% and -0.20% respectively. At the time Draghi confirmed that “now we are at the lower bound, where…
Draghi leaves the door open for QE2
After disappointing Chinese data it was over to Super Mario – European Central Bank (ECB) President Mario Draghi – to try and lift the market on Thursday, in his press conference following the ECB’s latest monetary policy meeting. First, the bad news, the ECB’s…
