ECB holds first meeting since Brexit vote – business live

Discussion in 'Market News' started by Lily, Jul 21, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the day’s economic and financial news, as the European Central Bank meets in Frankfurt

    9.15am BST

    Anthony Cheung of Amplify Trading flags up the key issues on the ECB’s agenda today:

    5 key areas to watch with the #ECB today

    - Existing programs impact
    - Hints to QE extention
    - Bond scarcity
    - Brexit impact
    - Italian banks

    The Bundesbank needs to purchase 253 billion euros of debt by the end of this month, but due to the present issuer limit of 33%, the world of eligible assets stand at 216 billion euros.

    9.07am BST

    It will be a big surprise if the ECB launches new stimulus measures today, rather than waiting until its next meeting in September:

    Bloomberg SURVEY: among the 85% of economists expecting more #ECB stimulus, only 3% see it coming at today's meeting (vs 71% for September).

    8.45am BST

    The boss of William Hill has been abruptly dismounted from his position at the bookmaker.

    Related: William Hill ousts chief executive James Henderson

    8.32am BST

    Analysts at Danske Bank also predict that the ECB will resist the temptation to launch new stimulus measures today.

    They predict that it will boost its bond-buying QE programme in September, when they’ll have new forecasts and a better picture of the Brexit impact.

    #DANSKEDAILY: All eyes on #ECB. Expect a dovish tone but no easing measures until September

    8.28am BST

    Brexit is a double whammy for the European Central Bank.

    As well as generating economic uncertainty, it could create more political instability in the eurozone.

    Political risks loom unusually large, and the British vote on exiting the EU exemplifies the danger which the surge in anti-establishment sentiment presents.

    Investment could contract, while private consumption growth will slow. Recent attacks in Nice and the attempted coup d’etat in Turkey could further weigh on confidence. #ECB preview: Keeping its options open

    8.19am BST

    The press pack are already gathering in Frankfurt, where Bloomberg’s inflatable euro looks like it needs a holiday:

    Euro feeling deflated outside #ECB. Here 4 @BloombergTV...we'll see if Draghi pumps up stimulus hopes at press conf

    7.59am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Today’s focus will be the European Central Bank’s (ECB) latest monetary policy update from which no change is anticipated but any hints/forward guidance will be much appreciated by markets regarding further stimulus being required in light of the UK’s Brexit vote.

    With the BoE having held off this month saying it was too early to react to Brexit, its continental peer may well strike a similar tone today.

    Economists predict #ECB will keep interest rates & QE unchanged today with futures pricing showing just a 13% chance of cut to deposit rate

    Rather than inject state money directly into Monte Paschi as originally planned, Italy is exploring ways to buyout its bad loans at favourable rates with money from private and state-backed institutions. This would use the existing privately backed fund, called Atlante, and would not need preapproval from Brussels.

    The terms of any intervention, however, would be closely watched by Brussels to ensure it involves no hidden state support

    #ECB meeting day! #EURUSD in bearish trend below 1.1051 (fib 38.2%). Menu du jour: #Brexit, Italian banks and shrinking EZ sovereign yields

    Related: Bank of England report finds economy has not slowed since Brexit vote

    Our European opening calls:$FTSE 6708 down 21
    $DAX 10133 down 9
    $CAC 4376 down 4$IBEX 8567 down 9$MIB 16767 up 3

    Continue reading...

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