Posts from Thursday Aug 2 2012

The Closer


Markets were spooked by fresh Eurozone fears today, as the ECB failed to commit to any large-scale sovereign bond purchases. The S&P 500 fell 0.74 per cent. (Bloomberg). Read more

Was Draghi really a disaster?

Convertibility, seniority… “modalities”.

Was it a disaster or not? Anyway here’s the goodsRead more

There be Draghis

Given last week’s declaration that Draghi would do “whatever it takes” to restore the transmission mechanism and Europe with it… what could possibly have led to Thursday’s disappointing ECB action?

Was it that… Read more

A hard day’s Knight

Market cap (at yesterday’s close): $681.5m

Cash (as of 30 June 2012): $365m Read more

Draghi: “Over the coming weeks, we will design the appropriate modalities for such policy measures”

In other words, ‘We’ll see you after the holidays.’  Which in chart form looked like this on Thursday…

 Read more

Draghi, live

No change from the ECB after its August meeting. Click the pic to watch the ECB presser at 13.30, London time. And/or go here for the live blog hosted by Ralph Atkins.

The (early) Lunch Wrap

Good morning New York,


How do you solve a problem like RBS?

Almost four years after the Royal Bank of Scotland was part-nationalised, the UK government is still struggling to figure out what to do with it. Until recently the discussion was focused on when and how to sell the state’s 82 per cent stake back to the market. Now the focus is on fully nationalising it. Go figure.

From Thursday’s FTRead more

Let’s hear from some of the less-vocal ECB-ers

Yeah, yeah. We all know the views on bond-buying from the likes of Draghi, Weidmann and Nowotny. But what about other ECB council members?

Ahead of Thursday’s fateful meetings, here’s a rundown, courtesy of Neil Mellor and team at BNY Mellon: Read more

A bearish bullish indicator

The next time you’re out with friends who don’t work in finance, try explaining to them how an indicator pointing to equity armageddon can be a sign of wonderful things to come…

Maybe buy them a few drinks first though. Read more

Further reading

Elsewhere on Thursday,

– How not to support our troops. Read more

The 6am Cut London

An electronic-trading glitch distorted the trading of nearly 150 US stocks on Wednesday. Although market-maker Knight Capital has admitted to being the source of the problem, it remains unclear exactly what happened (Wall Street Journal). Knight said it was reviewing “a technology issue occurred in the company’s market-making unit” and had advised clients to route their orders away (Financial Times).

The Federal Reserve signalled it will ‘closely monitor’ the economy for signs of deterioration, but did not ease policy further. Dashing hopes that it would signal low rates for a year longer than it currently forecasts, the FOMC stuck to its view that they shall remain near zero ‘until late 2014′ (Financial Times). But the language of close monitoring, and a commitment to ‘provide additional accommodation as needed’, hinted at stronger action further ahead (Wall Street Journal). Or maybe it didn’t (Money Supply). Read more