ECB’s Trichet on the Wires

Says:

• ECB primary mandate is ensuring price stability
• ECB is solidly anchoring price expectations
• The Euro is a credible currency
• Non-standard measures aimed at policy transmission
• ECB decisions taken in ‘full independence’
• Crisis revealed fault lines in all economies
• Euro area’s major weakness is insufficient governance
• ECB will continue to be faithful to its mandate
• ECB will continue to anchor stability, confidence
• Draghi will be ‘great success’ as ECB president
• ‘The present calls for immediate action
• ‘The future calls for vision’

Bundesbank President Weidmann Speaks in Frankfurt

Says:

• Trichet dedicated career to European integration
• Trichet has led ECB with skill, commitment
• Euro is stable currency externally, internally

Jean Claude Trichet on the Wires

Says:

• ECB had to step into bond markets wen governments delayed
• ECB had to act when governments neglected responsibility
• Governments responsible for financial stability
• Treaty should be amended to allow imposed decisions
• European nations ‘dwarves’ unless they act together
• Euro will still exit in 10 years

ECB’s Trichet on The Wires

Says;

• Balance of risks has changed
• ECB stands ready to provide liquidity
• Liquidity not an issue for Euro-area banks
• Euro extends drop versus Pound, weakens 1.1% to 87.24 pence
• German 10 year bond yield falls to record low 1.823%
• Significant that inflation risks no longer on upside
• Euro extends decline against Dollar, slides .9% to $1.3965

Bobbys Corner-Open Market-Sept.8.2011

Good Morning:

A fairly uneventful overnight session ahead of today’s busy schedule of policy news and speeches. 
We start with rate announcements by the BOE and ECB (both rates were left unchanged).
This will be Trichet’s farewell press conference, and traders are looking for any signs of a change in policy.  This will be followed by speeches today by Fed Chairman Bernanke and this evening by President Obama. 
President Obama will outline his new $300 billion jobs program.  Let’s all hope that this speech has some real “punch” to it-and is not a political campaign speech. 

US unemployment claims rose this week-as yet another sign of the struggling US labor market.  With the global and US economy at risk for a double-dip recession, firms are looking to cut their labor costs, and are slow at ramping up production.

Equity markets and Futures are lower.
Gold is higher-Oil fairly stable at $88/bar.

HAVE A GREAT DAY & GOOD LUCK

ECB’s Trichet Speaking

Says:

• Moderate liquidity remains ample
• Recent data indicate some economic slowdown
• Economy will show moderate expansion
• Price gains must not spark broad-based-pressures
• Inflation expectations must remain firm
• Short term rates remain low
• ECB monetary stance remains accommodative
• ECB will conduct liquidity providing LTRO over 6 months
• Operations will be announced on August 9th
• Operation will mature on March 1, 2012
• ECB will conduct 3 month LTROS at fixed rate
• Underlying pace of growth remains positive
• Economic activity expected to be dampened somewhat
• Inflation risks remain on upside
• Downside risks to growth may have intensified
• Dollar is good for the world

ECB’s Trichet on the Wires

Says:

• Rate increase warranted on upside price risks
• Monetary liquidity remains ‘ample’
• Price stability important for growth
• Interest rates remain ‘low’
• Recent economic data show deceleration
• Uncertainty ‘remains elevated’
• Monetary policy stance remains accommodate
• ECB will monitor very closely all developments
• All non-standard measures are temporary
• Recent Data show ‘continued’ GDP expansion in Q2
• Euro-region growth may slow in second quarter
• Positive underlying momentum remains in place
• Risks to growth outlook ‘broadly balanced’
• Financial market tensions among growth risks
• Further gains of energy costs among growth risks
• Inflation to stay clearly above 2% in coming months

Trichet Interview with Interconomia Radio

Says:

• Will look at new projections in June
• Extraordinary measures separate from monetary policy
• Central banks duty is to avoid 2nd round effects
• We are never pre-committed
• We are inflexible on preserving price stability
• We have delivered price stability
• ECB is asking Greece to apply the plan
• Plan, fiscal goals must be applied in Greece
• CAJA situation better than a month ago in Spain
• Spain’s credibility has improved ‘impressively’
• Much still to be done in Spain
• Growth data encouraging

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