Friday, November 27, 2015

"Eurozone economy 'sizzles'"....hahahaha...That's what fat or wet things do when they're dropped into the frying-pan (or the fire).The action is elsewhere...The Italian government has permitted other healthy note banks to bail out 4 minor banks from foul hanging debt, and interestingly their taxpayers won't foot the bill. Believe it ? I wonder how many other fledging sparkasse banks elsewhere in the EU would dream of that alliance ? Things aren't so sound, as the author portrays otherwise....Since a couple of months Draghi has been mouthing QE, even more negative deposit rates. Thus I would expect a group of business people whose focus and whose businesses evaluate their performance upon short and early middle-term - purchasing managers - to come in with this informed predictions.  Predictions they are and generally the actuals cause them to be recast (sorry readjusted) down by a meaningful portion. Also PMI for Germany is largely meaningless: IFO does it better and normally somewhat blacker than PMI.  These PMI numbers have been contrived better by Draghi's remarks. One can't help wondering if his oratory had been so good as to have pumped them even higher if his move to QE+ would have been questioned. Maybe Draghi wants QE+ questioned...Central bank watchers believe that Mario Draghi, the ECB president, could unveil both interest rate cuts and an expansion of an existing eurozone quantitative easing programme next week.  “With recent comments highlighting how the central bank remains disappointed with the strength of the upturn at this stage of the recovery, November’s slightly improved PMI reading will no doubt do little to dissuade policymakers that more needs to be done,” said Mr Williamson. The Markit survey showed signs of "ongoing deflationary pressures", linked to a fall in commodity prices. The French economy could stand to benefit from looser ECB policy after the November PMI showed that business activity rose at the slowest pace in three months.

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