Archives of “christine lagarde” tag

rss

Lagarde: There is no need to overreact to euro gains

  
  Analysis
#  #  #  #  #  #  #  #  #

Comments from Lagarde in the ECB opening statement:

Lagarde Sept 10
  • Says ECB will monitor FX rate
  • Strength of recovery remains surrounded by uncertainty
  • Rebound broadly in line with previous expectations
  • Domestic demand recorded significant recovery
  • Uncertainty weighing on consumer spending and business investment
  • Inflation dampened by energy prices
  • Ample monetary stimulus remains necessary
  • Incoming data suggest notable recovery in consumption
  • ECB will carefully assess the euro’s effect on inflation
  • New infections are a headwind to the short term outlook
  • Repeats that an ample degree of easing needed
  • Fiscal measures should be targeted and temporary
The euro jumped to 1.1891 from 1.1850 on the headline from Lagarde.

ECB’s de Guindos: Euro area economy to shrink between 8% and 12% in 2020

  
  Analysis
#  #  #  #

That just reaffirms the message from Lagarde earlier

Guindos

The forecast he is mentioning is between the ECB’s ‘medium’ and ‘severe’ scenarios, which Lagarde already made a similar mention to earlier here.

In any case, this sets up expectations ahead of their June meeting that all of this will be factored into the staff projections and that more stimulus may accompany it – as they rule out their ‘mild’ scenario from before.
Just be reminded that PEPP should meet its target some time around September or October, so the ECB should communicate an increase in the size sooner rather than later.
Despite the additional easing in nature, the reassurance should keep market participants satisfied that they are willing to do more to ensure financial conditions stay as they are. Remember, “close the spreads”.

ECB’s Lagarde: Europe risks 2008-style crisis because of coronavirus outbreak

  
  Analysis
#  #  #  #  #

Comments by ECB president, Christine Lagarde

  • Warns European leaders of a major economic shock
  • Told European leaders that urgent action is needed now
  • ECB also looking at all policy tools
Her remarks are said to be in a conference call to European leaders yesterday, with Bloomberg reporting on the matter – citing a person familiar with the situation.
Adding that the ECB is said to be looking at measures to provide “super-cheap funding” and ensure that liquidity doesn’t dry up, with Lagarde mentioning that they can only work if governments also throw their weight behind them too.
It looks like she is getting fed up with waiting for lawmakers to do something but again, all she can do is plead so that they will actually start taking action. But as mentioned before, when they do decide to finally move, it may already be too late.
As for the ECB, there is little that they can do to provide actual relief in the market. Modifying TLTROs would be their best bet because lowering rates further and expanding QE is just doing more of the same – which isn’t really saying much after all these years.

Watch: ECB president Christine Lagarde’s press conference at 1330 GMT

  
  Analysis
#  #  #  #  #  #  #  #

All eyes on Lagarde now

The ECB statement was a non-event as expected, with the language on inflation and policy kept similar to the December meeting.

The ECB did officially announce its first strategic review in nearly two decades though and has taken some of the heat away from Lagarde ahead of her press conference; they say that they will provide further details on the scope and timetable later today at 1430 GMT.
As such, the focus of Lagarde’s press conference will be more skewed towards her tone and view on recent changes to the economic outlook i.e. improving data and the US-China trade deal – unless of course she decides to chime in on strategic review questions.
You can watch her live later here:

Heads up: ECB president Lagarde to speak soon

  
  Analysis
#  #  #  #  #

Lagarde will be speaking at the European Banking Conference in Frankfurt

Lagarde

She will be delivering the keynote address to begin the event, right after the welcome/opening addresses which are scheduled for around 0800 GMT.

It has already been three weeks into her tenure as ECB president but Lagarde has yet to share any firm views on monetary policy and her strategic plans for the central bank.
Given the context of the occasion above, perhaps she may not delve too deep into monetary policy remarks but I wouldn’t be surprised if she does bring up a mention or two just to appease the crowd – and markets for that matter.
If she still keeps mum today, the next time we’ll see her speak will be during the press conference after the 12 December monetary policy meeting.

Greece in last-minute talks on austerity cuts

  
Analysis, Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

Greek premier Lucas Papademos held last-minute talks on Sunday with international lenders on wage and pension cuts amid fears that political leaders may reject a second €130bn bail-out and plunge the country into a chaotic default.

Evangelos Venizelos, finance minister, said “It’s not an impasse but there are problems for the Greek side” over terms of a medium-term package being negotiated with the so-called “troika” – representatives of the European Commission, European Central Bank and International Monetary Fund.

The two sides were “quite far apart” over projected cuts of 25 per cent in private sector wages, 35 per cent in supplementary pensions and the immediate closure of about 100 state-controlled organisations with thousands of job losses, a Greek official said.

Mr Papademos held telephone conversations on Sunday with Christine Lagarde, IMF managing director and Mario Draghi, ECB president, in a bid to break the deadlock, the official added.

The three leaders of Greece’s national unity government were due to meet Mr Papademos later on Sunday to agree the package before it goes to eurozone finance ministers for approval next week.

It was not clear whether former socialist premier George Papandreou and Antonis Samaras, the conservative leader bidding to succeed him, would also meet the troika mission chiefs. (more…)

Go to top