Monday, November 10, 2014

ECB unanimous on 1 trillion expansion

•      ECB unanimous on 1 trillion expansion

•      The ECB has started purchasing covered bonds and will soon start to purchase asset-backed securities
•      The programmes duration is at least two years and with the TLTROs will have a sizeable impact on the Bank’s balance sheet
•      The ECB President confirmed that the specific balance sheet target is the March 2012 level – 1 trillion injection
•      Additional unconventional measures can be used if prices remain low for a prolonged period of time
•      After the downward revision on the bloc’s economic outlook by the European Commission, the ECB sees indications for downward revisions of its forecasts as well

•      The highlight of the day: The US non-farm payrolls for October

•      Forecast is for a 235k rise, down from the unexpected increase of 248k in September
•      Unemployment rate is anticipated to have remained unchanged at 5.9%, while average hourly earnings are expected to have accelerated on a yoy basis
•      The decline in the jobless claims and the strong ADP report, fuels optimism for strong NFP reading

•      Today :

•      Industrial production figures for September from Germany, France and Norway
•      Germany: Trade balance
•      Canada: Unemployment rate

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