Mario draghi commits a trillion dollar qe plan. The ecb president did surprise market to some extent with his announcement of the ecbs version of qualitative easing. 60 billion euros a month in various kinds of purchases, in sovereign debt and assetbacked securities and covered bonds. The surprise came from the amount. There were reports it would be 50 million 50 billion euros a month. He said it would last until at least the end of september 2016. Depending on how effective it is. 80 of these purchases will be handled by the 19 National Central banks and they will be on the hook for some of their own losses. Investors did express a lot of confidence in his plan. One of them was the former chancellor current chancellor of the u. K. This is welcome action from the European Central bank. Action from a central bank is necessary but not sufficient for a european recovery. We want to see this a company by clear plans to make the continent more competitive to create jobs, to make sure our Pu
Saying basically greece runs out of cash at the end of march. The end of march is the crunch time for cyprus to do a deal to get the imf to extend their credit degrees while they talk . We will see shorter Interest Rates where we are seeing much more aggressive moves. There is a view in the market the extra cost you pay for germany, for greece over germany can expand. You are going to see the cost of funding for greece in the commercial market up. What you need to ask is how much it is already priced in. Is the euro moving more on quantitative easing or about Dollar Strength than necessarily about the condition of syriza getting power. Lets check a couple of stocks. You have iag, aer lingus. Aer lingus say they are discussing a new bid from iag. Iag down and eight of 1 . Apparently ryanairs holding has been on the block for one month. That is how markets are opening up. Markets are a little bit lower. I am looking at the footie down by half of 1 . The greek antiausterity party won the
Makers. The debate begins right here on bloomberg, we will talk to various people ahead of Mario Draghis decision. It has just gone 6 00, the stage is set in frankfurt and expectations are so high. The Financial Savvy will be glued to their smartphones telephones and televisions as mario draghi will probably set up a qe plan. The ecb is not the only central bank coping with deflationary forces. High drama from india to canada and many places in between the mario draghi Takes Center Stage today. He does. It is all anybody is talking about. Everybody will be glued to what exactly mario draghi has to say a little bit later on. Plenty of central bankers are here. Plenty of finance ministers. We walked around yesterday and it was amazing we asked them, who is the most wanted man at davos, and they said it is a ghost of mario draghi. He is not here but he usually comes and this is what everyone is talking about. It will make a difference to everyone here. Angela merkel is here as well which
The germans might have some objection to that. London opened virtually flat. Oil is making a comeback. Is that being overgenerous . You are seeing just a little bit of a reprieve on these equity markets. We are going to run towards super tuesday. Lets have a look at some of the currencies. Everything is priced into the euro dollar. You are probably going to see the eurodollar at 120. The market has fully priced qe by the European Central bank and the onemonth money suggests you are going to see a little bit of a turnaround on that. Have a look at the euro yen. Money was coming out of the euro and going into the yen. That is where you see a big move. Have a look at the couple of stocks we are keeping an ion. Keeping an eye on. Who day is becoming ceo. They would create the largest mobile operator in the United Kingdom with the 41 share of the market. That really surprises me. They are coming together creating 41 . Telefonica up 1. 38 . Would it be 9 Million Pounds they might receive. Th
To the pulse. The greek fiscal odyssey moves on to germany today. Graces finance minister will meet the ecb president in frankfurt today. Lets get to our international correspondent, hans nichols in germany. What kind of a reception is he going to receive in frankfurt . Who is going to be the first dimension tbills . I guess varoufakis has to mention tbills because he has to figure out some way to finance. This entire longerterm payoff deal in maybe april or may, or even june, hinges on their ability to get some sort of bridge financing from the ecb. So far, theres been no indication that they are willing to give that bridge financing. They might need anywhere from 10 billion is one number in terms of raising the ceiling. The ft is reporting that the ecb is unlikely to raise that ceiling. Importantly, here in germany, my colleagues reported that Angela Merkels government is thinking about playing the long game to wait until april or may. Listen to what merkel had to say yesterday when