Clean sweep for Draghi?

By Mike Peacock
January 23, 2015

European Central Bank President Draghi and Vice President Constancio leave after addressing an ECB news conferenc in Frankfurt

Mario Draghi’s peerless track record of eliciting the market response he wants remains unblemished after the ECB’s quantitative easing surprised on the upside – at 60 billion euros a month for at least 19 months it will exceed 1 trillion euros.

Crunch time

By Mike Peacock
January 22, 2015

ECB President Draghi addresses during ECB news conference in Frankfurt

The biggest policy decision of the year? The first U.S. interest rate rise may trump it whenever it comes and the Swiss National Bank has set the bar pretty high but an awful lot hangs on what the European Central Bank comes up with today.

Davos faces now customary global uncertainty

By Mike Peacock
January 21, 2015

Swiss special police officers observe the surrounding area from atop the roof of Davos Congress Hotel in Davos

The great and good are in Davos facing a rather uncertain landscape yet again (‘twas ever thus for the last seven years).

Ripples from ECB even before it acts

By Mike Peacock
January 20, 2015

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The prospect of dramatic European Central Bank action – coupled with the deflationary threat posed by a plunge in the price of oil and the pain it inflicts on oil producing countries – is putting the financial system under growing stress.

Greece: A game of chicken

By Mike Peacock
January 19, 2015

Alexis Tsipras, opposition leader and head of radical leftist Syriza party, looks on as he speaks during a party congress in Athens

With six days until elections, the polls have been remarkably steady in Greece, giving anti-bailout Syriza a narrow but consistent lead that suggests this time next week it will be the largest party in parliament with a mandate to form a coalition government.

Volatility back with a bang

By Mike Peacock
January 16, 2015

The logo of the SNB is seen at the entrance of the SNB in Bern

Volatility is back with a bang.

The Swiss franc leapt by an unprecedented 40 percent at one point after the Swiss National Bank scrapped its currency cap out of the blue. Oil may have bounced but it’s still down the thick end of 60 percent since mid-2014, dragging the rouble and other oil-producer currencies with it. Copper, generally a barometer of world industrial demand, is barely finding its feet after plunging this week.

Politics to trump law in QE decision

By Mike Peacock
January 15, 2015

Deutsche Bundesbank President Weidmann arrives for the annual news conference in Frankfurt

If the law was the ultimate arbiter, the European Central Bank would have the most verdant of green lights for an unlimited bond-buying programme with new money. In reality, politics and German concerns will dictate.

Whatever it takes or whatever it can get away with?

By Mike Peacock
January 14, 2015

ECB President Draghi addresses during ECB news conference in Frankfurt

Markets are beginning to ponder just how definitive the European Central Bank may be next week in launching quantitative easing. One reason is today’s ruling at the European Court of Justice.

EU talks investment, Germany balances budget

By Mike Peacock
January 13, 2015

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The European Commission will unveil legislative proposals for its 315 billion euro investment plan and the findings of a public consultation on the investment elements of a planned EU-U.S. free trade deal which could significantly boost growth.

Sub-zero inflation

By Mike Peacock
January 7, 2015

A sign announcing a discount is pictured at an Electroniki retail chain shop in Athens

Following a dramatic fall in the price of oil, now down at $50 per barrel from above $115 in the middle of last year, euro zone inflation figures for December are likely to turn negative for the first time since 2009.