Recap 2014-10-02




  • ECB did not change policy. Draghi said that the ECB will target an expansion of its balance sheet of “up to EUR1trn,” with purchases lasting at least 2 years. But he did not suggest that any new measures are being considered, which was a disappointment.
  • US Jobless Claims declined to 287k last week vs 297k exp and 299k prev
  • Building Approvals, jumped to 14.5% YoY vs 12.7% exp and 9.4% prev
  • Trade Balance improved to -787mm vs -800mm exp and -1359mm prev
  • BLK’s head of European and global bonds warned investors not to expect ECB sovereign QE. "The market is very much taking for granted that quantitative easing through a government bond purchase program is coming and I think there are many, many obstacles to that still to come.”
  • – crude pressured Wed after Saudi Arabia cuts prices more than expected (this was out earlier Wed). “The Saudi price cut is a sign that they won’t be cutting back production further and may be setting up for a market share battle
  • Coal: Wood Mackenzie says that coal miners will weather the sharp pullback in coal prices by cutting costs rather than production ahead of an anticipated market recovery next year. Bloomberg
  • Daimler now sees the global car market growing only 3% this year due to weakness in Russia and South America (previously the firm was forecasting +4-5%
  • the BOE asked the government for powerful new tools designed to curb real-estate lending – WSJ


  • Thu: Australia Service PMI, China Non-Mfg PMI, Japan Service PMI
  • Fri: EU Services PMI, UK Services PMI, US Employment, Service PMI, ISM Non-Mfg
  • Mon: RBA,
  • Tue: CanadaBuilding Permits
  • Wed: Japan Eco Watchers Survey, FOMC Minutes, UK RICS House Price Balance, Australia Employment
  • Thu: German Current Account, BoE, US Jobless Claims, Williams Speaks