{"id":658533,"date":"2013-05-16T08:28:15","date_gmt":"2013-05-16T12:28:15","guid":{"rendered":"http:\/\/blogs.reuters.com\/globalinvesting\/?p=9498"},"modified":"2013-05-16T08:28:15","modified_gmt":"2013-05-16T12:28:15","slug":"weekly-radar-draghi-returns-to-london","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/658533","title":{"rendered":"Weekly Radar: Draghi returns to London"},"content":{"rendered":"

ECB chief Mario Draghi returns to London next week almost 10 months on from his seminal \u201cwhatever it takes\u201d speech<\/a> to the global financial community in The City\u00a0 \u2013 a speech that not only drew a line under the euro financial crisis by flagging the ECB\u2019s sovereign debt backstop OMT but one that framed the determination of the G4 central banks at large to reflate their economies via extraordinary monetary easing. Since then we\u2019ve seen the Fed effectively commit to buying an addition trillion dollars of bonds this year to get the U.S. jobless rate down toward 6.5%, followed by the \u2018shock-and-awe\u2019 tactics of the new Japanese government and Bank of Japan to end decades.<\/p>\n

And as Draghi returns 10 months on, there’s little doubt that he and his U.S. and Japanese peers have succeeded in convincing financial investors of central bank doggedness at least. Don’t fight the Fed and all that – or more pertinently, Don’t fight the Fed\/BoJ\/ECB\/BoE\/SNB etc… G4 stock markets are surging ever higher through the Spring of 2013 even as global economic data bumbles along disappointingly<\/a> through its by now annual \u2018soft patch\u2019.\u00a0 Looking at the number tallies,<\/a> total returns for Spanish and Greek equities and euro zone bank stocks are up between 40 and 50% since Draghi’s showstopper last July . Italian, French and German equities and Spanish and Irish 10-year government bonds have all returned about 30% or more. And you can add 7% on to all that if you happened to be a Boston-based investor due to a windfall from the net jump in the euro\/dollar exchange rate. What\u2019s more all of those have outperformed the 25% gains in Wall St\u2019s S&P 500 since then, even though the latter is powering to uncharted record highs. And of course all pale in comparison with the eye-popping 75% rise in Japan\u2019s Nikkei 225 in just six months!! Gold, metals and oil are all net losers and this is significant in a money-printing story where no one seems to see higher inflation anymore.<\/p>\n

But with both Fed and BoJ pushes getting some traction on underlying growth and the euro zone economy registering it’s 6th straight quarter of contraction in the first three months of 2013, maybe Draghi’s big task now is to convince people the ECB will do whatever it takes to support the 17-nation economy too and not only the single currency per se. Last year’s pledge may have been a necessary start to stabilise things but it has not yet been sufficient to solve the economic problems bequethed by the credit crisis.<\/p>\n

Coincidence or not, Draghi speech on Thursday is flanked by keynotes from his monetary allies. Fed chief Bernanke\u00a0 speaks on Saturday and then to testifies to the congressional Joint Economic Committee on Wednesday, BoJ head Kuroda holds a press conference after the bank’s policymaking meeting ends on Thursday and outgoing BoE governor King speaks Friday. G20 sherpas meet in Russia this weekend, while EU leaders meet in Brussels on Wednesday. The big economic data set-piece of the week will be critical flash global PMI readings for May – is business finally pulling out of the early year funk or is confidence still evaporating?<\/p>\n

 <\/p>\n

Main economic events and data releases for next week:<\/strong><\/p>\n

G20 sherpas meeting in St Petersburg Sat\/Sun<\/strong><\/p>\n

Fed\u2019s Bernanke speech on long-run economic prospects Sat<\/strong><\/p>\n

Italy March Industry orders Mon<\/strong><\/p>\n

Irish PM Kenny in Boston Mon<\/strong><\/p>\n

Japan 40-yr JGB auction Tues<\/strong><\/p>\n

UK April inflation Tues<\/strong><\/p>\n

Japan April trade Weds<\/strong><\/p>\n

BOJ news conference after latest policy meeting Weds<\/strong><\/p>\n

BoE minutes Weds<\/strong><\/p>\n

EU summit Weds<\/strong><\/p>\n

German 10-yr bund auction Weds<\/strong><\/p>\n

US April existing home sales Weds<\/strong><\/p>\n

Fed’s Bernanke testifies to Joint Economic Committee of Congress Weds<\/strong><\/p>\n

FOMC minutes Weds<\/strong><\/p>\n

Global May flash PMIs Thurs<\/strong><\/p>\n

Spain govt bond auction Thurs<\/strong><\/p>\n

UK April retail sales\/Q1 GDP revision Thurs<\/strong><\/p>\n

ECB\u2019s Draghi speaks in London Thurs<\/strong><\/p>\n

EZ May consumer confidence Thurs<\/strong><\/p>\n

US April new homes sales\/March house prices Thurs<\/strong><\/p>\n

SAfrica rate decision \u00a0Thurs<\/strong><\/p>\n

German May Ifo sentiment Fri<\/strong><\/p>\n

French May business climate Fri<\/strong><\/p>\n

Italy May consumer confidence Fri<\/strong><\/p>\n

US April durable goods orders Fri<\/strong><\/p>\n

BoE\u2019s King speaks in Helsinki Fri<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

ECB chief Mario Draghi returns to London next week almost 10 months on from his seminal \u201cwhatever it takes\u201d speech to the global financial community in The City\u00a0 \u2013 a speech that not only drew a line under the euro financial crisis by flagging the ECB\u2019s sovereign debt backstop OMT but one that framed the […]<\/p>\n","protected":false},"author":7385,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-658533","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/658533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7385"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=658533"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/658533\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=658533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=658533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=658533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}