dChan
Anonymous ID: 3e89c8 Dec. 12, 2019, 4:58 a.m. No.7487747   🗄️.is 🔗kun   >>7819 >>7950 >>8141

ECB keeps generous stimulus unchanged in Lagarde's first meeting

 

FRANKFURT (Reuters) - The European Central Bank kept its ultra-easy monetary policy unchanged at Christine Lagarde’s first meeting in charge on Thursday, even keeping the door open to more stimulus while the bank gears up for a broad review of its operations. With growth still well below potential in the 19-member currency bloc and inflation short of target, the ECB unleashed a fresh stimulus package in September. That means policy is effectively on auto pilot for months to come, giving Lagarde time and space to find her footing.

 

“The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics,” the ECB said.

 

The ECB’s press release did not deviate from the previous statement, suggesting Lagarde is comfortable with the stance devised by her predecessor, Mario Draghi, over the objections of many policymakers.

 

Attention now turns to Lagarde’s first news conference at 1330 GMT, where she will unveil the ECB’s new economic projections and may discuss the bank’s strategic review, due to start early next year.

 

With Thursday’s decision, the ECB’s rate on bank overnight deposits, which is currently its primary interest rate tool, remains at a record low of -0.50%.

 

The main refinancing rate, which determines the cost of credit in the economy, remained unchanged at 0.00% while the rate on the marginal lending facility — the emergency overnight borrowing rate for banks — remains at 0.25%.

https://uk.reuters.com/article/uk-ecb-policy-rates/ecb-keeps-policy-unchanged-with-door-still-open-to-more-stimulus-idUKKBN1YG1E5

Anonymous ID: 3e89c8 Dec. 12, 2019, 5:22 a.m. No.7487814   🗄️.is 🔗kun

Credit Suisse lowers Apple iphone shipment estimates, shares drop in pre-market

 

Apple share were already sliding in the pre-market session as tariff fears re-emerged but a report from Credit Suisse that iPhone shipments fell meaningfully in November sparked considerably more selling pressure.

In fact, CS says iPhone shipments in China dropped a shocking 35.4% YoY in November (following a 10.3% YoY drop in October).

This compares to a 0.2% increase in the broader regional smart phone market. Additionally, CS reports that total shipments in China are now down 7.4% since the launch of the iPhone 11 line.

 

Luckily, Apple stopped reporting iPhone unit sales so this will soon be forgotten (or not). Time for some more buybacks Tim?!

https://www.zerohedge.com/technology/apple-shares-slide-after-credit-suisse-reports-plunge-china-iphone-shipments

Anonymous ID: 3e89c8 Dec. 12, 2019, 6:20 a.m. No.7487997   🗄️.is 🔗kun

a few economic data points

 

Weekly Initial Unemployment Claims increased sharply to 252,000

 

In the week ending December 7, the advance figure for seasonally adjusted initial claims was 252,000, an increase of 49,000 from the previous week's unrevised level of 203,000. This is the highest level for initial claims since September 30, 2017 when it was 257,000. The 4-week moving average was 224,000, an increase of 6,250 from the previous week's un-revised average of 217,750. The previous week was unrevised.

 

cap#1 shows the 4-week moving average of weekly claims since 1971.The dashed line on the graph is the current 4-week average. The four-week average of weekly unemployment claims increased to 224,000.

 

This was much higher than the consensus forecast

https://www.calculatedriskblog.com/2019/12/weekly-initial-unemployment-claims_12.htm

 

US Producer Prices Grow At Slowest Pace In Over 3 Years

cap#2

Following yesterday's bigger than expected rise in consumer prices (driven by surging services costs), US producer prices were expected to accelerate after slowing dramatically in recent months, but it didn't with core PPI dropping 0.2% MoM and headline PPI holding at just 1.1% YoY - the lowest since September 2016.Core PPI fell 0.2% MoM.

- dispelling more of the narrative that President Trump's tariff threats will crush the average American with cost increases.

Notably, while Consumer Services costs surged in November, Producer Services costs slid 0.3% (with Trade -0.6%).

https://www.zerohedge.com/economics/us-producer-prices-grow-slowest-pace-over-3-years