Supervision of prices is also also little specificLegris SA is goes to achieve such maturitySo that if the meal is free the dessert may be paidDJ Stoxx 600 European wide index gave 1The bar of the 10 billion should be reached on the year according to himThese actions are the same for three centuriesIts performance in Europe are clearly in declineAs GM inventor of the shark fins ferré a strange fishIn 2001 he will meet with Cecile Brossard all in combining a large number of waysThe hesitation has dominated the market on the eve of two major appointments, the Summit of the g-20 (see pages 6 and 7) and the meeting of the European Central Bank (ECB). The stock resumed colours later in the day while bond markets evolved in dispersed order.
The performance of the German State loans to 10 years is relaxed 1 point, to 2,983 per cent, and the titles in 2 years, generally more sensitive to the expectations of monetary policy, by 1 point, 1,166. On the foreign exchange market, the euro has dwindled by 0.11, to 1,3215 dollar.
Market participants are preparing for a long time decreased by 50 basis points of the rate of the euro, to 1. Several experts believe even that this level could be a floor for the institution proposal, reluctant to follow the US Federal Reserve in the way of a policy of "zero rate". Beyond the verdict on the level of the main interest rates, today's meeting raises several issues, including the evolution of the rate of deposit facility.
The level of Eonia at stake
The rate of remuneration for the placed funds on day the day by financial institutions with the ECB, currently 0.5, should fall to 0 if the issuing Institute maintains the current gap with the rate of refinancing. "We do not believe that the Bank will also reduce the rate of deposition of 50 basis points." "She should leave it to 0.5 or possibly it lower to 0.25," says Antonio Villarroya in Bank of America-Merrill Lynch.
This point is of great importance because, at the present time, Eonia rate on the day the day of the interbank market to hold on the rate of deposit facility and not on refinance rate. The level of the Eonia is therefore at stake.
Other large operators query deals with non-conventional measures that the ECB could be implemented. Will follow the example of the Fed and the Bank of England and buy bonds Several experts reject the idea of a program of purchasing loans to State at this stage. The euro zone is composed of sixteen sovereign debt markets, such a device is complex to implement. The subject is especially very political scope. The institution chaired by Jean-Claude Trichet could therefore more easily opt for purchases of corporate bonds. But it may expect a next meeting.
Many experts believe that the ECB will be its system of refinancing of banks for maturities greater than 6 months. According to the team of BNP Paribas, operations could be extended to loans to 1 year, or even 2 years, maturities on which the application for financial institutions promises to be strong.
The ECB is currently that 6 months at the rate of refinancing, ensuring to respond to all queries banks. If it lengthens the duration of its operations, this will help to lower the interbank market rates for 6 months.
This measure appears to be much more credible that, unlike the United States or Britain, the financing of the economy of the euro depends on to about 70 of banks and little financial markets.
Finally, the Institute could be tempted to reduce the "haircuts", these penalties applied to the assets taken as security in its lending operations. Such a measure would relieve banks and could benefit from business debt market.
