European Central Bank decides to split the difference on ending bond purchases

European Central Bank decides to split the difference on ending bond purchases

At its meeting today the European Central Bank decided to buy fewer bonds each month but for more months. Monthly purchases will be cut to 30 billion euros ($35 billion) from 60 billion euros beginning in January. But the bank will extend its bond purchases until September. Some observers had through the central bank would end purchases in January or March.

Notes You Need for October 6: oil and Nate, Apple iPhone 8 batteries, euro, rig count, German GDP, Amazon drug distribution, CVS, General Cable

Notes You Need for October 6: oil and Nate, Apple iPhone 8 batteries, euro, rig count, German GDP, Amazon drug distribution, CVS, General Cable

In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. I launched this new feature on JubakAM.com on December 1. For example, “10:20 a.m.:  Oil was up on speculation that Tropical Storm Nate would rise to the status of a hurricane and then hit the Gulf Cost, disrupting refineries and oil export platforms again But now oil is down on speculation that the storm won’t hit the Gulf Coast has hard as previous speculation suggested.”

European Central Bank moves a bit closer to ending its low interest rate policy–at least in its rhetoric

European Central Bank moves a bit closer to ending its low interest rate policy–at least in its rhetoric

At today’s meeting The European Central Bank dropped language saying that interest rates might fall further from its post-meeting statement. In April the bank had said that interest rates would remain at “present or lower levels for an extended period of time.” Today’s statement only says that interest rates would remain at “present levels for an extended period of time.”

European Central Bank moves a bit closer to ending its low interest rate policy–at least in its rhetoric

Can the EuroZone kick its debt problem down the road again? To where?

We’ve now got very clear evidence that the bailouts plus austerity solutions haven’t worked in Greece. Since the summer of 2012 Greek government debt has climbed to 183% of GDP from 159%. The economic austerity program imposed on Greece as the price for the bailout has caused the economy to contract. Rather than growing its way out of the debt crisis, the Greek economy has shrunk its way deeper into the hole.