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Speaker 1: Broadcasting live to New York, Gloomberg eleventh, Rio to Washington,

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Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve unders to San Francisco,

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Speaker 1: Bloomberg nine six to the country, Serious Exam General one

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Speaker 1: nine and around the globe the Bloomberg Radio Bustad, Bloomberg

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Speaker 1: dot Com. This is Bloomberg Surveillance. Good morning, Say thirty.

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Speaker 1: I'm Michael McKee along with Tom Keen are economic indicators

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Speaker 1: are brought to you by Commonwealth Financial Network. When it's

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Speaker 1: time to change the conversation, talk with a broker dealer

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Speaker 1: r R I A that's ready to listen calle six

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Speaker 1: two three six three eight or is it Commonwealth dot

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Speaker 1: com to learn more? Here's an incredible number of Vinnie L.

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Speaker 1: Ju Day said the first word desk with the jobless

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Speaker 1: claims figures, Michael, jobless claims just above a fourth decade low,

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Speaker 1: close to a fourth decade low, falling last week by

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Speaker 1: eighteen thousand, a two hundred fifty nine thousand more than

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Speaker 1: Wall Street forecast. Again, jobless claims last week close to

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Speaker 1: a fourth decade low, two hundred fifty thousand. Let's go

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Speaker 1: back to New York, all right, Vinnie del judas jobless

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Speaker 1: claims in the US near a four decade low. Tell

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Speaker 1: me the news is all good for markets. This morning

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Speaker 1: Olive Blonchard was heated. He's never heated. But within the grace,

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Speaker 1: Professor Blonchard states that things are better than good in

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Speaker 1: some of these economies. There is exact quote, there is

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Speaker 1: no fire in the house. Not at the moment. It's

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Speaker 1: not the same thing, not like the world is exploding

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Speaker 1: with growth, but it is certainly better then maybe a

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Speaker 1: lot of people in the markets think. As I mentioned,

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Speaker 1: we're watching European banks really really move. The stock six

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Speaker 1: hundred is up seven points now more than two percent,

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Speaker 1: Deutsche Bank up six point two percent, Gen six two uh,

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Speaker 1: UniCredit eight and a half percent. And that is on

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Speaker 1: the back of the ECB's action to not only cut

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Speaker 1: all three of its major rates that have has it

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Speaker 1: right down to negative forty basis points, but also increase

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Speaker 1: q E by another twenty billion euros to eight billions.

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Speaker 1: We're waiting for our drug. He Brendan Brown with us,

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Speaker 1: Honored to have him with us. He has thought long

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Speaker 1: and hard um about eurodynamics. In Global Dynamics of Banking

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Speaker 1: two thousand thirteen, the global curse of the Fellow Reserve

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Speaker 1: is the rewrite the global curse of the European Central Bank.

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Speaker 1: That's a very appropriate title, I think. And I see

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Speaker 1: today's Mike, could you pull the microphone closer to Dr Brown?

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Speaker 1: It's his first time he's ever been with us. And

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Speaker 1: I see today's announcements from the e c B is

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Speaker 1: Act three in currency war um plus a massive operation

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Speaker 1: to share up the weak European banks, most of all

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Speaker 1: in Italy already left worrying whether ECP President Dragging is

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Speaker 1: actually president of of the Italian Central Bank. Well, he's

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Speaker 1: a president of the e c B. If it's a

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Speaker 1: currency ward, is the b o J joined in there

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Speaker 1: next time the calendar? Well, I think the question is

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Speaker 1: on the u S. I we we We've had a

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Speaker 1: very lively election campaign to save at least in in

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Speaker 1: in the United States, and a lot of concern about

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Speaker 1: currency manipulation in Japan and China. But it's about time

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Speaker 1: that the politicians here focused on the currency manipulation in Europe.

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Speaker 1: We are watching Mario Dragging move towards the press conference,

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Speaker 1: but you see this entourage is balance between kanzie and

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Speaker 1: neo classics. Do you see how he does that. There's

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Speaker 1: no Austrians in. He has walked in. And now we

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Speaker 1: get the obligatory photo up where all of the cameras

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Speaker 1: in Europe are trained upon the men of the hour,

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Speaker 1: Mario dragging up on the diet with him, vidor Constantia,

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Speaker 1: everybody does it different of the ECB. He'll begin his

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Speaker 1: press covers at a moment and we'll have I want

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Speaker 1: to ask Brendan, does does it mean the FED is

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Speaker 1: on hold longer? No, I don't see that. I think

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Speaker 1: we have to see beyond Twitter five minutes what the

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Speaker 1: reaction is in the US markets, in US economy. But

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Speaker 1: I don't see today's event is a huge the market mover,

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Speaker 1: economy move. I would just I would just make one

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Speaker 1: final comment. That's been a complete failure I think of

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Speaker 1: political leadership in Germany to to hold this latest st

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Speaker 1: from what we'll see if Mario dragging talks about that,

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Speaker 1: he's beginning his news conforts. Now in Frankfurt, let's go

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Speaker 1: to the President, the European Central Back that is, and gentlemen,

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Speaker 1: the Vice President and I are very pleased to welcome

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Speaker 1: you to our press conference. We will now a report

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Speaker 1: on the outcome of today's meeting of the Governing Council,

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Speaker 1: which was also attended by the Commission Vice President Mr.

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Speaker 1: Dombrovskis based on our regular economic and monetary monetary analysis.

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Speaker 1: We have conducted a thorough review of the monetary policy stands,

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Speaker 1: in which we also took into account the new microeconomic

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Speaker 1: projections by our staff extending into the year two thousand eighteen.

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Speaker 1: As a result, the Governing Council has decided has decided

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Speaker 1: on a set of measures in the pursuit of its

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Speaker 1: price stability objective. This comprehensive package will exploit the synergies

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Speaker 1: between the different instruments and has been calibrated to further

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Speaker 1: ease financing conditions, stimulate new credit provision, and thereby reinforced

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Speaker 1: the momentum of the Euro Area's economic recovery and accelerate

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Speaker 1: the return of inflation to levels below but close to

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Speaker 1: first As regards the key E c D interest rates,

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Speaker 1: we decided to lower the interest rate on the main

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Speaker 1: refinancing operations of the eurosystem by five basis points to

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Speaker 1: zero and the rate on the marginal lending facility by

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Speaker 1: five basis points to zero point twenty five. The rate

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Speaker 1: on the deposit facility was lowered by ten basis points

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Speaker 1: two mins zero point four per cent. Second, we decided

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Speaker 1: to expand the monthly purchases under our asset purchase program

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Speaker 1: from sixty billion euros to at present to eighty billion euros.

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Speaker 1: They are intended to run until the end of March

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Speaker 1: two thousand seventeen, or beyond if necessary, and in any

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Speaker 1: case until the Going Council sees a sustained adjustment in

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Speaker 1: the path of inflation consistent with its aim of achieving

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Speaker 1: inflation rates below but close to cent or with the

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Speaker 1: medium term. To ensure the continued smooth implementation of our

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Speaker 1: asset purchases, we also decided to increase the issuer and

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Speaker 1: issue share limits for the purchases of securities issued by

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Speaker 1: eligible international organizations and multilateral development banks from thirty three

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Speaker 1: to fifty percent. Third, we decided to include investment grade

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Speaker 1: euro denominated bonds issued by non bank corporations established in

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Speaker 1: the Euro Area in the list of usets that are

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Speaker 1: eligible for regular purchases under a new corporate sector purchase program.

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Speaker 1: This will further strengthen the pass through o our ourset

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Speaker 1: purchases to the financing conditions of the real economy purchased

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Speaker 1: under the new program will start towards the end of

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Speaker 1: the second quarter of this year. Fourth, we decided to

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Speaker 1: launch a new series of four targeted longer term refinancing

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Speaker 1: operations tel TROW two starting in June two thousand sixteen,

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Speaker 1: each with a maturity of four years. These new operations

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Speaker 1: will reinforce the ECB is a commodative monetary policy stands

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Speaker 1: and will strengthen the transmission of monetary policy by further

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Speaker 1: incentivizing bank lending to the real economy. Counterparties will be

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Speaker 1: entitled to borrow up to of the stock of eligible

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Speaker 1: loans as of the thirty As at the thirty one

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Speaker 1: January two and sixteen. The interest rate under TELTRO tool

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Speaker 1: will be fixed over the life of each operation at

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Speaker 1: the rate on the Eurosystem's main refinancing operations prevailing at

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Speaker 1: the time of take up. For banks whose net landing

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Speaker 1: exceeds a benchmark, the rate applied to the TELTRO tool

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Speaker 1: will be lower and can be as low as the

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Speaker 1: interest rate on the deposit facility prevailing at the time

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Speaker 1: of the take up. There will be no requirement for

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Speaker 1: mandatory earlier payments under TELTRO tool and switches from Teltro

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Speaker 1: one will be allowed. Finally, looking ahead, taken into account

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Speaker 1: the care and outlook for price stability, the Governing Council

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Speaker 1: expects the key e CB interest rates to remain at

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Speaker 1: present or lower levels for an extended period of time

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Speaker 1: and well passed the horizon of our net asset purchases.

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Speaker 1: Separate press releases with further details of the measures taken

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Speaker 1: by the Governing Council will be published this afternoon at

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Speaker 1: three thirty Adding to the measures taken since June two

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Speaker 1: thousand fourteen, with today's comprehensive package of monetary policy decisions,

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Speaker 1: we are providing substantial monetary stimulus to counteract heightened risks

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Speaker 1: to the e c b S price stability objective. With

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Speaker 1: While very low or even negative inflation rates are unavoidable

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Speaker 1: over the next few months as a result of movements

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Speaker 1: in oil prices, it is crucial to avoid second round

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Speaker 1: effects by securing the return of inflation to levels below

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Speaker 1: but close to two percent without undue delay. The gunning