Central Bank

The ECB ensures, in the monthly bulletin, that "Domestic demand remains supported by the pass-through of the monetary policy measures to the real economy". Although it provides for economic growth for next year, it will take place at a gradual pace. "Moderate global growth continued in the first half of 2016. Looking ahead, global growth is expected to recover gradually. Low interest rates, improving labour markets and growing confidence support the outlook for advanced economies, although the uncertainty generated by the referendum in the United Kingdom on EU membership will weigh on demand in that country.

The Bank of Japan has delivered its verdict, which guarantees the expansive approach of monetary policy, however, changing its center of gravity. Market participants have yet to digest the meaning of the statement from the Bank of Japan through the words that Governor Haruhiko Kuroda pronounced during press conference.

The biggest change announced by Japan’s central bank regards strategy: now, the Bank of Japan will introduce QE with "yeld curve control". The BoJ will no longer check the monetary base, but rates, both short and long-term, buying long-term government bond in order to ensure that the ten-year yields continue to hover around zero, then at current levels.

n the second quarter the balance of current transactions in Switzerland showed a surplus of 17.3 billion francs, 3.4 billion less than the same period last year and 7.9 billion more in the first quarter of 2016.

Total revenue reached 143.9 billion, the outputs 126.6 billion, the Swiss National Bank (SNB) reports in a press release today. The balance of goods and services amounted to +19.5 billion, one of the primary revenue up 1.5 billion and that of secondary revenues to 3.7 billion.

Australia confirms its flexible inflation target in the range 2-3%. In a joint statement, the Reserve Bank of Australia and the Australian Government reaffirmed the view that the flexible inflation target represents the right way to achieve price stability in the medium term, Treasurer Scott Morrison said in a statement. The stance comes in response to the debate on the correctness of this objective, in view of the sharp slowdown in inflation.

The president of the Bundesbank, Jens Weidmann believes that the ECB can not stand still for too long: "Under no circumstances can interest rates remain so low for longer than is absolutely necessary with regard to price stability" he said on Monday.

The number one of the German Central Bank also does not take sides in a positive way towards extension of the quantitative-easing plan, which will expire in March 2017, but at the same time makes it clear they do not want to take for granted such a decision.

The International Monetary Fund (IMF), after an year’s delay, has approved a $1 billion aid tranche for Ukraine from its $17.2 billion bailout program.

The IMF will disburse an additional $1 billion (889.3 million euros) to Kyiv, the fund’s first aid package for the country since the $17.5 billion program was held up in August 2015. The latest decision brings the total amount of aid disbursed to Ukraine by the IMF to $7.62 billion.
"The positive decision by the IMF is evidence that the world recognizes that reforms are happening in Ukraine, that real and positive changes are happening in Ukraine, and that the country is moving in the right direction," Poroshenko said in a statement.

The European Commission, in response to growing pressure around the former European Commission President José Manuel Barroso, decided to conduct an investigation in respect of the new ethics commission that the Portuguese has agreed in Goldman Sachs last July.

The Community executive chairman Jean-Claude Juncker made the announcement through a letter of response to the request for clarification received a few days ago by the European Ombudsman, Emily O’Reilly. The Secretary-General of the Commission, tells Juncker, has sent a letter to Barroso "asking him to provide clarifications on its nine responsibilities and the terms of his contract, on which – still the President of the Commission – will ask the opinion of an ad hoc ethics committee" which however is not binding.

After weeks of calm, the Vix index showed Friday night a real surge moving up 5 points from 12.5 to 17.5 points, + 40% in one day stock market, triggering a real bell alarm among international operators.

Soaring Vix was the prelude to the Wall Street meltdown. New York was in fact the first to pay the consequences; specifically the Dow Jones closed at -2.13%, S & P500 lost 2.45% while the Nasdaq closed at -2.54%. A first analysis indicates in the words of Rosengren, who on Friday had accused the Fed going to be laggard in raising interest rates.