Draghi Says ‘Darkest Clouds’ Over Europe Have Subsided
By Stefan Riecher - Jan 23, 2013 12:05 AM PT
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European Central Bank President Mario Draghi suggested the worst of the sovereign debt crisis may be over, saying the “darkest clouds’ over the euro area have lifted due to decisive policy steps last year.
2:32
Jan. 21 (Bloomberg) -- Those who predicted a split in the euro zone at the 2012 World Economic Forum's annual meeting in Davos, Switzerland, have been proven wrong as policy makers managed to protect the union in the past year. Bloomberg's Baden Campbell reports. (Source: Bloomberg)
4:31
Jan. 23 (Bloomberg) -- Kenneth Rogoff, an economics professor at Harvard University and a former chief economist at the International Monetary Fund, talks about Europe's sovereign-debt crisis and the U.S. economy. Rogoff speaks with Tom Keene on Bloomberg Television's "Surveillance" on the sidelines of the World Economic Forum in Davos, Switzerland. (Source: Bloomberg)
“We can begin 2013 on a more confident note, precisely because significant progress was made during 2012,” Draghi said in a speech in Frankfurt late yesterday. “The darkest clouds over the euro area subsided. Europe’s leaders recognized that monetary union needs to be complemented by a financial union, a fiscal union, a genuine economic union and eventually a deeper political union.”
Draghi’s comments are the latest to indicate the ECB chief is increasingly confident that the three-year debt crisis has been contained and that the 17-nation currency bloc can emerge from recession later this year. He defended the ECB’s so-far untapped bond-purchase plan, which has calmed fears of a euro break-up on financial markets, saying it is fully in line with the central bank’s price-stability mandate and doesn’t threaten its independence.
“The ECB remains steadfastly committed to its primary mandate of ensuring price stability,” he said. “All of our measures are designed to achieve this goal. And looking at current and expected inflation rates, there is simply no evidence that could substantiate fears about any deviation from price stability.”
The euro was little changed after Draghi spoke. It fell 0.2 percent to $1.3292 at 9 a.m. in Frankfurt today.
Economic Recovery
While the ECB expects the euro-area economy to shrink 0.3 percent in 2013, Draghi said this month he expects a “gradual recovery” to begin later in the year.
Many countries are making solid progress in bringing their public finances under control and making structural reforms to increase competitiveness, he said yesterday.
“We need patience,” Draghi said. “I am very well aware that for many people in the countries under adjustment, the personal economic situation can be very difficult. But there is simply no alternative to the path of reform.”
Europe is making progress that some commentators had thought impossible only a year ago, he said, citing the Economist magazine’s prediction at the start of 2012 that a United States of Europe was “utterly beyond reach.”
Making the ECB a single European bank supervisor this year is a “major organizational challenge” and “probably the most significant integration step since the Maastricht Treaty,” he said.
In most areas where more integration is needed, “Europe is moving forward or is already there,” Draghi said. “The ambition is not utterly beyond reach.”

ecb chief confirm worst is over for euro zone

MAJOR BREAKOUT FOR ASIA PACIFIC O&G INDEX AFTER ALMOST 2 YRS OF CORRECTION. GOOD TO SAPU MORE KNM SINCE CO IS A BIG REGIONAL PLAYER AND DOWNSIDE IS VERY LIMITED. http://i1311.photobucket.com/albums/s661/einvest88/djasiapacogindex_zpsb46ca8bd.png

sapu kuat kuat knm...co no doubt worst is over....if the worst country in Euro zone, Greece composite index can up 150% in few months..what do u think about Euro zone economy? Still in bad shape? Always remeber market move 6-9 mths ahead of economy. Wait till u c economy stats then KNM price may oledi hit the moon.

http://i1311.photobucket.com/albums/s661/einvest88/coastaldaily_zps3a113984.jpeg


http://i1311.photobucket.com/albums/s661/einvest88/COASTALWADAILY_zps05f31f86.jpeg

Both coastal & coastal wa finally making a breakout with short term target of 2.60-2.70 and 0.63. Now is best time to buy coastal wa.

if history repeat then TP 1.40-1.50 possible hit in 1-2 month time

http://i1311.photobucket.com/albums/s661/einvest88/knmweekly_zps34b35641.jpeg

[IMG]http://i1311.photobucket.com/albums/s661/einvest88/knmweekly_zps34b35641.jpeg[/IMG]

TECHNICALLY KNM MADE A STRONG BREAKOUT JUST LIKE YEAR 2009 AND 2010. BIG VOLUME SUPPORT AS SEEN IN THE WEEKLY CHART. CURRENT BREAKOUT WITH A PRICE TARGET OF AROUND 1.40-1.50.

everyone know best time to buy stock is when economy confirm fall into recession. Europe zone is now confirm in recession. 60%+ of rev income for KNM contributed by Europe market. The rev income was up consistently over last few years even though this market was not gd. The profit down mainly because of higher interest expense paid for the investment in Borsig. If Europe economy confirm recover in the 2nd half of 2013 (many big guns oledi expecting it) then KNM share price will be very high by then.

Stoxx 600 index track the Europe zone market. this index was break above the long term downtrend line. That means they have seen the worst and the market is on recovery. Another 1 to 2 quarter then will reflect in economy. By then KNM price will be very high. So the best time to buy is now.

u have done a an excellent job. Last 2 yrs rebound likely to be major wave B since there is lack of transaction volume across global market. If we look at Asian financial crisis, there was 2 stages. Stage 1 is interest rate scenario and stage 2 is credit rating. In Asian crisis, the 2 stages came in very close, mainly because there is no powerful QE policy to prolong the process like what was happened in US. When will be the crisis end? If we refer to Asian experience, it will have to drastic cut in spending and partially default of bond. Both measures are with aim of cutting cash outflow. Since with the 2 QE program unable to promote growth to generate enuf future income via borrowing future money, then will have to make drastic decision to stop bleeding. If such scenario do occurs then likely that market is reaching the bottom.

when sell when market at the bottom and begin another super bull cycle?

ya..huge huge bulllllll with qe3 coming

OPPORTUNITY FOR NEXT BIG BULL CYCLE COMING.....

minor break may not be confirmed just like what was happened in March 2003. Looking at the chart, likely that reaching bottom and a last impulsive wave around the corner.