Le billet of Monocle

A new rabbit out of the hat?🐇

21 June 2022

A tanker truck.

That's about the size of the wizard's hat of one of Europe's most important financial institutions: the ECB.

In the spin category, we can hardly do better than what its leaders announced last week.

Indeed, you may not know it, but one of the most followed indicators to measure the economic unity of our dear continent is the "spread" (the risk premium if you prefer a less financialo barbaric word) between Italian and German government bonds. When this indicator is low everything is fine, and when it rises everything goes south.

But last week, concerned about its sharp rise, the ECB's bosses decided that they absolutely had to intervene and announced a new "super reunification tool". The only problem is that they seem to be short of rabbits (for those who know, the dove is certainly a more appropriate animal in this context) to pull out of their magician's hat.

Indeed, after the implementation of a panoply of measures following the eurozone crisis of the 2010s, and then the one of the 2020 covid (and with no effort to regain room for manoeuvre since), it seems that there is not much more that can be done

So the million-dollar question: a new rabbit? Or a monumental flop?

To be continued,

Great week,



This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

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