ECB president speaking as scheduled in Davos
- US hike signalled improving economy
- different mon pols in US and Europe reflect different state of economies
- will be on diverging path for a while
Nothing of real note so far, but "flawlessly executed" US rate hike? Hardly
- too early to speak of change in sentiment in 2016
- there is heightened sensitivity to risk
- recovery to continue at modest pace
- drivers of European recovery are mon pol, oil price, neutral fiscal policy
- fourth driver likely to be increase expenditure on refugees
- less optimistic on inflation moistly due to oil prices but also downward revisions of growth in EM economies
Euro suitably unfazed as Draghi springs no shocks so far
