Equity markets rallied yesterday after the expected announcement by Mario Draghi that the European Central Bank (ECB) will indeed be supporting indebted European governments. He pledged the ECB will consider to purchasing their government bonds in a new programme dubbed Outright Monetary Transactions. These would be bought in the secondary market, and not indirectly from the governments and Draghi stipulated that this would only happen after the governments had sought financial aid from the European Financial Stability Facility (EFSF). Stock markets rallied across Europe and the US after the announcement by Draghi confirming the market rumours, with the S&P 500 hitting its highest level in 4-years.
The botched Facebook IPO has seen criticism from many angles, be it the technical fault of the first trades or simply an overvaluation for a company with flattening growth. Facebook has admitted that a larger proportion of its users access their social media platform via mobile devices, and that as of current they find it difficult to monetise. Interestingly a report published by EMarketer suggests that Twitter will generate almost twice as much revenue in 2012, from mobile advertisements in the US, than Facebook will. Though the two platforms are different, both have seen a large amount of noise surrounding how they will monetise the large amount of users. However as access goes mobile, Twitter seems to be winning the first round in revenue.
There is a raft of data out from the UK this morning including manufacturing and industrial production. These figures will help to show a direction for the economy and if it is beginning to recover following the flat lining readings from GDP.
Today is the first Friday of the month, which mean the key employment figure Non-Farm Payrolls is released. As always expect considerable volatility around the announcement, with a medium expectation of 125K.
Investment banks including Nomura, Credit Suisse and UBS plan to cut jobs in Europe as the seek to cut cost – Financial Times
P&O Ferries reviews business as EU woes deepen-The Daily Telegraph
The Japanese bank Nomura is to cut job's in London as part of $1bn shake up to cut costs – CityAM
UBS is being sued by a US regulator, over claims that the Swiss bank mis-sold mortgage-backed securities to two US credit unions – CityAM