European Central Bank President Mario Draghi laid out plans on Thursday to buy debt as part of the central bank's latest stimulus programme. Reuters reports:
He outlined an ECB program to buy reparceled debt known as asset-backed securities as well as covered bonds, secured on solid assets such as property, and raised the prospect of bolstering this market and, in turn, lending.
It is a scheme that will start in mid-October for covered bonds, with other purchases of asset backed securities following before the end of the year. Draghi said the potential 'universe' for the type of debt that the ECB was interested in was up to 1 trillion euros, although ECB buys may not be that high.
Meanwhile, in the US, the Commerce Department reported on Thursday that factory orders fell 10.1 percent in August, the biggest decline on record, as aircraft orders reversed the jump in July. Excluding transportation equipment, orders fell 0.1 percent.
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