The EU's cat-herder-in-chief fails to move the markets where he wants

Mario Draghi strained to have an effect, but to no avail.

Unfortunately all rather boring really – and not a little bizarre. Whilst S. Draghi seemed to be straining every sinew to give the impression that the market simply was not understanding the full significance of his message to the members of the Governing Council to "expect key interest rates to remain at present or lower levels for an extended period of time", he just couldn't quite get the market to play ball.

He could hardly have dropped more hints that we should be expecting rates to stay were they are, or move lower, for many, many quarters. He stressed (twice) that the ECB's Deposit Rate, could go lower, even though it is currently zero. He stressed that liquidity would remain ample, and if it didn't, he'd see to it (presumably with another Long Term Refinancing Operation, LTRO)

He even borrowed the Bank of England's assertion that "the current market pricing of rate hikes is unwarranted". Getting a little desperate, maybe, he emphasized the pathetic growth in money supply, and that lending by banks in the periphery was still very weak.

Despite all his efforts, futures markets remained steadfastly rooted to the spot by the time he finished, stubbornly refusing to extend their timescale for rate hikes, however he may insist they should. The euro weakened a little initially, but then recouped some of its losses – which may have been caused by a strong dollar anyway.

Perhaps the problem is that markets know he has the most unenviable role in major central bank leadership – he needs to be an Olympic-level Cat herder. Everything is compromise, mixed with liberal amounts of bowing and scraping to the Bundesbank. Therefore the markets are screaming "show us the money!" – until he actually cuts rates, or adds another LTRO, or firms up his forward guidance with depressingly distant economic thresholds, investors remain very sceptical of the current, "words are easy" form of forward guidance.

Finally, what about publication of ECB meeting minutes? They couldn't even reach a decision on this-Mr Draghi announced an intention to publish more specific information on decisions taken by the GC, but, the discussion is at an "early stage". The ECB board is to make proposal in the Autumn. Yawn.

Look for some, (but surely not all!), of these actions next month or in October.

Mario Draghi, the chief cat-herder of the EU. Photograph: Getty Images

Chairman of  Saxo Capital Markets Board

An Honours Graduate from Oxford University, Nick Beecroft has over 30 years of international trading experience within the financial industry, including senior Global Markets roles at Standard Chartered Bank, Deutsche Bank and Citibank. Nick was a member of the Bank of England's Foreign Exchange Joint Standing Committee.

More of his work can be found here.

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How the shadow cabinet forced Jeremy Corbyn not to change Labour policy on Syria air strikes

Frontbenchers made it clear that they "would not leave the room" until the leader backed down. 

Jeremy Corbyn had been forced to back down once before the start of today's shadow cabinet meeting on Syria, offering Labour MPs a free vote on air strikes against Isis. By the end of the two-hour gathering, he had backed down twice.

At the start of the meeting, Corbyn's office briefed the Guardian that while a free would be held, party policy would be changed to oppose military action - an attempt to claim partial victory. But shadow cabinet members, led by Andy Burnham, argued that this was "unacceptable" and an attempt to divide MPs from members. Burnham, who is not persuaded by the case for air strikes, warned that colleagues who voted against the party's proposed position would become targets for abuse, undermining the principle of a free vote.

Jon Ashworth, the shadow minister without portfolio and NEC member, said that Labour's policy remained the motion passed by this year's conference, which was open to competing interpretations (though most believe the tests it set for military action have been met). Party policy could not be changed without going through a similarly formal process, he argued. In advance of the meeting, Labour released a poll of members (based on an "initial sample" of 1,900) showing that 75 per cent opposed intervention. 

When Corbyn's team suggested that the issue be resolved after the meeting, those present made it clear that they "would not leave the room" until the Labour leader had backed down. By the end, only Corbyn allies Diane Abbott and Jon Trickett argued that party policy should be changed to oppose military action. John McDonnell, who has long argued for a free vote, took a more "conciliatory" approach, I'm told. It was when Hilary Benn said that he would be prepared to speak from the backbenches in the Syria debate, in order to avoid opposing party policy, that Corbyn realised he would have to give way. The Labour leader and the shadow foreign secretary will now advocate opposing positions from the frontbench when MPs meet, with Corbyn opening and Benn closing. 

The meeting had begun with members, including some who reject military action, complaining about the "discorteous" and "deplorable" manner in which the issue had been handled. As I reported last week, there was outrage when Corbyn wrote to MPs opposing air strikes without first informing the shadow cabinet (I'm told that my account of that meeting was also raised). There was anger today when, at 2:07pm, seven minutes after the meeting began, some members received an update on their phones from the Guardian revealing that a free vote would be held but that party policy would be changed to oppose military action. This "farcical moment", in the words of one present (Corbyn is said to have been unaware of the briefing), only hardened shadow cabinet members' resolve to force their leader to back down - and he did. 

In a statement released following the meeting, a Corbyn spokesperson confirmed that a free vote would be held but made no reference to party policy: 

"Today's Shadow Cabinet agreed to back Jeremy Corbyn's recommendation of a free vote on the Government's proposal to authorise UK bombing in Syria.   

"The Shadow Cabinet decided to support the call for David Cameron to step back from the rush to war and hold a full two day debate in the House of Commons on such a crucial national decision.  

"Shadow Cabinet members agreed to call David Cameron to account on the unanswered questions raised by his case for bombing: including how it would accelerate a negotiated settlement of the Syrian civil war; what ground troops would take territory evacuated by ISIS; military co-ordination and strategy; the refugee crisis and the imperative to cut-off of supplies to ISIS."

George Eaton is political editor of the New Statesman.