MADRID | By Francisco López | Market watchers have something in common with journalists: they prefer criticism rather than compliments –as can be seen from the analysis of the European Central Bank’s stress tests. Criticism is growing, even though markets had already envisaged the results and neither the institution nor Mario Draghi is willing to defend the banking examination.
Articles by Francisco López
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MADRID | By Francisco López | The strength of the dollar –which is in maximum levels and has appreciated by almost 11% against the euro since January 2014, has started to cast doubt among market watchers. Some experts consider that such strong appreciation does not correspond to Janet Yellen’s cautious decisions or to the low inflation expectations at a global level, which leaves room to central banks to maintain loose monetary policies.
MADRID | By Francisco López | Economic confidence dropped again in September to mid-2009 levels highlighting a worsening of the economic malaise in the Eurozone (EZ). The PMI Index fell 1.1 points to 85 points, well below the long term average (100points).
MADRID | By Francisco López | Up to this point, investors had scarcely listened to economists’ warnings about world economic stagnation, but in the last number of days the situation has changed as commodities’ prices dropped, with debt and equity markets beginning to exert some pressure.
MADRID | By Francisco López | Spanish banks face into the new era of banking union with their homework successfully completed, both in terms of adjustments and efficiency in the stress tests. Their balance sheets are healthy, although now a new challenge awaits: how to improve profitability in an adverse economic cycle, with rates close to 0% and with credit lending remaining worryingly low.