Articles by Francisco López

About the Author

Francisco López
Working for more than 25 years in the world of journalism and communications, Francisco has gained valuable experience at several well-known newspapers such as El Mundo and La Vanguardia. He specialized in economic and financial news before making the leap to the corporate communication sector where he has held several positions: Adviser to the Ministry of Economy, Director of the Bank of Spain’s Communication Department, in addition to his consultancy role at Analistas Financieros Internacionales, where he currently works.
Bank of Spain

Should Spain’s Banks Worry About A Debt Bubble Burst?

The Bank of Spain’s (BoS) Financial Stability Report usually puts its finger on the problem when it highlights the main risks affecting the banking business. As well as low interest rates and the deterioriation in both Spanish and global economic prospects, the BoS’ latest report points to another factor which has not warranted so much attention: the decline in the prices of financial assets, both in fixed income securities and equities.


telefonica.bonita

Telefonica Holds Up Well In The Stock Market After Dividend Cut

Telefonica’s stock price held up much better than expected after the multinational announced it will cut its dividend this year and next. The shares finally closed down 1% after falling as much as 4% in the first few hours of the session. It seems that investors have understood that, on the one hand, it is the company’s best option for reducing debt; and, on the other, that the dividend yield is still very attractive.



zero-rates

Do Low Interest Rates Really Penalise The Financial Sector That Much?

Are extremely low interest rates good or bad for the economy? Is is it true that they are seriously damaging the profitability of the banks and insurers? The debate over the suitability of the zero interest policy driven by the central banks is heating up between the monetary authorities and the financial sector.


Reflections are seen on a logo of Spain's telecommunications giant Telefonica in Madrid

Telefónica saves the day with 4-year and 15-year bond issues

It’s definitely not Telefónica finest hour. Problems with the possible listing of its UK affiliate O2 after the pound’s slump can be added to the fiasco with the IPO of its infrastructure subsidiary Telxius. The company is worried about having its rating cut and it doesn’t know how it can cut its massive 52 billion euros debt pile. But on Monday it returned to the debt market and successfully placed 2 billion euros in 4-year and 15-year bonds.



Telefonica's results

Telefonica’s Blown It With Telxius IPO

These are not good times for IPOs. Telefónica has been obliged to cancel the IPO of its infrastructure affiliate Telxius, with the agreement of the placement banks. With the stock market listing, Telefonica had hoped to reduce its hefty debt pile of over 52 billion euros. But market pressure has forced it to backtrack. Telefónica’s shares opened down 4% on Friday. So far this year, the shares have still lost over 8%.


populardestello

Banco Popular announces lay offs, branch closures to get itself out of a jam

Banco Popular has had no other option but to take drastic measures to get itself out of a jam. The huge amount of impaired property assets on its balance sheet has forced the bank to make two capital hikes worth 5 billion euros, restructure the organisation, which includes the appointment of a new CEO and announce that it will lay off 3,000 employees and close 300 branches.


Bank of Spain

Spanish Banks Can Breathe Again: Bad Loans Fall While New Lending Grows

The Spanish banking sector earned 28% less in the first six months of the year, it has profitability problems and has seen almost half of its stock market value wiped off in the last two years. But there are two indicators which inspire optimism in the medium-term: bad loans continue to fall and there has been a strong rise in consumer credit as well as in lending to non-property companies.


JunckerTC

The Junker Plan: Much Ado About Nothing

There has been a lot of song and dance about extending the ‘Junker Plan’ to promote investments of up to 630 billion euros over the next six years. But the fact is that, up to now, projects worth 116 billion euros have been approved under the auspices of the Plan, according to the European Commission (EC)’s own estimates.