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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.
banca españa

Spanish economy 13th January 2016

Spanish banks’ stock market via crucis continues into 2016

Spanish banks’ market capitalisation is still in the doldrums. Six of the seven lenders listed on the Ibex 35 occupied the top positions in the ranking of European banks with the worst stock market performance in 2015. And investors are continuing to punish Spain’s banking sector at the start of 2016. Analysts agree that profitability is the problem for Spanish banks. And, as the Bank of Spain insists, one solution could be a new wave of mergers, which would probably affect the mid-sized lenders.

stock markets indices

World economy 17th December 2015

Analysts bet on European bourses in 2016

Most analysts think that the European stock markets, and particularly the Spanish bourse, have taken an excessive beating over the last few sessions. Now fund managers are recommending to take advantage of the recent correction to buy into these markets. In their opinion, the recovery in activity in the euro area will be accompanied by an improvement in share prices in the coming months.

draghi2

In Europe 4th December 2015

Draghi Disappoints Markets With His “Mini” QE2

Expectations for Draghi’s second QE programme were running so high that, in the end, he disappointed the markets. Investors had bet on more aggressive stimuli, so the European stock exchanges tumbled over 3% at the close (having been in positive territory mid-morning). The euro jumped to over 1,09 dollars (its biggest rise since March) and European debt registered its largest increase so far this year.

The paradox of the ECB long-term refinancing operations

In Europe 2nd December 2015

The Collateral Damage From The ECB’s New Measures

The market has already priced in that the ECB will adopt new monetary stimulus measures at tomorrow’s meeting, which in theory should boost growth and inflation in the eurozone. Analysts agree that more aggressive measures are necessary, but due care must be taken not to damage financial stability.

parity euro dolar

Markets 24th November 2015

Can The Euro Achieve Parity With The Dollar?

The euro started off the week trading momentarily below 1,06 dollars, its lowest exchange rate since mid-April and bringing it ever nearer to parity with the “green back.” The question being asked by many investors now is whether the euro will achieve parity with the dollar in 2016. There are all sorts of forecasts, but the current majority opinion is that the euro has very little downside left.

BEI

In Europe 19th November 2015

Eurozone Recovery: The ECB, EIB And The Large Companies’ Role

The market has already discounted that the ECB will announce new stimulus measures on December 3rd, modifying the current debt purchasing programme. But monetary policy only goes so far, and apart from the central bank’s measures, the Eurozone needs more public and private investment to recover its growth potential.

ibex cools

Ibex 12th November 2015

Ibex performance: a year for stocks, not sectors

The investor (or fund manager) who wants to have an idea of how the Spanish stock market is doing by looking at the sector index could be stepping into a trap. There can be a vast difference in profitability between one stock or another in the same sector.

rajoy europe

In Europe 6th November 2015

Brussels gives Spain a pass mark on growth, but fails it on deficit

The Spanish economy is in the “champions league” in terms of GDP growth, but has failed the deficit, unemployment and debt exams. The autumn forecasts from the European Commission raised the deficit non-compliance to 4.7% of GDP for this year and 3.6% for 2016, well off the levels of 4.2% and 2.8%, respectively, previously agreed with Brussels.

Ibex35TC

Ibex 5th November 2015

The Ibex is overcoming weak corporate results

Lately the markets are moving more to the beat of the big central banks’ drums than to the trend in corporate earnings. That’s the only way to explain how the Ibex is saving face, given that third quarter results presented so far (by 20 out of the 35 companies in the index) are 16% lower than expected, according to Bloomberg.

bancoscentrales

World economy 27th October 2015

Is Leaving Everything To The Central Banks A Good Idea?

The markets sway to the rhythm of the central banks, but it’s not clear that monetary policy alone can solve the serious economic problems affecting most of the planet. Perhaps it would be a good thing to take heed of Summers idea that it is preferable to back productive investment and not the creation of bubbles supported by low interest rates.