MADRID | By Julia Pastor | Christine Lagarde, Managing Director of the International Monetary Fund and Mario Draghi ECB’s president were in the same Davos panel on Saturday. Both talked about signs of recovery across the world and the euro zone. However, as she said that deflation potential risks in the euro zone must not be ignored, he minimized danger and insisted once more that the bank is prepared to deploy a QE’s policy if deflation appeared.
Articles by Julia Pastor
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MADRID | By Julia Pastor | The same day Spanish banking system credit line was officially cancelled, the country issued a record 10-year bond amounting €10 bn. The syndicated bond sale was strongly oversubscribed by almost four times the sum on offer, just beaten by €44bm of EFSF first issue.
MADRID | By Fernando G. Urbaneja and Julia Pastor | The depressed Spanish real state sector wakes up slowly, and hopefully, steady thanks to Inmobiliaria Colonial and Realia, two midcap construction companies, which went through the sorrows of housing markets crash. The first is involved in a €1 billion capital increase; the second is said to be bought a major stake by Amancio Ortega, Inditex chairman and third world’s wealthiest businessman.
MADRID| By Julia Pastor| Far from resolving the strife over additional costs to finalise Panama Canal’s third set of locks, actors involved are apparently working on different positions. Spanish company Sacyr, which leads the consortium undertaking the expansion bet on an agreement since the beginning, but the Panama Canal Authority has not smoothed the path, even rejecting EU’ mediation. Last Sacyr’s offer considers to cofinance the project. PCA’s answer has been a different proposal for using the infrastructure’s insurance as a guarantee to get external financing and terminate the works. The deal remains blocked then.
MADRID | By Julia Pastor | France just started to go through its new year’s checklist. President Hollande announced last week budgetary cuts of €50 billion for 2015-2017, in addition to those €15bn revealed in September. The country urgently needs to increase revenues and it could do it via the sale of state-owned companies stakes such as a French and European reference like Airbus.
MADRID | By Julia Pastor | The European Parliament and the EU’s governments have just signed an agreement to develop a law that reinforces controls over high frequency computerized stock exchanges trading, in order to avoid sudden collapses of markets. To minimize the systemic risk, the algorithms will have to be examined and authorised by regulators.
MADRID | By Julia Pastor | The ECB confirmed on Wednesday that held-to-maturity sovereign exposures portfolios will not be punished, and consequently marked-to-market, in the financial system stress test to be performed at the end of 2014.
MADRID | By Julia Pastor | Prisa, the symbol of the transition from Franco’s dictatorship to democracy, was born in 1972 as a family-owned business but since the end of 2010, the major company’s owner is US hedge fund Liberty Acquisitions Holdings with a stake of 51%. Prisa has recently carried out a new capital increase and all signs suggest that it could start to disinvest some of its more precious assets with the aim of cutting its overwhelming debt to the minimum. Poor management decisions taken along the way? Many workers don’t hide their disappointment with the firm and say things will never be the same.
MADRID | By Julia Pastor | The UK is the European country which has given more financial support to its banking sector with €82.000 millions since 2008, followed by Germany (€64.000 millions), Ireland with €63.000 and Spain with €60.000, according to an European Comission’s report.
MADRID| By Julia Pastor | Spain’s credit quality and solvency is increasingly improving. The country’s risk premium closed at 219 basis points on Tuesday to its lowest level since June of 2012, and under Italy’s. Also Spanish 10-years bonds neared 4% yield, more than double than the German ones. Public debt investors do not have much better options.