Articles by The Corner

Grexit no

Greece and common political sense

LONDON | Sigrún Davíðsdóttir | Forget economics, politics is key to understanding the Eurozone. The cries of  “Grexit”  lately have mostly been a repetition of an earlier discourse: in February 2012 Citi’s economists Willem Buiters and Ebrahim Rahbari coined the term “Grexit,” by July 2012 estimating its likelihood to 90%. Cheered on by the media, economists have taken over the debate of the Eurozone which is why much of it has been such a futile exercise: it is not economics, which ties the Eurozone together but the political determination of its leaders to make the euro work. With political will likelihood of any exit is 0. Ergo, Grexit is as unlikely now as it has always been in spite of the EU brinkmanship. One route Greece seems to be exploring is a tried and tested one: the “bisque clause” from 1946.


BP's Andrew platform in the North Sea

BP difficulties a sign of the times for oil companies?

MADRID | By Ana Lopez Varela | Cutbacks and balance sheet losses at the British oil giant are indicative of a more widespread malaise afflicting the oil industry. While there has been a correction in profit forecasts, firms are likely to adjust their business model accordingly.


No Picture

D-Day as Varoufakis lands in Germany

MADRID | By Sean Duffy | Today is a massive day for the euro zone. The outcome of negotiations between Greek politicans and  European bosses will be closely monitored by markets and euro zone partners alike. With Greek banks under pressure, a deal needs to be agreed soon.

 




Prototyp der Siemens 4-Megawatt-Windturbine / Protype of the Siemens 4 megawatt wind turbine

Eurostoxx 50 analysis | Siemens (SIE)

MADRID | The Corner | Siemens (SIE) is the world leader in engineering, with a significant geographic scope (presence in 190 countries). Europe remains the company’s largest market, with 51% of its sales (14% in Germany). America represents 29% (20% USA) and Asia 20% (8% in China).


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Greek odyssey to dominate the week ahead

MADRID | By Sean Duffy | Markets will be looking to how relations between the new Greek Government and European creditor nations play out in the week ahead. After a week of tense negotiations, the stakes are increasing all the time. Greek claims of insolvancy have irked its eurozone partners, but can all sides find a middle ground in the coming days?



italian banks

Italian banks: It’s the end of the world as we know it

LONDON | BNP Paribas | Over the years we have abstained from discussing M&A scenarios among Italian banks as we always deemed it highly speculative. However we believe the proposed reform of the Italian Popolari banks (forcing them to demutualise within the next 18 months) changes everything with defensive M&A among small and mid-cap banks a distinct possibility. 

 


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Qatar Investment Authority secures majority stake in IAG

By Sean Duffy | MADRID | The announcement on Friday of the Qatar Investment Authority’s purchase of 9.99% of IAG is the latest flexing of financial muscle from the Gulf state. QIA continues to grow its portfolio in Europe, having already invested over €13bn in Spanish companies since the beginning of the crisis.