Articles by The Corner


Where has the money withdrawn from Greek banks gone?

ATHENS | May 16, 2015 | By Manos Giakoumis via MacroPolis | Since December, the Greek banking system has been suffering from extended deposit outflows, which reached 26.8 billion euros at the end of March. Almost 90 percent of these withdrawals stemmed from time deposits, while only around 600 million euros was taken from savings accounts.

Difference between Net issuance of bonds and ECB purchases in 2015

ECB purchases will reduce the size of the tradable sovereign bond markets

MADRID | May 14, 2015 | BNP Paribas | Net issuance of sovereign bonds will exceed ECB purchases in May by c.EUR50bn. We believe this is why yields are going up. We also believe this is why they will come down again from June when ECB QE will again significantly outpace sovereign bond issuances (by c. EUR8bn in June and EUR90bn in July) 


Telefonica Q1 net profits surge beating expectations

The Corner | May 14, 2015 | Europe’s second-largest phone company reported a Q1 net profit of  €1.8 billion ($2.04 billion), versus a year-ago profit of €688 million. EPS climbed to 0.38 euro from 0.14 euro, while EPS from continuing operations slipped to 0.09 euro from 0.12 euro.



A shop in Germany

Eurozone industrial production: A strong Q1 (Barclays)

LONDON | May 13, 2015 | Barclays | Overall euro area IP rose by 0.9% q/q in Q1, the strongest growth in four years. This echoes the positive developments recorded by business surveys in the first months of 2015. Euro area manufacturing PMIs and the EC industrial confidence indicator hit eleven-month peaks in March and posted the highest quarterly average in Q1 since mid 14

Greek debt

How Greece kept its budget on track in Q1

ATHENS | May 11, 2015 | By Manos Giakoumis via MacroPolis Recent Greek budget data showed the huge revenue gap of 968 million euros recorded in January narrowed to 389 million by the end of the first quarter (Q1) of 2015. At the same time, primary expenditure, which was just 53 million better than target in January, displayed a strong outperformance of 1.18 billion by the end of March. 

ECB's reflection

“Apparent coordination of the Fed and the ECB to cool down the market rally”

The Corner | May 11, 2015 | Yellen’s words about stocks being overvalued and bond yields too low was a signal that investors should not expect to enjoy the Fed’s cheap money forever. ECB’s policymakers have also warned about risks in the financial system that can arise in a situation of protracted low interest rates and abundant liquidity. “It is positive that central banks may be working together to avoid potential bubbles, yet the problem isn’t stocks but bonds,” Bankinter analysts pointed out.

Tsipras and Varoufakis

Greece has more room to maneouvre than you think

The Corner | May 11, 2015 |  As Athens enters a critical week –it has to pay about €750 million euros ($837 million) to the IMF tomorrow and needs some sign of progress at today’s Eurogroup in Brussels–, very few voices are still talking about a Grexit scenario. “Greece will meet its commitment,” analysts at Bankinter stress. “In 70 years of the IMF’s History no developed country has defaulted.”


Negative bond yields

Does it make sense to keep buying despite negative yields?

The Corner | May 10, 2015 | Markets seem to be suffering from “uncertainty hangover,” as Bankinter analysts put it. They are worried about the short term, after the last US DGP weaker numbers and the decrease of appetite for German bunds. But isn’t that sensible to stop betting on negative yields? In the graph above: Current 10yr government bond yields across the EU. Source: Saint Louis Fed/Seeking Alpha.


No Picture

Volkswagen to make biggest industrial investment in Spain (€4.2bn)

The Corner | May 8, 2015 | German automaker Volkswagen announced its intentions to invest €4.2 billion in its Martorell and Navarra plants in Spain between 2015 and 2019. The amount almost equals what all car manufacturers have invested in the past three years. The VW group employs 22,000 people in Spain through its 12 brands.