Articles by The Corner

Euclid Tsakalotos

Euclid Tsakalotos: The faces change, the issues remain the same

ATHENS | April 28, 2015 | By Nick Malkoutzis via MacroPolis Such has been the impasse between Greece and its lenders over the last three months (add a few more on if you want to look beyond just this government’s shortcomings) that markets reacted with some joy to the news on Monday that one inexperienced economics professor is replacing another as the central figure in Athens’s negotiations with creditors.


Eurostoxx 50 analysis | ENEL

The Corner | April 28, 2015 | ENEL is Italy’s largest integrated power company and is characterized by its global exposure. Leader in its two main markets: Italy, where possible revisions of regulation would already be discounted, and Spain, where there is currently a certain regulatory calm, ENEL has made public a strong bet on emerging markets. We think that its change of dividend policy is positive and achievable, once it has lowered its indebtedness at levels of 2.4x EBITDA’14.

Euro coins

How much are Spanish banks worth?

MADRID | April 25, 2015 | By Ofelia Marín-Lozano | The Euro Stoxx 50 banking index traded at 450 points in 2007It fell to 70 during the crisis and in the last two years has recovered up to 160 points. In parallel, the profit of large listed Spanish banks fell between 2007 and 2012 to levels around a quarter of the previous highs. Since then it has been recovering, although at the end of 2014 it still was at around 50% of 2007 levels.

euro Greece

A lot of Greece worries are already priced

The Corner | April 24, 2015 |  Greek PM Tsipras is expected to meet with Chancellor Merkel on the Eurogroup sidelines on Friday. The next key focuses will be the IMF payment (€200mn) on 1 May and the Eurogroup meeting on 11 May. But as Barclays analysts remind, lot of worry is already priced; Greek spreads tightened  for a second day.

US earnings season

The game of US earnings season’s big day

The Corner | April 2015 | Welcome to the heart of earnings season, with one-third of the S&P 500’s firms reporting today –Google, Amazon, Pepsico, Procter & Gamble and Starbucks amonth them. Analysts are pointing that 75% of the companies have beat forecasts, which is better than the 63% average since 1994. “Everyone knows the game: analysts reduce investors’ EPS expectations so firms can beat them,” experts at Link commented.

european equities

Beware of corrections: Revisions for Euro Stoxx 50 best in five years

The Corner | April 23, 2015 | European equities fell on Thursday, earnings news and economic data from China and the euro zone were worse than expected. But if we take a look at the big picture, analysts are improving their forecast following the better eurozone activity and confidence indicators and begin to revise upward their forecasts for corporate profits. Euro Stoxx 50 revision is of 1.4 times, the best number in five years.

spain unemployment rate

Spain unemployment rate climbs to 23.78% although more jobs reported

The Corner | April 23, 2015 | The number of unemployed Spaniards decreased in the first quarter of 2015 by 13,100 people, and reached the figure of 5,444,600, according to the official Employment Active Population survey released on Thursday (23.78% of the active population). “The employment survey seems to be the only one of which the government is not afraid,” famous radio host Carlos Alsina ironized, referring to Mr Rajoy’s cabinet struggle to contain the fallout from a tax investigation against former senior leader of the party and IMF head Rodrigo Rato.