Articles by The Corner


Dublin gets its house in order as bell tolls for “The Double Irish”

MADRID | By Sean Duffy | The Irish Government presented its budget on Tuesday, keen to present the announcement of its projections for the year 2015 as the successful consequence of prudent fiscal planning. Critics have pointed out that it is much of the same, yet with the economic picture improving, the Government has sought to offer a respite from austerity, whilst also attempting to address the outstanding concerns of its international partners.

industrial production

Poor EZ macro data raise odds for QEII

MADRID | The Corner | Further evidence has emerged that the euro area recovery is at risk. We acknowledge that German data were distorted by technical factors… but we still think underlying momentum is fading in Germany,” Barclays’ François Cabau commented. And that means, for an increasingly number of experts, that the prospect of QE II is becoming more entrenched. Some believe it could happen before New Year.


EU stocks

EU stocks tremble ahead of weak German Confidence Report

MADRID | The Corner | Only highly positive US corporate results will cheer EU stocks today, which started fallling for a sixth day, the longest streak in almost three years, as investors awaited a German Confidence report plunging to its weakest level in 23 months. 

The President of the German Constitutional Court Vosskuhle with other judges of the second senate opens a hearing at the court in Karlsruhe

EU: Challenged OMT is back in town

MADRID | The Corner | The European Central Bank’s Outright Monetary Transaction (OMT) will be back on the front pages on Tuesday. The European Court of Justice (the EU’s highest tribunal) will have to respond to the challenge of German judges, who said the OMT can be seen as monetary financing of governments, banned in  EU treaties. “Every time the monetary union takes a step forward, German individuals and/or civil or political groups file a case with the Constitutional Court in Karlsruhe,” our senior analyst Luis Martí commented.


How far will Italy’s labour reforms go?

MADRID | The Corner | Italian PM Matteo Renzi won the Parliament’s confidence vote on Italy’s labour reforms on Thursday, the most importan in his 8 months in the job. As the country’s economy has been stagnated for two decades, many wonder how far the center-left government’s plans will go. The current jobless rate of the eurozone’s third biggest economy is above 12% (44% youth unemployment). “Italy must reduce the proportion of workers on temporary contracts in the overall work force, but the details yet to be unveiled remain critical to assess whether it represents a true game-changer or not.” analysts at Barclays commented on Friday.

No Picture

The high yield investment case revisited

Guest Post by Olivier Debat (UBP) | High yield CDS indices combine a liquidity advantage, an interest rate advantage (no exposure) and a valuation advantage. Thus, we believe that investors concerned about high yield liquidity, its sensitivity to rates or its valuation should switch to high yield CDS indices to gain exposure to the high yield market.