Global equities have held up fairly well in light of the generally negative news flow, entirely driven by the United States, where stocks are up 9.6% year to date, while the euro area, Japan and emerging markets have underperformed. In this context, the Research team from AXA IM points that earnings momentum remains “robust” with the second quarter earnings season posting “positive growth” and “surprising” on the upside across most major regions.
Small companies are quite easy to ignore. After all, analysts rarely cover them, you may not have heard of them, and you are unlikely to have their products in your home. However, “small companies are often the ones that offer the biggest potential”, as said by analysts at Wisdom Tree.
This year the end of summer has not just been bad but really bad for the Spanish labour market. The number of unemployed in Spain increased in August by 47,047. To find a similar rise in August you have to go back to 2011. Also the number of people that signed up to social security fell by 202,996, the worse data for August since 2008. Finally, the day 31 August became the one when the most jobs were destroyed in history.
Spain is behind the UK and followed by the Netherlands in the provision of basic (transactional) services to its customers, with prices 58% lower than the average of seven countries analysed. Germany is at the other extreme with an average annual price of 181 euros.
The recently elected President of Mexico, Andrés Manuel López Obrador, wants to stop or, at a minimum, reconsider the construction project for the international airport of Mexico City, which was awarded to a consortium in which Spanish FCC and Acciona participate.
Just a year ago Amadeus was left just outside the EuroStoxx50, the main stock market index in the Eurozone. But this year´s revision has guaranteed, at last, its entry, which will take effect on 24 September. Amadeus will join other Spanish companies which form part of the index such as Santander, BBVA, Iberdrola, Telefonica and Inditex.
Jeremy Stevens via Caixin | When the Forum on China-Africa Cooperation (FOCAC) was established in 2000 to strengthen China-African economic cooperation and trade, the rest of the world was perhaps bemused. Bilateral trade and investment was minimal and African economic prospects unpromising. Now, just 18 years later, China is Africa’s largest trade partner and bilateral trade and investment ties are growing rapidly.
Justin Irving | The word “boom” evokes some temporary period of above-average economic growth. The Roaring 20s, the plentiful 50s and 60s and the Dot Com era. Because booms are characterized by unexpected levels of economic growth, asset prices, which had not priced in the growth, rise sharply. Is this what is going on US economy today? Not quite.
The message unanimously churned out by politicians, central bankers, and ‘mainstream’ economists is that central banks are there for the ‘greater good’. However, accoding to a market report from Degussa, “unfortunately, nothing could be further from the truth.”
Caixabank Research | Spanish imports could be growing because of the composition effect, through which the components of demand of greater import intensity increase their weight in total demand, or because the import intensity of each component is increasing, which would be more worrying.