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Articles by The Corner

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
Rajoy presu

Spanish Politics 1st June 2018

If The New Spanish Government Complies With General Budget, Economic Growth Should Not Be Derailed

In Spain today all eyes will be on the voting on the no-confidence motion which we expect will be successful. Unless current Prime Minister Mariano Rajoy decides to resign ahead of the vote. So everything points to PSOE leader, Pedro Sánchez, becoming the new Prime Minister. It looks like he will not propose new elections immediately, which we believe will prolong the political instability in the country.

Turkey

In Europe 1st June 2018

Turkey Has To Win Investor Confidence

The situation in Turkey is a good example of the negative consequences of stances which call into question the independence and credibility of the central banks. Currently, the deteriorating credibility of Turkey’s institutions make it fairly difficult for actions like the increase in rates (last week they were raised by 300 bp) to attract capital flows.

Testa aims to consolidate with its listing its position as property ‘giant’

Markets 31st May 2018

Testa Delays Its IPO Due To Political And Market Instability

The shareholders of the Testa Residencial, Santander (37%), BBVA (26%), Acciona (20%) and Merlin Properties (17%), have finally chosen to list the Socimi on the MAB instead of making a public offer of part of its share capital. The reason behind the decision is the tensions in the financial markets over the last few days.

Trump unchained: Danger ahead for Europe

In Europe 31st May 2018

The EU To Impose Retaliatory Tariffs On The US

As all signs point to a trade war with the United States, should the US impose tariffs on EU steel and aluminum, the European Union has decided to immediately activate balancing measures as an alternative to US tariffs which are intended to take effect on Friday June 1st.

Santander’s 2H18 attributable profit rises by 4 %

Spanish economy 30th May 2018

Spanish Banks Still Reducing Their Balance Sheet, To 224% of GDP from 234% Last Year

Adjustments to the number of employees and branches in the sector continue, despite the fact that the deleveraging of the private sector seems to be coming to an end. Spanish banks are feeling the effects of the resolution and sale of Banco Popular in June 2017 and posted after-tax losses of €3.92 billion for the year, although it achieved further improvements in solvency and asset quality.

The oil price has risen 70% in the last 12 months, from 45$/ barrel for Brent in June 2017 to around 80$ in May 2018

World economy 29th May 2018

Oil Sector: What Goes Up, Must Come Down

For any investor who believes that $70/barrel is more or less the right price, then the European oil firms are currently fairly priced. Alphavalue recently upped their earnings forecasts to include $70/barrel as a new normality. This leaves the sector with an upside potential of +6% on a 6-month horizon.

Gas Natural to complete its exit from Colombia

Ibex, Markets 29th May 2018

Gas Natural Exits Colombia For Good

According to Colombia’s Stock Market, Gas Natural has agreed to sell the 15.46 million shares, or 41.89% stake, which it stills holds in its Colombian retail distribution unit Gas Natural ESP. With this move, the Spanish firm will complete its exit from Colombia.