Markets



BBVA y mas

Why Has Spain’s Banking Sector Rally Been Suddenly Cut Short?

The Spanish banking sector’s stock market rally has been suddenly cut short. The listed banks’ index  had risen over 45% since the minimum levels of June 2016 until the first week of January. But since then, it is seeing a correction. Two matters of concern for investors are the impact of the floor clauses ruling on the banks profit and loss account, as well as the problems of the Italian banks.


Car manufacturers

Car Manufacturers Have A Hard Time In 2017

Concerns about auto sector in 2017 are rising as US president-elect Donald Trump threats against US companies relocating their production to Mexico. Local players have capitulated to the President-elect’s dictates- Ford cancelled plans to build a new Mexican plant- which suggests that the industry’s spine is a weak one after all as it lobbies its way into the new balance of power.



The Fed balance sheet and repo facility cannot explain the stock market’s movement in isolation

The Connection Between The TED Spread And Liquidity Risks

The TED spread is an indicator of liquidity risks in the interbank market. It is the difference between the 3-month interest rate on interbank loans and the yield on 3-month US Treasury Bills. Any rise in the indicator would lead the banks to ask for more Treasuries and be more reticent about granting loans.



US corporate debt rose to 45% of GDP at the peak of the Great Financial Crisis

Why Have Corporate Debt Issues Soared At The Start Of 2017?

The start of a new year is normally a good time for corporate debt issues, although in the first few days of 2017 there have been a greater number of these than in previous years due to the ECB’s purchase programme.  According to Bloomberg, in the first few days of January European companies and banks have issued almost 50 billion euros of debt, double the amount issued in the same period of 2016.

The creation of a single deposit insurance is key to finalising financial integration

The Eurozone Must Come Back To Discipline In 2017

The Euro area ended 2016 with a bang, according to BoAML, although growth and inflation will be hump-shaped. In Dec, the ECB ended the 2015/16 experiment of monetary policy covering for fiscal easing. But potential growth remains low. The UK is not really in much better shape: it is now a 1-1.5% growth economy, meaning low rates and austerity for longer.


Spanish midcap Euskaltel

Spanish Small & Midcaps: Euskaltel

Alfonso de Gregorio (Gesconsult) | We like Euskaltel because of its strong cash generation and good market positioning. In addition, there are the possibilities for inorganic growth and the good macroeconomic and industry outlook for the group’s business.