European equities: Q1 revenue & cyclical beats best in 5 years!
May 18, 2015 | UBS | Q1 reporting season is roughly 75% complete and the European cycle keeps rolling on with FX and a domestic recovery feeding through.
Markets
How Greek banks can keep their balance on the collateral tightrope
ATHENS | May 18, 2014 | By Manos Giakoumis via MacroPolis | The ongoing and troubled negotiations between Greece and its lenders, as well as the weekly meetings of the European Central Bank’s governing council mean that there is growing concern about the extent to which Greek banks will continue to be able to draw emergency liquidity to cover the outflow of deposits.
Financial paradise
MADRID | May 17, 2015 | By Luis Arroyo | Against all odds, the Dodd-Frank law is working reasonably well, says Krugman. It was enacted by the US Congress in order to avoid another financial crisis like the one in 2008. The economy is divided between those who agree with Krugman that the blame for the disaster was deregulation initiated in the 1980s, with neocons getting power, and those who still believe (or say they believe) that markets are efficient.
Where has the money withdrawn from Greek banks gone?
ATHENS | May 16, 2015 | By Manos Giakoumis via MacroPolis | Since December, the Greek banking system has been suffering from extended deposit outflows, which reached 26.8 billion euros at the end of March. Almost 90 percent of these withdrawals stemmed from time deposits, while only around 600 million euros was taken from savings accounts.
ECB purchases will reduce the size of the tradable sovereign bond markets
MADRID | May 14, 2015 | BNP Paribas | Net issuance of sovereign bonds will exceed ECB purchases in May by c.EUR50bn. We believe this is why yields are going up. We also believe this is why they will come down again from June when ECB QE will again significantly outpace sovereign bond issuances (by c. EUR8bn in June and EUR90bn in July)
“Financial journalism has not been resourced very well compared to analysts and fund managers”
MADRID | May 14, 2015 | By Ana Fuentes | In the second part our his interview with The Corner, Glasgow University Professor John Holland suggests Europe adopts America’s tough stance on criminal activities in the financial industry.
Are Chinese yuan internationalization and financial reform colliding trains?
May 13, 2015 | By Miriam L. Campanella and Alicia Garcia-Herrero via Caixin | The global financial crisis gave China the opportunity to push use of its currency abroad, but the need to address debt issues puts the central bank in an interesting position.
“Add cash” – When even market makers recommend to take some risk off the table
MADRID | May 12, 2015 | By Ana Fuentes | Easy money and negative yields are fueling an unprecedented, dangerous bubble: prices of assets, stocks, bonds and houses are more inflated than ever. Central bankers are noting (and warning against) it. Some market makers are following suit and recommend to reduce exposure to risk.
From brick and mortar to stocks and shares; China’s new investment frenzy
Until very recently, Chinese investors’ preferred choice was the real estate sector. Chronic new housing oversupply led many to fear an eventual burst of the real state bubble and to abandon their brick and mortar investment ambitions. Looking for fresh alternatives, many are rushing into the buying of shares in the local stock exchanges. The number of individual investment accounts grew 400% in the first quarter of this year.
“Apparent coordination of the Fed and the ECB to cool down the market rally”
The Corner | May 11, 2015 | Yellen’s words about stocks being overvalued and bond yields too low was a signal that investors should not expect to enjoy the Fed’s cheap money forever. ECB’s policymakers have also warned about risks in the financial system that can arise in a situation of protracted low interest rates and abundant liquidity. “It is positive that central banks may be working together to avoid potential bubbles, yet the problem isn’t stocks but bonds,” Bankinter analysts pointed out.