Provisional assessment of the Spanish bank bailout
MADRID | May 11, 2015 | By Fernando G. Urbaneja | During the crisis, the Spanish state committed over € 50 billion to the country’s banks. Up to now it has recovered € 4 billion.
Markets
Does it make sense to keep buying despite negative yields?
The Corner | May 10, 2015 | Markets seem to be suffering from “uncertainty hangover,” as Bankinter analysts put it. They are worried about the short term, after the last US DGP weaker numbers and the decrease of appetite for German bunds. But isn’t that sensible to stop betting on negative yields? In the graph above: Current 10yr government bond yields across the EU. Source: Saint Louis Fed/Seeking Alpha.
Seven banks amongst Ibex 35 stocks
MADRID | May 9, 2015 | By Fernando G. Urbaneja | Spanish banks are still the central pillar of the Spanish stock market: seven lenders account for nearly 40 percent of the IBEX-35 index.
Europe’s barren landscape forces banks to make radical changes
BRUSSELS | May 7, 2015 | By Alexandre Mato | Plans to spin off Deutsche Bank’s retail business is the latest rumour to emerge from a changing European banking sector eagerly looking for ways to be more profitable under Basel III regulations. Too big to fail institutions are worried about a decline in their margins because of the low interest rates outlook. For these lenders, breaking up their investment and commercial business, as well as going on a shopping spree within the sector, seem to be solutions for growth.
Equities: Diverging trends in Europe and US
May 6, 2015 | UBS | April European cash equity volumes remained flat but were +27% ahead of the same month last year. In the US, combined average daily NYSE and NASDAQ value traded was down -4% m/m and -6% y/y.
Spanish banks: earnings rise amid uncertainties
MADRID | May 6, 2015 | By Francisco López | Spanish banks first quarter results have been very good in terms of earnings, but a closer look at their recurrent business is not so positive. The seven banks listed on the Ibex 35 index earned € 1,677 million in the first three months of the year, up 32% from a year earlier.
Regulatory changes drive shift in banks’ traditional business model
MADRID | May 5, 2015 | By JP Marín Arrese | Banks have undergone a massive overhaul to meet demanding requirements under Basel III. They have substantially strengthened their core capital over the last couple of years to keep abreast of increasing requests tabled by regulatory bodies. The leverage ratio under implementation represents a new challenge which is likely to have a significant influence on their business strategy.
Protected: A potentially volatile May
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India is making China look old
LONDON | May 1, 2015 | By Asoka Wöhrmann, Chief Investment Officer at Deutsche AWM | The stock markets in India and China both still have potential. But arguments for investing in India are currently more convincing.
BNP sees risks in QE implementation
The Corner | April 30, 2015 | For BNP Paribas analysts Mario Draghi will find it increasingly difficult over the next few months to execute its planned EUR45bn monthly purchases of sovereign bonds.