The Corner | April 29, 2015 | Amid speculations about a Greek deal (see examples of the bipolar opinion landscape here and here), market makers seemed more apeased yesterday but still have their doubts about the post June situation. “The yield on 3-year Greek debt remains very elevated and suggests that ‘market access’ is unlikely to be afforded to Greece at acceptable interest rates any time soon,” experts at BNP commented.
LONDON | April 29, 2015 | By Sigrún Davídsdóttir | The 2008 crisis put some damper on FX lending, did not stop it though and in addition legacy issues remain. Now, actions by foreign currency borrowers in various countries are also unveiling a less glorious aspect: mis-selling and breach of European Directives on consumer protection.
April 27, 2015 | UBS | After a period of significant negative earnings growth Italy and Spain earnings show a strong rebound in 2015E. Italy is expected to grow at c. 18% and Spain is expected to yield c. 13% earnings growth.
The Corner | April 24, 2015 | Greek PM Tsipras is expected to meet with Chancellor Merkel on the Eurogroup sidelines on Friday. The next key focuses will be the IMF payment (€200mn) on 1 May and the Eurogroup meeting on 11 May. But as Barclays analysts remind, lot of worry is already priced; Greek spreads tightened for a second day.
The Corner | April 24, 2015 | The Nasdaq closed on Thursday at an all-time high, surpassing record set 15 years ago, at the very dot com boom. But while US equities have been supported by positive earnings, the current market environment is very different from the late 90s.
The Corner | April 2015 | Welcome to the heart of earnings season, with one-third of the S&P 500’s firms reporting today –Google, Amazon, Pepsico, Procter & Gamble and Starbucks amonth them. Analysts are pointing that 75% of the companies have beat forecasts, which is better than the 63% average since 1994. “Everyone knows the game: analysts reduce investors’ EPS expectations so firms can beat them,” experts at Link commented.
April 22, 2015 | BNP Paribas | There is further upside risks on global consumption, especially in lower-income EM countries and the Eurozone. However, we do not believe that global deleveraging has come to an end: wage growth and inflation will likely continue to trend low over the coming years.
LONDON | April 21, 2015 | Barclays | The ECB remains committed to deliver its QE target of a more than €1.1trn balance sheet expansion through asset purchases and sought to dispel fears over asset scarcity.
The Corner | April 17, 2015 | ECB’s Vice President Vitor Constancio put things into perspective by pointing out that Greek banks’ exposure to Greek sovereign bonds is much smaller than other banking sectors’.
BRUSSELS | April 17, 2015 | By Alexandre Mato | Spain, Italy, Portugal and Greece are under the European watchdog scrutiny because of the fiscal rules applied to the current Deferred Tax Assets (DTAs) framework. If proven illegal state aids used to bolster capital ratios, banks would suffer a big bite (4-5%) on their capital levels. However, legislators and the Economic Committee Secretary have admitted to The Corner that they doubt the DTAs investigation was launched due to MEP concerns.