BBVA Research | April 6, 2015 | Nowadays it is normal to receive immediately an e-mail sent from the other side of the world. Yet it still takes more than two days to transfer funds, even without being a cross-border transaction. The digital age demands an acceleration of payment processes.
WASHINGTON | By Michael Gavin at Barclays | In a recently published chapter of the Equity Gilt Study, we presented evidence that trends in population dynamics has been an important driver of the ‘global savings glut’ that has depressed interest rates and boosted asset prices around the world during the past 30 years. We also noted that the world now faces a demographic inflection point, and that demographic support for saving, and by extension asset prices, should fade materially in the decades to come.
The Corner | March 30, 2015 | While much of the attention is focused on bonds, it should also be noted that stocks and real estate market are also worth more. How much? Bankinter analysts forecast that Spain’s Ibex will reach 12,878 points (potential + 12%) in 2015; EuroStoxx50, 4,338 (+ 18%); S&P 500, 2,333 (+ 10%). The Japanese Nikkei remains the least attractive option at 20.305 (+ 4%).
BBVA Reasearch | March 31, 2015 | The EBA (at European level) and the BCBS (at global level) both published their 7th Basel III Monitoring Report on March 3rd, using data as of June 2014. Overall, the trend towards enhancing the resilience of banks’ balance sheets is underpinned. Indeed, there has been an improvement in all the three pillars of the new prudential framework: capital, leverage and liquidity. The EBA estimates a capital shortfall of EUR2.8bn for a 7% CET1 of Group 1 banks, which means a decrease of 75% compared with the previous publication.
MADRID | March 30, 2015 | By Nuria Álvarez, at Renta 4 | Strong gains to remain challenging in the year ahead as banking environment undergoes sectoral changes.
BBVA Research | March 30, 2015 | The TLAC’s public consultation period ended on 2nd February. Now is the time for carrying out a comprehensive Quantitative Impact Study (QIS) to define the optimal calibration of the TLAC. The FSB will assess the potential impacts on financial system, financial stability and the real economy.
MADRID | March 26, 2015 | By Ana Fuentes | David Wright is charged with overseeing international securities regulators in his role as Secretary General for IOSCO. In an exclusive interview with The Corner, he speaks of the need for greater urgency in integrating global capital markets. He also notes that a failure to understand the changes taking place in global financial markets could be hindering economic growth.
The Corner | March 25, 2015 | By launching its quantitative easing measures, the ECB strongly responded to deflationary pressures in the eurozone. But the combination of policies in the euro area is still incomplete, since fiscal/budget measures are still to be taken, analysts at Pictet commented.
LONDON | By Apolline Menut via Barclays | Euro area “flash” composite PMIs came in stronger than expected, almost reaching a four-year high at 54.1 (+0.8 points). The rise was primarily driven by a surge in manufacturing output (+1.4 points to 53.5), while confidence continued to improve in the services sector (+0.6 points to 54.3).
By Shinichiro Kadota, Tal Shapsa at Barclays | March 23, 2015 | Japan’s Flow of Funds data show that Japanese investors continued to rebalance their portfolio away from domestic bonds into foreign assets in Q4 14, while their flows into domestic equities were more muted. Such dynamics were evident throughout 2014, as Japanese investors accumulated foreign assets at a solid pace.