Thurday’s chart: moderate good news for Spanish mortgage borrowers
Borrowers will notice their mortgage costs ease because the Euribor reference has consistently be lower than the IRPH, and entities will see their interests margin trimmed.
Markets
What Telefonica did in Germany this summer
MADRID | By Francisco López, via consensodelmercado.com | Telefonica had an important reason for its well-timed U-turn: the Spanish corporation wanted to conquer a mature market with scope for expansion.
Deutsche Bank, Barclays, Soc Gen top undercapitalised European banks
LONDON | By Victor Jimenez | In the sector regulators’ agenda, European banks will indeed need more capital to protect the public purse from the fallouts of the risks that entities take on.
Banking regulatory flaws
MADRID | By JP Marín Arrese | Ex-ante coverage of potential non-performing portfolio, plus a thorough scrutiny on banking trading and risk concentration, stands as the only effective way to prevent excessive exposure.
Spanish banking system’s forthcoming woes
MADRID | By JP Marín Arrese | The Bank of Spain tough line on refinancing is likely to force extra new provisioning. Especially in entities where that practice was developed with little precautionary measures.
“Bankia now has a unique, healthy balance sheet that gives us an edge”
MADRID | By Luis Alcaide | Álvaro Rengifo, board director at Bankia, said in a interview with The Corner that Spanish banks were ahead of their European counterparts in acknowledging the weaknesses in their balance sheets.
IMF lowers pressure on Spanish banks
MADRID | By José Luis Marco, via capitalmadrid.com | The IMF in its latest paper about the banking industry in Spain admits some points could be excessive and damage the economic recovery of the country.
21st Century Glass-Steagall gives Wall Street the shivers
NEW YORK | By Ana Fuentes | An American bipartisan group of lawmakers introduced on Thursday a bill for the 21st century Glass-Steagall Act, a new version of 1933 banking act that put a wall between investment banking and insured deposits. Aimed to protect the American taxpayers, this aggressive piece of law would reduce the size of US bigger banks, minimizing the possibility of a government bailout like in 2008. Wall street has a new headache.
China, free fall?
Iris Mir | By mid-June the National Audit Office of China released a report unexpectedly detailing the debts of 36 local governments. It unveiled the chilling figure of 3.3 trillion dollar in debt, by the end of 2012. A 13% higher than in 2010. Furthermore, the lack of stimulus investment plans is fuelling scepticism among those who expected the Asian dragon to keep the world economy afloat. Mostly because the priority for China now is to reorient its model of growth with ambitious programs like the new Co2 emissions exchange.
Forget Draghi, Barroso just rescued joint Eurobond plans
LONDON | By Victor Jimenez | The European Commission set a group of experts to study the possibility of partial, retroactive mutualisation of public debt refinanced by Eurobond issuance.