Foreign investors return to non-Treasury Spanish debt
LONDON/MADRID | Up to 80 percent of all issuances–some €30 billion so far this year–were bought by non-resident investors, proof that confidence is on its way of being restored.
Markets
ECB monetary policy runs in the opposite direction
LONDON/MADRID | The link between less liquidity and worse economic figures looks clearly defined by the extreme timidity of the ECB and the fact that Germany last March joined France, Italy and Spain in the contraction zone.
The Enduring Glow of Gold
BEIJING | Caixin Magazine | A ripple of skepticism recently hit prices of the yellow metal, but gold remains the ultimate hedge on inflation, as former Morgan Stanley’s Chief Economist for Asia Pacific Andy Xie explains. The global economy has already entered into stagflation with a growth rate of 2 percent and inflation at 3 percent. The inflation rate is likely to rise above 4 percent in 18 months while the growth rate will remain stuck in the same range. With inflation twice as high as the growth rate, the global economy will slip deeper into stagflation.
Market makers welcome Master investor Warren Buffett to Twitter
NEW YORK | “Warren is in the house” was his first twit. Within 24 hours, 82-year-old Warren Buffett had only posted two messages on the social network but he got more than 311,400 followers.
Those €120 billion deposited in the ECB
LONDON | Why would eurozone banks still have up to €120 billion deposited with the ECB, instead of using them to prop up businesses and consumption? At zero percent interest rate?
Facebook investors are getting anxious
NEW YORK | What happens when you know the path to benefits is long and uncertain, but your current expenses are growing? You might have bought stock on Facebook because of the media hype, yet now you are not sure how to monetize it. Neither do they.
“Investors will return to Spanish funds when competition from banks softens”
VALENCIA | Sasha Evers, director general of Bank New York Mellon in Spain and Portugal, says in an interview with Luis A. Torralba for valenciaplaza.com that lower interest rates of bank deposits will push investors again to funds.
“Merkel will probably stick to austerity again after the elections”
MADRID | Germany wouldn’t be the first country to admit that too much austerity is killing growth. President Hollande did it in France, and Enrico Letta just did in Italy, following concerns voiced by leading members of the IMF and the EU Commission. Ana Rafels, independent financial advisor, doubts Chancellor Merkel will U-turn, though.
Southern eurozone countries should follow Germany’s trail
By George Dorgan, financial consultant at SFC | Instead of complaining against the European Central Bank, peripheral countries of the eurozone should pay more attention at how Germany has succeed.
Investors appetite for Spanish economy: will it last?
MADRID | By David Fernández | Foreign investors are showing a sudden interest in assets made in Spain due to, among others, central bank’s last data, Europe’s decision to delay the deficit commitment by two years and international factors such as second-round monetary helicopter launched by the Bank of Japan. Will this trend vanish?