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Spaniards

In Europe 15th April 2014

Spaniards did rescue Spain

OP ED by Julia Pastor | Brussels welcomed Spain’s economy timid comeback to the path of growth in 4Q13. When some financial publications wonder who saved the country, they quote Draghi’s OMT as well as the internal devaluation followed to PM Mariano Rajoy’s reforms. They do not mention, however, that due to internal devaluation Spaniards have seen their salaries cut by an average of 10%, and 27% of household depends on retired people pensions, who are even assuming mortgage loans their kids can’t pay anymore.

greece's bonds. Source: trade web/wsj

In Europe 10th April 2014

Care for a juicy Greek T-bone?

MADRID | By Julia Pastor | “Today we return to the bond markets after four years,” Greek Finance Minister Yannis Stournaras said on Thursday just before his country’s 5- years bonds matched analysts’ best expectations: €3bn over estimated €2-2.5 bn, with a demand around €20 bn and interest rates of 4.95% against foreseen 5-5.2%. As good food does, the auction is nourishing the twice bailed-out EU economy.

deflation

In Europe 9th April 2014

ECB: Wait, wasn’t inflation target 2pc?

MADRID | By The Corner | “I would like to stress that the risk of a self-reinforcing deflationary downward spiral consisting of falling wages and prices, as evoked by some, is also low, despite the present, very low inflation rates in the euro area. These are mainly a result of falling energy prices and the adjustment process in crisis countries,” European Central Bank Governing Council member Jens Weidmann said on Tuesday, playing down deflation risk. Anyway, what happened with the ECB’s 2pc inflation target?

Greeces stability

In Europe 9th April 2014

Greece’s ultimate sacrifice for stability

ATHENS | By Nick Malkoutzis via Macropolis| Concern has been frequently expressed about some of the people surrounding Greek prime minister Antonis Samaras. In November 2011, he ousted former minister Sotiris Hatzigakis from the party because he complained that “far right elements” were changing the face of New Democracy. Several dozen criminal cases, including murders, involving Golden Dawn had piled up in Public Order Minister’s drawers. The question now is whether these, and other policy decisions, were driven by a warped ideology that has no place in a European Union country.

Dance together

In Europe 8th April 2014

EU’s mergers ballroom is open

MADRID | By Julia Pastor | Telecoms were the first sector opening fire in the European M&A’s market with the purchase of Ono by Vodafone. Now it is the turn of the construction industry via the merger of the two cement makers global leaders French Lafarge and Swiss Holcim. Joining both businesses would result into a company valued at $ 40 bn, which is presumably to face an investigation by competition authorities. Tourism sector would also participate in the corporate ball by selling 49% of airline Alitalia to Arab Emirate’s Etihad.

Angela' s lies

In Europe 8th April 2014

Angela’s little lies

BARCELONA | By Vinçent Navarro | Germany is not only about minijobs. Although Southern European economies are debating about this measure that Berlin took under Schröder’s government in order to tackle unemployment, much less is said about the German model or ‘Rhineland capitalism’, essentially based on works councils and co-management.

No Picture

In Europe 8th April 2014

ECB: April inflation screening mode

LONDON | By François Cabau at Barclays Capital| The ECB stayed on hold this month. Keeping its easing bias, the Governing Council had a “very rich” and “ample” discussion on possible further easing measures. In our view, if expectations of a rebound in April HICP are not met, affecting the medium-term price outlook, the ECB may need to ease further.

british economy

In Europe 7th April 2014

British economy: in construction

LONDON- THE WEEK THAT WAS | By Víctor Jiménez | One in five homes built in the UK since last April have ended sold through the program Help to Buy, according to the largest stock market listed estate agent in the UK, Countrywide. This figure shots up to more than 50% in northern England where the housing sector had fallen into a deeper recession than elsewhere. In London, a resilient spot, one in ten homes have seen contracts exchanged following the heavy but comforting hand of the state.