In Europe


The battle for EU’s top jobs is on- What are Spain´s chances?

Ana Fuentes | The musical chairs for top institutional renewal in Brussels has begun. At stake are the presidencies of the European Commission, the European Council, the European Parliament and the European Central Bank, as well as the representative for Unión diplomacy. For Spain, opportunities may open up. Yet the government has to deal with the after effects of the Catalan conflict, which has not questioned its democratic legitimacy, although it may compromise its margin of maneuver.


ECB loose policy messages favour undervalued Euro

“Beyond our scepticism about the ability of new stimulus measures to drive the economy, we recognise that the ECB is obliged to act which will create a situation unfavourable for its inflation targets,” analysts at Intermoney point out. In this scenario, we consider that the reactivation of asset purchases with certain adjustments (based on the reality of German debt) would be the measure with the greatest positive impact, more so than interest rate cuts. Nevertheless, if the second path is explored, it would be accompanied by measures to mitigate the effect of negative rates on the banking sector.

 


The ECB “does not give up” to low inflation

The European Central Bank will have to relax its monetary policy again, possibly through further reductions in interest rates or the purchase of assets, if inflation in the eurozone does not meet its target. Chairman Mario Draghi underlined that the ECB’s the limits are flexible because the its legal powers allow it to deploy tools that are both “necessary and proportionate”.


EU: Euroscepticism To Conceal Italy’s Decline

Alexandre Mato (Brussels) | Protectionism and government interference has buried the corporate operation of the year. Fiat Chrysler withdrew its 33 billion euro offer to merge with Renault Nissan, based on a car which had barely begun its race to third position in the car making world.


Telefonica awarded 90 MHz in German 5G

The German auction of 5G frequencies ended this week. Telefonica’s subsidiary in Germany was awarded a total 90MHz, for a cost of 1.425 Bn€, 22% of the total raised by the auction of 6.55 Bn€, higher than the expected 5 Bn€. Telefonica Deutschland was awarded 2 blocks in the 2GHz band and 7 blocks in the 3.6 GHz band. The assignment of the 2 GHz block will happen on 1 January 2021 and the other on 1 January 2026.




Whatever it takes, once again

“There is no probability of deflation, there is very low probability of recession, there are no threats of de-anchoring of inflation expectations,” Mario Draghi said on Thursday. The governor of the European Central Bank announced once again – as he did in March – that it will delay the rate hike at least until 2020 and kept all options open, especially in case economic prospects deteriorate. ECB’s decision is in line with those of other central banks in the world. The Fed has just opened the door to a rate cut, something that Australia and India have already done.


FDI projects in Europe fell 4% in 2018, according to EY

Intermoney | In 2018, the number of foreign direct investment (FDI) projects completed in the Old Continent (according to a survey by EY) fell by 4%, even if the falls were greater in the UK and Germany where the fall was about 13% compared to stability in France. However, the countries with the biggest falls were Italy (-63%) and Ireland (-52%).