Brasil_recursoTC

Brazil: in crisis and recession after the Olympics

BBVA Research | After providing a grand finale to the Rio 2016 Olympic Games, the first ever to be held in Latin America, Brazil is now back to reality: a political crisis which is the prelude to the definitive removal from office of President Dilma Rousseff and an economic crisis which has pushed the country into recession.

 

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Congreso7TC

Rajoy’s investiture kicks off

As we have already said there are moments when the economic and political cycles don’t go hand in hand. Yesterday, the investiture of caretaker Prime Minister Mariano Rajoy got underway, with very slight possibilities of his being able to win enough votes to return to office with a majority. But the Ibex 35 blue chip index didn’t even move: in fact it posted a nearly 1% gain.


Improved SME financing in Europe

As a result of the global financial crisis, funding conditions for SMEs in the peripheral European countries tightened considerably. But following the implementation of expansionary monetary policies, including TLTROs and negative interest rates, has loan activity improved for small businesses in countries like Spain, where they are key drivers for economic growth and job creation.


Abengoa4TC

Moody says continued uncertainty over Abengoa’s viability plan

While acknowledging that Spanish renewable energy and engineering firm Abengoa’s restructuring plan would ease its debt burden, Moody’s has cast doubts over whether it will be successful. Earlier this month, Abengoa reached a debt restructuring deal with its main creditors in an attempt to avoid Spain’s biggest ever bankruptcy. It had been in talks with lenders since November 2015 to reduce its over 9 billion euros debt pile.

 

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