MADRID | By J.P. Marín Arrese | Draghi’s performance in Jackson Hole has largely overshadowed other central bankers. Undoubtedly he surpasses himself in summertime. Just remember his landmark defence of the Euro back in August, 2012.
BERLIN | By Alberto Lozano | As problem loan formation slows and credit costs ease, Spanish banks should perform better than Italians and Portuguese over the remainder of 2014 and through 2015 according to Moody’s.
MADRID | The Corner | Central bankers are meeting this week in Jackson Hole to talk about employment and its weakness in general terms. Unlike what is happening in Europe, US and UK are seeing improvement in employment (their unemployment rates have decreased from 10% to 6.2% and from 8.4% to 6.4%, respectively) with the curiosity that they’re not coming with wage increases. In fact, last British data shows the first fall since 2009. This circumstance means less inflationary pressures, therefore Bankinter analysts think that central banks will not start to tense its monetary policy until wages begin to invigorate, something that will take some months to arrive.
MADRID | The Corner | ING Group 2Q14 underlying net profit of EUR 1,181 million from EUR 901 million in 2Q13 and EUR 988 million in 1Q14. The company has announced that it would repay the state aid received in 2008 earlier than planned (May 2015) and confirmed the growth targets for 2017 (as well as the payment of dividends, with a payout of 40%), set last March.
BERLIN | Alberto Lozano | The Portuguese government splits BES into two banks. On the one hand, it will inject €4.9 billion of capital in a new company called “Novo Banco”, which will get all the assets and employees from the crisis-hit bank. On the other hand, all toxic assets mostly related to its exposure to the Espirito Santo family will stay in the current Espirito Santo’s “bad bank”.
MADRID | The Corner | The ECB reported on Thursday the data of interest rates applied in banking corporate loans in June, which have been reduced by 18 bp in loans worth up to €1M for the EZ (up to 3.57%). Moreover, these discounts have been widespread and even higher in peripheral economies’ banks: -21 bp up to 4.3% (weighting by GDP of rates applied in Spain, Italy, Ireland and Portugal).
MADRID | By Fernando G. Urbaneja | United Kingdom has displaced Brazil, which displaced before Spain as first market by benefit contribution to Banco Santander. Of the 2,750 million € earned in the first six months (+22% over the first half of 2013), 20% comes from the British market. Brazil contributes the 19% of benefits and Spain recovers share until reaching the 13%. And then there are United States (9%), Mexico (8%), Chile (7%), Poland (6%), Germany (5%), Portugal (2%) and other countries from Europe and Latin America (11%).
MADRID | The Corner | The Western stock indexes closed yesterday with prominent drops, reaction for which there was not a single trigger, but the sum of the various concerns that have been accumulating in recent days. The negative tone was maintained throughout the day, closing both European and U.S. stock markets near daily lows. It is important to emphasize the volatility increases, measured by the VIX index, which has reached its highest level of the last three months.
MADRID | The Corner | Upcoming TLTRO in Sept 18 and Dec 11 will allow EZ banks to borrow an amount equivalent to 7% of what they currently lend to the private sector at 0.25% a year (excluding interbank loans and mortgages), breaking the vicious circle of high lending rates to companies, high credit risk and a sluggish economic performance, European Central Bank’s chief economist Peter Praet said on Wednesday.
MADRID | The Corner | While the US Federal Reserve may wind back its asset purchases by a further $US10 billion at the end of July, the ECB is ready to launch the first two TLTROs on 18 September and 11 December 2014, with settlement six days later.