Last week the Spanish banking sector began its third quarter results presentations, but analysts are going one step further and are already looking for indications ahead of 2016. The outlook is not wholly favourable if we take into account the factors affecting it on the downside.
A new round of mergers amongst Spanish banks could just be round the corner. The Bank of Spain has also added its voice to the market rumours, the “off the record” comments from bank directors and the warnings from international organisations about the sector’s delicate health.
The international organisation maintained its forecasts for Spanish GDP growth (3.1% in 2015) but cut its global growth estimate to 3.1%, the worst performance since the start of the financial crisis six years ago.
A group of top international experts recently gathered in Madrid to analyse a problem politicians do not want to talk about as they are afraid of losing votes: are we facing a global pensions’ crisis.
Next week’s Federal Reserve meeting ( September 16th and 17th) has investors on tenterhooks. Some Fed members have recently pointed to a possible rate hike in September, raising concerns not only in the markets but also amongst IMF and World Bank leaders.
MADRID | July 23, 2015 | By Francisco López | Until just over one year ago, funds with high exposure to emerging economies were the start product. Now the trend has reversed. Investors are rolling back their positions due to the vulnerabilities that present many countries due after the fall in commodities prices, China’s economy slowdown and expectations of US Fed rates hike.
MADRID | July 3, 2015 | By Francisco López | Investors who bought a Spanish 10-year bond last January 1st are losing today 3.8% of their investment. Those who chose a financial product linked to lbex35 earned 6% in the same period, despite the recent fall caused by the Greek crisis.The evolution of the Spanish stock market has been better in the first half of the year and, according to experts, may further improve.
MADRID | June 11, 2015 | By Francisco López | The appointment of Spanish Economy Minister Luis de Guindos as president of the Eurogroup was a sure bet until the Dutch finance minister and current Eurogroup chief said he will stand for the post again. Possibly affected by this bad news, Mr De Guindos made a very unfortunate intervention about the Spanish banking sector’s restructuring.
MADRID | June 3, 2015 | By Francisco López | Markets are still awaiting a possible agreement between Greece and its creditors. Stock markets are shivering one day, then the next one it’s the bonds’ turn to suffer, depending on the rumour of the day.
MADRID | May 22, 2015 | By Francisco López | The Spanish economy is beating new records mainly thanks to external factors. According to the latest data, exports of goods totalled €23.2 billion in March, the best monthly figure since 1971. The euro price fall has been crucial.