MADRID | May 19, 2015 | By Francisco López | Next Sunday local and regional elections are seen as the first big test before the national vote at the end of the year. Only a few months ago the triumph of Syriza in Greece and the dazzling rise of Podemos caused concern for international investors who bet on Spain. But things have changed.
MADRID | May 18, 2015 | By Francisco López | The Spanish economy does not shake off the Brussels’ yoke even when is leading the growth of the eurozone. The European Commission is still placing us in the group of the European countries with the most serious economic imbalances.
MADRID | May 6, 2015 | By Francisco López | Spanish banks first quarter results have been very good in terms of earnings, but a closer look at their recurrent business is not so positive. The seven banks listed on the Ibex 35 index earned € 1,677 million in the first three months of the year, up 32% from a year earlier.
MADRID | April 9, 2015 | By Francisco López | The flurry of good news on the Spanish economy in an election year should be treated with caution. This week the Spanish Treasury placed Treasury letters at negative yields for the first time ever. However it should also be noted that half a dozen European countries have reached this level already and that the driving force behind the historical lows is undoubtedly the ECB’s QE programme.
MADRID | By Francisco López | March 16, 2015 | Some opportunities are not to be missed. The Spanish Treasury’s first auction since the ECB launched its sovereign bond-buying program saw yields fall to their lowest levels in history.
MADRID | February 26, 2015 | By Francisco López | Small savers are penalised most heavily by zero-interest rate policies and what they appreciate most at the moment is good profitability through dividend payment. Stock market experts recommend betting on solid companies that pay high dividends to shareholders, and Telefonica certainly falls into that bracket. The company’s 2014 results showed a 34% drop in profit, but the tech giant has committed to sustainable and increased dividend payments in the future.
MADRID | By Francisco López | The successful launch of the Aena IPO has been interpreted as a sign of confidence in the recovery of the Spanish economy. The airport operator was floated last week and saw gains of 20.6%, but the headline grabbing investment from international funds such as BlackRock, Templeton, Fidelity or Capital Group has given credence to the sense that Spain is an increasingly attractive proposition for investors.
MADRID | By Francisco López | Year 2014 was positive for Spanish banks (we haven’t seen Bankia and Liberbank results yet): they earned a total of 10 billion of euros, 27% more than in 2013. But ROE is still weaker.
MADRID | By Francisco López | The strong fall in the oil price may be a blessing for GDP growth in some countries such as Spain, but it is starting to get on investors’ nerves due to the devastating impact that it could have on some emerging countries. The price of the Brent barrel plummeted by more than 5% on Monday, registering at $48 (i.e. the lowest level for six years).
MADRID | By Francisco López | Spaniards consume more and save less. Household saving rate continues to fall and in the third quarter of 2014 stood at 9.4% of disposable income, the lowest since the end of 2008.