MADRID | The Corner | From the macroeconomic side, US data are showing a clear improvement in the economy, with the labor market growing at similar rates to those seen prior to the financial crisis and consumer confidence surging in July to the highest level since October 2007. The business results also show a positive trend with growth in earnings by 12.0% (ex-financials) and +10.0% inc. financials.
MADRID | By J. J. Fdez-Figares (LINK) | After the rises experienced by the European and American stocks on Monday, these markets showed yesterday certain weakness, leading to a mixed closing in the major indices in Europe and negative in US. Thus, and since the beginning of the day in Europe some profit taking by the short-term investors were observed, who profited from the rebound that many values experienced on the day before. As there was a lack of relevant developments in the three main geopolitical conflicts (Ukraine, Iraq and Gaza), the investors’ attention turned to macroeconomic data, particularly towards indices released yesterday by the German institute ZEW.
MADRID | By Álex García
BERLIN | By Alberto Lozano | At the end of the week, good news are coming from Germany’s trade data. After calendar and seasonal adjustment, German imports rose by 4.5% on the month, rebounding from a sharp fall in May (-3.4%) with the highest month-on-month increase since November 2010. In addition, German exports increased by 0.9%, narrowing the criticised surplus to 16.2 billion euros from 18.8 billion the previous month.
MADRID | The Corner | The positive evolution of the American economy and the uncertainty about Europe’s economic recovery, after disappointing data published this week, have led the USD to Euro exchange rate to advance to its highest best level in nine months.
MADRID | By J. J. Fdez-Figares (LINK) | European stocks closed yesterday again with notable declines -with the exception of the Swiss- pressured by a complicated geopolitical scenario, while the macroeconomic figures in the region continue to disappoint. Thus, European stock markets began the day in negative tone after economic sanctions agreed by Russia against the European countries and with the speculation that the country will send troops to Ukraine. The Spanish index Ibex 35 goes through the worst beginning of August since 2011.
BEIJING | By Zhou Dongxu (Caixin) | China’s income inequality is relatively high, and its wealth inequality, as measured by the Gini index, is greater than its income inequality. The U.S.’ income inequality index is lower than China’s, but its wealth inequality is higher – Its Gini coefficient for household wealth was 0.8, compared with China’s 0.73. This is because the United States has a relatively mature market economy, where wealth has been accumulated slowly through income and investment. Many in China, however, own homes allocated to them by the government. As those homes’ value increased, so did their wealth.
MADRID | The Corner | JPMorgan’s economic outlook forecasts that global growth is taking hold around midyear and as a rebound from weakness the US and Japan is reinforcing a more modest acceleration in the Euro area and emerging Asia. If JPMorgan analysts are right, this episode’s contours should mirror growth pivots in earlier expansions (during 2003 and 1993).
Berlin | By Alberto Lozano | Mario Draghi is speaking today again. Although no decisions or changes in the ECB’s monetary policy are expected, markets expect to know the ECB president’s assessment of the latest economic and financial developments.
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.