MADRID | By The Corner | Spanish CPI increased by +0.1% yoy in June, a tenth below the May rate. The underlying rate remained at 0% yoy and the inflation at constant taxes continued in +0.1% yoy.
MADRID | The Corner | After France and Italy’s (second and third most important countries in the single currency bloc) poor industrial production data of -1.9% (vs previous -0.51%) and +1.4% (vs previous +0.2) respectively, expert at Barclays Alberto Vigil wonders why analysts are so sure that there will be an acceleration in the 2S14.
*The green line is the Eurozone’s GDP, whereas the other two are Italy’s and France’s industrial production.
MADRID | The Corner | Although analysts see limited systemic implications for the Portuguese sovereign and the rest of the periphery, the BES vaudeville has put something bigger on the table: changes at the global corporate debt market. Spanish Popular bank and construction company ACS both postponed a planned issue of the riskiest bank debt because of “heightened volatility” in credit markets. Goldman Sachs delayed a planned inaugural issue of a new type of bond that offers investors three levels of protection on the event of default, Bloomberg reports.
Europe’s leaders avoided their usual muddling through complacency to do something radical — and it worked. Europe’s banking union, constituting a supranational pooling of most instruments of banking policy, was established over two years ago, in the early hours of June 29, 2012. To a greater extent than was initially realized by most observers, this step marked a watershed in the European crisis by making it possible for the European Central Bank (ECB) to stabilize sovereign debt markets.
MADRID | By Jaime Santisteban | The Washington-based institution believes Spain has turned the corner and “the recovery reflects the collective efforts of Spanish society,” highlighting fiscal, banking and labour reforms. Forecasts (a 1.2% GDP hike this year and 1.6% in 2015) respond to the significant improvement of the country’s economy since the beginning of the year, surpassing government and experts’ estimates.
MADRID | By The Corner | European banks have strenghtened their capital ratios for the upcoming stress tests and the AQR, whose results will be known after the summer. In that sense, between July 2013 and May 2014, EZ lenders increased their base capital by €45 billion, although it wasn’t entirely by issuing shares but contingent convertible bonds (CoCos), by which they would have raised around €35 billion.
MADRID | By Álex García.
MADRID | By Francisco López | Investors are closely looking economists’ forecasts about the next rate hike in the United States. Until recently, the vast majority opted for movements in the second part of 2015. Now, after the last job creation data, some analysts believe that the rise could come as early as 1Q15.
ATHENS | Via Macropolis | One of the consequences of Greece’s crisis often overlooked is that the vast majority of the country’s unemployed do not receive benefits as they would in many European Union countries. In a report on Monday, Ta Nea newspaper visited this story and found that the numbers are even more alarming than most would imagine.
MADRID | By The Corner | The ratio of earnings revisions for the Spanish Ibex 35 is above one point for the first time since December 2009, which means that there are more market watchers revising upwards their expectations about the evolution of the corporate results within the index. On average, analysts’ consensus expects a growth in the corporate earnings close to 25%. However, experts at AFI forecast 15% increases in these results, which would boost the Spanish index by 10-15% thus ending 2014 around 11,500 points.