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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
germany in greece

In Europe 8th May 2014

€ 21,717,120,000

ATHENS | By  Yiannis Mouzakis via Macropolis | This is the total amount of money that has left German coffers since the Greek crisis started in 2010. It corresponds to Germany’s portion of the European Stability Mechanism’s (ESM) paid in capital, which was announced on May 1 as the fund reached its full capital amount following the transfer of five installments since the end of 2012. Germany’s participation in the euro crisis mechanisms, aside from the ESM paid in capital, has been in the form of guarantees. It all started with the bilateral loans to Greece which every country apart from Germany provided directly. Berlin only gave state guarantees to its AAA-rated development bank KfW. The German taxpayer did not have to bear any cost for this transaction.

 

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In Europe 7th May 2014

Brussels demands more austerity to Spain to meet deficit target, praises banks’ reform

MADRID | By The Corner | In its first surveillance report after the Spanish banking sector bailout, the EC believes that entities are stronger and cleaner. Even if NPLs ratio has not stabilized, banks “are shifting towards more stable funding, such as deposits, and are relying less on borrowing from the Eurosystem.” As market access conditions have greatly improved, Brussels Spain’s return to positive economic growth (using February data, when growth estimates for 2014 were 1% instead of 1.1%) and was positive about the labour market slight improvement, although it warned that jobless rate remains very high (26% 2Q13). Brussels considers that unless further austerity measures are adopted the crisis-battered country won’t meet its deficit goals.

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Markets 7th May 2014

Tobin tax to have a 10% impact on Spanish equity trading volume (ACF)

MADRID | By Jaime Santisteban | Tobin tax will be in place the beginning of 2016 at the latest despite the UK’s finance industry heavyweight challenge. The Spanish government called it a sensible and cautious measure. Crucial questions such as the level of tax or how to levy are still in the air. 

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In Europe 7th May 2014

ECB is likely to stay put but it is a very close call

LONDON | By Barclays analysts | We expect the ECB to stay on hold at next week’s Governing Council meeting, though we think the likelihood of further easing remains very elevated. Should the ECB decide to act, we remain of the view that cutting rates would be the preferred option. Furthermore, we believe its implementation is not straightforward, making it unlikely in the short term

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Markets 6th May 2014

Almirall, Campofrío and Sacyr, the most recommended values in the Spanish market

MADRID | By Jaime Santisteban | Almirall, Campofrío and Sacyr are the most recommended values in the Spanish market, according the market consensus. Repsol turned down the offer to renew its two seats in the YPF ‘s board on Tuesday, and fixed its eyes in Norway instead. Also, unemployment in Spain reportedly dropped by 111,565 people in April. “Although this means a turning point in the Spanish economic recovery, the country remains in the deep well,” The Corner senior analyst Fernando G. Urbaneja explains. 

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In Europe 6th May 2014

Portugal: Lisbon resilient, yields calmed, citizens exhausted

MADRID | OP-ED by Fernando Barciela | Laconic and without any fuss, PM Pedro Passos Coelho announced that three years after the €78 billion bailout Portugal will stand on its feet without the European Troika. His  pledge aimed to get political momentum at the upcoming European elections, although it greatly stirred public anger. The rate on 10-year securities slid two basis points to 3.61 percent, from a record 18.29 percent in January 2012, according to Bloomberg data. Investors betting on Portuguese bonds have seen a 15 percent return this year through May 2.

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Markets 5th May 2014

Today’s market chatter: time to invest in Spanish real estate and much more

MADRID | By Jaime Santisteban | Feel like investing in Spanish real estate?  It’s apparently the time, according to Bankinter analysts, as European prices continue their upwards trend, financing costs are low and we see price recovery signs in big cities like Madrid and Barcelona. They suggest direct investment assets with a horizon beyond 3-5 years. Also, the EU announced on Monday that the Eurozone’s GDP will grow by 1.2% this year and by 1.7% in 2015. As for Spain, Brussels is less optimistic than the Spanish government in its forecast.

 

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Markets 5th May 2014

The two sides of China’s Internet economy

Mid-April the largest Chinese micro blogging service, Weibo, raised $286m in its Nasdaq debut. Within weeks, Alibaba, the largest e-commerce platform in the world is expected to complete probably the biggest IPO in history. These are some of the main players of China’s booming Internet economy, which saw revenues of  600.41 billion Yuan in 2013, and it is expected to reach 1.72315 trillion Yuan in 2017.  But censorship and strict regulations are hindering the growth of the country’s cyber players.

 

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In Europe 5th May 2014

Greece lays out plans for debt relief from eurozone

ATHENS | By Macropolis | Greece is due to raise the subject of further debt relief at Monday’s Eurogroup but with the official sector poised to take a hit this time as opposed to the Private Sector Involvement (PSI) of early 2012. Monday’s is the first meeting of eurozone finance ministers since Eurorstat ratified Greece’s 2013 primary surplus and the last before European Parliament (EP) elections will be held in Brussels today.