France’s economic dilemma
MADRID | By Álex García.
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Roaming fares and air traffic capture Friday’s market chatter
MADRID | By Jaime Santisteban | European Parliament could eliminate roaming mobile phones rates as of December 2015. Although they’ve been reduced in the last years, it still means 2 % of Telefónica Group income. ACF foresees an impact worth 4 % in the company’s EBITDA.
IAG released March air traffic figures which were under target but keep the recent trend. Demand grows (+10.2 % vs March 2013) for the second straight months. Iberia lost -5.1 % compared to February whereas Vueling (+21%) and British Airways (+3.2%) improved. RENTA4 expects no impact on IAG share price.
No one ever agrees with the IMF, even when it asks a country/area to do more stimulus!
SAO PAULO | By Marcus Nunes via Historinhas | “The IMF has been very generous in its suggestions on what we should do,” said Mr Draghi in a sarcastic tone on Thursday.
Why was China carrying gold?
SCOTTSDALE (ARIZONA) | By Keith Weiner via Truman Factor| I would discourage everyone from making too much out of the Chinese gold carry trade. It’s not a giant conspiracy to buy up all the gold, while suppressing the price. It is not some farsighted plan to anticipate the collapse of the dollar by owning hard assets.
Market chatter: ECB’s talking yet non acting
MADRID | By Jaime Santisteban | “The IMF nor politicians will have influence on the ECB as long as Mr. Draghi is running it” Link’s chief analyst J.J. Figares points out. As expected, the monetary authority announced on Thursday that it will stand still in spite of deflation tensions, maintaining interest rates at an all-time-minimum 0.25 % and choosing not to use the little ammunition it has left. However, Mr. Draghi left the door open for stimulus if needed.
First reactions to the ECB’s non-move
MADRID | By Juan Ballesta.
China: shadow finance for the masses
Iris Mir | Tight control of capital accounts has pushed China to a financial deadlock. Chinese savers are looking to new online investment platforms amid a lack of substantial wealth management options. Last year China’s Internet payment platform launched the online investment platform Yu’e Bao to offer its users the possibility of investing the idle money on their Alipay accounts and getting much higher benefits than any traditional bank. More than 43.03 million people already enjoy its advantageous financial products. The opportunities of this business model are huge and many other Chinese internet giants are following suit.
ECB likely to bet on inaction again
MADRID | By The Corner | Bundesbank’s Jens Weidmann shift, more inclined to consider bonds purchases, basically reponds to pure economic policy. Although it could anticipate those are closer than ever, it does not mean that ECB is to take action in today’s meeting. Most of analysts at Madrid’s financial place agree that Draghi would be more explicit regarding eventual tools to fight deflation- or low inflation as European authorities prefer to call it now-. He could announce some kind of corporate financing support such as securitization’ buyings at most.
Today’s market chatter in Spain
MADRID | By Jaime Santisteban | Market makers woke up with a torrent of data explaining how first quarter played out: Spanish public deficit, Eurozone’s activity indicators, and many more.
FCC’s refinancing deal captures Spain’s market chatter today
MADRID | By Jaime Santisteban | Spanish builder and services firm FCC wrapped up a debt refinancing agreement worth €4.5bn with 99 % of creditor banks, which could turn debt into corporate capital. Market makers like ACF find the move possitive but warn that this move would increase debt average cost.