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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.
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Companies 10th September 2012

Mainstream Renewable Power plugs Canadian investors

Mainstream Renewable Power, the global solar and wind energy company, announced it is successfully tapping credit lines to increase its capital base. Mainstream, which is Europe’s leading independent offshore wind developer, signed this week a corporate facility for up to €60 million provided by Macquarie Group. According to the terms of the transaction, Mainstream will receive an initial €40 million corporate loan with provision for an additional €20 million at a future date…

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In Europe 6th September 2012

European banks flee Greece

José Luis Marco, CAPITAL MADRID | Although Spanish banks have little direct exposure in Greece, the country over which hangs the euro zone exclusion threat, something different happens with several European banks: they have a direct interest in the Hellenic country both with their branches in the country and with the assumption of Greek sovereign debt. Some of the biggest banks are partners or shareholders of several Spanish banks. Banco…

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In Europe 6th September 2012

ECB’s help will reduce financing costs but also outstanding debt payment period

The mere announcement of an intervention by the ECB has already had a clear effect on the evolution of the yields on Spanish and Italian bonds in the shortest time. The Spanish two years bond that skyrocketed in July to 7.1%, has fallen to 3.072%. A very different story is however the 10 years bond, currently at 6.57%, far from the peak of 7.7% in July but still very high….

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Spanish economy 5th September 2012

Debt difficults Spanish banks mergers and auctions

José Luis Marco, CAPITAL MADRID | Spanish government’ two first RDL condemned more than one financial institution to the red throughout this exercise. The sentence has not been limited to the four entities under the FROB umbrella but has also reached some entities that are in the process of integration with other groups, such as CEISS Bank, Caja Duero Spain, in full merger with Unicaja, to take losses of 125…

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In Europe 5th September 2012

Spanish and German SMEs’ huge different access to finance

Spanish SMEs pay the higher interest rates of the past four years at the time of borrowing, while the cost for German companies is at historic lows, according to financing costs for families and businesses in the euro zone published on Monday by the ECB. This trend puts markedly divergent increasingly southern European companies at a competitive disadvantage to rivals in Northern Europe. “We all know that financing costs are…

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In Europe 4th September 2012

ECB should start new strategy buying Portuguese bonds (JP Morgan)

Almost all analysts have interpreted Mario Draghi’s comments about the “legality” of buying bonds with a duration of less than three years as a preview of what the ECB iwill announce on Sept. 6. JP Morgan’s Executive Director of Global Equity Sales Hugo Anaya believes such statements “are within the new idea of the ECB to intervene in the short term, justifying it by saying that it’s helping the transmission…

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World economy 3rd September 2012

China, alone in the dark

BEIJING | The world was confident about China. She was expected to be the engine of growth of the world economy. The remedy against the bitterness that surrounds Western markets. The fear of a hard landing is part of the subconscious of many experts but there is still confidence that the second world’s economy will manage to land softly. Opinions are divided: Pessimists predict a greater slowdown within the following months….

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Spanish economy 3rd September 2012

There will not be Spanish debt buying unless profitability goes up (JP Morgan)

By Tania Suárez, Madrid | It seems that September will be a busy month, the beginning of a year full of interesting appointments for investors. As noted from JPMorgan, markets have already priced in aggressive Spanish debt buying by the European Central Bank, “but the risks shall remain high.” Many sources agree that the ECB is not expected to provide many details of the SMP. “There’s not a clear indication…

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In Europe 1st September 2012

Bundesbank’s lack of adaptation will be its end

By Tania Suárez, Madrid | Three resignations are likely to take place soon in the Bundesbank: Weber, Stark and now Weidmann. Barclays experts say “the death rate in this institution seems unusually high.” The Bundesbank is impressive in its power and majesty, but analysists consider “their lack of ability to adapt to the circumstances” is going to lead to its disappearance. Barclays team suggests that “the ECB’s adaptation contrasts with…

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In Europe 30th August 2012

After EBC’s meeting, Portuguese bailout (JP Morgan)

By Tania Suárez, Madrid | Global growth will remain below trend until later this year, according to JP Morgan expectations. Rates have dropped less than 50bp from their peaks in 2011 and are projected to fall further 20bp until late 2012. Developed markets authorities believe that “the limit of zero interest rates has eliminated the possibility of conventional action.” Meanwhile, emerging markets with still flexible rates, have “persistently high inflation…