LONDON | Is there in these recent Brazil’s data a lesson for those in the Old Continent whose only talk is internal devaluation via salary cuts to regain competitiveness, while keeping the common currency too high for irrational fear of the inflation ghost? March brought a negative surprise with consumer credit non-performance rates in Brazil, which ticked up to 7.6% after having fallen to 7.4% in February. But that shouldn’t be…
LONDON | Speaking of deterioration of the real economy: in 2011, nearly 3 million adults aged between 20 and 34 were living with a parent or parents, an increase of almost half a million, or 20 per cent, since 1997. The Office for National Statistics pointed out that this is despite the number of people in the population aged 20 to 34 being largely the same in 1997 and 2011….
MADRID | Lenovo, the Chinese PC giant, recently carried out two capital injections in its Spanish subsidiary. According to the business daily Cinco Días, on April 24 there was a capital increase of €36 million, with the total capital subscribed resulting in €37.47 million. A few days earlier, the company had made another injection of capital of €1.29 million. Isla Ramos, CEO of Lenovo in Spain, explained that such capitalisation is linked…
By Carlos Díaz Guell, in Madrid | Following the steps taken by the Spanish government to increase the requirements of capital provisions to the banking system from 7% to 30%, that is some €30 more billion, the Eurogroup, seen the distrust generated by the Bank of Spain’s actions, asked the Rajoy government to commission an independent valuation of property assets on the balance sheets of financial institutions. The international financial authorities and…
The Spanish government estimates it may take in up to €30 billion through an “ambitious” privatisation plan which will be passed before summer, reported news agency Europa Press on Monday. This new government plan, which completes the reforms that have already been approved as well as other further measures (the single market, or the entrepreneurship law) will affect all the ministries and enable private initiatives to enter in a large number…
LONDON | The second release of UK GDP figures shed some light on the surprisingly large decline in GDP in the first quarter. The revised figures showed an even larger drop in the construction sector, with -18% or a -1.3% contribution to quarterly GDP growth. Not to worry, said JP Morgan in Monday’s note. Even if the figures are correct, however, the sector only represents 8% of economy (unlike in some other…
MADRID | Burrup Nitrates selected Técnicas Reunidas, the Spanish company reported Monday, for the TAN or technical ammonium nitrate project on the Burrup Peninsula, in the state of Western Australia. The contract will be on a lump sum turnkey basis with an approximate value of just over $600 million with the start up of the plant scheduled for the third quarter of 2015. Burrup Nitrates Pty. Ltd. is a company beneficially participated by…
LONDON | Barclays Capital asked 80 of their fixed income clients about what the European Central Bank should do to calm markets down and deflate the ever more acute euro crisis. Investors from outside the euro zone said the central bank’s best chance would be to return to the markets to buy sovereign debt from Italy and Spain, cut interest rates and inject long-term liquidity into the banking system, but…
A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. How a company becomes a listed company like, let’s say, Facebook Can London pay for the Olympic Games? We give you Mr Hollande Don’t miss how much Africa is growing Hollande tax makes London look…
JLM Campuzano, Citi strategist, in Madrid | I read half surprised, half indignant, that a competitor released today an investor note in which the pending exit of Greece from the European Monetary Union is given a week as a deadline. The arguments are all too well known: the Hellenic authorities have already breached the adjustment plans, the country’s political parties will not come together in any of the urgent agreements…