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Articles by The Corner

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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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Markets 27th March 2012

Morningstar Europe reports investors’ comeback to corporate debt

LONDON | Morningstar Europe reported Tuesday that February update showed net positive inflows, with investors adding more than €15 billion in new assets to long-term European-domiciled funds. Fixed-income funds attracted the vast majority of investor cash, with some €12.5 billion in inflows, the asset class’ highest inflow figure since August 2010. Equity funds saw a modest outflow of investor capital, while money market funds lost €13 billion. Morningstar research said that funds focused…

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Markets 27th March 2012

The Standard and Poor’s 500 Index’ excessive optimism

MADRID | At Barclays Spain, analysts have spotted an oddity. They say that in the United States market participants seem to discount two elements that appear to be contradictory: on one hand, that the Federal Reserve will keep its expanding monetary policy going on for the time being, something that Ben Bernanke would have made clear last Monday; and on the other hand, that the US economy will grow above expectations. “but the…

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Spanish economy 27th March 2012

Spanish companies ready for the external demand pickup

By Carlos Díaz Guell, in Madrid | Activity levels had lately improved, in the private sector although productivity has since 2007 recorded a slowdown, as evidenced by lower growth in Gross Value Added (GVA) of companies, whose figures began to fall in that same year (6.6% versus 8% in 2006) and contracted in 2008 (-2.7%) to drop sharply in 2009 (-7.7%). In 2010 companies’ GVA recorded a recovery in produccion activity…

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World economy 27th March 2012

US corporate profits are Keynesian

By Luis Arroyo, in Madrid | In 2011, corporate profits in the US have been exceptionally high. According to the accounts of S&P 500 companies, or according to the national accountancy, business margins have risen more than ever before. However, the consensus on Wall Street says that they will continue to rise, so the PER rate (price per earnings) is still low: therefore, the stocks will go up like a shot. In…

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Markets 26th March 2012

Spanish banks safe thanks to liquidity provided by the ECB, Barclays says

MADRID | Barclays analysts said in an investor note on Monday that further worsening in Spain’s case should be very limited, as government policies tackle the key problems with the right solutions, in spite of mistakes being made. Experts remained confident the financial sector has gained sufficient funding at least until 2015 after having taken advantage of the latest liquidity operation carried out by the European Central Bank. The report…

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In Europe 26th March 2012

Until Spain’s new budget shows austerity muscle, Brussels must tread carefully

By Juan Pedro Marín Arrese, in Madrid | Once again Spain is riding the storm. The sharp reduction witnessed in risk premium over the last months is vanishing. A sharp budget deficit coupled with gloomy growth prospects and soaring unemployment rates are melting confidence down. Claims on a rather subdued debt position fail to impress markets. Fear that financial situation might end up in a plight is deeply ingrained. Worries…

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In Europe 26th March 2012

Why on Earth is Mervyn King still governor of the Bank of England?

By Luis Arroyo, in Madrid | Central bankers are incapable muppets covered with majestic pomp. The crisis has unveiled their naked, sad truth but what keeps them on their feet is that most people do not bother to properly scrutinise what they do and what they say. Crisis Maven is a blog devoted to analysing the words and actions of the Bank of England. It is a very curious case, that of…

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Spanish economy 26th March 2012

AXA Real Estate: growth in lettings in Spain fuels plans for property buys

LONDON | Asset manager company AXA Real Estate said Monday it signed 68 leases on behalf of its clients representing a total of 113,350 sqm of space across its Spanish portfolio in 2011. This marks an increase of around 90% compared to 2010, when 60,855 sqm of space was let across 42 leases. Of the 68 lettings, 23 representing 10,707 sqm, were new leases, while the remaining 45, accounting for 102,643 sq m of space, comprised lease…

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Spanish economy 26th March 2012

Madrid crackdown on misuse of public resources

By Juan Pedro Marín Arrese | Day after day, political scandals over public funds mishandling and utter corruption hold the front page. They severely undermine Spain’s reputation and call into question its ability to enforce a proper control of resources. Squandering taxpayers’ money in profligate and inefficient expenditure has become a firmly entrenched habit. Regional and local authorities openly challenge debt limits by piling up unpaid bills. Even early retirement benefits…

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Companies 23rd March 2012

Gamesa to set in the UK base for global offshore wind operations

LONDON | The Spanish wind energy firm Gamesa announced Friday it will pursue an agreement with the Port of Leith for the set up of a major offshore manufacturing base in the UK. The project would include blade and nacelles plants, port logistics and operating and maintaining services. The company estimates that the new British manufacturing base could create about 800 new jobs, with an initial investment of about €150 million….