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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.
European automobiles: entering the next auto decade

European economy 11th December 2019

European Automobiles: Entering The Next Auto Decade

Bank of America | We think that the next decade in Autos will be all about electrification (global CO2 targets), slower car sales growth, mobility services and a greater focus on cost reforms (material costs, capacity rationalization & personnel costs). Following two years of declining global car sales, we think 2020 could see flat growth. However, we do not believe that this will be enough to offset cost pressures in an industry burdened by high fixed costs (labour) and rising regulatory charges (CO2).

policy rates

Markets, World economy 11th December 2019

Negative rates, negative view

Nicola Mai and Peder Beck-Friis (Pimco) | We believe that negative policy rates could do more harm than good to economies and markets, due to their impact on banks, insurance companies and pension funds, and also a possible adverse effect on consumption. Below, we discuss potential implications for investors.

European equity funds

Markets 10th December 2019

Five consecutive weeks of inflows into European stocks (weekly average of +2.4bn)

Santander Corporate & Investment | Waiting for PMI business confidence indicators to show signs of substantial improvement and in the absence of developments in trade negotiations, interest rates on government bonds have receded slightly, which has again given prominence to defensive companies while cyclicals take a break after the rally that began in September.

WTO

World economy 10th December 2019

Ifo Calls for New Dispute Resolution Body at the WTO

Germany’s Ifo Institute has called for a replacement solution to be found quickly for the Appellate Body at the World Trade Organization (WTO). This body will soon cease to be operational, since the terms of office of two of its remaining three members end today, leaving the body unable to make decisions. The US has for some years now been blocking the appointments of new judges to replace outgoing ones.

MSCI, S&P Dow Jones and FTSE Russell could fast-track Aramco into their indices soon after the IPO

World economy 9th December 2019

MSCI, S&P Dow Jones And FTSE Russell Could Fast-Track Aramco Into Their Indices Soon After The IPO

E-Toro | Saudi Arabia’s state-owned oil company, Saudi Aramco will be listed on the Saudi Stock Exchange (Tadawul) later this week on December 11th. Furthermore, the oil company is expected to price its initial public offering Thursday at the high end of the targeted range to give the oil giant a total value of $1.7 Tr. This would be the world’s biggest-ever IPO. These are the pros and cons we found about the firm.

Trump arrives in Europe with a new trade war

European economy 7th December 2019

Trump Arrives in Europe With a New Trade War

Peter Isackson |Profiting from his return to Europe to celebrate the 70th anniversary of NATO, Donald Trump used the platform to launch the opening salvos in a new skirmish in his endlessly improvised “America First” trade wars. This time, Trump claims to be retaliating against France’s effort to resist the unfettered domination of the giant American tech monopolies that have spread across global markets, leaving little margin of maneuver to potential competitors who can’t match their size and reach.

 

Cellnex ends the year succesfully with a new purchase from Orange

Ibex, Markets 6th December 2019

Cellnex Ends The Year Succesfully With A New Purchase, This Time From Orange

Cellnex has reached an agreement with Orange Spain to acquire a portfolio of 1,500 telecommunications sites, which means 11% of the current Cellnex portfolio in Spain, and 4% of the total portfolio of towers and antennas located in urban, suburban and rural areas. The operation involves an overall investment of € 260 M. The acquisition will be financed through available cash.

The ECB thinks that the European financial system could withstand even lower rates

European economy 5th December 2019

Popularity Of Fiscal Policy Rises As New European Leadership Shows Up

David Kohl (Julius Baer) | The European political leadership is in transition, with Ursula von der Leyen starting as President of the European Commission and Christine Lagarde as President of the European Central Bank and the Social Democrats in Germany voting for a new leadership. The common denominator of the most recent leadership changes in Europe is more openness towards an expansionary fiscal policy at the expense of austerity, which had been the mantra of the past ten years.