The collapse of DIA in the last three months has put an end to its adventure in the Spanish stock market, where it began to be listed in 2011. From Monday, Ence Energia and Celulosa is replacing the supermarket chain in the Ibex 35.
Spanish think tank Funcas points out that around 60% of the historic improvement in the current account balance comes from the adjustment of cyclical factors, in particular, the economic cycle and the evolution of the oil price, and 40% can be attributed to structural reasons: the process of fiscal consolidation, the ageing population, lower long term growth expectations and gains in competitivity.
Yiannis Mouzakis via Macropolis | The component of Greece’s gross domestic product (GDP) that experienced the most precipitous collapse during the crisis was investments. At its peak in the third quarter of 2007, gross fixed capital formation represented more than quarter of Greek GDP, at 27.4%. By the second quarter of 2015, it had plummeted to just 10.5 %. It partially recovered to nearly 15 % at the end of last year but in the latest quarter of 2018 it dropped again to 10.8%.
David Mahon via Caixin | There is an African proverb that states, “When elephants fight, it is the grass that suffers.” Small nations will suffer considerable economic losses if they take firm sides with either the United States or China in the current trade war.
The “yellow vests” (gilets jaunes) movement made the French government panic and change its budgetary policy, setting a new deficit for 2019 of 3.5%, which now seems possible.
via The Conversation | When the broadcaster and naturalist David Attenborough launched the latest UN climate talks, COP24, he called for ordinary people to get involved, add their voice, and “take their seat”. A series of #takeyourseat videos were published, featuring people around the world discussing what climate change meant for them. This was a sign of something new at this COP.
After the presentation yesterday by the EC of a new battery of contingency plans for specific industry sectors in the case of a no deal Brexit, IAG´s airlines which comprise Spanish Iberia and Vueling, will not be allowed to operate domestic flights within the EU, nor connections with stop-overs in Europe.
Ultimately, May’s deal represents a compromise of the vague objectives for Brexit. However, Brexit has never been about compromise and with both sides of the debate envisaging different outcomes to the process, neither appear about to make concessions now. In this context, analysts at AXA IM continue to see the ‘most likely’ outcome as a compromise, similar in substance to the current Agreement.
Financial markets expect the US Federal Reserve (Fed) to raise its federal funds target rate on Wednesday for the fourth time this year, by 25 basis points (i.e. between 2.25% and 2.50%). Looking ahead, the FOMC will likely revise its “dots” lower for 2019, while the Fed will emphasise data dependence as relevant for its policy stance, rather than guidance by FOMC ‘dots’.
Banco Sabadell has reached an agreement to sell 80% of the capital of its property platform Solvia to Lindorff Holding Spain, a Swedish company belonging to Intrum Group. Solvia has been valued at a total of 300 million euros.