The ECB will stop injecting liquidity into the system next December. This leaves Eurozone banks in a slightly odd situation: returning to “normality” after years of atypical measures. The withdrawal of QE will have different impacts on different countries, depending on the characteristics of the models of their banking business.
Huan Guocang via Caixin | What did Kim Jong Un and Donald Trump achieve during their meeting in Singapore last week? Judging by the media response to the summit, the two made few breakthroughs and neither stepped out of his expected role.
The most tumultuous period in Greece’s modern history concluded in the middle of the night, with just a few usual suspects to share the moment on Twitter, a World Cup game being replayed on the television and the live stream of a Eurogroup press conference on the laptop screen.
The European car industry collapsed when the Trump administration insisted that European imports would be subjected to new tariffs. This is clear in the under-performance of German producers, who are net exporters to the US, although they operate a handful of local plants … but also in Mexico.
New Telefonica’s commercial brand in Spain O2 will aim to cover all segments of the low and medium cost market where the entry of Masmovil has caused competition. Masmovil gained 201,000 new lines in April, while Telefonica gained 1,200 new connections, Orange lost 1,900 lines and Vodafone 4,500.
For both China and the US, government policy is more important than monetary policy right now. “Interesting that for China, many of its perceived problems are being dealt with through greater use of technology”, explains Mark Tinker, Head of Framlington Equities Asia at AXA IM.
The recovery of the Spanish economy has shown strong growth in more than just GDP. Exports of goods and services have grown considerably from 25.6% of GDP to 34.4% between 2010 and 2017, while employment has also shown notable growth (1.9 million more people in work since Q2 2014). This increase in exports is not only helping to create jobs, but whatsmore, to improve the quality of employment.
The first half of 2018 has witnessed a dip in global IPO activity as a result of lower capital raising in Asia Pacific and EMEA, according to the latest research from Baker McKenzie. Worries around geopolitics weighed on investors’ minds. However, cross-border deals totalled over $16.6 Bn. The number of deals climbed, up 18% to 85.
According to Julius Baer economists, “despite the perceived escalation of US tariffs quarrels being close to a trade war, they remain tit-for-tat trade disputes.” The missing economic rationale behind the tariffs supports their notion of a pure domestic motivation for the disputes.
William Chislett (Elcano Royal Institute) | Spain was ranked 11th out of 110 countries in the 2017 Elcano Global Presence Index, which measures the results of internationalisation, up from 12th in 2016