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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 union

European economy 8th July 2020

The European Economy Will Recover At Two Speeds, Widening The Gap Between The Eurozone’s Members

The three countries most affected by the coronavirus crisis will be Italy, Spain and France, with falls in GDP of 11.2%, 10.9% and 10.6% respectively this year. For the region as a whole, GDP will contract by 8.7% in 2020 compared to the 7.7% previously expected. By 2021 it expects GDP to grow by 6.1%. In the second half of next year, the Commission sees a two speed recovery happening in the EU, with the existing divergences in the area becoming even more pronounced.

MMT pounds

World economy 8th July 2020

Modern Monetary Theory: The Rise Of Economists Who Say Huge Government Debt Is Not A Problem

John Whittaker (The Conversation) | MMT proponents argue that governments can spend as necessary on all desirable causes – reducing unemployment, green energy, better healthcare and education – without worrying about paying for it with higher taxes or increased borrowing. Instead, they can pay using new money from their central bank. The only limit, according to this view, is if inflation starts to rise, in which case the solution is to increase taxes. 

losses funds managers

Equity Reports, World economy 7th July 2020

Earnings Season: Q3 Will Be As Weak As Expected

Patrik Lang, CFA Head of Equity Strategy Research, Julius Baer | For Q2 consensus expects S&P 500 earnings to decline 43.9%, which would be the largest y/y earnings decline since Q4 2008 (-69%). For Q3 consensus expects earnings to decline by -25.4% and for Q4 by -12.8% followed by 28% earnings growth in FY 2021. Based on our macro models and historical post-recession earnings patterns, we see upside risk to consensus expectations for both H2 2020 and FY 2021.

ECB Bundesbank

European economy 7th July 2020

The ECB Accelerated Spanish Debt Purchases By 6.8% In June

The European Central Bank acquired €5.4 Bn in Spanish bonds during the month of June as part of its PSPP purchase programme, which has been questioned by the German Constitutional Court. The June figure accounts for 21.5% of the total of €25.23 Bn allocated for the month by the ECB for the acquisition of sovereign debt of the euro area countries participating in the programme. So it has exceeded the capital key of 11.9% corresponding to Spain.

 

telefonica cloud

Ibex, Markets 7th July 2020

Telefónica, Germany’s SAP Create An Alliance To Host A Large Private Cloud In Spain

Telefónica and SAP Spain have announced an agreement to promote business cloud computing services, both in the form of private cloud from Telefónica’s Infrastructures as a Service in Madrid (IaaS), and in the public cloud (SaaS). Amongst the main milestones of the partnership between the two firms is the conversion of Telefónica’s data centre into the first in Spain to offer private SAP cloud services.

inflation board

World economy 7th July 2020

The Other Looming V-Shaped Recovery

DWS | There are a few reasons to think that unlike the economy, inflation could see a V-shaped recovery. Recently published inflation data seem to confirm this theoretical view. Without taking into account the energy component, which, thanks to the oil price, fluctuated wildly in 2020, the inflation rate in the Eurozone was 1.3% in June. That is exactly the same level as at the beginning of the year.

YenJuly2020

Markets, World economy 6th July 2020

Empty-Handed BoJ To Set The Tone For A Mildly Strengthened JPY

Olivia Álvarez (Monex Europe) | The USDJPY pair has remained broadly range – bound after central banks aggressively intervened to stabilise financial markets from the sharp moves triggered by the outbreak of the pandemic. The pair’s range during the onset of the virus widened to nearly 10% between the end of February and mid – March. USDJPY volatility has since subsided, with the range falling to a maximum of 3.5 % after April to date

enagas factory

Ibex, Markets 6th July 2020

Enagás And BP Join Forces To Boost Promotion Of LNG And CNG In Transport And Renewable Gases

Enagás and BP Oil España have signed an agreement to promote emission reduction projects in Spain. Their objective is to boost the role of renewable gases in the energy mix, helping to reduce the carbon footprint. So Enagás, through its subsidiary Scale Gas, will roll out LNG and CNG sale points in BP’s filling stations’ network, promoting the use of a low emission energy source as fuel in the automotive sector.

congreso diputados1

Spanish economy 6th July 2020

The State To Enter Spanish Companies Via The Purchase Of Shares, Debt Or Other Convertible Instruments

The fund worth €10 Bn will rescue companies with solvency problems such as airlines and hotel chains damaged by Covid-19. It will be managed by the State Society of Industrial Participations (SEPI) and will allow the state to temporarily enter, for 6 or 7 years, the capital of private firms This will be done with the purchase of shares, debt or any other instrument convertible into capital. If after that time the company needs additional support, it will need a restructuring plan which will be transferred to Europe.

home working

World economy 5th July 2020

Is It The Death Knell For Offices?

Mark Callender (Schroeders) |  Some real estate investors believe the successful working from home experiment during this crisis will lead to a long-term decline in demand for offices. We think this is premature. New technologies such as blockchain, robotic process automation and voice recognition probably pose a bigger threat to the office. However, the demand for offices in city centres and close to universities should continue to increase, driven by the growth in tech, life sciences and professional services.