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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.
Retail interest rates are high compared to other Eurozone's countries

Spanish economy 29th June 2020

The Bank Of Spain Will Keep The Counter-Cyclical Buffer At 0% Until It Returns To A Path Of Recovery

The Bank of Spain has decided to maintain the counter-cyclical capital buffer applicable to credit exposures in Spain at 0% during the third quarter of the year. It will probably also do the same in the coming quarters due to the current context of the coronavirus crisis as the severe macroeconomic and financial impact of the Covid-19 crisis require credit institutions to maintain the flow of financing to the real economy. The aim of the counter-cyclical capital buffer is to reinforce the solvency of the banking system in phases of excessive credit growth.

consumption recovery 1

World economy 29th June 2020

Consumption: Support Point For Recovery

José Ramón Díez Guijarro (Bankia Estudios ) | The first weeks of the opening of the economies are serving to gauge the response of consumption, a key variable in determining the profile and intensity of the recovery. In the US, the fiscal programmes for aid to families injected more than 300 billion dollars into disposable income in the second quarter. In Europe, instead of using direct aid as in the US, they have preferred to activate temporary employment suspension programmes (ERTE in Spain, kurzabeit in Germany, etc).

china india border tensions

In the World, World politics 28th June 2020

Why India and China Are Fighting Right Now

Esther M. Sit | The border clash between China and India has made the headlines of international news. On May 5, troops from both countries confronted each other on the banks of Pangong Lake in Ladakh, the northernmost region of India. Four days later, they squared off in North Sikkim, an area of India that lies between Nepal and Bhutan.

green digital

Uncategorised 27th June 2020

Cyclicals 2.0: Green And Digital

Geraldine Sundstrom (PIMCO) | Things are looking up, sort of. Economies are slowly reopening, and economic data show encouraging signs of life. While the uncertainty about secular trends and the more imminent post-pandemic recovery remains high, we see greater certainty that the recovery will be environmentally cleaner and digitally driven. Cyclical 2.0 is upon us.

BARsA

World economy 26th June 2020

Crypto Corner: FC Barcelona Raises $1.3m In Tokens From Fans

Adam Vettese (eToro) | FC Barcelona fans have invested over $1.3m in tokens issued by the club which gives them the chance to vote on how it is run. Known as Barca Fan Tokens, more than 600,000 tokens were sold at $2 each in just two hours earlier this week, according to Coindesk

Frankfurt

Uncategorised 26th June 2020

A Message To The German Constitutional Court: There Is A Debate On Asset Purchases At The ECB

Intermoney | Within the ECB, they are not forgetting the clash it has had with the German Constitutional Court, after the latter ruled the bank’s bond purchase programme is “partially unconstitutional.” In fact, it is one of the problems they have to solve before the institutional break in August. Meanwhile, the central bank’s internal forum is still debating the question of whether the buying programme had an impact on economic and financial policy. The members of the Governing Council have been discussing the pros and cons of its monetary policy. 

iberdrola

Ibex, Markets 26th June 2020

Why Is Iberdrola Not Part Of The New iTraxx ESG index?

Santander Corporate & Investment | The launch of the MSCI ESG Screened Europe iTraxx Index, based on the MSCI iTraxx Europe Series 33 Index and the application of three MSCI filters, took place with great fanfare on June 21. Enel and Iberdrola have AAA ratings from MSCI for their ESG (environmental, social and governance) characteristics, but they have presumably been excluded from the index because of their involvement in nuclear and coal-fired energy production.

Earnings US vs Europe

World economy 26th June 2020

The Gap Between The US And Europe On The Pandemic Front Is Getting Wider

Gilles Moec (AXA IM) | The divergence between Europe and the United States on the pandemic front continues.In the latter, the number of states facing an acceleration in the propagation of the virus rose furthe. Meanwhile, in Europe, while some clusters continue to appear, the speed of the epidemic is still markedly lower than when authorities considered it was safe to start re-opening the economy.

fiscal easing

World economy 25th June 2020

$15 Billion In Stimuli For A V-Shaped Recovery

Frenzied rate cuts (more than a hundred worldwide) and liquidity injections by various central banks, amounting to more than $6 trillion, added to the fiscal stimuli of all kinds already committed for another $9 trillion. An unprecedented aid package that amounts to 19% of the world’s GDP in 2019. All aimed at trying to achieve a V-shaped recovery that will mitigate the effects (-5% of world GDP) of such an unexpected recession.

Spain tourism GDP

Spanish economy 25th June 2020

IMF Forecasts: The Heavy Weighting Of The Tourism Sector Explains Sharp Downward Revision In Spain’s Expected Growth

Bankia Estudios | None of the world’s major economies will avoid an annual contraction in GDP, with the possible exception of China, which could grow by a modest 1%, reported the institution. As for the Spanish economy, it has cut forecasts from the -8% estimated in April to -12.8%. For 2021, it estimates 6.3% growth , so that next year the level of GDP will still be 7.3% lower than in 2019 (4% in the previous revision). Spain’s worse performance is mainly due to the heavy weighting of tourism sector in GDP.