Top Stories

Articles by The Corner

About the Author

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.
V L W recovery

World economy 11th June 2020

The Fed And The OECD Have Doubts About The V-Shaped Recovery Discounted By The Markets

Santander Corporate & Investment | The Fed does not expect the economy to fully recover until 2022 and expects GDP to fall by 6.5% and unemployment of 9.3% in 2020. The OECD also distances itself from V-shaped scenarios and warns of the worst peacetime recession in 100 years. In scenarios without second waves of Covid-19, the OECD anticipates a global contraction of 11.5% in H1’20 and neither does it expect world GDP to approach the pre-coronavirus level by end-2021.

euro.growth

European economy 11th June 2020

The PEPP And The APP Programmes Combined Would Cover Almost 90% Of The EU’s Estimated Financing Needs

Intermoney | Based on the ECB’s macroeconomic forecasts, we can extrapolate that the financing needs of the EMU countries will be around €1.5 Tr between 2020 and 2021. And if 73.5% of the PEPP continues to be used to acquire sovereign debt from the different Eurozone’s members, the programme would cover almost 65% of the needs for this year and next. All this, without taking into account the €120 Bn from the reinforced Asset Purchase Programme (APP) and the €360 Bn that it should add up to mid-2021.

Why 2019 could be the year of another tech bubble crash

Markets 10th June 2020

Nasdaq Clears 10,000 For First Time Ever

(eToro) | US stock indices snapped a winning streak that had lasted for over a week on Tuesday, with the S&P 500 falling 0.8% and the Dow Jones Industrial Average closing 1.1% lower. The Nasdaq Composite was still in the green, however, driven by a positive day for information technology stocks. It is now up by close to 11% year-to-date and has surpassed the huge milestone of 10,000 for the first time ever. 

Telefonica nubecillas

Ibex, Markets 10th June 2020

Telefónica Buys 10,100 Towers From Its German Subsidiary Through Its Telxius Infrastructure Arm; Cuts Debt By €500 M

Telxius, Telefónica’s infrastructure subsidiary, will carry out a capital increase of 1.5 billion euros to buy towers from Telefónica Deutschland. Telxius will finance 90% of the acquisition via a capital increase – which will be subscribed by current shareholders in proportion to their stake – as well as internally generated resources. The remaining 10% will be financed through incremental debt.

zara coronavirus

Ibex, Markets 10th June 2020

Only The Coronavirus Has Been Able To Knock Inditex Back

Inditex has published results for its first fiscal quarter (February-April), reflecting as expected the strong impact of the coronavirus: historical losses of €409 million, positive EBITDA although 78% lower than in Q1’19, and a 44% drop in revenues. Nevertheless, the company confirmed the payment of a dividend against 2019 results of 0.35 euros/share, 60% less than a year earlier.

spain syndicated bonds

Spanish economy 10th June 2020

Spain Treasury Launches First 20-year Syndicated Bond As It Continues To Finance Covid-19 Crisis Needs

On Tuesday, the Treasury launched its first 20-year syndicated bond for a minimum amount of 10 billion euros, with demand reaching 78 billion. So it continues to advance in its programme of issues for 2020. This is the third time during the pandemic that the Treasury has made a syndicated issue. On March 24th it made a syndicated placement for 10 billion euros with a 7-year bond, and another on April 22nd for 15 billion with a 10-year syndicated bond.

bank generico

European economy 9th June 2020

The Spanish And Italian Banks Are The Least Capitalized, With A CET1 FL Of 11.9% And 13% Respectively

Santander Corporate & Research | Yesterday, the European Banking Authority published its 2020 transparency exercise, which takes data from individual banks at end-2019. The EBA’s findings indicate that the EU weighted average CET1 fully loaded capital ratio stood at 14.8% in Q4’19. Also yesterday, the European Systemic Risk Board (ESRB) published a second set of measures adopted in response to the coronavirus emergency, which include a recommendation to restrict capital distributions until January 2021.

US labour

Uncategorised 9th June 2020

Stunned By The US Jobs Report

Michelle Meyer & Alexander Lin (BofA Global Research) | The May jobs report was nothing short of stunning. The labor market recovery started earlier than expected as job growth rebounded by 2.5mn in May. In total, 22mn jobs were lost with a peak U-rate of 14.7%. The quick bounce in job growth reflects the “easy” rehiring. The path becomes more challenging thereaſter, with a long road to full employment.