Benjamin Cole | The worldwide bond market tops $100 trillion, and we live in a world (as we are incessantly told) of global capital markets. All told, there is more than $217 trillion in global debt outstanding, and that figure rises by many trillions every year, reports the Institute of International Finance.
In a surprisingly statesman-like manner, Carles Puigdemont performed a balancing act in respecting the referendum result, safeguarding his support from the independence movement, and avoiding total escalation with Spain.
After confusing messages from Catalan government about yesterday unilateral but at the same time suspended independence declaration, the Spanish PM Rajoy has decided to trigger Article 155 which will be used to suspend the regional administration and take direct control of Catalonia.
Jens Bastian via Macropolis | The “Balkan Silk Road” is the name given to the transport route and logistics corridor China has begun to establish in the Balkan region even before the official launch of the BRI two years ago. The Balkans, and by extension Southeast Europe, is a region where China can empirically test various elements of the BRI. The “gate towards Europe”, as the Chinese Prime Minister Li Keqiang termed Greece during a visit in 2014, initiates the Southeast European corridor of the Silk Road.
Spain’s stock market regulator yesterday accepted Atlantia’s bid for Abertis, acknowledging that the content of the explanatory document presented by the Italian company is sufficient and in line with current regulations. The approval also gives Atlantia the possibility of improving its offer and establishes the period for ACS to consider its eventual competing bid.
Francesco Saraceno | Angela Merkel will be Chancellor for the fourth time, marking a long period of political and policy stability. In the past fifteen years Germany emerged as the model to follow for the other large economies. For since its economy has performed better, in terms of growth and unemployment, than France or Italy.
Until the tense situation in the country is resolved, we believe the Spanish stock market will continue to suffer more than its European peers. As an example of this, in the week up until October 4, Spanish equity funds lost $229 million, according to market data firm EPFR.
Carax Alphavalue | Mrs May’s talk of energy price controls sent the UK sector into a downward spin. The Catalan mess also pushed sharply down the Spanish utilities’ share prices. The only surprise is that it took three days for markets to react to the Spanish risks.
BofA Merrill Lynch | The virtuous cycle of credit-capex-growth needs a quantity and quality-driven credit recovery. The latter is lagging behind. The ECB has created the necessary conditions for credit revival. Stronger forward guidance would help to preserve them. UK: there are bright spots of course, but the balance of evidence leads us to cut our 2018 growth forecast to 1.0% from 1.2%.
ACF | The ECB is proposing a tightening up of the provisions required from the European banks to cover loans which are classified as doubtful from January 2018, according to today’s press.