Pablo Fernández | A company uses its accounts (balance sheet and profit and loss account) and its annual report to communicate its past peformance and its current situation. But are these accounts a real reflection of the company’s financial health? Abengoa is a case in point.
Nick Malkoutzis via Macropolis | A stale parliamentary debate that rarely stayed on topic seemed a good way to wrap up another disappointing political season in Greece. The country has been stuck in a deep, dark hole for almost a decade and now it has a chance for a change in fortune. But its decision makers will have to display much more vision, determination and mastery than was on display in Parliament on Monday.
The communication released after the Fed’s June meeting, along with the publication of the system it will use to potentially reduce its balance sheet, shows there is strong support for continuing with the normalisation of US monetary policy.
José Luis M. Campuzano (Spanish Banking Association) | It’s been balance sheet adjustments and the worsening of the deliquency rate which have been mainly responsible for the deterioration in banking margins over the last few years. It’s important for the ECB to establish a clear strategy for monetary normalisation for the future.
Norbolsa | We consider the acquisition just announced by Vidrala in Portugal as attractive: a factory with high margins and with potential synergies given its proximity to Gallo; a purchase made at attractive prices and which will be immeditely EPS accretive.
The US economy has entered its ninth year of growth and the recovery could last over 10 years, clocking up a new record. At this stage the doubt surrounding an atypical recovery is whether the best thing is for the Fed to maintain its monetary policy of the last few months and continue to gradually raise interest rates, despite the absence of inflationary pressures.
There are various ways of measuring the volatility of equities, but for me the most representative are: a) what is known in the Anglo-Saxon world as the fear index, VIX, and b) the ample range formed by the intra-day movement of an asset price. In other words the difference between the maximum and minimum level of a share price or index within the same day. As Víctor Peiro from GVC Gaesco points, if we look at the performance of this volatility index, both for the US and European indices, we can see we are close to record lows.
Fernando Rodríguez |Bankia’s integration of BMN has transformed the stock in the eyes of analysts and fund managers: the restructuring period is over and now it’s time for growth. If the execution of the merger avoids the limited risks which it would seem to involve, the macroeconomic scenario in Spain, and interest rates on the rise in Europe, should favour the bank’s business and boost Bankia’s share price, which has already heated up of its own accord.
Speaking in his role of chairman of the international Financial Stability Board, Mark Carney said on Monday that aspects of shadow banking considered to have contributed to the financial crisis have declined significantly and generally no longer pose financial stability risks.