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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.
BoE

European economy 14th September 2020

BoE Preview: No Change Expected

BoE will announce its next policy decision on Thursday (noon). We expect no change in policy parameters. Current policy: Bank rate at +0.1%. OngoingQE, total YTD envelope of +£300bn (+£232bn of which bought so far), with latest +100bn announced in June.At the last meeting in June, BoE also added a weak form of forward guidance (“The Committee does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”) Expectation:…

And China arrived and defeated the Fed

World economy 14th September 2020

This Week’s Fed Meeting May See A Third Major Change To Its Dollar Strategy

Monex Europe | Recent meeting minutes and speeches have made it clear the FOMC is considering a range of possible calendar and outcome-based forward guidance. The likeliest outcome is further formalisation of the Fed’s shift away from viewing maximum employment as a constraint that will lead to rate hikes. Powell’s speech may provide a template for what outcome based guidance could look like.

Aena

Ibex, Markets, Spanish economy 14th September 2020

Spanish Airport Traffic Continues At Very Depressed Levels: 69.6% Drop In August

The airports in the Aena network closed August with 8,951,753 passengers, 69.6% fewer than in the same month last year, along with 142,962 aircraft movements, 39.1% fewer than in August 2019, and 59,819 tons of freight, 28.6% lower. Out of the total number of passengers recorded in August, 8,909,752 were commercial passengers with 4,838,712 on domestic flights, 41.6% less than in August 2019, and 4,071,040 on international routes, down by 80.7%.

hard brexit

European politics 13th September 2020

How The UK Went From Leader To Laggard

Compared to 2019, when the entire market was eagerly watching events surrounding Brexit, both the Covid-19 crisis and the U.S. elections are attracting more attention than the imminent end of the transition phase. However, the clock is ticking without mercy, as EU chief negotiator Barnier keeps reminding us. In light of the time it will take for legal processes in the UK, as well as on the continent, only a few weeks remain to avert a disruptive UK exit from the European common market, DWS explain.

 

 

 

BANK OF CHINA

World economy 12th September 2020

The Unintended Economic Impacts Of China’s Belt And Road Initiative

Daniel Wagner | China’s footprint in global foreign direct investment has increased notably since the launch of the Belt and Road Initiative (BRI) in 2013. That served to bring Chinese overseas FDI closer to a level that one would expect, based on the country’s weight in the global economy. However, China actually invested more in countries outside the BRI during the period, given that Chinese investment in developed countries tends to have larger market values, particularly for mergers and acquisitions.

Argentina default noveno

In the World, World economy 11th September 2020

Argentina: IMF Talks To Take Centre Stage

While the new bonds may continue to benefit from a weak US dollar and the lower-for-longer global rate environment, the challenging economic outlook and ongoing uncertainty around the IMF talks will likely cap the yield compression potential.

Abengoa Abenewco

Markets, Spanish economy, Spanish Small & Mid Caps 11th September 2020

The New Abengoa Puts 24 Subsidiaries Up For Sale; Considers Requesting State Aid To Stay Afloat

This operation will serve as compensation for the creditors and suppliers who will assume the removal and capitalization of Abengoa debt. The companies up for sale should be transferred within a year. Most of them are projects which have had the “for sale” sign on them for a while, and their valuation has deteriorated. In 2019, the 10 main assets had a net book value of €1.557 Bn and a negative impact compared to 2018 of €118 M. This is in line with the restructuring agreement approved on August 6.

Euro area growth: neither very fast nor particularly slow

European economy 11th September 2020

European Cross-Border Bank Mergers: Less Compelling After The Pandemic Than Before

EU agreement on a pandemic fund boosted market and regulators’ wishes to move towards cross-border consolidation among European banks- the ECB’s vice-president, Luis de Guindos, has already warned of the need for the sector to continue with the merger process. Scenarios have started to be built again about who should be merging with whom. But unity around the EU pandemic fund is not about banks, say analysts at Scope Ratings.

lagarde

European economy 10th September 2020

“The ECB Is Monitoring Current Developments”

The ECB has left its policy stance unchanged after today’s GC meeting. The tone of the press conference was a touch less dovish than expected and President Lagarde has not signaled any large swing in policy in the near term. The overall message was clear: the ECB is monitoring current developments (including the EUR) and assessing the efficiency of the current policy measures before acting with more accommodation