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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.
BCE exterior

European economy 29th July 2020

ECB Tests Found That Eurozone Banks Are Able To Withstand The Stress Caused By The Pandemic

Santander Corporate & Investment | The ECB published on Tuesday the aggregate results of its vulnerability analysis of the 86 banks directly supervised under the Single Supervisory Mechanism. This shows that “the euro area banking sector can withstand the stress induced by the pandemic but, if the situation worsens, the decline in bank capital would be significant. Furthermore, the ECB has extended its recommendation that banks should not distribute dividends until 2021.

labour market

Spanish economy 28th July 2020

The Coronavirus Destroys 1M Jobs In Spain In Q2’20, Leaving The Unemployment Rate At 15.33%

The results of the Labour Force Survey (EPA in its Spanish acronym) for the second quarter of 2020 continue to reflect the situation arising from the pandemic. Employment fell by 1,074,000 persons in this period. It should be borne in mind that this figure does not include those affected by a temporary lay-offs with suspension of employment. Meanwhile, the unemployment figure rose by by 55,000 people, with the unemployment rate standing at 15.33%.

Euro sculpture

European economy 28th July 2020

The Poisoned Gift Of The European Agreement: The Euro’s Appreciation

Intermoney | Unlike the last crisis, Europe does not want to make an example of any country and Germany has sided with the stimulus and economic revival. This has been a turning point and has allowed the EU to gain a vote of confidence. However, it also has negative side effects in the form of the appreciation of the euro to 1.154 against the dollar on the day the agreement was announced. This was equivalent to highs not seen since January 2019.

EU agriculture 2

European economy 27th July 2020

New EU Budget Cuts CAP By 10% But Strengthens Regional Funds

On last Tuesday, leaders agreed on a Multiannual Financial Framework (MFF) of €1.074 Bn for 2021-2027. The European Union budget for the next seven years cuts agricultural funding by 10% compared to the previous Community financial framework, with the amount now standing at €343.9 Bn. Meanwhile, the allocation of cohesion funds has been boosted by 2.7% to €377 Bn.

Abengoa AtlanticoYield

Markets, Spanish Small & Mid Caps 27th July 2020

Clouds Over Abengoa’s Viability Will Be Cleared This Week

Abengoa’s risk profile was already very high but this has been aggravated to the point where there is no possibility of business continuity due to the situation resulting from the Covid-19. Abengoa and the banks are negotiating against the clock to find a solution that will allow the company to receive 300 million euros before July 31 and avoid bankruptcy proceedings.

negative rates3

World economy 26th July 2020

Negative Interest Rates: Where Is The Real Limit To Cheap Money?

Interest across the globe on using negative rates as a policy tool has increased with global interest rates moving towards zero in the hopes of pulling economies quickly out of the COVID-19 recession. In a report by Citi GPS, analysts Matt King and Catherine L. Mann look at the positives of negative rates in terms of whether they boost credit growth, stimulate spending, or contribute to currency weakness. More importantly, they explore the side effects negative rates would have on corporates, households, banks, pensions, and markets.

Fed's inflation target

World economy 25th July 2020

Central Banks Will Not Regain Their Inflation Targets In The Next Three Years

Central banks have once again received criticism for the support they have provided to markets-to-date and their role as inflation targeters. Analysts at AXA IM’s view is that much of this criticism is misplaced: They expect central banks to remain inflation targeters, even though seeing the immediate pandemic impact as likely disinflationary through 2022. 

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European economy 24th July 2020

EU Debt Issuance To Fill Gap In Shortage Of European High Quality Bonds

Intermoney | EU supranational entities’ negotiable debt in euros which can be attractive for investors amounts to nearly 588 billion euros. This figure seems low in line with the gross emissions of the EU, the ESM, EFSF and EIB which, together, have averaged 67 billion euros between 2015 and 2019. These numbers are evidence of the fact that the markets in the EU are lacking a key element such as the supranational role of quality. Furthermore, the Recovery Plan largely dilutes the break-up premium of the European project, and this may generate an extra boost for EU equities in the coming months.

Cellnex torreta

Ibex, Markets 24th July 2020

Cellnex To Increase Capital By €4 Bn To Finance New Acquisitions

The rumor has been confirmed. Cellnex has announced a capital increase of 4 billion euros, 18.5% of its current market cap, which will put into circulation 101.4 million shares, which means 26.3% of the current shares at an issue price of 39.45 euros. The purpose of the capital hike is to finance the group’s expansion via acquisitions. According to the company’s press release, it is looking at assets worth up to 11 billion euros to invest in within the next 18 months.