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Articles by The Corner

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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.
Inditex

Ibex, Markets 13th December 2016

Greens’ accusation of Inditex’s alleged tax evasion may be a call for more fiscal transparency

The Green party lawmakers in the European parliament have accused the world’s biggest clothing retailer Inditex of avoiding paying at least 585 million euros in taxes between 2011 and 2014. According its report ‘Tax Shopping: Exploring Zara’s Tax Avoidance Business’, the fact that Inditex diverted bonus payments to the Netherlands has cost Spain some 218 million euros in uncollected tax revenues, Germany 25 million, Italy 57 million and France 78 million, amongst others.

Norwegian Statoil

Equity Reports, EuroStoxx Reports 12th December 2016

Statoil, That Pure Play on OPEC

Carax Alphavalue | The recent OPEC deal was more than welcomed by the Norwegian oil company which has more than 60% of its production coming from the Continental Shelf. With little by way of refining compared to its integrated oil peers’, Statoil’s (Add, Norway) earnings are a near direct call on oil prices.

Inflation expects Fed's meeting

World economy 12th December 2016

Are You Worried About Inflation? All Eyes On Fed Meeting

J.L.M. Campuzano (Spanish Banking Association) | Many argue that the conditions are not there for an uptick in inflation on a global scale. Well, that’s true: weak world growth, globalisation and a still negative output-gap in many developed countries (and emerging ones). But are we not being carried away to some extent by the disinflation inertia of the last few years? All eyes will be on the US Fed’s decision on interest rates and its forward guidance at this week’s meeting.

emerging economies

World economy 9th December 2016

Emerging Markets In 2017: Politics Taking Centre Stage

Julius Baer Research | Emerging markets are still in a trading and not in a trending environment. The past was about central banks and monetary policy. 2017 will be about politics. We divide 2017 into two phases. In Q1/Q2 2017 we expect emerging markets to underperform and believe that there is a buying opportunity sometime in Q2 2017.

The paradox of the ECB long-term refinancing operations

In Europe 9th December 2016

ECB’s programme is here to stay

There was a consensus in the market that the ECB will announce an extension of its current asset-purchase programme  and so president Mario Draghi did it by expanding QE more than expected to December 2017. He also committed to do it even longer if needed.”The presence of the ECB on markets will be there for a long time,” he explained.

high yield credit

Markets 9th December 2016

High Yield Credit – Good By Default

AXA IM | Our twelve month default rate forecast for US high yield (HY) now stands at 3.6% (peak forecast was 6%+) and 2.1% for European HY. The twelve month default rate should peak at just under 6% in January-February 2017 as should the US-EU default rate differential at just over 4%. European HY remains cheap from a default valuation perspective; US HY remains rich but has been improving.

Markets

Markets 7th December 2016

Inflation May Not Be Coming, But People Are Starting To Believe It Is

AXA IM | The broad regime change is now underway, from regulation, austerity, QE and bond markets towards, more growth, market pricing and real assets. The recent sell off in bonds is not so much about a change in views on inflation and growth (the new narrative to ‘explain’ bond yields), as it is a normalisation of interest rates away from QE towards ‘free market’ valuations, ones which are set by inflation and growth and would be much higher.