From its pre-crisis maximum level, the real value of salaries has fallen 43 billion euros, mainly in the construction sector. On the other hand, in the services sector they have risen by some 5 billion euros. Since the start of the economic recovery, wages have increased below productivity rates. This has been particularly noticeable in the manufacturing sector.
Yiannis Mouzakis via Macropolis| From the beginning of the crisis, Greek debt has often been the elephant in the room. Over the last year it has taken on the form of an unsolvable equation as key decisions makers have taken positions that do not appear to overlap.
Francesco Saraceno | Trump is not the John Maynard Keynes of 2016. His agenda is, broadly speaking, an agenda of deregulation, tax cuts for the rich, and retreat of the State from the economy. Not to mention the strong chance of a more hawkish Fed in the future. To sum up, Trump is, in the best case scenario a new Reagan.
BoAML | Council member Nowotny stated on 9 November that “how the Fed reacts” will be “key”. Unfortunately, the ECB will meet before the FOMC, on 8 December. The ECB will need to rely on its own and the market’s expectations of the Fed.
Spain’s competitiveness increased in the third quarter compared to other eurozone and OECD countries, with consumer prices indices as a reference, according to the Competitive Trend Index compiled by the Ministry of Economy, Industry and Competitiveness.
Spanish power company Iberdrola is involved in the electricity and gas generation and distribution businesses in the US. It also has 5.504MW of installed capacity in Mexico, mainly in combined gas cycles. This is one of the pillars of future growth for Iberdrola as it is constructing 4.000 MW to reach a 2020 target of 10.000 MW of installed capacity.
Francesco Saraceno | Is the last BoJ move a serious risk to blow credibility. If it failed to lift the inflation to the 2% target, how can it be credibly believed to overshoot it? Credibility was associated in the past three decades to changing incentives over time, and invoked to recommend rules over discretion. Today, eight years into the zero lower bound, we go back to a more intuitive definition of credibility: announcing an objective and not being able to attain it.
A stock market catastrophe has been announced if Donald Trump won. However, after the intitial shock, most of European financial places, except Ibex, have closed, upwards. Despite Mr. Trump is a political newcomer we may not understimate his capacity of turning his latest endeavor into a success.
Julis Baer Research | This ruling against May came rather surprisingly and nourished hopes of the Brexit opposition that Parliament would still be able to prevent a Brexit. We however do not believe that Parliament would fully cancel the Brexit, standing up against the majority of voters. Furthermore, the last word is not spoken yet, it will depend on the Supreme Court.
Donald Trump has finally triumphed in the US presidential elections, after winning in key states like Florida, Ohio and Pennyslvania. The Republican Party has a secured control of the House of Representatives (the lower house of the US Congress) and it also looks like it will maintain control of the Senate (the upper house).