UBS | Cash equity volumes were down sharply in August on a YoY and MoM basis across all the European exchanges we cover, driven by the typical seasonal summer slowdown. The August average daily volumes (ADVs) marked a 2 -year low for DB1 & LSE, a 3 -year low for Borsa Italiana and Euronext and a 14 -year low at BME . August ADVs were down 55% YoY for BME, 40- 44% for DB1, Euronext & Borsa Italiana and 24% for LSE.
By W. Xinyi, L.Rongde and X.Yuanyuan via Caixin | China plans to set up seven new free trade zones, mostly in inland regions, to attract foreign investment amid the national economic slowdown.
John Bruton | Disengaging the United Kingdom from the European Union (EU) will be like undoing all the stitching of a patchwork quilt, and then re-stitching some parts together while making a new quilt with the rest.
Negative interest rates don’t just require an intellectual effort. They also have real consequences. So far the banks have already paid 2.8 billion euros to the European Central Bank (ECB) as a penalty for excess liquidity, BS Markets says.
J. L. M.Campuzano (Spanish Banking Association) | During one of the conferences at last week’s Jackson Hole meeting, ECB council member Benoit Coeure analysed the extreme monetary measures taken by the ECB (in reality by all the main central banks) during the crisis. His opinion was that the neutral interest rate equilibrium is now very low (the product of a combination of low potential growth and low inflation expectations) which explains the remainder of the exceptional measures implemented.
Alfonso de Gregorio (Gesconsult) | Europac is a company which is involved in all sectors related to the paper and packaging industry. It’s a highly cyclical company trading at a 10% discount versus the average for the sector, both in terms of PER and EV/EBITDA.
J. L. M.Campuzano (Spanish Banking Association) | Fed deputy chairman Fisher said last Tuesday that any future decision on interest rates will depend, in the end, on the data. The market is now awaiting the US August jobs figures, due out tomorrow. This will be the key indicator anticipating a September rate hike. They say that more than 150,000 new jobs will be a sufficient trigger for the Fed to take its decision this month. And the necessary condition? That the rest
Peter Drysdale via Caixin | China has a lead role to play at the Hangzhou G20 meetings on opening up global trade, investment, deeper financial reform
BBVA Research | After providing a grand finale to the Rio 2016 Olympic Games, the first ever to be held in Latin America, Brazil is now back to reality: a political crisis which is the prelude to the definitive removal from office of President Dilma Rousseff and an economic crisis which has pushed the country into recession.