Top Stories

Articles by The Corner

About the Author

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.
netflix 13 0

Uncategorised 22nd April 2020

How Social Distancing And Teleworking Will Strengthen The US Technology Sector

Technology plays a fundamental role in the new environment of “social distancing” and teleworking. And from the “day after” there will be cultural changes that will further enhance its development and make its value even more visible. So from an investor point of view, companies such as Netflix or Amazon, in particular, and the US technology sector in general, could act as a safe haven in the short term and emerge strengthened from this crisis.

Nadia Lagarde

European economy 22nd April 2020

Spain Proposes A Fund Linked To The European Budget As An Alternative To Coronabonds

The European Council will discuss the European Recovery Fund at its meeting on Thursday 23 April. If last week France was talking about a fund of 500 billion euros, while Italy continues to insist on coronabonds, now Spain is proposing an up to 1.5 trillion euros fund, financed by perpetual debt issued by the EU. The intention is for this funding to be available on 1 January 2021. 

deoleo

Markets, Spanish Small & Mid Caps 21st April 2020

Deoleo Returns To Profit After Six Years Of Losses, With Ebitda Up 167% In Q1’20

Spanish food company Deoleo, which owns oil brands like Carbonell, saw a 78% increase in its share price yesterday. This came in the wake of the presentation last Friday of its Q1 2020 results. Deoleo reported net profit of 3.4 million euros in the first threee months of the year, compared with a loss of 10.6 million euros a year earlier. These figures represent the company’s return to profit for the first time in six years.

bank spain guapisimo

Spanish economy 21st April 2020

The Bank Of Spain’s Scenarios Reflect A Drop Of 6.6%-13.6% In 2020 GDP Depending On Length Of Confinement

Intermoney | The Bank of Spain has proposed different macroeconomic scenarios for Spain deriving from COVID-19. From the supply side perspective, the institution offers three scenarios that would lead to severe or very severe falls in GDP in 2020: scenario 1, -6.6% (8-week lockdown and almost complete normalisation after lockdown), scenario 2, -8.7% (8-week lockdown and almost complete normalisation in Q4’20 ) and scenario 3, -13.6% (12-week lockdown and incomplete normalisation by year-end, particularly in the segments of the economy linked to the hotel and leisure industry).

oil firms

World economy 21st April 2020

Not Only Rates But Also Oil Prices Can Go Negative

Julius Baer | The oil market continues to write history. The past days and weeks brought us an unprecedented demand collapse, unprecedented oil politics and the absolute novelty yesterday: negative oil prices. The US benchmark West Texas barrel sank by -305% and became negative at -37.63 $/b. Before you rush to the petrol station, negative prices are a temporary glitch reflecting stressed flows in the futures markets and stressed storage conditions somewhere in the US Midwest.

oil futures

World economy 21st April 2020

Doing the oil market’s dirty work

Bank of America Global Research | Oil futures have collapsed by more than 60% since the start of the year, with the WTI front month contract testing $20/bbl several times in recent weeks. The dramatic decline in prices is attributable in part to the oil price war, but the primary driver has been demand. As coronavirus fears forced governments around the world to shut down their economies, demand for refined products has been hit particularly hard.

The agreement on the minimum wage and the relative success of the trip to Catalonia encourages the new government

Spanish economy 20th April 2020

Galapagar*? … We Have A Problem

A.J.A. | It is a common misunderstanding, typical of young people, to think that the greatness of democracy lies in the fact that we can choose who governs us. No. Its greatness lies in the fact that it gives us the chance to boot out the incompetent Government that has governed us for the last four years. Be it a PP Government, be it a PSOE Government. That’s what people in Venezuela, Cuba, or in China can’t do.

US banks trading income declines

World economy 20th April 2020

US Banks: Better To Avoid The Industry Because RoE Does Not Compensate For The Risk

Covid-19 cuts the US lenders’ profits by less than half. The US banking balance sheet is solid (liquidity and solvency) and valuation multiples are at record lows. However, Bankinter analysts recommend avoiding the sector as the RoE does not compensate for the risk. Furthermore, analysts highlight the following: the increase in the cost of risk reduces the sector’s profitability (RoTE) by less than half (~6.7% in Q1’20 vs. 16.6% in…

family deposits TC

Spanish economy 20th April 2020

Private Debt, At A Minimum Since 2003, May Be A Key Tool For Spain In The Face Of The Coronavirus Crisis

Bankia Estudios | One of the Spanish economy’s strengths with which to face the devastating crisis unleashed by Covid-19, compared to the previous financial crisis of 2008-13, is the private sector’s healthier starting position. In this respect, families and companies’ consolidated debt stood at 129.7% of GDP at end-2019, the lowest figure in 16 years and 63.5 percentage points below the 2007 level. Corporate debt also falls to a low of 16 years in GDP terms (72.8% vs the previous 75.1%).

fiscal easing

World economy 19th April 2020

Covid-19’s Global Impact: Fiscal Action – Go Big, Go Now

Pernille Henneberg & Catherine L Mann (Citi GPS) | How much fiscal easing is going to be needed to offset the upcoming losses to GDP from COVID-19? Our advice is for governments to go big, because it is going to be worse than you think and go now, because later may be too late. In theory, and as illustrated above, if immediate fiscal action stems the deteriorating conditions now, then a large fiscal effort should not be needed.