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.
coronavirus susto

World economy 11th April 2020

After The Pandemic, Will There Be A New Status Quo?

Peter Isackson | Recently, The Daily Devil’s Dictionary highlighted the battle that is beginning to shape up in the media and in political circles around whether a return to a real or imaginary pre-pandemic status quo is possible. Most commentators in the West understand that the status quo they refer to embraces two major concepts: a globalized, liberal, free market economy and nations with political regimes based on (or at least paying lip service to) representative democracy.

US corporate debt rose to 45% of GDP at the peak of the Great Financial Crisis

World economy 10th April 2020

Corporate Debt Is In Serious Trouble – Here’s What It Means If The Market Collapses

Jefferson Frank ( via The Conversation) | Ratings agency Fitch is forecasting a doubling in defaults in 2020 on US leveraged loans, which refers to bank loans to businesses considered more risky. The agency expects a default rate of 5% to 6% this year, compared to 3% last year. The dollar value will exceed the previous high of 2009, and for retail and energy companies, the default rate could approach 20%. 

nike logo shape

World economy 9th April 2020

No V, No W, No U, The Global Recovery Will Be Like The Nike Logo, A Very Long V Shape

Gilles Möec (AXA IM) | Beyond Q2, we need to start thinking about the shape of the recovery – assuming no relapse in the pandemic forces more lockdowns in Q2 and Q4. There are currently many “recovery shapes” being discussed. For our part we would go for a “swoosh rebound” (the shape of the Nike logo), with positive, but fairly low GDP growth from Q3 onward. 

gold refinery

World economy 8th April 2020

Gold: Swiss Refineries Are Resuming Operations

Carsten Menke (Julius Baer) | According to news over the weekend, the full closure of some of the world’s largest gold refineries in Switzerland is about to end after two weeks. The refineries are located in the southern-most canton of Ticino, which, due to its proximity to Italy and a big number of cross-border commuters, is most strongly affected by the coronavirus. Starting on Monday, operations are resuming, but at less than half of capacity. 

Eurogroup Mario Centeno

European economy 8th April 2020

Eurogroup Hits That Northern Wall Again: Eurobonds Are Neither There Nor Expected

After 16 hours of telematic meetings, the Eurogroup came close to reaching an agreement, but once again, that did not happen. Once again, it is postponing the decision until tomorrow, Thursday. Once again, it has failed. The Eurozone finance and economy ministers remain divided over the debt mechanism which will help the countries most affected by the pandemic to finance themselves. This division between North and South has a very clear figure: 500 billion euros are up in the air. 

1929 wall street

World economy 8th April 2020

To Compare The Crisis Of 1929 With Today’s Would Be Unfair…If It Doesn’t Drag On

Is the current economic crisis scenario caused by COVID-19 similar or different to the Great Depression of 1929? This question is answered in this note by John Plassard, investment specialist at Mirabaud. There are major differences between the two situations. Not only in terms of their nature, but with regard to the measures being taken today by governments, central banks and financial markets. That said, if the pandemic were to spread over time, that perspective could change.

Banco Santander fulfills its commitment to shareholders and raises cash dividend by 3%

Ibex, Markets 7th April 2020

Santander Has €90 Bn Of Additional Credit For Families, Firms And SMEs Thanks To 2019 Second Dividend Cancellation

Banco Santander assumes that the coronavirus pandemic will force it to change its roadmap for the coming years. For the time being, the lender has announced that it will not pay a final 2019 dividend (0.13 euros/share planned for May) and suspended payment of the 2020 dividend. This is in line with the decision of the European banks which have adhered to the ECB’s recommendation.

fossil fuels

Ibex, Markets 7th April 2020

After Covid19, The Situation Will Not Be Easy For Fossil Fuel Suppliers

Alphavalue | One might wonder why equity investors bet on being long on oil last week when the Brent was reaching new lows. In fact on Tuesday, Brent prices hit 20-year lows in the $22/barrel range. It could be one of the surprising examples of how much risk can be taken when there is talk about, or hopes for, stimulus. At that point, even the strongest fundamentals tend to be ignored.

Iberdrola

Ibex, Markets 6th April 2020

Iberdrola Maintains Its Growth Objectives For 2020

At Iberdrola’s Annual General Shareholders’ Meeting last Thursday, Chairman Ignacio Galán announced that, for the time being, he expected Net Attributable Profit to grow at a “high single-digit” rate in 2020, thanks to record investments of over €10 Bn. The firm’s dividend is seen increasing in line with profits, he added. Bankinter analysts believe that Iberdrola’s expectations for 2020 may appear “somewhat optimistic, given the current context of uncertainty about the depth and duration of the Covid-19 crisis”.

Ferrovial scotland

Ibex, Markets 6th April 2020

Scotland Selects Ferrovial’s Subsidiary Amey To Maintain And Improve Its Roads For Eight Years

Ferrovial, through its UK services arm Amey, has been awarded an eight-year, 452.9 million euros contract to maintain and improve roads in southwest Scotland. The company said there is also an option to extend the contract for a further four years, increasing its value to 781.3 million euro.The divestment process of this subsidiary will continue despite the crisis of the coronavirus, the company said. But it recognizes that it will suffer some delays.