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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.
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.

US layoffs

World economy 6th April 2020

The Global Labour Market Collapses In Just Two Weeks

Intermoney | Unemployment claims in the US are the best thermometer of the intensity of the collapse the country’s GDP will experience. More than 6.65 million people filed for unemployment benefits in the US last week. Although businesses which employ almost half of Americans should be able to apply for loans between this Friday and 30 June, this could take a long time to arrive or even not happen for many.This is a risk we should bear very much in mind in Spain.

china recovery

World economy 5th April 2020

China’s Recipes For Its Most Difficult Year: Margin And Economic Policies

CaixaBank Research | China is responding with economic policy space to deal with the coronavirus. On the one hand, measures will be taken in 1H20 to support the sectors having the greatest difficulties. On the other hand, a significant fiscal stimulus package is expected to provide investment in the 2H20. The set of measures will be beneficial, as they will facilitate a full recovery of China’s economy, although they will also increase the deficit in a country with an already high level of corporate debt (150% of GDP).

V L W recovery

World economy 4th April 2020

V, W or L: What Shape Will The Recovery Take?

Keith Wade (Schroeders) | The world economy is in the midst of a sudden stop where activity has been brought to a halt by official action to suppress the coronavirus. We have updated our forecasts and see a severe recession in global GDP this year with the downturn concentrated in the second quarter (see here). Although a rapid V-shaped recovery is our central forecast, if Covid-19 lingers there is a risk of a “double-dip” recession.

corporative deb fed

World economy 3rd April 2020

Forced Debt Sales For Companies That Lose Their Investment Grade Starting to Happen In The US

Intermoney | In the case of credit, a situation is already beginning to take shape in the US that worries us quite a bit and which will end up spreading throughout the world. Namely, the forced debt sales for companies that lose their investment grade rating. Currently, this would translate into the closest thing to a sale of balances. This situation has already forced Western Asset, a fixed income manager with $460 billion under management, to apply for a waiver for a Fresno County public employee pension fund.