Deutsche Bank is still betting on the Spanish property market and has bought €400 million in doubtful property developer loans from Bankia. The deal was carried out by the German bank’s funds, which could have paid around 150 million euros for the assets.
Banks have to do more to fuel growth. Even though they can’t be blamed for the fact that even the European growth rate potential is below 1% (1.5% growth forecast for the whole year). Confidence: that is what the authorities should be transmitting to the banking sector. And more regulatory clarification, so that uncertainties will be eliminated in the future.
Yu Hairong via Caixin | A slowdown in private investment in China, fueling fears that the country’s growth could be weaker in the coming months, has policymakers scurrying to find solutions.
BoAML | Global coal prices rallied strongly since March on rising crude oil prices and Chinese production cuts. Front month coal prices in Newcastle rose by $5 to $50/mt, outpaced by a staggering $17 rise in 12-month forward prices to $58/mt. How did this happen? Higher oil prices pushed the global coal cost curve up by about $5/mt, on our estimates, explaining about 30% of the rally in coal forward prices.
The number of unemployed people registered with Spain’s Employment Office fell by 124,349 in June from May to 3.767.054. The decline in relative terms was 3.2% and is the second largest in historical series, only beaten by the fall recorded in June 2013.
J.L.M. Campuzano (AEB) | Little by little the markets are stabilising. Liquidity is improving and trading volumes are normalising (although they are still low…what is normal?)
AXA IM | Despite some recovery in risk assets at the start of this week, the net reaction since the result of the UK referendum on membership of the European Union (EU) has been lower government bond yields and wider credit spreads in fixed income markets. This creates an interesting situation for investors looking at short duration funds.
James Alexander via Historinhas | Market Monetarists must hope that Mark Carney doesn’t seek to defend the pound, but let currency weakness do it’s magic, monetarily offsetting any expected economic weakness. A drop in the pound is not like a drop in the price of a company after a profit warning that reflects a weaker future.
Fernando Rodriguez | Spain’s small and midcap companies are weathering the Brexit storm better than the bigger stocks. Fund managers from Santander, Bankia and Gescooperativo explain their strategies: “In general, we believe the exposure of these companies to Brexit is limited due to their limited exposure to the UK in terms of sales.”
Francisco Vidal (Intermoney) | In the future it will be more difficult to generate inflation. We will see structurally lower rates, which should not be confused with its performance in the short-term.