The arbitration proceedings started by a series of funds grouped under The PV Investors against Spain within Uncitral (a UN dependent body) have concluded. There was a minimum sentence of € 90M against the Spanish State, compared with the € 1.910 Bn claimed by the litigants. The ruling obliges the litigants to pay costs (of £13M) without any recourse, unless under very exceptional circumstances.
Expectations for coordinated action from the main central banks is growing. The Fed’s messages will be particularly decisive as “it is the only with real capacity to influence the market and the determination to take strong action”, explain experts at Bankinter. The upcoming central banks’ planned meetings are: March 12 (ECB), March 18, the Federal Reserve (FOMC Minutes), March 19, the Bank of Japan and March 26, The Bank of England.
The Spanish Ministry of Transport, Mobility and Urban Agenda will put to Parliament before the summer an initiative to allow for the control of rental prices in those areas which have experienced exorbitant rises. With this measure, town councils and autonomous communities could put temporary ceilings on rentals in those areas where they are considered to have become very expensive. In Berlin, the cap on rental prices came into effect this very week, with the same objective as the Spanish proposal.
Banca March | German Finance Minister Olaf Scholz is considering temporarily lifting the suspension of the country’s debt limit in what would be a major change in the fiscal policy of Europe’s leading econom.
Tom Walker, Schroeders’ co-head of Global Real Estate Securities, believes that the most successful global cities operate in exactly the same way as the FANGs. Modern economies are now driven by innovation rather than heavy industry and manufacturing. The most successful global cities are those that draw in the most talented workers and monetise ideas which drives economic growth.
Degussa | Wherever you look: Prices for consumer goods, real estate, stocks and bonds are on the rise. That means that the purchasing power of money is on the decline. For if, say, stock prices go up, your money unit can buy fewer stocks. What it also means is: While people holding assets, whose prices increase, become “richer”, people holding money get “poorer”
J.L. M.Campuzano (Spanish Banking Association) | The European Central Bank (ECB) published on Thursday the statistics for monetary aggregates in January. In January specifically, the growth rate accelerated to 5.2% per year. This increase in the M3 money supply continues to exceed the theoretical level compatible with medium and long-term inflation of 2%. The main contribution was from credit to the private sector, with an increase of 3.4% over last year.
Naturgy has agreed with Eni and Egypt to end their dispute over Unión Fenosa (UFG), in which the Spanish and Italian firms own 50% each. The company said the agreement includes the payment of 600 million dollars (about 547 million euros) in cash and most of the company’s assets outside of Egypt, excluding UFG’s business activities in Spain.
Caixabank Research | The experience of the Riksbank highlights the doubts over negative interest rates: despite a worsening economic outlook for Sweden, it raised the interest rate from –0.25% to 0% in December and abandoned its policy of negative rates.
BBVA Research | Covi-19 jolts equities and sovereign yields again as mounting coronavirus cases outside China dashed hopes that the outbreak had been contained. U.S. Treasury 10Yyield hit historic lows, dropping below 1.30%. Elsewhere, the WHO stated that the covid-19 has the potential to become a pandemic, while the U.S. warned not to travel to Spain to avoid potential dangers.