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Articles by The Corner

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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.
investment banks

Markets 25th February 2020

Equity And Bond Investors Agree To Disagree

Stock and bond investors seem to have very different assessments of the impact of the virus: despite a pickup in realised volatility, equity markets (especially in the developed world) have reached new highs over the last couple of weeks. The VIX index rose above 17 at the end of last week, but is well below the levels seen in August 2019 in the midst of the US-China trade war (24.6) or at the end of December 2018 when recession fears gripped markets (36). Implied earnings growth rates for equities remain solidly positive, even for the MSCI Emerging Markets index (about 5% over the next year). The view from the equity market seems clear: COVID-19 is a risk but should not derail the supportive context for corporate earnings and stock prices.

renfe america

Markets, Spanish Small & Mid Caps 25th February 2020

Renfe Begins Its Activity In The US With $6,000 M Contract

The agreement between Renfe Operadora and Central Texas reached in 2019 to develop the first high speed ​​project in the US, that will link the cities of Houston and Dallas / Fort Worth, in the State of Texas. The contract will involve a turnover of 6,000 million dollars for the Spanish railway operator, the largest industrial contract of a Spanish company abroad, along with that of the AVE to Mecca.

family deposits TC

Spanish economy 25th February 2020

Real Estate Investment In Spain, In Highs Since 2007

The real estate investment, excluding the purchase of the first or second residence, has reached maximum levels since 2007 in the fourth quarter of 2019, according to the latest survey of the confidence of the Spanish investor of the manager J.P. Morgan AM.

Venezia coronavirus

European economy 25th February 2020

The Coronavirus In Italy And The ECB: Raising Quantum Of Corporate Bonds Purchases Can Be A Good Response

The sudden rise in covid-19 cases in Italy changes the picture for the European economy. Indeed, the activity restrictions already imposed by the national and regional authorities will be implemented in some of the country’s most crucial regions in terms of output. Lombardy, Veneto and Emilia-Romagna alone account for 40% of Italian GDP and 6% of total Euro area GDP. AXA IM suspect that the demand-side effects will emerge in the next batches of data and discuss options for the ECB.

How effective is China’s response to the coronavirus outbreak?

Markets, World economy 24th February 2020

Virus Spread Maintains Pressure On Equity Markets

Equity markets tumbled worldwide following the wide spread of the coronavirus epidemic beyond China. European stocks dropped most since 2016, with Italy’s MIB index dropping 5.43%, while the declines were more contained in Asia. Elsewhere, implied volatility increased further (VIX 23+6 points).

NYSE bull

Markets 24th February 2020

Global Financials: Upgrade From Neutral To Overweight

Patrik Lang (Head Equities & Global Equity Strategy, Julius Baer) | Global financials typically outperform when purchasing managers’ indices and bond yields rise. Growing scepticism with regard to the negative interest rates and increasing chances for the beginning of tangible fiscal easing are also potential positives.

renewables

Markets, Spanish economy 24th February 2020

Renewable Transactions In Spain Rose 14% In 2019 To Over €23 Bn

The value of the 63 transactions recorded in Spain in the area of renewable assets amounted to 23.067 billion euros in 2019, up 14% from a year earlier, according to Mergermarket data analyzed by KPMG. For the international services firm, this increase is due to the ‘boom’ in green energy in recent years, which has meant that the sector’s assets are “going through a sweet moment, whether they are in the operation or development phase and are breaking records in sales transactions.”

tractorada

Spanish economy 24th February 2020

Amid Spanish Farmers’ Protests, The EU Budget Cuts Agriculture And Cohesion Funds Significantly

Bankia Estudios| The initial proposal of the European Council for 2021-27 budget includes a significant cut with respect to the previous budget (1.16% of GDP in 2014-20). The budgetary debate takes place amid strong protests that the agricultural sector in Spain has been carrying out for almost a month. The falls in agricultural income in 2019 (-9%) and the fear of this decrease in CAP support are behind the malaise of the Spanish farm sector, but it is not the only reason.

companies general

World economy 24th February 2020

Well-Prepared Firms Emerged As Winners During And After Past Recessions

The current economic expansion now more than 10 years old, long by historical standards, as well as signs of overleverage in the corporate sector, combined with geopolitical uncertainty, suggest the next recession is not far off. According to a new study by Bain & Company, Beyond the Downturn: Recession Strategies to Take the Lead, companies that were well prepared emerged victorious from previous crises. These companies managed to survive, controlling costs and at the same time reinvesting in growth.

Africa

World economy 23rd February 2020

African Countries Aren’t Borrowing Too Much: They’re Paying Too Much For Debt

Misheck Mutize via The Conversation | There is renewed concern about the sustainability of rising debt levels in many African countries. Much of this debt is being incurred through foreign currency denominated Eurobonds issued on international financial markets. The total value of Eurobonds issued between 2018 and 2019 was more than the value of all bonds sold between 2003 to 2016.