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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.
ECB Luminale

In Europe 31st March 2016

Helicopter money: too complex to be deployed any time soon

Citi | ECB Executive Board member Benoit Coeuré gave an interview to Politico on March 23, published on 30 March and featuring on the ECB’s website. Mr. Coeuré begins by explaining that the package announced on March 10 was “very potent, both in intensity and sheer volume”. On the subject of monetary policy tools at the ECB’s disposal, Mr. Coeuré notes that “negative interest rates are not our main instrument, they just support our overall policy. And looking ahead, we’re not short of instruments – our choice is quite large. We will be able to deal with adverse situations if necessary”.

economy up

World economy 31st March 2016

What Does the Economy Need to Recover?

In economic theory, “one person’s spending is another person’s income,” which drives aggregate demand in the economy. Often, this cycle breaks due to flawed economic policymaking that ends in economic crisis.

world trade 777x4001

World economy 30th March 2016

Emerging Markets Trade Engine Has Lost Power

AXA IM | International trade volume1 is not expanding as fast as before the Global Financial Crisis (GFC). The average annual growth rate in international rate volumes almost halved to 2.4% in 2009-2015 from 5.1% in 2001-2008. For the first time in over four decades, international trade is growing less than world real GDP (the latter recorded at 4.2% in 2001-2008 and 3.3% in 2009-2015).

pallete alierta

Companies 30th March 2016

O2 sale, LatAm weakness are challenges for new Telefonica chairman

If Telefonica approves the choice of  current CEO José María Álvarez-Pallete to replace Cesar Alierta as Chairman, he will be the first Executive Chairman not to be appointed by the Spanish government. Alvarez-Pallete will face two main challenges: securing European Commission approval for the sale of O2 and dealing with the weakness of the LatAm economies, particularly Brazil.

basel comitte

Markets 29th March 2016

An Easter Gift: Basel Paper On Large Corporate And Interbank Exposures To Hike Capital Requirements

UBS | On Thursday the Basel Committee released a consultation on ” Reducing variation in credit risk-weighted assets “. A surprise gift before a long weekend. Our read is that in the pursuit of reducing variability in bank capital backing similar portfolios at different banks, the Committee intends doing away with models for certain books of business and specifying inputs into others.

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In Europe 29th March 2016

Italy’s Clear But Narrow Road Ahead

BofA Merrill Lynch | Rome has designed a comprehensive strategy, in which reforming the institutional and economic structures is made politically manageable by loosening fiscal policy. This comes at an external price – more tense relationship with Brussels and potentially Berlin – but at least the brief is clear. It remains a narrow road though, with political and cyclical risks abounding.

alierta

Companies 29th March 2016

César Alierta Ends His Tenure As Executive Chairman Of Telefónica

Telefónica’s Board of Directors will consider the appointment of José María Álvarez-Pallete as the company’s new Executive Chairman at its next meeting on April 8th. The proposal has been made by current Chief Executive César  Alierta, who believes Álvarez-Pallete is the best prepared executive to face the challenges of the digital revolution.

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In Europe 29th March 2016

A Misstep Away From Absurdity

Nick Malkoutzis via Macropolis | Greece’s Migration Policy Minister Yiannis Mouzalas could find himself out of a job or demoted soon because he slipped up in an interview. That his position is in peril for a verbal faux pas when others are going about their jobs unperturbed despite helping running the country into the ground is a pretty succinct statement on the interminable absurdity of Greek politics.

yuan

World economy 28th March 2016

G-20 Should Address Income Gap, Fragility of Financial Systems

Guntram B. Wolff via Caixin | G-20 ministers in Shanghai appeared to be aware of the importance of structural work. In particular, there was agreement in our panel discussions that the Base Erosion and Profit Shifting (BEPS) project of the OECD was an essential element to deal with tax avoidance and ensure that profits are taxed where economic activity generating it takes place.

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Uncategorised 27th March 2016

US And China Millennials Do Not Mark The End Of European Luxury

UBS | Following our recent launch report on European luxury we have undertaken an analysis of US and Chinese millennial (18-34 years) spending together with UBS Evidence Lab based on our survey of 2,109 consumers. We conclude that millennials will not mark the end to luxury consumption that some fear.