The Corner | April 14, 2015 | On Wednesday’s press conference, Mario Draghi is likely to indicate that ECB QE has got off to a good start operationally and price action terms in the market. Barclays analysts think cautious near-term trading is required in EGB spreads, given poor liquidity and lingering Greek worries.
The Corner | April 14, 2015 | At first sight the Spanish Ibex multiple does not seem particularly stressed (16.2 x PE 12 months forward with a premium of 15% against historical series). But analysts believe that it is actually being affected by optimistic earnings estimates, especially in the banking sector.
The Corner | April 12, 2015 | Earnings season is warming up on Wall Street. During the week the major US banks will present their results (tomorrow, JP Morgan and Wells Fargo), which will impact the course of American stocks in the short/medium term. Should US companies show a pessimistic picture with their 1Q earnings, that would mean the US economy is in worse shape than predicted. But are these expectations part of a wider game?
The Corner | April 13, 2015 | Current account deficit widens in France, but the euro zone’s second largest economy has retained its AA rating for the time being.
By Ray Kwong | Hong Kong may be ideal for ISIS recruitment and expansion, according to a Chinese counterterrorism expert.
The Corner | April 11, 2015 | It’s not just the Nikkei beating historic records: European equities continue to benefit from tail winds thanks to the low euro and improving macroeconomic figures. In the past week, climbs ranged from a shy + 0.10% on the Spanish Ibex, to a much stronger + 0.54% on the German DAX, representing a record for the index. The British FTSE rose by + 0.35%.
The Corner | April 10, 2015 | Deutsche Bank is looking to clean up its image and may soon come to an agreement that draws a line under its involvement in the Libor scandal. As first reported by The New York Times, the German bank could be about to come to an agreement with the U.S Justice department. Financial supervisors admitted to The Corner that not enough has been done to eradicate bad practices.
The Corner | April 10, 2015 | Stronger than expected growth in the Spanish industrial sector is yet another indication that the economy is recovering, while a quiet day ahead is expected on European markets which were pacified by Greece’s payment of an outstanding I.M.F loans.
ATHENS | April 8, 2015 | By Nick Malkoutzis via MacroPolis | Since it was first recorded in 1944 by American public administrator David Lilienthal, the following anecdote has been told many times and in many ways: A traveller asks a local man for directions and, after much thought, the latter turns to the visitor and says: “My friend, I tell you; if I were you, I wouldn’t start from here.” As Greece and the eurozone remain some distance apart on how to conclude their bailout negotiations, it seems a good time to return to this tale.
The Corner| April 9, 2015 | Strong figures from German industry will offer further encouragement to EU policymakers that the economic recovery is now on the right track. German industrial production grew by 0.2%, beating expectations of a 0.1% rise. The increase in industry excluding energy and construction was 0.5% according to latest data from the Bundesbank.