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.

The Bankia + CatalunyaCaixa + Nova Caixa Galicia nuclear option

By Julia Pastor, in Madrid | The financial markets were anxiously waiting for explanations about the much talked about doomed Bankia. The Spanish minister of Economy Luis de Guindos spoke at last. He said that the State will support Bankia’s solvency with all the capital the entity may need. According to De Guindos, Bankia will need at least  €9 billion to meet the latest reform’s requirements. This figure includes €7 billion…


A euro breakup would hurt Germany more than anyone else

By Luis Arroyo, in Madrid | We either reinforce the political union in the European Monetary Union or let the monster simply die away. These are the actual choices we have, and one must admit that a euro termination does not sound as the craziest option, not after four years of unstoppable recession and walking at the brink of the abyss. It is a possibility no one wants to study,…


Is Spain’s risk premium being exaggerated? Yes, say the big companies

By Julia Pastor, in Madrid | Report and counter-report, this seems to be the general trend in talking about the Spanish economy’s health. Wednesday it was the CEEC’s occasion to present a report. The nation-wide competitiveness council integrated by presidents of the big Spanish multinationals assured that “expected losses in the the banking sector are limited. Since 2007, the industry has assumed €190 billion of them, including implications from last…

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Ferrovial consortium wins Ontario’s Highway 407 East contract

MADRID | Spain’s Ferrovial announced Wednesday that its subsidiary Cintra Infraestructuras, in a 50% consortium with SNC-Lavalin, was awarded the €78-million contract for the first phase of the Highway 407 East project in Ontario, Canada. The group was appointed by Infrastructure Ontario and the Ontario Ministry of Transportation. Phase one of the new highway will extend 22 kilometers east from Brock Road in Pickering, Ontario to Harmony Road in Oshawa, Ontario….


Most of the Ibex 35 vulnerable to takeovers were not for the euro crisis

By Carlos Díaz Guell, in Madrid | May 15, in Madrid, was bank holiday in commemoration of its saint patron San Isidro. But the stock market was opened. The IBEX 35 closed that session at 6,700 points, ranking at September 2003 levels. Drawing on the daily exchange rate of that day, the drop so far this year (fall, thud, even crash if the readers would rather use a harsh word) has been of 22.27 percent and over 53 percent from November 2007. The…


Danish Greentech’s voluntary takeover bid on Fersa enters acceptance phase

BARCELONA | The Spanish financial markets regulator CNMV admitted Copenhagen-based Greentech’s voluntary cash tender offer on all ordinary shares of Fersa. Greentech had submitted last Friday its prospectus to the CNMV for its voluntary public offer of acquisition of 100% of Fersa, offering €0.40 in cash for each Fersa share. By submitting the prospectus and legal documentation required, Greentech requested that the regulator approved its offer for the Catalan renewable energy…


Goldman Sachs forecasts 50pc price increase for Santander, BBVA

MADRID | Finance daily newspaper Expansion reported Tuesday that investment bank Goldman Sachs expects Santander and BBVA stock price to go up by 50 percent, according to an analysts’ note. The confidence of Goldman Sachs experts goes far beyond the two big Spanish banks, too. All medium-sized banks in Spain had their ratings updated with higher value, apart from Bankinter, whose share price was reduced to €2.70 or 10% lower than at Monday’s close. The punishment Spain’s banking…


Deutsche Bank issues its first €15 billion in bonds, mortgage notes in Spain

MADRID |Deutsche Bank changed its financing strategy by registering a fixed income prospectus in Spain for the first time in history, as reported by the Spanish journal Expansión. The German entity will issue mainly bonds and mortgage notes for an amount of €15 billion, according to the initial information document, which has been sent to the Spanish Securities Exchange Commision or CNMV. Sources at the bank said that “this decision proves…

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European fiscal union? Eurobonds? Good luck convincing Germany

Luis Arroyo, in Madrid | It’s the talk of the town. The euro zone desperately needs to become a fiscal union and, voilà, everything will be sorted. But I wonder: how do we get there? Have a look at the chart below, which reflects fiscal pressure levels in core Europe economies and in some of the peripherals’. What do we see? We clearly spot the huge differences among them (which are…


IMF reports 70pc of Spain’s banking system already cleaned up

By Julia Pastor, in Madrid | The idea of a suffocated Spanish banking sector spreads like fire throughout the markets: Bankia’s nationalisation, Moody’s cut, the French president François Hollande advising to recapitalise the sector… But the International Monetary Fund will publish next week a report that assures 70% of Spain’s financial entities are already restructured. This news should help tame and perhaps even extinguish the flames. Analysts at Madrid’s financial City also…