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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.
No Picture

Companies 20th October 2014

US corporate results boosted by “ultra-low” interest rates

MADRID | The Corner | US corporate results from the third quarter might be around +4%/5% (earnings per share), but it is highly probable that European results will be weak. Also, there should not be great expectations on central banks to save the situation this time, except, possibly, a more “dovish” refocusing by the American Fed (the US central bank delayed an interest rate increase or even tapering, which would give support to markets).

EU energy import dependency

In Europe 18th October 2014

Europe’s energy drama: import dependency is high –and rising

MADRID | The Corner | Winter’s coming and Europe finds itself in a complicated position. The (declining) production of the continent’s energy import has traditionally fallen short of (growing) consumption . In 2012, 53.7% ofEurope’s energy consumption was based on imports – up from in 44% in 1996, according to UBS. Brussels admits the share of imported energy is likely to rise to 100% in oil and above 80% in gas by 2030. 

No Picture

Spanish economy 17th October 2014

Bank of Spain may adopt Euribor Plus index

MADRID | The Corner | The BdE is working on the possibility of establishing a new reference index known as Euribor Plus. The main characteristic would be the form of calculation, which would only take into account prices (interest rates) for transactions instead of reference prices announced by financial institutions.

janet yellen TC

World economy 17th October 2014

Yellen likely to focus on jobs today; markets get comfort from Bullard: nothing changes

MADRID | The Corner | Markets expect more dovish rhetoric from the Federal Reserve’s chairwoman Janet Yellen, who is addressing a Boston Fed conference on income inequality today. The fact that she has put the issue into the mainstream has earned support from working class communities. Visiting an under-privileged neighborhood on Thursday, she eschewed the chance to talk about monetary policy, but instead listened to stories about layoffs and lost savings.  Wall Street took some comfort from the St. Louis Fed President, James Bullard, who said that the Federal Reserve should consider delaying the end of bond purchases, given declining inflation expectations.

china mercado recurso TC

World economy 17th October 2014

China’s Challenge: Growing the Market, Limiting the State

BEIJING | By James A. Dorn via Caixin | In his new book Markets over Mao: The Rise of Private Business in China, Nicholas R. Lardy, one of the world’s leading China experts and a senior fellow at the Peterson Institute for International Economics, makes a strong case that the market, not the state, has been the key factor in the country’s remarkable rise. In 1978, Beijing began to loosen its grip on economic life and paramount leader Deng Xiaoping recognized the failure of central planning as a development model. Today China is the world’s second-largest economy, and the range of choices open to consumers has greatly expanded under economic liberalization and trade.

bancos crisis TC

World economy 16th October 2014

Are global growth fears over-stated?

MADRID | The Corner | Gloomy inflation data in the eurozone prompted a debate about recovery losing momentum. But while tackling disinflation should be a priority, we shouldn’t be too worried about growth.  “Leading indicators of growth are not – at present – consistent with any major slowdown in the world economy. Indicators of financial and monetary conditions and many industrial metal prices are relaying a similar message,”analysts at UBS commented on Thursday. 

inflation eurozone

In Europe 16th October 2014

Stimulus, bitte!

MADRID | The Corner | The eurozone’s inflation slipped in September to its lowest level since October 2009 (0.3%), raising fears of an eventual third recession in six years. Prices have been now been in the ECB’s “danger zone” of below 1% for 12 consecutive months. And yet Germany, the biggest economy in the EZ,  is torn between deficit control and growth, relieved with a weak euro helping its exports but worried about the same depreciation policy leading to less pressure to implement reforms in countries like France.

 

No Picture

Companies 16th October 2014

Ferrovial consortium takes over three UK airports

MADRID | The Corner | Barely a month ago the British press reported that Spanish Ferrovial was interested in taking over one or more of Aberdeen, Glasgow o Southampton airports. Heathrow Airport Holding (former BAA) announced oit will sell 100% of them to a Ferrovial-Macquarie consortium for 1.048bn pounds (around €1.31bn). The operation is expected to take place by Jan15.