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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.
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. 

No Picture

Markets 16th October 2014

US Investors: Biggest net selling of Europe since 2008

ZURICH | By UBS analysts | Global investors have been big sellers of Europe ex-UK equities in September and also the last 12 weeks (Figure 1). And this doesn’t include the heavy sell-off in the last week. US Treasury data shows that US-based investors were net sellers of $14.3bn in June–the biggest month of selling since the collapse of Lehman’s in 2008. How far through the current correction are we? So far the European market is down 8% from its September peak–in-line with the average of 9.5% in Bull market corrections since 1975.

china market

World economy 15th October 2014

Inflation in China falls further amid lower commodity prices

HONG KONG | From Barclays analysts | China inflation fell further in September, to 1.6%, below consensus (1.7%), but in line with our forecast. The key downside drivers were lower commodity prices, and declining food inflation. Inflation has now fallen to its lowest levels since January 2010, a 56-month low.

 

bancos recurso camara acorazada TC

Markets 15th October 2014

EU banks would need extra €460bn to meet GLAC requirements

MADRID | The Corner | The results of the stress test will presumably be positive for the 128 European entities, although some experts do not rule out new capital increases and Coco bonds issuances, not only to strengthen their balance sheets, but also to meet other capital requirements such as gone concern loss-absorbing capacity ratios (GLAC). If they finally were to reach 25%, the main European banks would have additional capital requirements of about €460 billion in the next five years, according to Santander analysts.

 

irlanda contenta TC

In Europe 14th October 2014

Dublin gets its house in order as bell tolls for “The Double Irish”

MADRID | By Sean Duffy | The Irish Government presented its budget on Tuesday, keen to present the announcement of its projections for the year 2015 as the successful consequence of prudent fiscal planning. Critics have pointed out that it is much of the same, yet with the economic picture improving, the Government has sought to offer a respite from austerity, whilst also attempting to address the outstanding concerns of its international partners.

industrial production

In Europe 14th October 2014

Poor EZ macro data raise odds for QEII

MADRID | The Corner | “Further evidence has emerged that the euro area recovery is at risk. We acknowledge that German data were distorted by technical factors… but we still think underlying momentum is fading in Germany,” Barclays’ François Cabau commented. And that means, for an increasingly number of experts, that the prospect of QE II is becoming more entrenched. Some believe it could happen before New Year.