Scottish voted no
madrid | By Álex García
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Corporation tax: Irish soften stance amidst growing international pressure
MADRID | By Sean Duffy | The OECD´s announcement this week that it was initiating a plan to combat tax avoidance schemes from multinationals has been met with almost universal approval across Europe. Ireland in particular has been the subject of criticism from its EU partners. Until recently, the country had determinedly defended its tax policy, famously refusing to negotiate on the issue when the country was in need of an EU bailout back in 2009.
Morning coffee: Scotland polls and TLTRO
MADRID | The Corner | FOMC’s conclusions (the Fed is renewing its pledge on low rates) meaning little changes to the current rates scenario, the spotlight has shifted to the Scottish independence referendum (final results to be released around 5:30-6:30 GMT on Friday), which is presumably going to have an impact on European financial markets today. Also the ECB is publishing the results of its much-awaited first TLTRO operation today. It’s the most important cheap cash offer from the central lender since the beginning of the economic crisis which has been very popular in Spain and Italy. Spanish banks will aim for €30bn, Economy Minister said on Wednesday.
Barking at Russia is Easy, Biting is Not
Bungling with Russia over Crimea will send the West knocked out with a bloody nose. One way or another, it was a crisis a long time coming. Europe has arguably sleepwalked into a reluctant confrontation with Russia. The continent’s next-door behemoth of a neighbor, saddled by a man it secretly detests the most, is also its largest energy supplier, irascible trading partner and purveyor of most maladies diplomatic.
Spanish Zara owner Inditex’s sells more, yet earns less
MADRID | The Corner | The world’s largest clothing retailer Inditex posted a net benefit of €928 million in the first fiscal semester (February 1 to July 31), 2.4% less than a year before due a strong euro, new store openings and renovation costs. And yet, it managed to incresase sales at its more than 6,400 stores rose 5.6 percent to €8.1 billion. The firm, which has outperformed many of its rivals during the economic crisis, will share a dividend of €0.242 euros on Nov 3.
Morning coffee: Fed decisions, UK jobs report and much more
MADRID | The Corner | What you need to be watching today: FOMC’s decisions, UK’s unemployment rate data, Eurozone and US CPIs. Also, ECB’s Mersch will speak in Hamburg. European equity-index futures climbed buoyed by the important confirmation (269 votes in favour/ 244 against) of French PM Manuel Valls at the Parliament (Aa1 n, AA, and AA + e), only one month after he submitted the 2015 budget for the country and despite various rumours about a possible downgrade to Aa1 n by Moody’s this Friday.
Greece: Survey finds 2013 household budgets devastated, inequality persists
ATHENS | By MacroPolis | The impact of austerity measures on Greek citizens has been devastating, according to the last official data. The average monthly expenditure of households dropped 7.8 percent year on year (YoY) to 1,509.39 euros in 2013, according to the 2013 Household Budget Survey published by the Hellenic Statistical Authority (ELSTAT).
Financial sector welcomes UK oversight of Banking Union
BRUSSELS | By Alexandre Mato | The financial sector has been expecting a boost to support capital markets from the incoming EC President Jean-Claude Juncker. There has been widespread speculation as to what shape such a boost might take within the monetary union. However Britain´s opposition to Juncker´s appointment means expectations have been somewhat tempered.
Orange-Jazztel deal stirs M&A enthusiasm
MADRID | The Corner | Orange is set to buy Spanish competitor Jazztel in a €3.33bn ($4.3bn) deal. The merger will see Jazztel receive €13 a share, a boost of 22% on the company´s closing share price on Friday. The French giant says it is not seeking further acquisitions in other countries. The truth is we haven´t seen this M&A frenzy since 2006-2008: deals worth $630bn + 63% vs. 2013 and – 29% below $897bn in 2006.
Morning coffee: Germany’s ZEW, UK inflation, and much more
MADRID | The Corner | Don’t expect big changes in stock markets’ behaviour today: everyone is waiting for the main events of the week, that is, any move from the US Federal Reserve (FOMC meeting ends on Wednesday) and the Scotland referendum on Thursday. Just note that Germany is releasing ZEW index today, which gauges big investors and analysts’ confidence in the EU’s main economy. In the UK we’ll have consumer prices for August.