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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.
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In Europe 21st June 2016

German Court Agrees OMT Complies With Law

The challenge for German judges was to determine if the OMT can be seen as monetary financing of governments or not, banned in EU treaties or not. The Constitutional Court in Karlsruhe has ruled on Tuesday the ECB’s 2012 bond-buying plan is legal. Ifo President Clemens Fuest has, however, has critisised the OMT ruling. “That is a shame because it is obvious that the OMT programme primarily pursues the fiscal goal of preserving highly indebted states’ access to credit”.

energy sector

Markets 20th June 2016

Energy Sector Carries The Highest Yields In Europe

UBS | German 10yr bond yields have turned negative and some European corporates are effectively “being paid to borrow”. What are the implications for European equities? Although there has been a deepening of Global growth fears in recent weeks, economic surprise indicators and PMIs have not collapsed.

France's Florange law

In Europe 20th June 2016

Florange Law: Who Gains From The Fact That One Vote Is Worth Two?

In April 2014, a new law was passed in France, the Florange Law, creating a new power game: the vote of long-term shareholders (two years) automatically accounted for double. Although the Elysium maintained it was about attracting long-term investments and keeping French companies French, the Executive Director of ANSA – the National Association of Joint-Stock Companies – insists that the Florange Law creates obstacles to doing business and criticises the fact it is obligatory.

China's monetary transition

World economy 19th June 2016

China By The Numbers

UBS | Economic data points to stabilization, but manufacturing and private investment weakened further. FAI growth’s disappointing slide to 7.5%y/y was mostly dragged down by a high base, weaker property investment, and sharper weakening of manufacturing.

greek politics

In Europe 18th June 2016

Mangling The Truth

Nick Malkoutzis via Macropolis | In a quote some attribute to ancient Greek dramatist Aeschylus, the truth is said to be the first casualty of war. Perhaps the same can be said in times of economic crisis, which some have likened to a state of war. Certainly, one could safely say that accuracy has taken a severe battering during the Greek crisis. And, if accuracy is compromised then it is quite likely the truth will also be mangled.

ECB's next move

In Europe 17th June 2016

When Can The ECB Raise Rates?

José Luis Martínez Campuzano (AEB) | When can the ECB raise rates?  According to the interest rates futures market, there is a  50% probability of an additional 10 bp cut at the July 22 meeting and a 90% probability at the December meeting. We shall see.

 

Repsol

Companies 17th June 2016

Sinopec Files 5.5 Bn Dollars Arbitration Notice Against Repsol

Repsol has doubled its recurrent synergies from 220 million dollars annually to 400, thanks to its purchase of Canadian oil firm Talisman. But the transaction has also resulted in a 5.5 billion dollars arbitration notice being served against it by the Chinese company Sinopec.

spain scenarios

Spanish economy, Spanish Politics 17th June 2016

Just 3 Things To Consider Before Investing In Spain

UBS | In this report, we focus on three pivotal questions that we consider crucial for investing in any security in Spain: First, what is the economic outlook for 2016/17, and what are the biggest economic policy challenges that the next government will face? Second, what are the likely scenarios for the outcome of the elections on 26 June? And third, what is the valuation and relative attractiveness of Spanish assets, how will asset markets react to different election outcomes, and what is or is not priced in?