US Economists Bark Up The Wrong Tree
Benjamin Cole via Historinhas | There is a rough consensus among US macroeconomists that topics for discussion are the bad minimum wage, the virtues of free trade, and inflation.
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Greek Banks On Cusp Of Improved Liquidity Conditions
via Macropolis | The successful completion of the first programme review and the subsequent decision of the European Stability Mechanism (ESM) to disburse a 7.5-billion-euro bailout tranche are expected to trigger a number of important developments for Greek banks.
You Gotta Roll With It
BARCLAYS | The oil price has recovered to ~$50/bbl and project execution has been better than we have come to expect from the European E&P sector. Those two points appear to have been enough to see many investors revisit the sector with more forward looking optimism in recent months and increasingly ascribe value to delivery of 2016 operational goals.
European Corporate Debt Market Could Increase By €70 Bn Until End-2016
On Wednesday, the European Central Bank (ECB) began to buy corporate bonds (CSPP). Assuming that the ECB purchases 7 billion euros a month, the rise in the amount of “available” bonds in circulation in the European corporate fixed income market could be around 70 billion euros from now until year-end, according to Afi.
Zara And Movistar Amongst The Top 100 Names In Terms Of Brand Value
Zara and Movistar are the only two Spanish companies which appear amongst the top 100 in the world in terms of their brand value, according to the ranking “Brandz Top 100” elaborated by consultancy firms Millward Brown and WPP. Google is top of the list, ahead of technology firm Apple.
Vigilant Of Second Round Effects
BoAML | We have remained quite bearish on Euro area inflation for the past few years, particularly compared with ECB forecasts (but also consensus), and have highlighted the many downside risks to the inflation outlook.
China-U.S. Relations: Hostage To None
Hu Shuli via Caixin | The eighth session of the U.S.-China Strategic and Economic Dialogue (S&ED) in Beijing on June 6 and 7 received more than the usual attention amid signs of increased tension between the two countries. In addition to tensions over disputed islands and reefs in the South China Sea, friction has been generated in recent months by China’s attempt to be recognized as a “market economy” and America’s…
GDP Deflators Show Germany A Relative Loser, Long May It Continue
James Alexander via Historinhas | While still waiting for the 1Q16 official Eurostat NGDP figure for the Euro Area of 19 countries it has been interesting to have a look at the implied deflators for the currency bloc and its constituents. (Ireland, Slovakia, Cyprus and Luxemburg are all hopelessly late delivering GDP figures, and the first two don’t even seem to do it to Eurostat standards for calendar-adjusted data.)
Spain’s Utilities To Benefit Most From ECB Debt Purchasing Programme
The European Central Bank (ECB) will today begin its corporate debt purchasing programme (CSPP). This means it will acquire, via approximately 12 national central banks, investment grade debt issued by companies. Spain could benefit from this programme to the tune of nearly 60 billion euros.
US Close To Full Employment Not Recession
The latest jobs data from the US is the worst for six years: 38,000 jobs created in May compared to the 160,000 expected. The market slumped on the news of the bad figures, but Yellen played them down. She said “too much attention” should not be paid to one jobs report and that she was still in favour of raising rates.