Benjamin Cole via Historinhas | Well, the web is an amazing place, and not even looking I came across this post by Adair Turner, former chairman of the United Kingdom’s Financial Services Authority and former member of the UK’s Financial Policy Committee.
UBS | Regulators are establishing a foundation to allow banks to deal with NPLs Regardless of the success of local asset management companies’ (AMCs) individual initiatives, debt-to-equity swaps or NPL securitization, the authorities are showing a resolve to create concrete structural change to allow banks to solve their NPL issues.
The Corner | The Basel committee intends to impose new capital requirements on the banks relating to off-balance sheet assets. The purpose of the international organisation’s move is to mitigate the risk of a bailout of financial products like investment funds and/or securitisations.
UBS | Positive developments for Greece and broader European assets Monday’s Eurogroup on Greece contained a number of positive developments relating to the country’s on-going programme review as well as debt relief. We expect those developments to support Greek and broader European risk assets, where we have argued for upside (see most recently “Which risks to fade; which risks to take” ).
Marc Chandler via Caixin | The U.S. dollar has had a rough few months. It has fallen against most major and emerging market currencies this year. A critical issue for global investors and policymakers is whether the dollar’s uptrend is over or is this just a respite. Much is at stake with the answer.
AXA IM | The technical details of the ECB’s corporate QE programme, the corporate sector purchasing programme (CSPP), released last Thursday, cemented our constructive view about its impact on credit markets. The CSPP details matched or exceeded market expectations, adding to the positive spread momentum that has been in motion since the initial CSPP announcement on 9 March.
Francesco Saraceno | Last week’s data on EMU growth have triggered quite a bit of comments. I was intrigued by Paul Krugman‘s piece arguing (a) that in per capita terms the EMU performance is not as bad (he uses working age population, I used total population); and (b) that the path of the EMU was similar to that of the US in the first phase of the crisis.
Benjamin Cole via Historinhas | Of late in monetary blog-land has been bruiting about central bank helicopter drops, usually defined as a last resort to boost aggregate demand and fight deflation.
BARCLAYS | Gamesa posted a very solid start to the year with sales growth of 30% driving a 6% beat to company-compiled consensus. EBIT beat by 24% as the Group margin reached 11.2%, up 330bps year on year. Free cash flow was negative €107m (by our calculations), a solid improvement versus Q1’15’s -€267m in what is always the weakest quarter of the year.
UBS | The launch of the Shenzhen-Hong Kong Stock Connect program this year was recently confirmed by top Chinese government officials. We estimate that about 505/218 Shenzhen/HK stocks could be introduced into the existing Shanghai-Hong Kong Stock Connect, leading to over 70% of the A-share market cap and 84% of the Hong Kong market cap to be mutually open.