Don’t Read Too Much into Macron’s Falling Popularity
Nick Ottens via Atlantic Sentinel | The president is losing support from voters who would be hurt by his reforms, but that is to be expected.
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Five Years On Of The Words That Saved The Euro
One of the most famous sentences in the history of the Eurozone turns five years today: “Within our mandate the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough”. ECB’s chairman Mario Draghi words will be reminded for long as a balm to the euro crisis of 2012, but what real effect this discourse has had?
ACS Could Struggle To Enter Abertis Against Atlantia
The construction company is studying a possible counter-bid for Abertis in order to improve Italian Atlantia’s offer price of 16.5 euros, but no decission has been made yet even though the Spanish Securities and Exchange Commission CNMV has already been notified.
Central Banks Need To Cooperate To Deal With Crises
The Fed signed five major swap arrangements with allied central banks that totaled more than $580 billion in 2008, whereas the People’s Bank of China signed more than 30 bilateral currency swap agreements valued at $490 billion in year 2017.
German Or US Bonds: Who Is Following Who?
Analysts at Julius Baer think it is “comforting” to see that the bond market is efficient. In other words, they say that for German bond investors it is basically the same whether they invest in negative- yielding German Bunds or buy US bonds and pay for the hedging of the currency risk.
Acerinox Stuck With No Investment Proposition; Target Price From €14 To 10.50 €
The metal industry is not performing well on the stock exchange in current year due to lower expectations about the US infrastructures investment plan and fears of contraction in China’s growth. Specifically, Acerinox has dropped around 14% in the last three months, while in the whole year lost near 5%. Analysts have been supporting the company with a recomendation of “hold” and buy”, but Citi has broken the tendency by downgrading to “sell” and cutting target price to €10.50 from previous €14.
The Catalonian Spider’s Web
Acting as an “agent provocateur”, Catalonia’s government intends to hold a wholly biased and unrepresentative independence referendum in early October. It knows the outturn will hardly attain half of the potential voters, as only a minority of the population favours an outright split from Spain.
FCC, A Utility With A Cement Call
FCC is an (ex) domestic construction company that moved into Environmental Services & Water management. It is not alone in embracing new business models including Sacyr, ACS and Acciona, which moved from a domestic construction business model to respectively an international concession one, an international civil engineering one and an international electricity generation one, while Royal BAM partnered with PGGM to grow in the PPP area and Bilfinger shifted to industrial services.
Can The Solid Recovery Of Spanish Property Market Be Sustainable?
J.L.M. Campuzano (Spanish Banking Association) | The current strong recovery of Spanish housing market has re-opened the debate about its sustainability. Some figures could support it is. According to last Bank of Spain’s data, the net wealth of the Spanish families is rising at 6.9% on a y-o-y basis. It currently exceeds 119.4 % of GDP. As regards to housing wealth, it now means 420% of GDP. Also a better financial position of families with a debt level at 63.4 % of GDP very near the European average.
Considering This: “The Shifting Drivers Of Global Liquidity”
While stability of global liquidity is key to growth for both emerging and developed markets, the Global Financial Crisis (GFC) changed the role and influence of its key drivers. A paper by Bank of International Settlements’ Stefan Avdjiev, Leonardo Gambacorta, Linda S. Goldberg and Stefano Schiaffi, defines the main components of global liquidity as cross-border bank loans and international bond issuance, distinguishing also between local (pull) and global (push) factors. AXA IM experts have summarised this work.