A review on fixed income market cannot omit president-elect Trump’s first press conference of the year, although it contained little substance for investors trying to understand what the economic priorities of the new Administration will be.
J.L. M. Campuzano (Spanish Banking Association) | The World Bank is predicting an acceleration in global growth rate for this year of up to 2.7%, after the lowest level of growth in the wake of the Crisis estimated last year. In general, the latest global economic data is fuelling optimism.
Yiannis Mouzakis via Macropolis | The Cypriot experience makes it abundantly clear that Greece’s only chance of returning to any kind of normality can be found at the end of its bailout programme.
María Fernanda Tapia Cortés | Mexico starts 2017 with two trending topics: the announcement of new gasoline prices and protests inspired by the adjustment period in the form of a 20% price hike. While Mexicans are filled with outrage, moguls anticipate the potential earnings that this represents. The question is: Who will the energy reform benefit?
Indonesia has announced that it is going to ease up its export ban on nickel ore. It appears it is going to allow nickel miners to export as long as they dedicate at least 30 percent of their smelter capacity to processing low-grade ore, defined as below 1.7 percent nickel. For Spanish Acerinox, as well as the rest of the stainless steel sector, this news is very negative as it will put downwards pressure on nickel prices.
ECB’s bond-buying scheme creates some bout of scarcity on the market, but not necessarily resulting in lower yields. From their temporary lows after the Brexit shock, yields on European government bonds have rebounded in a material way. In the case of 10-year German Bunds, the increase was from -0.2% to +0.3%, while their French counterpart moved from 0.1% to 0.9%.
Spain’s National Statistics Institute said yesterday the number of purchase-sale transactions in the property market grew 17.3% in November to 33,806 from a year ago (and compared with a rise of 6.5% in October). That makes ten consecutive months of year-on-year rises. The data confirms the property market is recovering its role as a key economic driver.
Last year, IAG transported 100.67 million passengers (+14%) and improved its occupancy rate to 81.6%, (+0.2%), thanks to a good performance from its routes to Europe and North America.
The TED spread is an indicator of liquidity risks in the interbank market. It is the difference between the 3-month interest rate on interbank loans and the yield on 3-month US Treasury Bills. Any rise in the indicator would lead the banks to ask for more Treasuries and be more reticent about granting loans.
Técnicas Reunidas has been awarded by Saudi Aramco the contract for the turnkey project Clean Fuels within the Ras Tanura refinery on the east coast of country. No financial details of the contract have been revealed, but it means a good start to the year for the company and strengthens its position in the Middle East market.