Italy’s sovereign debt has become a bargain due to the country’s upcoming referendum (December 4th) which may compromise Renzi’s government. Yield premium investors demand to hold 10-year securities versus similar Spanish debt soared to its highest closing level in almost two years in October, according to Bloomberg data.
UBS | We have updated our Upstream major project database. Further cuts to capital investment, responding both tactically to this year’s very low prices but also, increasingly, strategically to a changing market outlook, have contributed to another year of below-trend project development activity.
The provisional data for the Q2’16 balance of payments in Spain shows a surplus of 26 billion euros, which is a maximum level for the series. Namely Afi flags that the balance of services stood at 13.4 billion euros in Q2, up from 12.2 billion a year earlier. It is worth noting this rise amount is not just the result of the good performance from tourism-related activities, but also others such as corporate services.
via Macropolis | As September came to a close, millions of Greek taxpayers scrambled to meet the deadline to pay the second instalment of personal income tax and the first payment obligation of the single property tax (ENFIA).
AXA IM | Recent years have shown the importance of financial linkages across markets and assets. In particular, spillovers were evident during the Global Financial Crisis (GFC) when financial turmoil originating in the US mortgage markets spread around the globe and caused an unprecedented crisis.
The amount of government debt registered in the banks’ portfolios fell to 129.684 billion euros in August, over 5 billion euros below July levels. And it’s the lowest amount of public debt in their portfolios since July 2015.
BoAML | Turning to the long term outlook, we still expect that leaving the EU will worsen the UK’s trading terms with EU countries more than it improves trading terms with other countries. Assuming this thesis proves correct, it will come with economic costs. The recent better-than-expected data tell us nothing about that judgment, but political events suggest to us that it is on track.
The concessions made to Deutsche Bank show the discretional nature of the treatment of institutions within the EU. “Unfortunately, this is a deeply-rooted problem which translates into insecurity about “the rules of the game.” And the ultimate consequence of this is a counter-productive mistrust of the European framework,” Intermoney analysts say.
BoAML | What if the ECB were to start tapering too soon? Based on the ECB’s estimates for the impact of QE this would keep growth below potential and inflation below 1% much further down the line. The probability of deflation would actually be higher than of inflation reaching 2%. But this is not even a stable equilibrium. With higher rates and lower growth, concerns on the sustainability of public and private debt would likely resurface.
J.L. M. Campuzano (Spanish Banking Association) |According to a survey by the Centre for Sociological Investigations (CIS), 71.6% of Spaniards see unemployment as one of the three main problems they face; 36.6% believe it is corruption and fraud; and 29.3% point to politics in general. Just 11.6% of Spaniards mentioned the country’s lack of government.