May 13, 2015 | By Miriam L. Campanella and Alicia Garcia-Herrero via Caixin | The global financial crisis gave China the opportunity to push use of its currency abroad, but the need to address debt issues puts the central bank in an interesting position.
Until very recently, Chinese investors’ preferred choice was the real estate sector. Chronic new housing oversupply led many to fear an eventual burst of the real state bubble and to abandon their brick and mortar investment ambitions. Looking for fresh alternatives, many are rushing into the buying of shares in the local stock exchanges. The number of individual investment accounts grew 400% in the first quarter of this year.
ATHENS | May 11, 2015 | By Manos Giakoumis via MacroPolis | Recent Greek budget data showed the huge revenue gap of 968 million euros recorded in January narrowed to 389 million by the end of the first quarter (Q1) of 2015. At the same time, primary expenditure, which was just 53 million better than target in January, displayed a strong outperformance of 1.18 billion by the end of March.
The Corner | May 11, 2015 | Yellen’s words about stocks being overvalued and bond yields too low was a signal that investors should not expect to enjoy the Fed’s cheap money forever. ECB’s policymakers have also warned about risks in the financial system that can arise in a situation of protracted low interest rates and abundant liquidity. “It is positive that central banks may be working together to avoid potential bubbles, yet the problem isn’t stocks but bonds,” Bankinter analysts pointed out.
The Corner | May 11, 2015 | As Athens enters a critical week –it has to pay about €750 million euros ($837 million) to the IMF tomorrow and needs some sign of progress at today’s Eurogroup in Brussels–, very few voices are still talking about a Grexit scenario. “Greece will meet its commitment,” analysts at Bankinter stress. “In 70 years of the IMF’s History no developed country has defaulted.”
The Corner | May 10, 2015 | Markets seem to be suffering from “uncertainty hangover,” as Bankinter analysts put it. They are worried about the short term, after the last US DGP weaker numbers and the decrease of appetite for German bunds. But isn’t that sensible to stop betting on negative yields? In the graph above: Current 10yr government bond yields across the EU. Source: Saint Louis Fed/Seeking Alpha.
The Corner | May 8, 2015 | German automaker Volkswagen announced its intentions to invest €4.2 billion in its Martorell and Navarra plants in Spain between 2015 and 2019. The amount almost equals what all car manufacturers have invested in the past three years. The VW group employs 22,000 people in Spain through its 12 brands.
MADRID | May 8, 2015 | By Félix Lores Juberías and Ignacio San Martín at BBVA Reasearch | Housing sales growth moderated in February while the mortgage market regains dynamism. On the other hand, the upturn in construction activity was mirrored in the land market, with an increase in transaction numbers and a mild rise in the price of urban plots.
May 6, 2015 | UBS | April European cash equity volumes remained flat but were +27% ahead of the same month last year. In the US, combined average daily NYSE and NASDAQ value traded was down -4% m/m and -6% y/y.
The 2015 UK General Election could see the end of the Conservative-Labour dominance in Westminster.