The Corner | April 17, 2015 | ECB’s Vice President Vitor Constancio put things into perspective by pointing out that Greek banks’ exposure to Greek sovereign bonds is much smaller than other banking sectors’.
Known as the BRICS bank, the Asian Infrastructure Investment Bank (AIIB) wants to become an alternative to the IMF and the World Bank. The initiative led by China adds to Beijing’s ambitious project of recovering the ancient Silk Road. So far, more than 40 countries from the five continents showed their support, proving China’s growing –and controversial– global influence.
The Corner | April 16, 2015 | For the first time since the beginning of the financial crisis, Japan overtook China as first holder of U.S. treasuries. Low rates and other monetary policy instruments carried out by Japan have prompted local investors to move their money to the US.
The Corner | April 16, 2015 | Net financial wealth of Spanish households reached a historic maximum of 1.17 trillion euros in 2014, 13.5% more than a year before. This shows the reduction of indebtedness, since the gap between savings and loans has increased in the last 12 months, in line with the trend of recent years.
PARIS | April 15, 2015 | By Francesco Saraceno | I am ready to bet that the latest IMF World Economic Outlook, that was presented [on Tuesday] in Washington, will make a certain buzz for a box. It is box 3.5, at page 36 of chapter 3, which has been available on the website for a few days now. In that box, the IMF staff presents evidence on the relationship between structural reforms and total factor productivity, the proxy for long term growth and competitiveness. (Interestingly enough people at the IMF tend to put their most controversial findings in boxes, as if they wanted to bind them).
SAO PAULO | April 15, 2015 | By Marcus Nunes | After a four-part series on low interest rates (GSG & SS), a detour on monetary policy and financial stability, Bernanke has two-part series series on Germany’s trade surplus and wages.
The Corner | April 15, 2015 | According to Barclays, the boost from lower oil prices on household consumption has materialised and has been stronger than expected, while the ECB’s aggressive QE has exceeded their already high expectations, creating the most favourable monetary and financial conditions since the start of EMU.
April 14, 2015 | UBS | Could family ownership help explain the performance of stocks? Is it an advantage or a disadvantage? What does the historical performance of family-owned companies tell us?
The Corner | April 14, 2015 | On Wednesday’s press conference, Mario Draghi is likely to indicate that ECB QE has got off to a good start operationally and price action terms in the market. Barclays analysts think cautious near-term trading is required in EGB spreads, given poor liquidity and lingering Greek worries.
The Corner | April 14, 2015 | At first sight the Spanish Ibex multiple does not seem particularly stressed (16.2 x PE 12 months forward with a premium of 15% against historical series). But analysts believe that it is actually being affected by optimistic earnings estimates, especially in the banking sector.