LONDON | March 6, 2015 | By Sigrún Davídsdóttir | Both in Cyprus and Iceland foreign funds flowed into the islands, in the end forcing the government to make use of extreme measures when the tide turned. These measures are normally called ‘capital controls’ which in these two cases hides the fact that the measures used are fundamentally different in all but name. In Iceland, the controls contain the effect of lacking foreign currency, effectively a balance of payment problem – in Cyprus, the controls were a way of defending banks against bank run, i.e. preventing depositors to move funds freely.
MADRID | February 27, 2015 | J.J Fernandez-Figares| Link Securities | Efforts by the ECB to inject money into the euro zone are already showing signs of impact as positive M3 figures offer encouragement ahead of March purchases of sovereign bonds.
MADRID | February 27th, | The Corner | Negative inflation is likely to be of more concern to German policy makers than it is to their Spanish counterparts today, with low prices being seen as good news for Spanish consumers and the economy as a whole. Elsewhere, attention will focus on Greek GDP, with the possibility that the latest data may underline some of the lingering difficulties between Greece and its EU partners.
MADRID | The Corner | February 25, 2015 | Spanish telecom giant Telefonica reported a drop of 34.7% in net profit, although investors celebrated revenue picture brightening up. Elsewhere, the Spanish Producer Price Index falls again, registering a drop of 2.8% for January.
MADRID | February 24, 2015 | By Carlos Díaz Güell | Spanish banks’ NPLs rate went down by 1.1% in 2014 standing at 12.5% thanks to the sharp fall of the delinquency rate (12.5% year on year) that offset the impact of banks’ reducing their lending activity. In fact, if lending had remained stable in 2014 (it went down by -4.6%), the default rate would have been of 11%.
The Corner | February 24, 2015 | Figures published today will give an indication of the current state-of-play in the euro zone, with the release of inflation statistics and final GDP figures from the German economy for 2014.
MADRID | By Soren Willemann at Barclays | European credit markets have been outperforming equities persistently since October 2014. However, following the recent ECB announcements, this relationship has shifted dramatically, with credit spreads now trading wide vs equities on a historical basis.
MADRID | The Corner | The purchase of large swathes of Spanish land by US hedge fund Lone Star is further compelling evidence that the Spanish property market is staging a recovery. This investment signifies that the improvement in the market will soon be seen in the residential sector, having previously been confined to the retails and commercial markets.
MADRID | By Francisco López | The successful launch of the Aena IPO has been interpreted as a sign of confidence in the recovery of the Spanish economy. The airport operator was floated last week and saw gains of 20.6%, but the headline grabbing investment from international funds such as BlackRock, Templeton, Fidelity or Capital Group has given credence to the sense that Spain is an increasingly attractive proposition for investors.