Saudi Stock Exchange opens $585 bn stock market to QFI
The Corner | June 17, 2015 | Only qualified foreign investors (QFI) managing at least $5 billion in assets will obtain licenses to buy stocks in the Middle East’s largest stock market.
Markets
EZ profit margins to outperform the US
LONDON | June 16, 2015 | BNP Paribas | The pricing power of corporates is still low at the global level as sizeable excess capacity remains. Nevertheless, it is not all bad for companies.
What will the impact of raising rates on global growth be?
CAMBRIDGE | June 15, 2015 | By Prof. Jagjit S. Chadha via Deutsche AWS | Could rising rates choke off the recovery or have post-crisis wounds healed sufficiently for the global system to take tightening policy in its stride?
Rates do matter
MADRID | June 14, 2015 | By JP Marín Arrese | We take for granted that close to zero rates remain the driving force for delivering growth. The massive liquidity pumped in by Central Banks in developed countries has led to this widespread belief on the merits of cheap money. But such manna brings with it a number of drawbacks.
The ECB’s TLTRO 4.0: Feeding the rising loans demand
LONDON | June 12, 2015 | Barclays | On 18 June, the ECB will conduct its fourth TLTRO. At the previous three operations, the ECB allotted a total of €310bn. We expect a take-up of about €80bn at the upcoming operation.
Chinese A-Shares: Investors have a harder time getting money for leveraged buys
BEIJING | June 11, 2015 | By Zhang Yu and intern reporter Han Hui via Caixin | Financial institutions have become more cautious about lending money to investors playing the Chinese A-share market, which is seeing its strongest rally in nearly eight years even as analysts issue warnings of a collapse.
The Eurogroup presidency: A battle Spain cannot afford to lose
MADRID | June 11, 2015 | By Francisco López | The appointment of Spanish Economy Minister Luis de Guindos as president of the Eurogroup was a sure bet until the Dutch finance minister and current Eurogroup chief said he will stand for the post again. Possibly affected by this bad news, Mr De Guindos made a very unfortunate intervention about the Spanish banking sector’s restructuring.
European rates: Bunds – where now?
LONDON | June 11, 2015 | UBS | We believe that a bear trend has started in European bonds and we continue to forecast 2% for 10-year Bund yields for the end of next year.
Resilient Eonia fixing, fragile long Eonia rates
LONDON | June 9, 2015 | By Giuseppe Maraffino (Barclays) | Eonia and Euribor fixings (as well as OIS rates up to 1 year) have been immune to the new round of high volatility. This is because they are more sensitive to liquidity conditions and the current abundant liquidity surplus at about EUR300bn has been an important protection.
Stoxx 600 at its lowest level since February
The Corner | June 9 , 2015 | Some European indexes experienced important losses on Monday (look at the Stoxx 600 today). Market watchers say we can already talk about corrections (-10% from its peak in mid-April)