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eur dollar

Markets 13th May 2014

Today’s market chatter: Bundesbank opening to QE and much more

MADRID | By Jaime Santisteban | After the WSJ reported that a Bundesbank source confirms the entity would support stimulus measures from the ECB in June, analysts breathed and started making their polls. How big will that support be?

Also, Madrid’s financial circles are debating on the decision of the government selling inflation-linked bonds next week for the first time. Inflation being at record low levels, the decision is not obviously opportunistic, experts commented. Spain wants to look for more public funding options, and this issuances that guarantee the purchasing power of  are usually carried out by France, Germany and Italy, as well as the US.

fed

Markets 12th May 2014

Nobody waiting for the Federal Reserve

WASHINGTON| By Pablo Pardo | The US private sector already reached the same employment figures it had before the subprime crisis started. This is one of the first solid signs of the so-called Gran Recession at the other side starting to fade. Given that the Federal Reserve has a dual mandate, including price stability as well as full employment, that suggests the still leading world economy- which could become the second after China if the World Bank’s forecast is correct- is beginning to take cruising speed.

 

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Markets 12th May 2014

Today’s market chatter in Spain: Itinere, Abengoa, Inditex, and much more

MADRID | By Jaime Santisteban | Spanish Ibex 35 welcomes the week over 10,500 points. “Ukraine showdown and macro numbers will hatch investors’ attention,” Link experts point out. Bankia analysts “see the positive influence of Chinese government statement about share, bond and raw material markets supporting measures. Markets also await remaining corporate results and European countries inflation.” Last week’s Mr Draghi’s words were crucial to stop euro appreciation- the currency is likely to keep going down.

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Markets 9th May 2014

Today’s market chatter: Draghi and his playing the waiting game

MADRID | By Jaime Santisteban | ECB’s Mario Draghi’s Thursday speech is still creating buzz in Madrid’s financial circles: markets reacted very positively to the never-ending promise. Also, Bank of Spain’s chairman José María Linde alerted entities to keep strengthening their balance sheets, and explained that NPL rate slowdown will be moderate until recovery settles in.

Repsol

Markets 8th May 2014

Today’s market chatter: Repsol sees profits rise; Applus ready for IPO

MADRID | By Jaime Santisteban | Market makers in Spain are assessing the impact of Repsol’s rise in net income (it climber climbed 27% on year), helped by the U.S. harsh winter weather and increased production in LatAm. The oil major reported its 1Q14 results one day after closing a complicated chapter in Argentina by selling nearly all of its remaining 12% stake in YPF for more than $1 billion. Also, the Spanish Stock Exchange is starting to get traction: testing and inspection company Applus set IPO price at 14.50€ a share on Thursday, its net value based on that price being €1.88bn. 

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Markets 8th May 2014

The pernicious effects of an overvalued euro

MADRID | By Francisco López | While Mr. Draghi simply says that the ECB “is closely following the evolution of the exchange rate due to its impact on the price stability,” other international bodies such as the IMF, the OECD, the European Commission and most of the Eurozone’s countries (with the exception of Germany and its allies) demand the banking authority to take immediate action.

mapatobin

Markets 7th May 2014

Tobin tax to have a 10% impact on Spanish equity trading volume (ACF)

MADRID | By Jaime Santisteban | Tobin tax will be in place the beginning of 2016 at the latest despite the UK’s finance industry heavyweight challenge. The Spanish government called it a sensible and cautious measure. Crucial questions such as the level of tax or how to levy are still in the air. 

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Markets 6th May 2014

Almirall, Campofrío and Sacyr, the most recommended values in the Spanish market

MADRID | By Jaime Santisteban | Almirall, Campofrío and Sacyr are the most recommended values in the Spanish market, according the market consensus. Repsol turned down the offer to renew its two seats in the YPF ‘s board on Tuesday, and fixed its eyes in Norway instead. Also, unemployment in Spain reportedly dropped by 111,565 people in April. “Although this means a turning point in the Spanish economic recovery, the country remains in the deep well,” The Corner senior analyst Fernando G. Urbaneja explains. 

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Markets 5th May 2014

Today’s market chatter: time to invest in Spanish real estate and much more

MADRID | By Jaime Santisteban | Feel like investing in Spanish real estate?  It’s apparently the time, according to Bankinter analysts, as European prices continue their upwards trend, financing costs are low and we see price recovery signs in big cities like Madrid and Barcelona. They suggest direct investment assets with a horizon beyond 3-5 years. Also, the EU announced on Monday that the Eurozone’s GDP will grow by 1.2% this year and by 1.7% in 2015. As for Spain, Brussels is less optimistic than the Spanish government in its forecast.

 

china internet1

Markets 5th May 2014

The two sides of China’s Internet economy

Mid-April the largest Chinese micro blogging service, Weibo, raised $286m in its Nasdaq debut. Within weeks, Alibaba, the largest e-commerce platform in the world is expected to complete probably the biggest IPO in history. These are some of the main players of China’s booming Internet economy, which saw revenues of  600.41 billion Yuan in 2013, and it is expected to reach 1.72315 trillion Yuan in 2017.  But censorship and strict regulations are hindering the growth of the country’s cyber players.