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Delays on EU’s Banking Union place pressure on Madrid

The set up of the Banking Union in the European Union has not only triggered the habitual complaints from the UK and Sweden. Even core euro zone looks divided. And it all adds pressure for Spain to require a national bailout.

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The City wants a braver Mario Draghi

LONDON | Something had to be done to support the euro. But some in the City still see the European Central Bank excessively scared of inflation. Past cash injections, though, have depreciated the common currency very little.


Foreign investors take possession of Spain’s stock market

Foreign ownership of Spanish stocks in the last 13 years has reached 40 percent of total market value, according to data from BME, the company operator of Spain’s financial markets. But domestic investors’ purchases are higher than European average.

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CDS relax over Ireland, Portugal and Spain

Where there is the European Central Bank’s full capacity of purchasing short-term State debt, there is hope. Even the primary market has opened, although by understandably timid measures, for southern euro zone debt issuers at a sub-sovereign level like State agencies and autonomous regions. The financial City of Madrid expects this window of opportunity to expand and demand of government bonds to improve as it is already happening to banks…

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I-told-you-so graphs for ECB worshippers

By Luis Arroyo, in Madrid | Very briefly: for those who have let themselves fall for the euphoria that unfolded after the European Central Bank governor Mario Draghi reported on unlimited short-term sovereign bond purchases, I would like to remind them of what happened during the last weeks of 2011 and the beginning of 2012. Back then, the ECB introduced its long-term refinancing operations, which were meant to inject liquidity…

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What an unfortunately insufficient difference an ECB word makes

LONDON/MADRID | President Mariano Rajoy should manage to take this week a breath, although it will probably feel too weak. A simple look at the curve of Spain’s government debt now shows a steep upward gap between the internal rate of return of two-year bonds and the cost of the medium and long-term credit for the country. Indeed, 24-month debt paper’s IRR has tightened by more than 450 basic points…

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ECB’s plan and upbeat jobs report cause Wall Street euphoria… and skepticism

Markets rallied on Thursday after the ECB’s highly anticipated unlimited bond-buying program to contain the euro zone debt crisis. In the U.S, an upbeat job report and news from Europe made all three Wall Street indexes close at multi-year highs. However, some experts remain skeptical on how long the euphoria will last. “I think the market generally takes these things far too seriously,” John “Jack” Bogle, Vanguard founder, told CNBC….