MADRID | By Jaime Santisteban | Markets consolidate advances reached yesterday and Wall Street endeavours to awaken from its slumber with an increase of about 1%. No earthquake in sight, provided that sanctions for Russia remain light. America didn’t disappoint: industrial production grew in February by 0.6 %. In Spain, Sacyr will continue to celebrate the agreement to conclude the works of the Panama Canal and Jazztel benefits from the Vodafone-ONO operation.
MADRID | By Jaime Santisteban | “Let’s wait and see but time is running out,” Bankinter analysts weigh in. This week is meant to be decisive for markets and the global economy with the Ukraine-Crimea-Moscow saga and China overshadowing the rest of the news.
WASHINGTON | By Pablo Pardo | Does anybody remember where the Standard and Poor’s 500 Index was five years ago? At 666. Since then, the S&P 500 has gone up a whopping 175 percent. The market has defied fiscal cliffs, Republican obstructionism, three rounds of Quantitative Easing, the start of the Fed’s ‘tapering’, the change in Chinese leadership, the euro near-collapse, a nuclear catastrophe in Japan, a wave of revolutions in the Middle East, and even a Russian invasion of Crimea.
MADRID | By Jaime Santisteban | It could be a big deal. The Spanish government has to evaluate a comprehensive report on the tax system reforms handed by an experts’ comittee “We have spared no one,” they’ve said. Will this really boost simplicity and efficiency? Market makers await further details about where the government stands on each proposal. Besides, focus remains in Ukraine ans the polemic referendum in Crimea, and in China, whose PM announced that more defaults are coming.
MADRID | By Jaime Santisteban | BBVA takes a look on the bright side of the Spanish economy in 1Q14: growth, exports, domestic demand, labor market, public spending reduction. Santander urges the EU to hasten arrangements on SRM to meet Banking Union agenda. Otherwise, stress tests won’t have credibility.
MADRID | By Jaime Santisteban | Amid the hot debate on when the banking union will be wrapped up, market makers are focusing on the main steps already taken: the ECB gets the decision-making power from the European Council and Germany tries to avoid that public money can be used in the transitional period. Link analysts don’t expect major fluctuations today, but they warn investors about some “red lights.”
WASHINGTON | Via The Next New Deal | Roosevelt Institute Fellow Mike Konczal (@rorytomb) explains why banks need higher capital standards to prevent another collapse, how much could they fund themselves through equity and the challenges ahead the U.S. financial reform such as the Dodd Frank Act’s progress, inequality and CEO pay.
MADRID | By Jaime Santisteban | Analysts favor Madrid’s new measure of overhauling loan refinancing rules for struggling companies, which will make it easier for those firms to arrange debt-for-equity swaps with their creditors. Also, the expected ECB’s non-move has been widely commented today, expectations cooled down. AFI experts believe the market is starting to assimilate the ECB will definitely seat on its hands unless unless inflation falls below 0.5% or recovery is threatened. Daimler’s amazing sales in China are also catching market makers’ attention today.
MADRID | By Jaime Santisteban | Market makers are weighing in the new open stage in China after first corporate bonds default since Beijing started this kind of asset trade in the late 90’s. Also, Santander and BBVA saw their debt rating boosted by Moody’s.
MADRID | By Jaime Santisteban | Relax: Ukraine’s crisis will not spark gas shortages; Abengoa’s yieldco IPO could amount $1bn at Nasdaq.; renewable energies achieve new historic maximum of 59% of overall production and much more…