VALENCIA | By XTB analysts Miguel A. Rodriguez | Among all the obstacles that the European economies find in their way to recovery there is one particularly intractable: the Eurozone’s central bank itself. The ECB has proved to be too slow, and extremely fearful to display its powers.
LONDON | By Victor Jimenez | What sounds optimistic for Italy and Spain can dampen the picture of Germany as almost unassailable European economic engine. The IMF alerted that the German over-reliance on exports would cut down its growth.
BARCELONA | By CaixaBank research team | The Eurogroup’s agreement contains another crucial point: the possibility of the ESM injecting funds directly into intervened banks and thereby weakening the link between bank risk and sovereign risk.
WASHINGTON | By Pablo Pardo | Basically, the whole compensation system has moved from buying to selling (the performance-based restricted stock). That’s all. The actual difference between the two is indistinguishable.
LONDON | By Victor Jimenez | “The improvement in the PMIs suggest the Eurozone economy should exit recession in the third quarter of this year. But the recovery is likely to remain uneven.”
Borrowers will notice their mortgage costs ease because the Euribor reference has consistently be lower than the IRPH, and entities will see their interests margin trimmed.
MADRID | By Francisco López, via consensodelmercado.com | Telefonica had an important reason for its well-timed U-turn: the Spanish corporation wanted to conquer a mature market with scope for expansion.
LONDON | By Victor Jimenez | In the sector regulators’ agenda, European banks will indeed need more capital to protect the public purse from the fallouts of the risks that entities take on.
MADRID | By JP Marín Arrese | Ex-ante coverage of potential non-performing portfolio, plus a thorough scrutiny on banking trading and risk concentration, stands as the only effective way to prevent excessive exposure.
MADRID | By JP Marín Arrese | The Bank of Spain tough line on refinancing is likely to force extra new provisioning. Especially in entities where that practice was developed with little precautionary measures.