Monetary expansion is proving useless in the US
Banks in the US replicate the behaviour of their European colleagues: credit is being stacked in risk-free deposits with the Federal Reserve instead of flowing into the economy.
Markets
“Now it’s time the European Central Bank showed how independent it is”
MADRID | By Tania Suárez | Profim EAFI’s head of financial analysis José María Luna said in an interview for consensodelmercado.com that the ECB should cut interest rates the sooner the better.
Well done, periphery, but keep up the good fiscal consolidation
BARCELONA | By CaixaBank analysts | It is necessary to advance towards banking and fiscal union. Without it, the eurozone–particularly periphery countries–will not be able to face the numerous challenges still ahead.
How eurozone’s central bank saved Lloyds
LONDON | Behind the option of recovering the public investment made in Lloyds TSB, a possibility sounded today by Whitehall amid better priced bank stocks, there is the European Central Bank. But British taxpayers will probably never know.
United States: demagoguery cliff
WASHINGTON | Fear of spending cuts and fiscal cliff has made the U.S. defense officials cut spending even before they were forced to do so. A good example of commendable public spirit, even if a bit exaggerated.
Spanish direct investment’s real exposure in LatAm is Brazilian
Afi analysts issued today a simple but compelling chart showing Brazil is the main target of the more than €100-billion total exposure by Spain’s large companies in Latin America.
Fewer banks resort to the European Central Bank
BARCELONA |By CaixaBank analysts | The Basel III liquidity requirements are made more flexible. Those countries in crisis can postpone the application of bank liquidity coverage ratio regulations.
Eurozone banks hoard €200-billion excess liquidity
Why should banks enjoy the comfort of placing money in the Frankfurt-based central bank for risk-free profit? They should instead letting it flow. After all, businesses are starved of cash to hire and invest.
Europe’s still scared of inflation
By Carlos Díaz Guell | While the German chancellor refuses to give in to the growth pact for which half of Europe sighs, Hollande leads the southern countries’ complaints, very aware that France’s economic stand is getting weaker by the quarter. It’s inflation’s fault.
Weak global demand is felt in Asia, Europe and America
MADRID | Crédito y Caución 500 Table survey, which includes forecasts of sectoral performance in 34 markets, recorded 13 losses and nine improvements compared to 2012-end analysis.