Why Draghi must free the ECB from its Trichet past
Economist Luis Arroyo reminds ECB governor Mario Draghi of his predecessor’s mistakes in blindly fighting inflation when it was economic growth what was, and still is, at stake.
Markets
Investors confident ECB will become euro zone banks’ supervisor, says Fitch survey
79% of survey respondents expect the European Central Bank will supervise all euro zone banks, in line with the European Commission’s legislative proposal for a single watchdog.
The European Central Bank temporarily relieves tension
The prime ministers of France and Portugal announce further adjustments for 2013, as Spain did before. But, analysts at CaixaBank note, the lack of detail isn’t encouraging for investors or other euro zone partners, despite the support the ECB promises.
Pescanova, Vidrala top market consensus recommendation
Fresh data from the stock market in Madrid: the average recommendation is of 2.72 points, slightly less buy-prone than last month and the end of year.
Brussels poised to axe Spanish ailing banks
MADRID | For all the efforts they undertake to reinforce their solvency and profitability, troubled banks are not likely to survive unless they merge into solid groups. But economist JP Marín Arrese wonders if public money to maintain them artificially alive should not be entitled to a better use.
Spain up in Stanley Morgan’s top five picks
Spanish current account data gives signs of economic strength, but the global economy suffers from too much weak activity, a clear threat to Madrid’s reform efforts. Talk of bailout will not go away any time soon.
Foreign investors buy Spanish debt for the first time in nine months
Large institutional investors such as Pimco have publicly acknowledged their interest in Spanish debt, precisely because of the ECB buying program, but it remains to be seen whether the foreign interest is consolidated.
One third of top German banks’ Tier 1 capital vulnerable to euro peripheral crisis
Although German banks’ regulatory capitalisation hardly makes news, the latest report on the industry by risk qualification agency Moody’s points at high leverage and exposures worth noting down.
Low oil prices, for the moment
Oil prices fell below 110 dollars per barrel and are lower than last year’s levels. Watch Saudi Arabia and Iran, though, note CaixaBank analysts.
Euro volatility falls to new lows
MADRID | The European economy desperately seeks ways to boost its recovery. Could it be so simple as to get a weaker euro, after all? wonders economist JP Marín Arrese.