Non-resident investors net buyers of long-term Spanish debt after ECB support
Non-resident investors have extended the maturities of their holdings of Spanish debt, according to the August data released by the Bank of Spain.
Markets
Banking woes will not decouple from sovereigns
MADRID | As France pushed for in the last euro summit, the EU-wide banking supervisor would be set up by 2013. But its work will not begin until after Germany’s elections in the second half of the next year, and direct bank recapitalisation is out of the table, again. Ms Merkel was the real winner.
JP Morgan airs concerns over side-effects of recent regulation for UK banks
LONDON | Changes over core capital reserves would have turned British banks less transparent about their actual financial stand, JP Morgan analysts alert. Also, growing risk of impending payouts because of mis-sold payment protection insurance could affect their stock price sooner than later.
Financial Madrid reminds president Mariano Rajoy of the “underlying fundamentals”
The day a new EU summit began, financial reports from Madrid poured in with a common alert: the Spanish economy needs fixing and the markets will keep watching how the Rajoy government’s reforms advance.
US stocks: too high for their own good
Analysts at Barclays pointed at the already noticeable slow down in company investment to alert about future job creation data. The US could be in for a nasty surprise: something to do with the “fiscal cliff”.
Euro zone bailout fund could guarantee partial losses on Spanish bonds
The bailout that would await the Spanish government’s request is surrounded by many suppositions over its conditionality and how the rescue fund would intervene. But the recent decision of Moody’s keeping Spain’s bonds on investing grades has made investors feel more confident.
Shame about the ‘nein’ to a Banking Union
Miguel Ángel Rodríguez, financial analyst at XTB, accuses core euro governments of impeding progress towards a real Banking Union that would stop contagion spreading from public debt risk to credit entities.
Even Milton Friedman would bless central banks cancelling debt
Even Milton Friedman would understand it if central banks cancelled their public debt holdings, economist Luis Arroyo proves. Do you think that’s crazy? The alternative is a long, painful economic rehabilitation, defaults and poverty.
European banks too careless about investors’ trust
The European Banking Authority delivered its latest examination on entities’ compliance with information disclosure. Banks appear to be oblivious of regulators’ demand for more transparency, let alone investors’.
Kissing frogs in Europe: look for the small-cap hidden champions
LONDON | From Standard Life, an optimistic nudge for investors seeking opportunities amidst recession-threatened Europe. Despite the stress the euro zone is under, some small listed companies show resilience and maintain a strong leadership in their sectors.