Markets

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Italy, under surveillance. Berlusconi, record-less

Italian Prime Minister Silvio Berlusconi will have to postpone again the release of his next love songs record, titled True Love, after the third European economy has been forced to accept a surveillance action by the IMF and the EU during the introduction of the country’s reform plan. Italy has committed itself to perform a work reform, relax the restrictions on the corporate sector, change the age retirement from 65…





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ECB's nefarious attitude: Mr Wolf is right

By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…


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ECB’s nefarious attitude: Mr Wolf is right

By Luis Arroyo, in Madrid | In case you needed tangible proof of the harmful role the ECB played in the crisis, in the FT, Martin Wolf writes an open letter to Trichet’s imminent successor to the presidency of the ECB, Mario Draghi. The letter is an excellent article that convincingly explains why the ECB should stabilize the debt markets of solvent countries such as Italy and Spain, which are the…



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Markets love inflation

By Luis Arroyo, in Madrid | Look at the USA. In the graph above, left scale, the yields (spreads of Treasuries) of BB corporate bonds (red line), and B (green line). Right scale, blue line, inflationary expectations (type of bond at 10 years minus the same inflation protected). A functional relationship can be detected between the variations in inflation expectations and private bond yields. The higher the expected inflation, the…