By Julia Pastor, in Madrid | After some weeks of good tone in the European stock markets, they suffered the consequences on Monday of the massive rating cut by S&P last weekend. The Ibex35 woke up today with shares drowning in red, except for Ebro Foods and Gas Natural, and is being dominated by volatility for the rest of the day.However, it is the rating agencies’s credibility which is being called…
According to a statement made to the Spanish regulator CMNV, BBVA will proceed to make an extraordinary adjustment to the value of its goodwill in the U.S. which will have a negative impact in the amount of €1bn (net after tax). BBVA justifies this decision on the poor long term prospects in the country, in contrast with the positive performance of the division. Banco Sabadell analysts explain that this adjustment…
MADRID | Banco Santander has reiterated its goal of having 10% core capital at the close of June, 2012, one point above the level required by the EBA. During the last few months of 2011 Banco Santander has carried out a series of measures regarding capital, allowing it to achieve a core capital ratio of 9% ahead of the European Banking Authority’s (EBA) deadline of June 30th, 2012. The Spanish…
A note from Barclays Spain: “The Fed’s double mandate (inflation and employment) has probably contributed to the present crisis. Greenspan, faced with the necessity to improve the anemic growth, but probably to a greater extent faced with the pressure exerted by Congress and American society to create employment, (which still has not picked up despite the GDP’s increase) maintained interest rates low for too long, promoting together with other factors…
LONDON | Analysts at Forex, the retail division of Gain Capital, a global provider of online trading services, expect worldwide economic growth to stall, increasing the possibility of a global recession. As a result, they foresee the USD becoming a global safe haven, taking strength from repeated waves of risk aversion triggered by potential events such as EU sovereign ratings downgrades, weak economic data, and ongoing credit market stresses in Europe. The 1Q…
As published by the German newspaper Die Welt, chief economist of the European Central Bank Jürgen Stark believes that Spain is a good example of how a country can reduce its risk premium by implementing the right adjustment measures. The Spanish daily Expansión refers to his declarations in Monday’s edition. “In an interview given to the German paper, Die Welt, the member of the ECB points out that ‘Spain and other countries…
The government of Portugal has sold to the Chinese company Three Gorges Corporation a package of shares representing 21.35% of the social capital that the state held in the Portuguese electrical company Energias de Portugal (EDP), in exchange of a payment of €2.693 billion, according to information provided by the government investment company Parpública to the Portuguese market supervisor, CMVM. The Portuguese executive explains that its choice was based of…
