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European economy

Spain productivity

European economy 2nd July 2020

Productivity Is Stagnating In Europe; In Spain It Is Counter-Cyclical

Matilde Mas (Funcas) | Since the beginning of the 21st century, productivity growth has experienced an almost generalized slowdown, albeit of unequal intensity, in most developed countries. And this is despite the accelerated process of innovation accompanying the Fourth Industrial Revolution. It is the phenomenon known as the productivity puzzle. Among the large EU-15 countries – Germany, France, Italy, Spain and the UK – the general pattern has been a slowdown in labour productivity since around 2005.

CO2

European economy 25th June 2020

European Refining Industry Targets 30 M Tonnes Of Eco-Fuels Annually By 2035

The association FuelsEurope, representing the European refining industry, expects to produce 30 million tonnes of low-carbon liquid fuels (eco-fuels) annually by 2035. This would mean a reduction in CO2 emissions with an estimated minimum of 100 million tonnes per year by that date, and emission neutrality by 2050 in Europe. The European counterpart the Spanish Association of Oil Product Operators (AOP) has launched a plan to introduce these eco-friendly fuels into the transport sector.

Signs of a future increase in inflation

European economy 23rd June 2020

The Impact Of The COVID-19 Outbreak On European Inflation

CaixaBank Research | The impact of the coronavirus on inflation is uncertain, as there are simultaneous supply and demand movements that can tilt the balance towards more inflation, disinflation, or even deflation. In the short term, despite measurement problems and the closure of markets, disinflation has dominated. In the medium term, several factors suggest that disinflationary pressures will continue to dominate. In the long term, transformations such as deglobalisation or shifts in consumption patterns could lead to structural changes.

bank antonviolin sstock

European economy 22nd June 2020

The Appeal Of Investing In Banks Is Very Strong: Expectations For Revaluation Are Close To 100% In A 1-2 Year Period

Ofelia Marín-Lozano (1962 Capital SICAV) | The starting point is much more solid than in 2008, when the banks emerged from many years of double-digit credit expansion and high rates. In addition, European banks have significantly improved their equity base, which is double, or even almost triple, the levels reached a decade ago in all their solvency ratios. The ratio of higher quality capital to risk-weighted assets, (CET1 or common equity tier 1) has risen from levels below 6% in 2011 to over 14% today. 

The ECB bets on buying private debt

European economy 19th June 2020

Demand For Financing From The ECB Reaches Record Highs Of €1.3 Tr, With Net Injection Of Near €550 Bn

Spanish banks have requested more than €97.9 Bn in the auction. Caixabank has already announced that it has requested 40.7 billion euros, the total to which it is entitled. Other lenders have also made their moves: €27 Bn requested by Sabadell, €21 Bn by BBVA and €9.2 Bn by Bankia. In Italy, Intesa and Unicredit have already reached € 70,000 and €93,000, the latter reaching its limit. Some systems in southern Europe (such as Italy) could have reached 85% to 90% of their total TLTRO limits.

germany reinvented

European economy 18th June 2020

Germany Reinvents Itself And Bets On Europe And High Tech

Lidia Conde (Frankfurt) |  German corporations are highlighting the risks of the global distribution of work, their weakness in the face of global value chains. Will work and production return to Europe, to Germany? It’s not clear. The pandemic has led to unprecedented reactions and almost unconditional support for Europe. It’s a way of helping yourself. Germany is expecting the worst recession since World War II, with the economy declining by up to 8% in 2020.