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European banks linda

European economy 11th February 2021

The Proportion Of Deposits With Negative Interest Rates In The Eurozone Exceeds 25%

A monetary policy with rates at 0% and the reduction of the deposit facility rate to levels of -0.50% have pushed the Euribor to its fifth consecutive year of negative rates. And it is also increasing the percentage of European deposits with figures below 0%. J.P. Morgan AM showed this evolution in its latest Market Guide (H1’21), which flags how the proportion of Eurozone deposits with negative rates has exceeded 25% in the case of non-financial companies, and is climbing to levels of 5% in the case of households.

Araceli

European economy 5th February 2021

The EU Is 90% Away From Its Target Of 180 Mn Doses Of COVID-19 Vaccines Before End-Spring

Optimism about the vaccination process continues to grow and the Financial Times yesterday highlighted how the number of Covid-19 vaccines already administered globally, some 104 million doses, has for the first time exceeded the global number of reported cases, which stand at just over 103 million. The population vaccinated with at least one dose is around 10% in the United States and 14.4% in the United Kingdom, while just 3% of the European Union ‘s population has received a Covid-19 vaccination.

BCE SkylineFrankfurtTC

European economy 3rd February 2021

European Banks’ Dividends Could Reach Up To €11 Bn, Says The ECB

European banks will pay out between €10.5 and 11 Bn in dividends this year, according to “very preliminary” estimates by the European Central Bank, following consultations with the lenders. Spanish Santander, BBVA, CaixaBank and Bankinter have been authorised by the ECB to distribute 15% of their profits in dividends to their shareholders. Sabadell will not remunerate its shareholders so it would not have requested authorisation, while Bankia will do so after merging with CaixaBank, in April or May.

corona vaccine

European economy 29th January 2021

The Vaccination Process Against Covid-19: Between Fear And Hope

“The slow vaccination process and the fear of a lagged recovery will continue to cause a reduction in risk assets,” say analysts at Link Securities, although it is true that “sooner or later, vaccination will take effect and one must be positioned for the day after,” say the experts at Intermoney. Between both feelings, the Covid-19 vaccination campaign is one month since it started in the EU. Figures are still far from the rates needed to achieve the immunization objectives. Spain would have to multiply by 5.6x the current rate of daily doses administered.

coronavirus susto

European economy 25th January 2021

Third Wave Of Coronavirus Jeopardises European Growth Prospects

The unstoppable spread of the pandemic is currently hitting Portugal and Spain with particular severity. And it has been worsened with possible delays in the production of vaccines, both by Pfizer and Astrazeneca, thus jeopardizing the pace of deliveries and the vaccination schedule in Europe. At the same time, the short term is being complicated on the continent by the increase in the number and depth of restrictions. These are weakening the prospects for recovery in the first part of the year.

ECB night

European economy 22nd January 2021

Despite ECB’s Boost, Banks Tighten Credit Conditions Amid Fears About Debtor Solvency

This week the European Central Bank published the latest edition of its “Eurozone Bank Lending Survey” with 4Q20 data showing the need for continued generous support from the central bank. Despite the measures implemented by the ECB, the logical fear of banks about the solvency of their debtors explains why the conditions for accessing bank credit are tightening. In 4Q20, credit conditions for households eased, but not in the case of companies, considering that both areas were severely deteriorated in 3Q20. 

Snapshot of European financial sector' structure

European economy 16th January 2021

Has Deflation Returned To Europe?

Azad Zangana (Schroders) | November 2020 was the fourth consecutive month that headline inflation for the eurozone – using the harmonised index of consumer prices (HICP) – was negative. The response to the coronavirus pandemic has caused the most severe economic shock across the continent since the Second World War. Temporary factors are to blame for current negative inflation rates, but low inflation is expected to keep interest rates very low for years to come.

Fiat Peugeout

European economy 29th December 2020

The EC Approves With Conditions The Birth Of Stellantis, The Merger Between Peugeot And FCA

Banca March | The European Commission has given the green light, with conditions, to the merger of Peugeot with Fiat Chrysler Automobiles after the commitment on the part of both manufacturers to adjust their activity in the sector of small commercial vans. The union of the two firms meant they would control about a third of that market, more than double its immediate competitors. The deal will give rise to the fourth largest car manufacturer in the world by units sold and a stock market value of over €40 Bn.

European banks linda

European economy 26th December 2020

European Banks: Becoming More And More Utility-Like

Scope Ratings | The pandemic showed that in times of crisis, politicians, supervisors, and central banks are willing to extend significant help to the banking sector. No major European bank has come close to resolution this year; nor will any in the near future in our view. Credit markets took note. After an initial scare in March, senior spreads tightened close to pre-crisis levels. Our view is that banking is turning into utilities and that the sector is becoming what it should be: boring.