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global liquidity drivers

In Europe 2nd September 2016

Credit And Liquidity In The Eurozone

J. L. M.Campuzano (Spanish Banking Association) | During one of the conferences at last week’s Jackson Hole meeting, ECB council member Benoit Coeure analysed the extreme monetary measures taken by the ECB (in reality by all the main central banks) during the crisis. His opinion was that the neutral interest rate equilibrium is now very low (the product of a combination of low potential growth and low inflation expectations) which explains the remainder of the exceptional measures implemented.

QE effects

In Europe 1st September 2016

The Effect Of QE On Corporate Debt: More Speculation, Not Investment

Now the most important companies can finance themselves at the same price as the government – at practically 0% – and they have benefited from this…But it doesn’t mean that these optimal conditions are fuelling a greater amount of real investment: companies have taken advantage of this to pay more dividends and reward shareholders with buybacks.

merkel solitude

In Europe 30th August 2016

Germany’s Drag on Europe

I can tell you that the most eminent economists in Spain have continued to be wrong-footed since before the crisis. They are still clamouring for debt reduction, for a return to austerity, when what is slowly killing Europe is precisely that, the austerity spreading from Germany.

slower

In Europe 29th August 2016

Germany and France on a Slower Momentum

Recent surveys in both Germany and France indicate the perception on the part of companies that there will not be the necessary stimuli for economic activity to fuel an acceleration in the economic momentum.

Too many questions on Brexit – no trivial solution for an unknown territory

In Europe 22nd August 2016

EU Challenges in Post-Brexit Period

John Bruton | There is no denying that the United Kingdom’s Brexit decision is a blow to the EU. Now, there is a real risk that the remaining 27 EU members will start pursuing national interests at the expense of the common EU interest. If they do, everyone will lose.

 

BCE grandeTC

In Europe 19th August 2016

ECB July Meeting Minutes Reflect Continued Concern Over Banking Sector

José Luis M. Campuzano (Spanish Banking Association) | The most significant item in the minutes of the ECB Governing Council’s July meeting was the repeated reference to the banking sector. And particularly with regard to the massive beating banking stocks are receiving in the equity markets.

Italian banks results

In Europe 11th August 2016

Looming Banking Crisis in Italy Casts Another Shadow on Eurozone

Peter Lundgreen via Caixin| What should be deeply worrying about the growing banking crisis in Italy is the origin of the non-performing loans. One significant sector is retail and wholesale, meaning it’s a widespread problem. A severe banking crisis is a shock for any economy and will, in many cases, hamper economic growth. This is the risk that Italy and the Eurozone are facing.