MADRID | By Julia Pastor | The evolution of the UK’s real estate market is one of the major risks assessed by the BoE in recent months. In fact, the demand has gained great traction since 2013, backed by better credit lending conditions, the increase of confidence and the oficial program Help to Buy.
MADRID | The Corner | After a sluggish start, growth seems to pick up in the euro area. The 18 countries sharing the common currency showed an industrial production rise of +0.8% in Apr 2014 over Mar 2014, and +1.4% over Apr 13, according to Eurostat.
SAO PAULO | By Mark Sadowski via Marcus Nunes’ Historinhas | Simon Wren-Lewis has written a response to a post by Giles Wilkes in which he addresses the nature of the disagreement between monetarists such as Scott Sumner, David Beckworth and Marcus Nunes, and fiscalists such as Paul Krugman, Simon Wren-Lewis and Jonathan Portes. I want to start in the middle because this is the part I have the biggest disagreement with the following statement.
LONDON | By Chris Walker and Marvin Barth at Barclays | Despite the ECB delivering more easing than expected, the EUR remains close to the levels heading into Thursday’s meeting. Did the ECB then fail? In a word, no. The ECB’s objective is to raise inflation from unacceptably low levels well below its mandate of “less than but close to 2%” and a crucial element of doing so is to keep inflation expectations anchored near the Bank’s target.
MADRID | By Ofelia Marín-Lozano | Now that stock markets are at maximum levels (absolute maximum for S&P 500 and relative one for Eurostoxx 50), stress tests are decisive to reactivate credit. They are already in the first phase (which consists in evaluating the assets’ quality or AQR) and the overall outcomes will presumably be published in November. It seems likely that credit will recover sooner, inasmuch as banks know their individual results and the ECB may advance some messages.
MADRID | By Álex García
ATHENS | By Nick Malkoutzis via MacroPolis | The May 25 result should have been a watershed moment, prompting Greece’s decision makers to seriously contemplate the mistakes that have fed the extremist monster: implementing drastic austerity while ignoring the social safety net, engaging in relentless artificial political polarisation, ignoring education, treating immigration with malevolent neglect, undermining institutions, snubbing justice and, when all else failed, attempting to cosy up to Golden Dawn and adopt some of its agenda.
MADRID | By Luis Arroyo | The ECB spoke up on Thursday during one of its most expected conclaves. For months, the European institution had been announcing expansive measures if things didn’t change, and it finally made a move. How should we interpret it? Let’s see first why the central bank had to do something “special.”
MADRID | By JP Marin Arrese | A couple of years ago, Draghi rescued the Euro from its plight. Yesterday, he saved Europe from a protracted economic performance. By delivering more than expected by markets, he changed the rules of the game in monetary policy. His bold rate cut bringing funds hoarded by banking institutions into negative territory seems close to unconventional manoeuvring. His targeted 4-year massive 400 billion liquidity injection will prop up credit to enterprises and individuals, providing a robust boost to growth.
LONDON | Barclays analysts invite you to answer the following question: What action do you expect the ECB to take at its Thursday 5 June meeting? The survey closes at 10am London time on Thursday, 5 June 2014, and the results will be published at noon that day in the NY open edition of this publication.