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debt

In Europe 23rd April 2014

The juicy business of speculating with Spanish sovereign debt

MADRID | By Julia Pastor | Speculators who dared to buy Spanish debt in 2012 when it yielded 7.5% and priced a record low of 88.6% made a good deal with gains of 38%, now that Spain’s 10-years bonds’ interests near 3% and price stands at 122.6%. Moody’s thinks the country’s sovereign debt is going upwards, alongside Ireland, thanks to its economic, institutional and fiscal strengh. However, Italy’s rating is suffering from the opposite trend.

BoE

In Europe 23rd April 2014

BoE raises expectations (and ECB misses them)

MADRID | By Ana Fuentes | As ECB officials spend their time debating what form of QE the euro zone needs to fight deflation risk (note that although its inflation target is 2%, the central bank keeps on sitting on its hands while its balance sheet is shrinking), more data point to the positive effects of unconventional measures on growth. Check this one recently published by the Bank of England: the mere announcement of a QE shot corresponding to 1% of GDP caused a 0.36% real GDP increase and a 0.38% CPI rise in the U.S. ­–a little less in the U.K. Indeed, hope can move mountains… and money.

 

car market

In Europe 22nd April 2014

Spain thrives in EU car market rebound

MADRID | By The Corner | A good gauge to measure EU consumer’s confidence, the regional car industry points to its recovery. Car sales increased by 8.4% in 1Q14 to 3.24 million of vehicles, while number plate registrations grew by double digits 10.6% in March to 1.44 million.

Rescate banca

In Europe 21st April 2014

Healthy Spanish banks still have to pay €7.5bn for their peers

MADRID | By Julia Pastor | In the Spanish banks restructuring process, the €100 bn credit line coming from Brussels was crucial. However, Spain’s financial sector also saved itself by transferring €7.5 bn from the banks in better conditions to those that were nationalized, basically via contributions to the Deposit Guarantee Fund and the national bad bank Sareb. [Picture: “Banks should pay for the crisis”]

audit

In Europe 21st April 2014

UK: Balance sheets and the power of the mass

LONDON- THE WEEK THAT WAS | By Víctor Jiménez | Thrilling? Not exactly. Unless you file accounts for a rogue large company, the rabbit out of the top hat the Financial Reporting Council pulled this week should have left a too familiar, dull sight printed on the retina: the watchdog suggested a named-and-shamed punishment for both public and private companies whose reporting standards fall below legal requirements. Duh.

Eurobank

In Europe 21st April 2014

Are investors getting a bargain with Eurobank?

ATHENS | By Manos Giakoumis via Macropolis| The Hellenic Financial Stability Fund (HFSF) said on April 15 it approved the 1.33-billion-euro offer submitted by a consortium of investors for Eurobank’s capital increase. The approval signals the completion of the first phase covering 46.5 percent of the announced equity raising of 2.86 billion euros. 

Euelections

In Europe 18th April 2014

EURO ELECTIONS: Germany will win, no matter what -but does it care?

BERLIN | By Alberto Lozano | The upcoming EU elections (May 22-25) arrive in a moment of enormous challenges for the Union. What happens in the next months can change definitely the political and economic landscape. Again, Germany plays the main role with its 67 million of voters and the two ‘frontrunners’ supported by the two big parties from the German Coalition. However, 72% of its citizens have low or no interest in the polls.

No Picture

In Europe, Spanish economy 16th April 2014

Spain: Optimism, ma non troppo

BARCELONA | By Joan Tapia | Optimism over Spanish recovery should be refined. The so much discussed but effective economic management of Spain’s government is not well transferred to political confidence. As citizens place their political confidence at 29.5 points against 29.9 points of trust in the economy,  businessmen have gone in terms of political confidence from a poor 2.16 to another poor 2.33.

king juan carlos

In Europe 16th April 2014

Are Spanish media betting on King Juan Carlos again?

OP-ED By Julia Pastor | Spaniards disaffection with monarchy sank to lowest levels in 2013 after several embarrassments and corruption scandals affecting the Royal Family. But as King Juan Carlos wraps up his 6th visit to UAE on Wednesday, Spanish media of all political signs are sticking to his diplomatic role. The monarch is seeking to open doors for Spanish infrastructure companies. Only Abu Dhabi’s subway is to raise €8 bn.

europessimism

In Europe 16th April 2014

Euro pessimism is back on fashion

MADRID | J. P. Marín Arrese | Both the main economic institutions and think tanks cast a gloomy forecast on Europe. The IMF leads the way, advocating for swift action to revamp an ailing growth performance. Its blatant U-turn has drawn scarce criticism. Not so long ago, it endorsed hawkish views on the need to implement full-fledged austerity, no matter the cost, thus contributing to trigger the rotten conditions it now reviles.