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pensionerTC

Spanish economy 29th August 2016

State pensions at risk; but private plans don’t seem a solution

Judging by the incessant comments these days from all kinds of financial experts and even independent voices, one of the best solutions for Spaniards in the face of the country’s serious pension system crisis is to sign up to a private pension plan. In reality, no-one has any doubt that the public pensions system will not be able to meet its commitment to providing a decent pension for future retirees, in line with their expectations. That said, are private pension plans the solution?

mercadosrecursoCM

Spanish economy 23rd August 2016

Spain risk premium falls below 100 bp thanks to QE

Mari Pinardo | Do you remember the summer of 2012, when Spain’s risk premium reached a record high of no less than 638 basis points? Four summers later, this spread seems like it belongs to a completely different country. Since that fateful summer, Spain’s sovereign risk has declined nearly 550 bp and just last week broke the 100 bp threshold. There are basically three reasons which have pushed the risk premium through the 100 bp threshold: a date for Spain’s caretaker Prime Minister Mariano Rajoy’s investiture, the economic policies which have been in place in the Eurozone since April 2015 and the fact that it looks less likely the Fed will raise interest rates in September.

dineroTC

Spanish economy 22nd August 2016

Spain banks studying charge for deposits; but they are afraid to do so

F. Barciela / F.G. Ljubetic |The news that a UK bank and a German lender are going to start charging clients for their deposits has raised the question of whether Spanish banks are thinking of doing the same. For the time being this deposits’ charge will generally apply to very specific segments of client business. The continued decline in margins at the Spanish banks is worrying; a consequence of the fact that interest rates on loans are increasingly lower while the remuneration costs on liabilities are maintained. In the end, the Spanish banks may not have any option but to bite the bullet…and charge for deposits.

touristTC

Spanish economy 17th August 2016

The Tourism Boom

No day goes by without us being told how wonderful this year’s tourism campaign is going to be, in terms of the millions of visitors and the billions of euros it will generate. The tourism campaign is focused on the third quarter, when everyone and their aunt is getting sunburnt. There are many more jobs, workers are needed, and this is reflected in the increase in the number of hours worked, normal and extra.

VultureTC

Spanish economy 17th August 2016

Vulture Funds Leave Spain in Search of Fresh Game

F.Barciela / F.G. Ljubetic | Just as was expected, the ‘Opportunity Funds’ (or Vulture Funds as they are referred to) are starting to unwind positions and leave Spain: good news, because it shows that the days of bargains are over as the country is firmly on the road to recovery. But the fact these funds are leaving Spain doesn’t mean they will not have other opportunities. Now they are betting on countries like Brazil, Greece, Italy or Puerto Rico.

juicioTC

Spanish economy 16th August 2016

Bankruptcy and other proceedings

J. L. Martínez Campuzano (Spanish Banking Association) | There are very few doubts about the basic strength of the Spanish economy at the moment, in line with relevant data. But there is one statistic published recently which deserves some special attention, namely that related to Bankruptcy Proceedings in Q2.

Insurace sector dividend

Spanish economy 11th August 2016

The future of insurance companies: merge or disappear

Mari Pinardo | Insurance companies, particularly the European ones, are up against a rock and hard place due to the low interest rate environment, the need to look for long-term profitability, the lack of investor appetite and the impact of Brexit on European fixed income markets. This backdrop, coupled with the high level of fragmentation in the sector in Spain, is likely to lead to more consolidation in the short-term.