MADRID | By The Corner Team | It seems like the market consensus changed its mind after the Spanish government’s upward GDP revision. What’s going on? Will upward revisions continue? Some experts told us this might happen “in the next few days.”
BARCLAYS ANALYSTS | PM Rajoy announced that the government will raise its 2014 GDP growth forecast to 0.7% from 0.5% previously. The full set of revised 2014 macroeconomic projections is expected to be announced this Friday. The government’s forecast is somewhat below our 2014 growth projection of 0.9%. We expect the economy to emerge from the recession in Q3 13 (+0.1 q/q).
MADRID | By Tania Suárez | Prime Minister Mariano Rajoy announced a discreet upward revision of the GDP for the Spanish General State Budget. Thus, the government raised their growth forecasts from 0.5% to 0.7%.
MADRID | The Corner Team | Spain’s borrowing costs dropped at a double bond auction on Thursday after the U.S. Fed announced it will not start tapering yet. The 3-year bonds were sold at an average yield of 2.225%, compared with 2.636% seen at the previous auction. Madrid expects that this will leave some margin to offset possible negative deviations elsewhere or to better fulfill the country’s deficit target (6.5% for 2013).
MADRID | By Francisco López | Spain’s credibility is at stake. In the coming months the country will need to tackle its two main economic commitments: compliance with the deficit target of 6.5 per cent in 2013 and requesting (or not) an extension of the bank bailout in November.
MADRID | By The Corner Team | Spain’s yield keeps improving and getting better than Italy’s, as the -11 basis points drop of its risk premium showed last week. It was the widest difference since March 2, 2012. For most analysts the Spanish economy is now perceived as a downwards risk context.
MADRID | By Tania Suárez | A total of 17 Spanish companies belong to the 2013 edition of Dow Jones Sustainability Index (DJSI). Among them, it is especially remarkable the return of Telefónica SA and Abertis Infraestruturas SA, which were out of the index in previous editions. Furthermore, this year there are two more Spanish companies in the DJSI: ACS and FCC.
MADRID | By JP Martin Arrese | For all the trumpeted news on fresh signs of recovery, the Spanish government would be well advised to deliver next year’s budget as close as possible to the one in force. Growth will fail to deliver any significant thrust that might help to recoup the current deficit. Moreover, public debt has rocketed to more than 90% GDP.
BARCELONA | By Joan Tapia | According to the Spanish government, the country is about to leave recession behind and be on track for the recovery. President Rajoy has insisted on that being the important issue, not the corruption scandal that has shaken his party. The euro zone is showing positive signs indeed but is Madrid’s position 100% credible?
MADRID | By The Corner Team | The Spanish Government is exploiting the growing interest for riskier debt and the possibility that the German bonds go down, something that increases the appetite for the peripheral countries.