ZURICH | UBS analysts | ETF flows continue to reward positive economic data from the US with spectacular equity inflows for the second consecutive month. Europe was once again a laggard in both economic terms and in flows: Germany, Spain, Italy, and France, saw net outflows in December due to a combination of growth, Grexit and deflation concerns.
MADRID | By Francisco López | The strong fall in the oil price may be a blessing for GDP growth in some countries such as Spain, but it is starting to get on investors’ nerves due to the devastating impact that it could have on some emerging countries. The price of the Brent barrel plummeted by more than 5% on Monday, registering at $48 (i.e. the lowest level for six years).
ZURICH | UBS analysts | We expect reforms to accelerate in 2015. As the government moves toward systematic “rule by law” and the property downturn persists, more space will open up and pressure increase for economic reforms to accelerate. We see three themes for China’s reforms this year: growth support, risk containment and rebalancing. In other words, reforms that can unlock new sources of growth and bolster domestic demand, reduce economic and financial risks, or diminish/remove structural imbalances should advance most.
MADRID | By Sean Duffy | The euro hit a fresh nine-year low on Thursday after the publication of a letter from Mario Draghi which indicated that the central bank would likely purchase sovereign bonds in a bid to ward off a deflationary bout which is holding back growth on the continent. The euro was trading at $ 1.17540 against the greenback on Thursday. Friday saw a recovery to $ 1.18177. The single currency is currently hovering around levels seen back when the currency was launched in 2002, at €1.16.
MADRID | By Álex García.
Japan’s descent into recession has prompted questions of what the country must do to right itself — and many agree that “Abenomics” will not be enough. Most Japan watchers and economists, and even Abe himself, say that to restore sustainable growth, Japan needs sweeping deregulation and structural reforms. But pushing through such changes is proving daunting, despite Abe’s pledges to “drill deep into the bedrock” of Japan’s vested interests.
SAO PAULO | By Marcus Nunes via Historinhas | If things get worse [for the US economy], that’s the fault of weak growth in Europe and the BRICS, having nothing to do with bad monetary policy by the Fed itself. Keep wearing those rose-tinted glasses and soon everyone will start feeling things couldn’t be better!
DUBLIN | By Sean Duffy | With fears surrounding the Eurozone, Russia and the BRICS economies, the only certainty about the year 2015 appears to be that it will continue a period of global economic uncertainty. The Corner takes a look at some of the issues and factors that are likely to dominate the headlines in the year ahead.
MADRID | By JP Marín Arrese | As Greece plunges again into wild uncertainty, following a call for snap elections, once again the Eurozone shivers at the prospect of a full-fledged crisis. Even if the flight for safety has reduced the bund rates to fresh lows, no other economy has come under attack for the time being. But should Syriza emerge as the winning party in the January polls, the truce might be over.
MADRID | By Julia Pastor | The designs of the markets are unfathomable. Mario Draghi might forget the QE idea and the British housing sector might collapse. These are some of the Saxo Bank’s ludicrous forecasts for 2015. A year ago they claimed there would be a default in the Russian debt and the collapse of the oil price, and they were right. Nonetheless, most of the experts that talked to The Corner agree on a scenario for 2015 led by the ECB’s quantitative easing, the oil price reduction and low interest rates.