LA CAIXA. 2013 ended with a Spanish public deficit (6.6%) in line with set targets. Retail sales slightly went down in February after the surprising increase in late 2013. Inflation returns to negative figures in March (-0.2 %) mostly due to Easter taking place in April this year instead of March. The new electric rate enforcement will restrain prices and inflation.
Mortgage activity accelerates the fall but will reduce as long as labor market recovers. As for the Eurozone, growth picks up speed as activity indicators show. German inflation declines despite the new boost of salaries. U.S housing market seems to positively perform in the first months according to Case-Shiller and Conference Board Consumer Confidence indexes. Measures addressing financing improvement from the EU and the ECB add fuel to the corporate bonds exchange and the global trends.
SABADELL. Bank of Spain recommends entities to enhance their capital levels by keeping benefits or resorting to the markets. The new approach aims to achieve a better capitalised but less profitable sector. This statement reflects the current situation of the banks. / BME reports the volume traded on the spanish market in March rose by 24.3 % and the first semester is expected to go well as 1S’13 was the weakest one in the last ten years.
SANTANDER. The government doesn’t rule out reaching a 1.5 % GDP growth in Spain this year. Spanish PMI touches maximum levels since April 2010 and keeps credit market attractive. The reduction of geopolitical tension is positive but even more encouraging for Eurozone would be a relevant advance in France’s disinflation.
AFI suggests to overweight Latin American and markets with good prospects, namely Brazil, Mexico, Poland and Korea. Besides, European equities have better multipliers than US, which are “protected” in the event of an interest rates’ rise.
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