MADRID | By Luis Arroyo | Something is wrong in the “kingdom of the Euro;” it’s just incomprehensible. The ECB is unable to keep the financial and monetary markets alive, which is a huge failure in view of the forthcoming European elections. The following charts show that the euro holds on just because we are asleep.
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.
MADRID | By Jaime Santisteban | Market makers are highlighting the enhanced capital flux in the Eurozone prompted by the QE prospects while Germany Zew Index displayed a slight drop in the business confidence in April. Besides, analysts agree that China’s economic slowdown and Ukraine are going to determine the market mood.
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.
MADRID | By Jaime Santisteban | In a crucial day for the long-awaited banking union in Europe, market makers also chattered about many other issues, like the Bank of Spain -which has denied it plans to subject Spanish lenders to stress tests this month- achieving less tough criteria for Spanish banks in the upcoming EU stress tests.
WASHINGTON | By Pablo Pardo | Would the true IMF prediction please stand up? The Fund has just predicted a growth of 0.9 percent GDP for Spain in 2014. Three months ago, it was 0.6 percent. Seven months ago, it was 0.2 percent.
SAO PAULO | By Marcus Nunes| The St Louis Fed Regional Economist has an interesting article: The Ups and Downs of Inflation and the Role of Fed Credibility. Although they likely don´t realize it, it reads like “last rites” to the present system.
MADRID | By Julia Pastor | “Today we return to the bond markets after four years,” Greek Finance Minister Yannis Stournaras said on Thursday just before his country’s 5- years bonds matched analysts’ best expectations: €3bn over estimated €2-2.5 bn, with a demand around €20 bn and interest rates of 4.95% against foreseen 5-5.2%. As good food does, the auction is nourishing the twice bailed-out EU economy.
MADRID | By The Corner | “I would like to stress that the risk of a self-reinforcing deflationary downward spiral consisting of falling wages and prices, as evoked by some, is also low, despite the present, very low inflation rates in the euro area. These are mainly a result of falling energy prices and the adjustment process in crisis countries,” European Central Bank Governing Council member Jens Weidmann said on Tuesday, playing down deflation risk. Anyway, what happened with the ECB’s 2pc inflation target?
SAO PAULO | By Marcus Nunes via Historinhas | “The IMF has been very generous in its suggestions on what we should do,” said Mr Draghi in a sarcastic tone on Thursday.