euro zone

Euro fears deflation

Losing patience with the ECB

MADRID | The Corner Team | Investors are most likely to hear the ECB repeat (again) how prepared it is to act and use all kind of unconventional devices on next Thursday meeting, after inflation in the euro zone fell to 0.7% in December, its lowest level since the common currency was born. “As fears of  deflation increases, the central bank cannot remain unable to act,” analysts say.


After Austerity, Capital Inflows Will Ease Euro Zone’s Pain

THE CORNER TEAM | Although fiscal austerity and structural reforms implemented have inflected some euro zone countries a severe pain, they will bring them external capital inflows, Chinese rating agency Dagong Credit predicts for 2014. This combined with the potential increase in Germany’s import demand will mean that the euro zone economies will rebound a little and see pressure of sovereign debt crisis ease further.

ECB Doctrine (e.d. Bundesbank’s)

ECB Doctrine (e.d. Bundesbank’s)

MADRID | By Luis Arroyo | ECB’s policies have damaged more than helped the European economy. After all, the FED has managed to steer the US towards the path of growth, while the ECB is unable to make its policies work. But the truth is, they are not entirely the ECB’s but the Bundesbank’s procedures commanded by Ms Angela Merkel.

No Picture

How to call fear of bubbles? Paranoia maybe?

MADRID | By Luis Arroyo | The shadow of deflation looming over the euro zone economy have seemingly gone away on Friday. The statistical office Eurostat anticipated an estimated 0.9% yearly inflation rate, two percentual points under last October registers. However, being afraid of deflation is not a nonsense because next banking recapitalisation points that credit is to tighten.


Euro zone: different GDPs, not so much with retail sales

By CaixaBank research team, in Barcelona | Economic slowdown is difficult to stabilise within a context of rising uncertainty that hampers aggregate demand. Economic activity slowed down in the first quarter of the year with negative growth of 0.1% year-on-year, as shown by the detailed figures for gross domestic product in the first quarter. Private consumption continues to adjust, shrinking by 0.6% year-on-year. Gross fixed capital formation has also decreased…


“Grexit would be good for the euro, but not for German exports”

By Tania Suárez, in Madrid | Fernando Luque is analyst and editor for Morningstar. In a conversation with The Corner, he said that Greece will not withdraw the euro because “that possibility is no good for anybody, neither for Greece, nor for Germany.” Luque explains that there are no shortcuts to solve the Greek crisis, but that will not necessarily damage other peripheral countries such as Italy or Spain. Question.-…