By Julia Pastor and Tania Suarez, in Madrid | Pablo Díez, at Nordkapp’s asset management department argues that implementation of austerity as the only measure to sort the crisis out will bring social chaos in Europe. Yet, Díez is unsure about how right Spain’s president Mariano Rajoy is in rejecting the deficit target of 4.4% this year. Do you think it would have been ‘suicidal’ to commit Spain to Brussels’…
By Juan Pedro Marín Arrese, in Madrid | Those hedge funds resisting debt restructuring shouldn’t nurture any hope to save their money. The titles they hold might be governed by international law. But should Greece turn off the tap, counting on CDS to fill the gap might prove a delusion. Credit default guarantors have already warned they will simply fail to respect commitments entered. The ensuing claims might fatten law…
By Luis Arroyo, in Madrid | The Bundesbank has protested for the bulk of credit on the other central banks of the euro zone. The amount credited is €500 billion. The German Central Bank now worries about the risk of default, and suggests that these assets must be collateralised by real assets from the countries that have generated them. As Wolfgang Munchau says, this display of arrogance is telling, indeed. These accrued debts/credits…
LONDON | Odd. After months of mild fireworks of demonstrations against austerity throughout Spain, it seems hard to believe that Ambrose Evans-Pritchard, international economics editor at The Daily Telegraph, would be struck. Even president Mariano Rajoy acknowledged that his reform plans for the labour market would probably spark a general strike. But Evans-Pritchard was struck, nevertheless: “In the twenty years or so that I have been following EU affairs closely, I cannot remember such a…
LONDON | AXA Real Estate confirmed Monday that transaction volumes across the full risk spectrum of opportunistic to core have substantially increased in Europe. The real estate portfolio and asset fund was during 2011 a net buyer on behalf of its clients, with acquisitions totalling €2.6 billion, which included €900 million of committed development expenditure, compared to sales amounting to €2.1 billion. The financial management firm was active throughout Europe, in the economically stronger euro…
By Juan Pedro Marín Arrese, in Madrid | Mervyn King sharply pointed out that banks are global in life but turn national in dying. The opposite can be applied to deficit targets. When you enjoy a comfortable budgetary position, you are able to fix them at your own wish. Brussels may get the sulks if you go beyond certain limits and fall into excessive overruns. But it can do very little…
A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. Spain needs margin to meet deficit and no, it’s not a question Don’t force euro zone to meet deficit targets, says …FT! Google wants to fulfil your dreams Corporate governance is an olde concept Ok,…
By Fernando Barciela, in Madrid | Unipapel’s managing director Millán Álvarez-Miranda warns the European economy is deteriorating as a whole, from Dublin to Paris and Athens, not just in the periphery of the euro area. Are you concerned about the markets? Of course. You don’t want your company to be undervalued on the markets. In our case, we must also bear in mind that half of the shareholders are present at the council. The fact that the stock price…
By Julia Pastor, in Madrid | The British prime minister David Cameron may perform his isolationist act as theatrically as he likes, but facts are stubborn showing that the British banking sector very much prefers to take advantage of the European Central Bank help when available. Barclays, one of the British banking sector’s heavyweights, has confirmed that its order in the last ECB liquidity operation with a three years maturity…
By Luis Arroyo, in Madrid | The US economy is on its way up to the growth heaven while others, like Europe, live under the knife. Broad money or M3 volumes have increased in the US by 10pc. In terms of what it is strictly required, the Federal Reserve is fulfilling its duties. The broad money supply includes factors of money supply and money and credit demand, which means that there is activity in all money and financial markets. The…