MADRID | By Tania Suárez | Director of financial analysis at Profim EAFI, Jose Maria Luna Morales, argues that austerity measures in the euro zone were “necessary” but adds that “some privileges of many public institutions can still be reduced”. He also notes that although “Europe still may suffer months of stagnation”, that does not imply “a long period of stagnation'” for the EZ as a whole.
Amid the generally gloomy economic statistics, however, and much to many commentators’ surprise, there is a whiff of optimism in the air in Europe that could prop up the European real estate markets.
As anger and despair over austerity spread in Europe, more US analysts are expressing their solidarity towards protesters and skepticism towards policy makers. A turning point was IMF’s shift, saying that tax hikes and spending cuts causing far more economic damage than experts had assumed.
Democrats just took again the White House for the next four years, but President Barack Obama-starstruck Europe must face the facts: it is no longer considered a strategic priority or asset by the United States.
Mainstream Renewable Power, the global solar and wind energy company, announced it is successfully tapping credit lines to increase its capital base. Mainstream, which is Europe’s leading independent offshore wind developer, signed this week a corporate facility for up to €60 million provided by Macquarie Group. According to the terms of the transaction, Mainstream will receive an initial €40 million corporate loan with provision for an additional €20 million at a future date…
As European financial crisis enters a critical stage, should the ECB have the power to supervise all euro zone banks as well as those in non-euro zone countries that choose to become part of a single mechanism or shall it focus on monitoring only the big, systemic banks instead? European commissioner for economic and monetary affairs Olli Rehn believes in the first approach; German Finance Minister Wolfgang Schaeuble has rejected…
By Tania Suárez, Madrid | Global growth will remain below trend until later this year, according to JP Morgan expectations. Rates have dropped less than 50bp from their peaks in 2011 and are projected to fall further 20bp until late 2012. Developed markets authorities believe that “the limit of zero interest rates has eliminated the possibility of conventional action.” Meanwhile, emerging markets with still flexible rates, have “persistently high inflation…
China is willing to help, but everyone has limits. Premier Wen Jiabao told visiting German Chancellor Angela Merkel at a state visit in Beijing on Thursday that Beijing plans to continue buying European sovereign debt, the strongest sign of support for its biggest trading partner in months, although it urged further measures to be taken. “The European debt crisis has continued to worsen, giving rise to serious concerns in the…
Famous for his provocative views on international economics and China’s rise, Andy Xie is an independent economist who predicted the Asian bubble in 1997. Based in Shanghai, he is a former Morgan Stanley star chief Asia-Pacific analyst. We interviewed him for our summer interviews on China’s challenges, the eurodrama and his forecast for the future. For Mr. Xie, Wall Street bankers are viewed in China as “a bunch of corrupt…
Morning! Today we bring you the last part of our summer series interview with Professor of Economics at Columbia University Martin Uribe. He believes that the Eurozone needs structural changes to tackle the crisis, especially in fiscal matters. The lesson we should learn from this crisis is to avoid high capital inflows into a country as happened to Spain from 2000 to 2008. – Several Nobel laureates have decried budget…