FED

germany growth

German economy getting stronger

The Corner| April 9, 2015 | Strong figures from German industry will offer further encouragement to EU policymakers that the economic recovery is now on the right track. German industrial production grew by 0.2%, beating expectations of a 0.1% rise. The increase in industry excluding energy and construction was 0.5% according to latest data from the Bundesbank.


stress tests

European markets reopen

The Corner | April 7, 2015 | European markets reopen this morning, with three areas of specific interest likely to dominate events on trading floors. The first, will be the continued wrangling between Greece and its creditors, with hopes for a deal becoming increasingly slim as the acrimony between the various parties seemingly increased over the weekend. On Wall Street, quarterly results presentations will commence, while traders will also be closely monitoring a swathe of data which may offer an insight as to the future direction of the Fed’s monetary policy.


Fed's chairwoman Janet Yellen

Morning briefing: Markets await Yellen’s appraisal

The Corner | March 27, 2015 | Data from Europe has shown that the cost of imports have risen for the eurozone’s largest economy, Germany, spelling good news for the country’s partners within the currency union. In the US, data released today will be poured over by Fed chairwoman, Janet Yellen, at a press briefing scheduled for later this evening.


The global economy in the year 2018

Uncertainty hits global economy

MADRID | March 24, 2015 | By J.P Marín-Arrese | On face value, Europe is recovering from a bad spell while the US is growing at an invidious rate. However, the wild currency swing may yet destabilise the global economy. Janet Yellen’s remarks on the threat of an overvalued dollar were designed to preserve a balanced performance, and indeed sparked a quick reaction in exchange rates. Yet, as the ECB unfurls its massive quantitative easing programme, volatility in the currency markets could inflict further damage. 


coffee with beans

Morning briefing: US Fed language will focus attention

The Corner | March 16, 2015 | The week ahead is likely to be dominated by the FOMC meeting in the US.  Market watchers are expecting some movement on the semantics of pronouncements by the US Fed. In essence, any change in language will signal that a rates hike from the central bank is drawing closer.


A close up of a dollar note

The dollar’s unsettling upsurge

MADRID | March 15, 2015 | By JP Marín ArreseThe markets have discounted an unchallenged drift upwards of the US currency, after the ECB embarked on its ambitious asset-buying scheme. Yet few anticipated the move might come so soon and reach such a rapid pace. As the Euro turns its retreat into a disorderly rout, emerging economies like Brazil are falling under unbearable pressure. The dollar’s swift upsurge has pounded global markets. 


Santander US holding

Analysis: Fed delivers a scathing blow to Santander bank

MADRID | March 13, 2015 | By JP Marín ArreseThe quantitative test conducted under the Dodd-Frank Act showed a comfortable capital cushion for all eligible banks. Yet both Santander and Deustche Bank subsidiaries blatantly failed the qualitative review undertaken by the Fed under the Comprehensive Capital Analysis and Review (CCAR). In short, the banking supervisor considered their capital plans and risk management to be utterly inconsistent. It has delivered a damaging blow that should prompt swift action to redress such an appalling outcome. Santander has already announced a major overhaul in its US banking arm, but the Group as a whole badly needs to address its failures. 



Fed's chairwoman Janet Yellen

Janet Yellen may soon run out of patience

MADRID | February 26, 2015 | By JP Marín ArreseThe FED is back in business after years of loose monetary policy aimed at redressing an ailing economy. With the business climate markedly improving, the time is ripe to raise rates. Yet, Janet Yellen has repeatedly warned against a swift hike, instead emphasising the need for patience until the upward trend is solidly anchored. In her testimony before the Senate Committee, she noted that policy would only cover the next two FOMC meetings, sparking speculation that the move could well start in June. 


No Picture

EU markets opening

MADRID | The Corner | February 25, 2015 | Spanish telecom giant Telefonica reported a drop of 34.7% in net profit, although investors celebrated revenue picture  brightening up. Elsewhere, the Spanish Producer Price Index falls again, registering a drop of 2.8% for January.