Ofelia Marín- Lozano | The intervention of the ECB in sovereign bond markets stopped the rise in the internal rate of return on the periphery countries bonds, Spain and Italy. But it didn’t stop the flight to what had become the main asset of safety, German bonds, whose IRR continued falling until the nominal returns were negative.
Jens Bastian | With Merkel’s gradual retreat from German politics, a new sense of political timing is set in motion across capital cities in Europe. How will Athens react to the gradual changing of the guards in Berlin? While much air time and social media is being consumed with domestic political quarrels in Greece, both government representatives and opposition parties will be well-advised to look closely at the next developments in Germany.
Iberdrola began operations yesterday in the maritime wind farm Wikinger in the waters of the Baltic in Germany, which supposes the first maritime wind power project built by the group on its own, with an investment rising to 1.4 billion euros. With an output of 350MW, this wind farm represents the first phase in a larger wind power complex, of 836 MW and with a joint investment of 2.5 billion euros.
The market reaction to Angela Merkel’s decision has not been bad. The euro depreciated to 1.1373 against the dollar, but sovereign debt suffered more because of the greater risk appetite, and the returns on 10 years German bonds rose to +2.5 bp. However, given that Merkel has held the role of a stabilising figure in Europe, some analysts expect that the long term markets could be concerned by the vacuum she could create with her departure.
Between July 2015 and July 2018, 1.3 million people have sought asylum in Germany. The three years between the festive welcome to the refugees in Munich railway station and the xenophobic revolt in Chemnitz (Saxony) in September – after the stabbing of a 35 year old German, reportedly by foreigners – have seen an unprecedented renaissance of conservative politics.
Trump is contagious. The President of Bavaria, Markus Söder, and the conservative Interior Minister, Horst Seehofer, both Social Christians, have found the magic recipe of Germany first politics to defend their coalition’s -CSU is the partner of Merkel’s CDU in Berlin- absolute majority in the next state elections in the region in October.
Is Germany pro-independence? No, no it isn’t, despite the fact that the separtist propaganda operates intelligently in Germany – with Puigdemont top of the list, in his role as the victim of an oppressive and anti-democratic Spain.
Yesterday, April 19, after being flat for months, with no pulse, the Euribor finally showed signs of life. It moved from the range of -0.190% (average for April) to -0.189%. One basis point.
“We need automation because we won’t have enough young people to handle the production. And yes, it’s true that jobs will be lost, but without automation and digitalisation we would not be able to feed a growing population, dress it, entertain it, provide health treatment etc.”
Europe, where everyone is against everbody else. The victory in Italy of the populist Five Star Movement and Lega has shattered into a million pieces the slight possibilities of having a more united Europe, or a more federal one, or whatever you want to call it.