José Luis Marco, CAPITAL MADRID | Although Spanish banks have little direct exposure in Greece, the country over which hangs the euro zone exclusion threat, something different happens with several European banks: they have a direct interest in the Hellenic country both with their branches in the country and with the assumption of Greek sovereign debt. Some of the biggest banks are partners or shareholders of several Spanish banks. Banco…
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…
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.-…
By Tania Suárez, in Madrid | Alberto Matellán is director of strategy and macroeconomics at Inverseguros SVB. In a conversation with The Corner, he said that even if Spain doesn’t formally request a bailout, “it will be necessary some kind of intervention.” However, he points out that the possible Spailout would be met via different instruments, and that there is a high probability that a bailout for Italy comes in…
The European Commission announced Friday it had temporarily approved a bridge recapitalisation via the Hellenic Financial Stability Fund (HFSF) for Alpha Bank, EFG Eurobank, Piraeus Bank and National Bank of Greece. The injection of public capital will be provided under EU State aid rules to ensure the entities’ financial stability. But, at the same time, the Commission said it had also opened four in-depth investigations to examine whether the measure…
By CaixaBank research team, in Barcelona | Although the first half of the year has ended with a negative balance for most international stock markets, the latest months has been characterised by a relative improvement in indices. The reduction in fears that Greece will leave the euro and the euro area’s assistance in recapitalising Spain’s banking system marked a turning point in the trend for investors’ appetite for risk. Although…
How scared are investors of Spain’s debt? Very. So much so that judging by their behaviour, financial analysts in Madrid are increasingly adopting the language of their country’s politicians, if for different reasons. That is war out there for Spain’s sovereign paper, no one doubts. The Spanish debt has now been under extreme tension during a week and the pressure has pushed credit costs up whether it is for two…
LONDON | The euro area's debt-burdened economy is unlikely to improve soon, but it has built in up resilience against steep declines. The downturn this time should be softer than it was four years ago, Legal & General Investment Management LGIM said in an investor note. The report explained that growth in the euro area will remain weak but that a severe recession in the region as a whole is…
By Luis Arroyo, in Madrid | Why did the euro seem to work so splendidly after just a few years …to be about to crash now with such almighty noise? Here I suggest an explanation, which is simple and incomplete and yet, crucial. In the first graphic, we see the Spanish real GDP in red and Germany's in blue both at annual growth rates. The drop in the 1990s is…
http://exbacksms.com/ How to win back your ex By Luis Arroyo, in Madrid | Everybody is now praying for a solid coalition to form in Greece's government, a partnership that keeps tightening the rope of public spending. On the contrary, the left, whether via moderate Pasok or other radicalised groups, may have a greater role than many like to imagine. It doesn't matter. Time goes by. Greece needs more money. And…