MADRID | All of the sudden, the feeling things might be spinning out of control has cast a gloomy mood in Spain. For a country lavishly living on others savings, finding itself short of cash has come as a shock-horror revelation. It now faces the unsparing rigour of lying in the hands of fickle and merciless markets. The deep-rooted assumption that confidence gap would be bridged as soon as the…
What To Say Through Text To Get Your Ev Back By valenciaplaza.com, in Valencia | José Carrasco is private banking director at Banco Madrid in Valencia. Carrasco believes the European Central Bank buying Spanish bonds would reassure investors and negative headlines would then recede allowing foreign capital to go back to the country's market, where good value still abounds. What is your view on the European stock markets? With France…
how do you get your best friend to break up with your ex LONDON | Now that the European banks have again been placed in the eye of the storm, even though admittedly some more than others, a chart from BNP Paribas analysts shows why. Banks still pose a barrier at the core of most efforts towards recovery. Take the long-term refinancing operations or LTROs from the European Central Bank: they are meant to…
WASHINGTON | “Capitalism without failure is like religion without sin, it does not work,” had already said Allan Meltzer in 1969. Pittsburgh's Carnegie-Mellon University teacher and author of the monumental History of the Federal Reserve is the same conservative who advised John F. Kennedy and Ronald Reagan. Under Clinton's presidency he was in charge of a U.S. Congress committee that essentially claimed the end of the World Bank on the basis…
Morgan Stanley brought up on Friday a clear graph on banking cross assets funded at the European Central Bank liquidity facility or the emergency liquidity assistance tools. One of the conclusions, analysts said, is that “only Greece has experienced a strong bank deposit outflow this year, although it is wo relationship advice rth noting that in Spain and Italy internal capital flows occur, too, towards the soundest and biggest banks.”…
Julia Pastor, in Madrid | In a note to investors, Afi’s analysts affirmed on Thursday that German CDS or swap contracts for bond buyers to protect themselves against losses have been under pressure in the last weeks, consequently increasing by 20%, the most among the euro zone’s countries. “It means a change of credit risk perception about Germany, which could be anticipating, as it happened in July and August of…
MADRID | CAPITALMADRID.COM In the years 1992/93 the Spanish authorities struggled for longer than events recommended to keep the exchange rate of the peseta. Something similar might be going now on, but in another dimension, as the government still defends the good health of Spain's financial system. Back then, the stabilisation mechanism in place determined a fixed exchange rate for the peseta, let's say in short, against the German mark….
LONDON | Barclays Capital asked 80 of their fixed income clients about what the European Central Bank should do to calm markets down and deflate the ever more acute euro crisis. Investors from outside the euro zone said the central bank’s best chance would be to return to the markets to buy sovereign debt from Italy and Spain, cut interest rates and inject long-term liquidity into the banking system, but…
Just because most European languages attach a semantic Spartan-like element to the term austerity, it doesn’t follow that austerity must obviously be a more consistent policy than, let’s say, a profligacy programme. Common ancient history aside, the increasing doubts about the German and French economies doing well in spite of the stress the euro zone is going under, tells us that austerity plans currently in place in euro peripheral States were not thoroughly…
It was Germany, with a 0.5 percent growth of GDP in the first quarter of this year, that helped the euro zone avoid enter technical recession territory. GDP remained stable in both the euro are and the EU during January to March of 2012 compared with the previous quarter, according to flash estimates published by Eurostat, the statistical office of the European Union. Compared with the same quarter of the previous…