market chatter

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Market chatter: Debt, stock and currency markets in full swing

MADRID | By Jaime Santisteban | Spanish Treasury broke a new record on Thursday amid the ECB’s easing hopes. “Spanish bonds reduced spread vs. the equivalent German benchmark almost 20 points in just a couple of days. Stock markets are moving forward without a clear direction, although uncertainty is smaller than in public debt markets” The Corner senior analyst Francisco López explains. 


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Market chatter: Foreign investors courting Spanish real estate firms and much more

MADRID | By Jaime Santisteban | Chinese real estate sector saw its outlook downgraded by Moody’s while Spanish housing sector keeps on moving forward, appealing institutional investors. Blackstone, PSP, Drago Capital, Colonial represent the increasing appetite for properties in Madrid and Barcelona. And don’t miss Fed’s Charles Plosser words: he believes the US central bank is “sitting on a ticking bomb.”


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Market chatter: An agreement to soften stress tests conditions for Spanish banks

MADRID | By Jaime Santisteban | European Banking Association and the Bank of Spain agreed to take into account borrowers’ non-property guarantees to assess the situation of Spanish entities in the upcoming stress tests. Bankinter analysts believe that “such guarantees, which are usually pledging of assets like deposits, shares and/or by consignatures, mean a certainty of collection for banks.” Also,  Amadeus has been one of the most attractive values in the Spanish Ibex 35.

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Today’s market chatter: Bundesbank opening to QE and much more

MADRID | By Jaime Santisteban | After the WSJ reported that a Bundesbank source confirms the entity would support stimulus measures from the ECB in June, analysts breathed and started making their polls. How big will that support be?

Also, Madrid’s financial circles are debating on the decision of the government selling inflation-linked bonds next week for the first time. Inflation being at record low levels, the decision is not obviously opportunistic, experts commented. Spain wants to look for more public funding options, and this issuances that guarantee the purchasing power of  are usually carried out by France, Germany and Italy, as well as the US.

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Today’s market chatter in Spain: Itinere, Abengoa, Inditex, and much more

MADRID | By Jaime Santisteban | Spanish Ibex 35 welcomes the week over 10,500 points. “Ukraine showdown and macro numbers will hatch investors’ attention,” Link experts point out. Bankia analysts “see the positive influence of Chinese government statement about share, bond and raw material markets supporting measures. Markets also await remaining corporate results and European countries inflation.” Last week’s Mr Draghi’s words were crucial to stop euro appreciation- the currency is likely to keep going down.

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Today’s market chatter: Draghi and his playing the waiting game

MADRID | By Jaime Santisteban | ECB’s Mario Draghi’s Thursday speech is still creating buzz in Madrid’s financial circles: markets reacted very positively to the never-ending promise. Also, Bank of Spain’s chairman José María Linde alerted entities to keep strengthening their balance sheets, and explained that NPL rate slowdown will be moderate until recovery settles in.


Tobin tax to have a 10% impact on Spanish equity trading volume (ACF)

MADRID | By Jaime Santisteban | Tobin tax will be in place the beginning of 2016 at the latest despite the UK’s finance industry heavyweight challenge. The Spanish government called it a sensible and cautious measure. Crucial questions such as the level of tax or how to levy are still in the air. 

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Almirall, Campofrío and Sacyr, the most recommended values in the Spanish market

MADRID | By Jaime Santisteban | Almirall, Campofrío and Sacyr are the most recommended values in the Spanish market, according the market consensus. Repsol turned down the offer to renew its two seats in the YPF ‘s board on Tuesday, and fixed its eyes in Norway instead. Also, unemployment in Spain reportedly dropped by 111,565 people in April. “Although this means a turning point in the Spanish economic recovery, the country remains in the deep well,” The Corner senior analyst Fernando G. Urbaneja explains. 

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Today’s market chatter: time to invest in Spanish real estate and much more

MADRID | By Jaime Santisteban | Feel like investing in Spanish real estate?  It’s apparently the time, according to Bankinter analysts, as European prices continue their upwards trend, financing costs are low and we see price recovery signs in big cities like Madrid and Barcelona. They suggest direct investment assets with a horizon beyond 3-5 years. Also, the EU announced on Monday that the Eurozone’s GDP will grow by 1.2% this year and by 1.7% in 2015. As for Spain, Brussels is less optimistic than the Spanish government in its forecast.


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Market chatter: Pharma romance, Apple historic bond sale and much more

MADRID | By Jaime Santisteban |  M&A is getting really hot: Pfizer and AstraZeneca are forging the largest all-time merger in the pharmaceutical sector for $101bn, an operation that is stirring up investors. Apple turned to the bond market to fund its capital repurchase program again (it did the same one year ago). A 17bn blockbuster corporate bond debt sale that could the 2nd largest in History.