MADRID | By Francisco López | It is not the first time economists, analysts and authorities recently talk about a possible bubble in the debt markets. But the latest, strong drops in peripheral bonds, in all-time minimums, have prompted alarms: there is too much euphoria and fixed-income market’s last moves doesn’t make sense.
MADRID | The Corner | Despite the good performance of Western equities, many values are beginning to show signs of vertigo that could lead them to correct some of the gains of the past weeks in the coming days. In addition, the fact that trading volumes are shrinking as indexes advance is a clear sign that there are investors who feel dizzy levels. Therefore, Link experts point out, we shouldn’t rule out some small reductions in the short term even if it’s in an upward trend context.
MADRID | The Corner | Assessing Spain’s economic decisions in the years of crisis led Deutsche Bank’s analysts to fix the main five lessons their European counterparts should learn from the country’s experience. One of Madrid’s clearest success was to firstly manage the private sector adjustment then implement fiscal consolidation. All this would not have been possible without the “crucial”, though sometimes “subtle” support from the EU.
MADRID | By Julia Pastor | What can small countries’ firms do in the world biggest democracy, built on 28 nations more than regions? Some Spanish companies in India have been able to manage big four toll roads (Isolux), control 80% of its airspace safety (Indra), excel in the olive oil market (Borges), or even list in the Bombay’s stock exchange (CIE Automotive). After the historical victory of Narendra Modi their prospects are even better, considering that India’s middle-upper class ranges between 50 and 300 million people.
MADRID | By Ana Fuentes | As the Spanish property sector becomes fashionable again, we set our eyes in one of the most-commented moves these days: listed developer and owner Colonial’s €1.26m capital increase and €1bn debt restructuring. President of GBS Finanzas Pedro Gómez de Baeza managed to form a complex puzzle including the entrance of billionaire industrialist Juan Miguel Villar Mir with a 24.4% stake. Mr Gómez de Baeza joins us to talk about an “extremely challenging” operation that began in 2008 and only bore fruit at the third attempt, but also shows a changing trend.
MADRID | By Luis Arroyo | Spanish 1Q GDP was released on Friday. Data were shameful and let me explain you why: in order to reduce the public deficit, the government transfered 2013 4Q public spending to 2014 1Q. So these last numbers are those they had tried to hide under the carpet. In the graph above, the blue and line represent private and public consumption, respectively.
MADRID | By Ana Fuentes | Well-known U.S. economic theorist and financial strategist Michael Pettis believes the European project has a blatant, simple economic problem: Germany benefits from a weak euro while Spain suffers from a strong currency. As for the IMF’s recommendation of cutting wages in countries like Spain, Mr Pettis thinks it’s an absurd tip that can only make the global demand imbalance worse. He answered our questions via email from Beijing, where he is currently based.
MADRID | By J.P. Marín Arrese | The Spanish centre-right leading candidate for the European Parliament has been the center of a sexist row for the last week. And his biggest mistake might be that he only acknowledged the devastating blunder his last remark meant (he said he was worried about ‘cornering a defenseless woman’ in the debate against his socialist rival Elena Valenciano) when socialist MEPs denounced his attitude as utterly inappropriate. His apologies come too late. Mr Arias Cañete is bound to suffer widespread criticism during the hearing process for appointing the next Commission.
MADRID | By Julia Pastor | Medium sized Spanish entity Liberbank, born from four vanished savings banks hit by the crisis, reflected on Tuesday the renowed interest of foreign investors in Spain’s banking sector. The lender was able to turn its 2012’s losses of €1.8 bn into profits of 48 million in 2013.
MADRID | By Julia Pastor | Germany and Spain are leading the Euro zone’s economic recovery from the EZ’s North and South, respectively. 1Q14 data point out the German economy grew by 0.8% and Spanish by 0.4%, while France’s GDP was flat and Italy, Portugal and the Netherlands went back to recession. Merkel’s following the EC recipes to increase wages and Rajoy’s reforms -despite a big, painful impact on the Spanish population- seem to have bear fruit.