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In Europe 13th March 2014

Spain’s Warning Signs Of Japanisation- Shall We Buckle Up?

MADRID | By Julia Pastor | Amid the debate on the euro zone’s eventual japanisation due to low inflation levels, we wonder if Spain could be the first member state with severe signs of this illness. Inflation is near 0% since six months ago and markets’ expectations suggest an average price index scarcely over 1% for next five years, and under 2% in a decade. Along with Portugal, Spain is the EU economy having more price indicators’ components in red year-on-year rates, namely 40% against 20% of Europe’s average. That means that 2 out of 3 goods in Spaniards’ shopping basket are affected by deflation. Although good for the country’s competitiveness, there is a risk in the process of public as well as private debt deleveraging.

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Markets 7th March 2014

Today’s Talk Of The Market In Spain

MADRID | By Jaime Santisteban | Analysts favor Madrid’s new measure of overhauling loan refinancing rules for struggling companies, which will make it easier for those firms to arrange debt-for-equity swaps with their creditors. Also, the expected ECB’s non-move has been widely commented today, expectations cooled down. AFI experts believe the market is starting to assimilate the ECB will definitely seat on its hands unless unless inflation falls below 0.5% or recovery is threatened. Daimler’s amazing sales in China are also catching market makers’ attention today.

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In Europe 6th March 2014

Today’s Talk Of The Market In Spain

MADRID | By Jaime Santisteban |  Action from the ECB to favor growth and liquidity would be welcomed  in the euro zone, where GDP boosted by 0.2 % in 4Q13 after dropping by -0.3% in the prior term. Meanwhile, Sacyr will contribute €30 more million  in guarantees to wrap up agreement in Panama and airline Iberia gets to balance offer and demand. Finally, Ibex 35 appreciated by 1.96 % in February and by 1.99 % year-to-date, according to our exclusive market consensus Consenso del Mercado.

In Europe 5th March 2014

The Bizarre Twist of Spain’s Unemployment Data

MADRID | By Julia Pastor and Fernando G. Urbaneja | 1,949 unemployed less in Spain in February. Agreed that it is just a drop in the ocean of almost 6 million of jobless Spanish people, but the figure symbolizes an improvement. A tiny one, but positive at last. For the first time in four years, February’s affiliation to social security increased in 40,000 people, which means reaching a yearly positive rate of 0.4%. If we take a look at the number of affiliated, though, it makes a total of 16.12 million in Spain’s labour market, which surprisingly is one of the worst data in all XXI century. 

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Markets 5th March 2014

Today’s Talk Of The Market In Spain

MADRID | By Jaime Santisteban | Market makers are weighing in the new open stage in China after first corporate bonds default since Beijing started this kind of asset trade in the late 90’s. Also, Santander and BBVA saw their debt rating boosted by Moody’s.

Spanish banks

World economy 17th February 2014

Spanish banks poised to face trouble

MADRID | By JP Marin Arrese | Not so long ago, markets gauged solvency problems in Spain to lay in former saving banks as many found themselves in a shambles. Few investors cast doubts on the main credit institutions, staunchly anchored in their extensive non-domestic business. Yet sentiment has markedly shifted as trouble is looming on Latin America. Argentina undoubtedly stands as a weird and quirky case. Still, the peso collapse has sent shivers down the spine.

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In Europe 31st January 2014

When Spain’s banking sector progresses, Europe Moves Forward Too

MADRID | By Julia Pastor | What is good for Spain is good for Europe. Certainly, while recognising that the country “has pulled back from severe problems in some parts of its banking sector, thanks to its reform and policy actions,” the European authorities’ fifth review does not omit the fact that this has been achieved “with the support of the euro area and broader European initiatives.”

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Companies 24th January 2014

Spanish companies exposure to Argentina’s devaluation, near zero

MADRID | By The Corner team | The Argentinian currency’s fall is the biggest in 12 years with a yearly drop of 17%. Although the key for European peripheral countries may be other countries’ contagion like Brazil, Mexico or Venezuela, their exposure to Argentina is moderate. In the case of Portugal it is almost near zero. And what about Spain, specifically?

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In Europe 17th January 2014

Everyone Praises Reforms in Spain But What About Structural Problems?

MADRID | By Jaime Fernández Santisteban | After months at the centre of controversy, Spain is making headlines about recovery and everyone seems to be bullish on the country. Spain is almost back to pre-crisis levels, says IMF’s Lagarde. But is it? What has changed then? Marta Soria and Rebeca Gimeno are a couple of journalist-economists behind Economía en dos tardes, a blog bringing economy and business closer to people. They shared with The Corner TV their outlook for the year that is just beginning.