MADRID | The Corner | The construction sector in Spain will grow next year by 1% compared to 2014, according to Cesce, a company specialized in credit services and commercial risk management. Thus this growth will change the downward trend that had maintained the sector during the last six years. According to Cesce, the building will boost the sector but the public works and engineering will have to reach the bottom and it will not start to recover until 2016, when it will reach 3% growth YoY.
MADRID | The Corner | Although the eurozone economy in August has become the main focus of investors’ concern, peripheral debt continues to attract them. Yesterday, for the first time in history, the Spanish Treasury 3-months bills traded at negative rates on the secondary market. To date, the Treasury has covered 70% of the expected gross issuance in 2014 of 242,370 million euros, which means a decrease in the average cost of outstanding debt of 14 basis points since December 2013 to stand at 3.59% . However, the Treasury decided yesterday to cancel the auction of bonds and notes scheduled owing to the absence of investors because of the summer season.
BERLIN | By Alberto Lozano | As problem loan formation slows and credit costs ease, Spanish banks should perform better than Italians and Portuguese over the remainder of 2014 and through 2015 according to Moody’s.