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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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A Chinese woman

Responding to a slowing Chinese economy

World economy

BERKELEY | May 4, 2015 | By Barry Eichengreen via CaixinChinese policymakers could depreciate the yuan, try monetary expansion or turn to fiscal stimulus. They could also do nothing.

Markets

Does it make sense to keep buying despite negative yields?

The Corner | May 4, 2015 | Markets seem to be suffering from “uncertainty hangover,” as Bankinter analysts put it. They are worried about the short term, after the last US DGP weaker numbers and the decrease of appetite for German bunds. But isn’t that sensible to stop betting on negative yields? In the graph above: Current 10yr government bond yields across the EU. Source: Saint Louis Fed/Seeking Alpha.

 

Negative bond yields
Markets

A potentially volatile May

LONDON | May 4, 2015 | By Antonio Garcia Pascual  at Barclays | Markets were largely directional in Q1 – European and Chinese equities stronger, the euro weaker, and US and European bonds lower. This could change in May, however, as a mix of political risks (ie, UK and Greece) and a possible change in perceptions of the Fed’s reaction function in the context of low market liquidity could bring some volatility. 

volatile may
In Europe

Spanish PMI: Manufacturing new order growth accelerates

The Corner | May 4, 2015 | For the past 17 months, operating in the Spanish manufacturing sector has been easier (more output and new orders were registered), thanks to an increasing client demand, according to the last PMI data released by Markit, although the firm’s indicator posted 54.2 in April, down fractionally from the reading of 54.3 in March. 

Worker in cargo
In Europe

Hooray for the supply side! German labour market and demand

BANGKOK | May 3, 2015 | By Benjamin Cole via Marcus NunesHistorinhasI have complained before in this space about the macroeconomic defeatism seen among both left- and right-wing economists. We are told that due to demographics and lower productivity, future economic growth must be muted. Not so.

German industry
In Europe

The EU must focus on root causes of migration

BERLIN | May 2, 2015 | By R. Kempin and R. Scheler via Fair ObserverThe European Union is planning to act against human traffickers in the Mediterranean. But the plight of refugees can only be relieved when the EU’s foreign policy engagement is strengthened.

Migration in Europe
Markets

India is making China look old

LONDON | May 1, 2015 | By Asoka Wöhrmann, Chief Investment Officer at Deutsche AWM |  The stock markets in India and China both still have potential. But arguments for investing in India are currently more convincing. 

India