Today Swiss Central Bank to Introduce Negative Interest Rates
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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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All posts by Ana Fuentes

labour markets

No jobs, no growth: Why the ECB’s last bulletin points to eurozone labour markets

In Europe

MADRID | The Corner | Although employment is not in the central bank’s mandate, the European Central Bank’s October monthly bulletin focuses on the impact of the economic crisis on euro area labour markets. “Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic activity. However, in order to strengthen investment activity, job creation and potential growth, other policy areas need to contribute decisively.”

euro dollar
In Europe

IN DEPTH: Is low inflation the greatest problem for the European economy?

MADRID | By J. L. Martínez Campuzano (Citi) | I beg your pardon, I meant to say “persistently low” inflation. If it is not (and here we are in agreement), then why is the ECB repeating the same argument over and over to justify its decisions? Non-existent official rates, negative deposit rates, unlimited liquidity provision for banks, and the latest invention: the purchase of securitised corporate paper for credit operations. 

An employee counts Chinese 100 yuan banknotes at a branch of Bank of Communications in Shenyang
World economy

China under the markets’ spotlight: What is really going on?

MADRID | By Ana Fuentes |  Protests in Honk Kong have served to put even more pressure on Beijing’s economy, which is already struggling to maintain growth, boost household consumption and ease credit lending. The last monetary easing by the country’s central bank and the rumours that its governor could be replaced for being too reform-minded has seen certain questions arise. Are they pertinent or just distorting noise?

euros depreciation
Markets

Euro’s depreciation gives Draghi a respite

MADRID | By Francisco López | The ECB’s measures since June have been oriented to fight the ghost of deflation, increasing the Eurozone’s economic activity and, in an indirect manner, managing the euro’s depreciation. For the moment Mr Draghi has failed in the first two goals, although he has succeeded in the third one. The euro is plummeting –which is good news.

Companies

Isidoro Álvarez, chairman of Spanish leading retail giant, El Corte Inglés dies

MADRID | The Corner | The head of the retail company, Isidoro Álvarez, died on Sunday at 79 years old. Álvarez managed the Spanish giant since the the death of the firm’s founder, Ramón Areces, in 1989. He began working at El Corte Inglés at the age of 18, while studying Economics and Business Sciences at the Complutense University in Madrid, and at 24 he was already appointed a Member of the Board of Directors. The executive made El Corte Inglés the leading company and the reference within the retail sector. His death happens just few days after another’s national corporate heavyweight, Emilio Botín, Santander’s chairman.

sterling-bounces
In Europe

Scotland’s starting debt

LONDON | By UBS Global Research | While there has been considerable attention paid to the impact of an independent Scotland on British government debt ratios, the debate about independence has paid very little attention to Scotland’s starting debt. If an independent Scotland were to take a per capita share of gross debt, it would have a debt burden of around 88% of GDP (after the migration of part of Scotland’s financial sector). Scotland’s initial deficit and the set-up costs for the new state would need to be added to this number.

forex-france_640x260
In Europe

France: two more years to get to the 3% deficit objective

LONDON | By JP Morgan analysts | The French Finance Minister, Michel Sapin, announced this week that the deficit objective of 3.8% of GDP for 2014 would not be reached. This news was not surprising as the Ministry of Finance hinted this summer that the general government deficit would likely to be above 4% this year. But in his last speech, Sapin suggested that the magnitude of the revision would be large, as the government now expects a deficit of 4.4% for 2014. This represents a 0.1% worsening of the deficit with respect to 2013.