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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

GBS: “The restructuring of Colonial shows a changing trend in the Spanish property sector”


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.

Michael Pettis
In Europe

“Spain has been trying to be a good citizen by keeping the German bankers happy”

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.

In Europe

EP2014: Abstention and skeptics posed to win

MADRID | The Corner | It’s not just another campaign carried out from and for the states or Brussels, but the first time the long-aspired EU political union will be really tested. The EP2014, world’s second biggest polls (India comes first) with +400 potential voters are taking place after the implementation for the first time of the Lisbon Treaty prerogatives. The effects of austerity measures and budget cuts are expected to have a great impact, and abstention may be the main winner, especially among the youngest, disappointed generation. Stay tuned!


Market chatter: Debt, stock and currency markets in full swing

MADRID | By Jaime Santisteban | Spanish Treasury broke a new record on Thursday amid the ECB’s easing hopes. “Spanish bonds reduced spread vs. the equivalent German benchmark almost 20 points in just a couple of days. Stock markets are moving forward without a clear direction, although uncertainty is smaller than in public debt markets” The Corner senior analyst Francisco López explains. 



Market chatter: Foreign investors courting Spanish real estate firms and much more

MADRID | By Jaime Santisteban | Chinese real estate sector saw its outlook downgraded by Moody’s while Spanish housing sector keeps on moving forward, appealing institutional investors. Blackstone, PSP, Drago Capital, Colonial represent the increasing appetite for properties in Madrid and Barcelona. And don’t miss Fed’s Charles Plosser words: he believes the US central bank is “sitting on a ticking bomb.”



ATL: “Peripheral stocks have been investors’ wisest choice this year”

MADRID | By Jaime Santisteban | Investors looking for a safe heaven who bet on peripheral debt and stocks have seen their profits jump. “Holding Greek 10-year bonds has brought 20% profitability in just 4 months. Portuguese debt is also to highlight. Spanish 10-year bonds (over 6% profitability) are trading at a higher yield than the stock market index,” ATL Capital Strategy Director Marta Díaz-Bajo explains for The Corner.


Did Deutsche Bank plan to go viral right before its capital increase?

MADRID | By Ana Fuentes | If you haven’t watched it, here’s Deutsche Bank’s co-head of corporate banking and securities Colin Fan scolding City traders and trying to convince the world that they’ve done some ménage after the crisis. Remember that the lender paid a €725m penalty to the EU in the Libor scandal; the biggest single fine in a total of €1.7bn charged to six banks.“Being boastful, indiscreet or vulgar is not okay. It will have serious consequences for your career,” Mr Fan warned its staff. Instead of an email, the bank chose the formula of an “internal” video… which went viral just before the German lender started making headlines for its plans of selling €8bn worth of new shares. A plan that is supposed to catapult Deutsche out of the ranks of the worst capitalized banks in Europe -from 9.5 per cent to 11.8 per cent.