Today European Regulators Pressure Big Banks to Increase Capital (WSJ)
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United Kingdom, Santander’s main source of profits


MADRID | By Fernando G. Urbaneja | United Kingdom has displaced Brazil, which displaced before Spain as first market by benefit contribution to Banco Santander. Of the 2,750 million € earned in the first six months (+22% over the first half of 2013), 20% comes from the British market. Brazil contributes the 19% of benefits and Spain recovers share until reaching the 13%. And then there are United States (9%), Mexico (8%), Chile (7%), Poland (6%), Germany (5%), Portugal (2%) and other countries from Europe and Latin America (11%).       



The decline of nearly 40% of BES shares hampers the European financial sector

MADRID | The Corner | The Western stock indexes closed yesterday with prominent drops, reaction for which there was not a single trigger, but the sum of the various concerns that have been accumulating in recent days. The negative tone was maintained throughout the day, closing both European and U.S. stock markets near daily lows. It is important to emphasize the volatility increases, measured by the VIX index, which has reached its highest level of the last three months.


Morning coffee: Argentina, BES and other summer intrigues

MADRID | The Corner | Juicy day for European markets, peripheral and emerging countries, after Portuguese BES announced €3.6 billion losses in 1S14, which reduce its CT1 to 5%, below the 7% asked in Portugal. Besides, we’ll be very attentive to how Argentina’s so-called “second default in 12 years” (we are working on an analysis explaining why the real problem lies on the US judge’s sentence) unfolds –late on Thursday S&P rated the country as selective default after it didn’t come to an agreement with a group of its bond-holders. Stay tuned!

Greece european commission
In Europe

Greece: Coalition reaches compromise on candidate for European Commission

ATHENS | Via Macropolis | Greece has decided to nominate current Defense Minister Dimitris Avramopoulos as its representative for the new European Commission after he proved to be the most appropriate compromise candidate. Avramopoulos’s nomination was confirmed on Sunday after Prime Minister Antonis Samaras spoke to one of the frontrunners for the job, ex-Foreign Minister Dora Bakoyannis to inform her that she would not get the nod.

World economy

Find the inequality debate boring? Then check the numbers again

MADRID | The Corner | One of 2014 most commented/loved/bashed books has been Thomas Piketty’s “Capital in the Twenty-First Century”, which put such an old concept as inequality back on the table. The truth is, as inequality is reducing on a global scale, it is increasing within many economies, including emerging countries like China and India. Increasing access to education and electricity in poor countries and areas pays out, as the World Bank is underlining in a campaign (check the video above).