A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. Europe needs a new …Napoleon Here they come, the peripherals rebel! If you are looking for EU imbalances, try the [...]
In Greek deal, commissioner Rehn praises investors but some feel scolded
LONDON | UPDATE | Unanimously. The International Swaps & Derivatives Association resolved Friday evening the last unknown about Greece’s restructuring debt process. The Greek government used collective action clauses to drag a small group of investors into accepting losses under the nation’s laws. The association ruled that this could be considered as a credit event that triggers [...]
Nordkapp’s Pablo Díez: “devaluation would be swift, austerity is slow and painful”
By Julia Pastor and Tania Suarez, in Madrid | Pablo Díez, at Nordkapp’s asset management department argues that implementation of austerity as the only measure to sort the crisis out will bring social chaos in Europe. Yet, Díez is unsure about how right Spain’s president Mariano Rajoy is in rejecting the deficit target of 4.4% [...]
Lose any hope of escaping a stern haircut on Greek debt holdings
By Juan Pedro Marín Arrese, in Madrid | Those hedge funds resisting debt restructuring shouldn’t nurture any hope to save their money. The titles they hold might be governed by international law. But should Greece turn off the tap, counting on CDS to fill the gap might prove a delusion. Credit default guarantors have already [...]
Listen, Bundesbank: it is not our imbalance, it’s the German surplus
By Luis Arroyo, in Madrid | The Bundesbank has protested for the bulk of credit on the other central banks of the euro zone. The amount credited is €500 billion. The German Central Bank now worries about the risk of default, and suggests that these assets must be collateralised by real assets from the countries that have [...]
What they said when president Rajoy bent the deficit target bar
LONDON | Odd. After months of mild fireworks of demonstrations against austerity throughout Spain, it seems hard to believe that Ambrose Evans-Pritchard, international economics editor at The Daily Telegraph, would be struck. Even president Mariano Rajoy acknowledged that his reform plans for the labour market would probably spark a general strike. But Evans-Pritchard was struck, nevertheless: “In the twenty years [...]
AXA Real Estate: growth across EU due to bank deleveraging, market mispricing
LONDON | AXA Real Estate confirmed Monday that transaction volumes across the full risk spectrum of opportunistic to core have substantially increased in Europe. The real estate portfolio and asset fund was during 2011 a net buyer on behalf of its clients, with acquisitions totalling €2.6 billion, which included €900 million of committed development expenditure, compared to sales amounting to [...]
Spain is right to abandon a suicidal 4.4% deficit target
By Juan Pedro Marín Arrese, in Madrid | Mervyn King sharply pointed out that banks are global in life but turn national in dying. The opposite can be applied to deficit targets. When you enjoy a comfortable budgetary position, you are able to fix them at your own wish. Brussels may get the sulks if you [...]
Weekend link fest
A curated selection of links we hope can enlighten us all; some come from our corner, some do from other corners of the net. And as always, our comment widgets are anxious to get your suggestions. Spain needs margin to meet deficit and no, it’s not a question Don’t force euro zone to meet deficit targets, [...]
“Austerity can ruin the euro zone,” says Unipapel’s Millán Álvarez-Miranda
By Fernando Barciela, in Madrid | Unipapel’s managing director Millán Álvarez-Miranda warns the European economy is deteriorating as a whole, from Dublin to Paris and Athens, not just in the periphery of the euro area. Are you concerned about the markets? Of course. You don’t want your company to be undervalued on the markets. In our case, we must [...]
