Today ECB: in a perpetual state of readiness…
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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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US growth

Accounting: US growth will (finally) pick up!

World economy

SAO PAULO | By Marcus Nunes via Historinhas Why? According to the “accountants”: “It’s no secret that spending cuts (and tax hikes) have retarded America’s growth for the past four years. But data from the Bureau of Economic Analysis suggests that the era of austerity may finally have ended.” See the  “flagship chart” above.

World economy

Keynes is winning

MADRID | By Luis Arroyo | Austerians are fighting back, but retreating. At least in what concerns the best Keynes, the financial Keynes, I guess. Three years ago the OECD was calling for a general rates hike. Now, under another leadership, the Paris-based institution is asking for fiscal and monetary stimulus, mostly in Europe.

arm wrestling
Markets

Markets may thrive in bad EZ inflation data

MADRID | The Corner | Trading trends in the Euro today are expected to be determined by the Euro-zone’s crucial CPI data. As happened yesterday with Spanish and German data, consumer prices are expected to do down in November, due to an energy prices drop. Will the European Central Bank feel any pressure to act? Then bad news could turn a blessing for financial markets.

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In Europe

Waiting for Godot in Greece

ATHENS | By Jens Bastian via MacroPolisAccording to its Wikipedia article, Waiting for Godot by Irish writer Samuel Beckett is an absurdist play, in which two characters, Vladimir and Estragon, wait endlessly and in vain for the arrival of someone named Godot. The current situation in Athens has remarkable similarities with this classic piece of European literature. 

greece
In Europe

ECB: two quotes, one graph

MADRID | The Corner | Mario Draghi: “Some form of cross-country risk-sharing is essential to help reduce adjustment costs for those countries and prevent recessions from leaving deep and permanent scars.”/ Jens Weidmann:Fiscal policy should support the central bank with solid state finances, so that monetary policy can concentrate on its actual mandate, and sustainably secure the value of money.”

inflation in the eurozone
In Europe

Italian economy: hope behind the drama

MADRID | The Corner | A few weeks ago, Italy’s PM aide said the country had an “atomic bomb” to revive the economy, meaning a massive tax cut primarily on low to middle range wages that would help to boost domestic demand. Indeed, Rome has seen better days: GDP is expected to shrink 0.4% this year, according to the latest European Commission forecasts, far from the 0.8% growth predicted by Rome just after Mr Renzi took office in February. Its industrial sector, a traditional backbone of the Italian economy, registered a 25pp output gap to the eurozone industry since 1999. Yet the current combination of loose monetary policy, lesser fiscal drag or even outright fiscal stimulus, improving credit conditions and a weaker exchange rate leave the country far from being the sick man of Europe, as some have said.

 

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World economy

All eyes on OPEC

MADRID | The Corner | Oil prices continue to fall ahead of the much-awaited OPEC meeting today, which will start at 9:00GMT –a press conference will be held at 15:00GMT. Brent crude and WTI both fell to four-year lows on concerns that oil producers will not make the large supply cuts needed to contain the slide. Analysts at Barclays believe that with an absence of basing signals for WTI crude, the risk remains lower towards 70.76. Will the oil cartel react?

OPEC