Today Europe’s banks face moment of truth from ECB review (Reuters)
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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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More (yet less paid) employment in Spain

In Europe

MADRID | By Luis Arroyo | Last jobless data in Spain were excellent in terms of unemployment rate reduction, the government pointed out on Thursday. But are they 100% reliable? Total worked hours have fallen and they continue to fall. That is, more Spaniards are working, yet more and worse paid hours. In the graph above: total working hours per week. 

 

In Europe

European Investment Bank will not fund national energy sector updates

BRUSSELS | By Alexandre Mato | The EU hopes to set up a new policy framework targeting the reduction of greenhouse gas emissions by improving renewable energy by 2030. The continent´s energy efficiency would be improved with utilities companies and operators operating under the auspices of the directive. It could be a crucial step, designed to save €100bn annually for consumers –most of them households.

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World economy

Are we talking about deflation?

MADRID | The Corner | Which is the real origin of the deflationist pressure that the global economy is facing? A greater desire of saving money than investing at a global scale, experts at Morgan Stanley point out. The eurozone, Japan and the most stable emerging countries have a greater control over their domestic interest rates, whereas China, whose currency is pegged to the USD, will also import deflation -something Beijing won’t like. 

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World economy

Australia: A “Swedish Governor” at the RBA?

SAO PAULO | By Marcus Nunes via Historinhas | It would be pretty depressing, so late in the game, to see “gold medalist” Australia fall into a Swedish-type trap. I hope Mr Lowe is a lone voice: Australian central bank Deputy Governor Philip Lowe urged vigilance on asset prices inflated by record-low interest rates and said government action is needed to encourage companies to invest.

Australia
World economy

For China’s property market, all is not lost

BEIJING | By Liu Ligang via CaixinPessimistic voices are saying China’s property market is nearing a Japan-style collapse of the late 1980s, but this ignores the fact urbanization will continue to create demand for homes.

File photo of a visitor taking pictures of a model of Beijing's downtowns at the Beijing Planning Exhibition Hall
Markets

ECB’s eventual purchase of corporate bonds: Inflating the bubble?

MADRID | By Julia Pastor | Even though the ECB dismissed the rumours about its intentions of buying corporate bonds, all market players are asking for stronger actions by the central bank. Such measure could become the ace up the ECB’s sleeve for its December meeting. Given the liquidity surplus in the companies’ debt market (due to the “low interest rates, not to cheap credit,” as experts at Renta4 pointed out), including this sort of assets could add to such surplus. 

In Europe

The 1,697 ‘less significant entities’ of the German banking sector

BERLIN | By Alberto Lozano| This November, the European Central Bank will assume its new banking supervisory responsibilities. Firstly, on 26th October the ECB will publish results of comprehensive assessments that will determine the financial health of 120 banks in the Eurozone. These tests cover approximately 85% of total bank assets. But what about the remaining 3,532 small banks of the euro area?

stress tests