The markets are seemingly focusing on next week ECB’s meeting rather than on geopolitical events. Investors expect they will take new measures on expansionary monetary policy. Yesterday, ECB’s vice president Vitor Constancio, insisted again that the central bank will analyse those if needed to reach the inflation target of 2%.Read More
Spanish renewable energy and engineering group Abengoa is close to bankruptcy. The company, which has a debt level of € 6.283 billion, proposed a capital increase of 650 million euros and a financial adjustment. It also tried to negotiate with five banks and Spain’s government for a credit line. Finally, the company agreed to Basque steel maker Gestamp becoming a new shareholder. But this operation has now also failed.
Household debt another reason to prefer SEK shorts In September we argued that the krona should weaken due to strong and persistent disinflationary pressures imported…Read More
The political risk in Spain is a totum revolutum, where even the analysts cannot agree on what factor carries the most weight: either the Catalan secession process, the appearance on the scene of a political force like Podemos or the possibility that the delicate balance acheived through the timid reforms implemented by Rajoy’s government could be destroyed.Read More