Today Greece and its lenders: Where do you start? (Nick Malkoutzis)
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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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Klaus Zimmermann

“Austerity is not a growth strategy, neither is demand stimulus”

In Europe

MADRID | April 19, 2015 | By Ana Fuentes | Germany’s Institute for the Study of Labor Chairman Klaus Zimmermann finds the debate between EU ‘austerians’ and ‘stimulus fans’ too shallow. In his view, spending cuts for their own sake were never the German style. In a conversation with The Corner, he explains that the effects of the minimum wage introduction in his country cannot be measured yet and why he thinks the German corporate governance model helped cushion the crisis’ labor market impact.

World economy

After years of hard assessment, is Spain the IMF’s new favorite?

The Corner | April 18, 2015 | The IMF raised growth expectations for all the major economies in the Eurozone - especially Spain to 2.5% in 2015 and 2% in 2016- and for Japan. The new figures, the sixth improved forecast in a row– are more aligned with Madrid expectations (2%, although the Minister of Economy even forecasts a 3% growth). Low oil prices, the euro depreciation and the ECB’s monthly liquidity shots are the three aces of the Spanish government, who is hoping to retain the power in the next general election despite the popularity of new parties.

World economy

China is fertile ground for internet finance

BEIJING | April 17, 2015 | By Huang Yiping via Caixin |  The recent establishment of private Internet banks has ushered the banking industry into an era where banks need no brick-and-mortar offices. Technologies like big data make this possible, yet there is disagreement over how much potential Internet finance has.

Internet financing in China
Markets

Total Greek banks’ exposure to Greek sovereigns: 3%

The Corner | April 17, 2015 | ECB’s Vice President Vitor Constancio put things into perspective by pointing out that Greek banks’ exposure to Greek sovereign bonds is much smaller than other banking sectors’.

Greek banks
Markets

The European banking sector fight behind DTAs

BRUSSELS | April 17, 2015 | By Alexandre Mato | Spain, Italy, Portugal and Greece are under the European watchdog scrutiny because of the fiscal rules applied to the current Deferred Tax Assets (DTAs) framework. If proven illegal state aids used to bolster capital ratios, banks would suffer a big bite (4-5%) on their capital levels. However, legislators and the Economic Committee Secretary have admitted to The Corner that they doubt the DTAs investigation was launched due to MEP concerns.

Red gloves
Markets

AIIB, China’s renewed (and controversial) influence

BEIJING | April 16, 2015 | By Iris MirKnown as the BRICS bank, the Asian Infrastructure  Investment Bank (AIIB) wants to become an alternative to the IMF and the World Bank.  The initiative led by China adds to Beijing’s ambitious project of recovering the ancient Silk Road. So far, more than 40 countries from the five continents showed their support, proving China’s growing –and controversial– global influence.

 

AIIB
World economy

Japan beats China as main US debt holder

The Corner | April 16, 2015 | For the first time since the beginning of the financial crisis, Japan overtook China as first holder of U.S. treasuries. Low rates and other monetary policy instruments carried out by Japan have prompted local investors to move their money to the US.

 

Japan US