Today EU tells Britain to pay extra €2.1bn (FT)
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Spanish banks ratings

Spanish banks: The sun is back but not for everyone yet

Markets

ZURICH | By Ignacio Sanz at UBS | GDP expectations continue to improve, NPLs are starting to come down although we do not expect write-backs for any bank, capital looks comfortable ahead of AQR and banks show a healthy funding while underwriting new deposits at c0.5-0.7%. The market knows all that with banks trading north of 1x NAV15e although for retail banks making more than 10% ROE with 0% rates is challenging.

World economy

US companies: When having too much money is a bad sign (II)

WASHINGTON | By Pablo Pardo | Having €2.83 trillion in the bank and not knowing what to do with it is a problem that everybody would love to have. But it is actually a really serious problem for 316.1 million Americans, especially for those whose income increased by 0.43% in 2013. And, by extension, for the other 6.8 bn of human beings in the planet. Behind this problem there is a lack of investment opportunities, without which investment in the US will remain in a state of weakness and heavily dependent on an inability to increase consumption.

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In Europe

More (yet less paid) employment in Spain

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. 

 

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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