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Corporation tax: Irish soften stance amidst growing international pressure

In Europe

MADRID | By Sean Duffy | The OECD´s announcement this week that it was initiating a plan to combat tax avoidance schemes from multinationals has been met with almost universal approval across Europe. Ireland in particular has been the subject of criticism from its EU partners. Until recently, the country had determinedly defended its tax policy, famously refusing to negotiate on the issue when the country was in need of an EU bailout back in 2009.

In Europe

Salmond wins the day

MADRID | By J.P. Marín Arrese | Bets heavily lean on the No campaign snatching victory tomorrow from the jaws of defeat in the Scottish referendum. Trust professional gamblers for picking out the winning horse. The prospects of a yes vote on independence have suddenly started to look dim. 

Alex Salmond Retains His Post As First Minister And Creates Scotland's First Majority Government
Markets

Morning coffee: Scotland polls and TLTRO

MADRID | The Corner | FOMC’s conclusions (the Fed is renewing its pledge on low rates) meaning little changes to the current rates scenario, the spotlight has shifted to the Scottish independence referendum (final results to be released around 5:30-6:30 GMT on Friday), which is presumably going to have an impact on European financial markets today. Also the ECB is publishing the results of its much-awaited first TLTRO operation today. It’s the most important cheap cash offer from the central lender since the beginning of the economic crisis which has been very popular in Spain and Italy. Spanish banks will aim for €30bn, Economy Minister said on Wednesday.

World economy

Barking at Russia is Easy, Biting is Not

By Nishtha Chugh via The Fair Observer | Bungling with Russia over Crimea will send the West knocked out with a bloody nose. One way or another, it was a crisis a long time coming. Europe has arguably sleepwalked into a reluctant confrontation with Russia. The continent’s next-door behemoth of a neighbor, saddled by a man it secretly detests the most, is also its largest energy supplier, irascible trading partner and purveyor of most maladies diplomatic.

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Markets

Is state backing mezzanine ABS worth it?

MADRID | By Julia Pastor | ECB’s upcoming ABS drive with senior, higher credit quality assets will be launched with or without guarantees from the states, that is for sure. The question is if countries will guarantee riskier tranches, the so-called mezzanine ABS. Spain is willing to do so if others go for it, yet Germany, France and the Netherlands are refusing. This makes sense since a state back up would mean to put assets with uneven exposure to bankruptcy on the same level. An eventual agreement would be a very difficult political decision. Details of the ABS plan will be announced after the central lender’s next monetary policy meeting on Oct. 2.

Companies

Spanish Zara owner Inditex’s sells more, yet earns less

MADRID | The Corner | The world’s largest clothing retailer Inditex posted a net benefit of €928 million in the first fiscal semester (February 1 to July 31), 2.4% less than a year before due a strong euro, new store openings and renovation costs. And yet, it managed to incresase sales at its more than 6,400 stores rose 5.6 percent to €8.1 billion. The firm, which has outperformed many of its rivals during the economic crisis, will share a dividend of €0.242 euros on Nov 3. 

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Markets

Morning coffee: Fed decisions, UK jobs report and much more

MADRID | The Corner | What you need to be watching today: FOMC’s decisions, UK’s unemployment rate data, Eurozone and US CPIs. Also, ECB’s Mersch will speak in Hamburg.  European equity-index futures climbed buoyed by the important confirmation (269 votes in favour/ 244 against) of French PM Manuel Valls at the Parliament (Aa1 n, AA, and AA + e), only one month after he submitted the 2015 budget for the country and despite various rumours about a possible downgrade to Aa1 n by Moody’s this Friday.

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