Today Check the upcoming ECB’s QE scope and conditions
Eurostoxx50
about the corner

The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

Find out more

team

Iceland and Cyprus are have their hands tied

Cyprus and Iceland: a tale of two capital controls

Markets

LONDON | March 6, 2015 | By Sigrún DavídsdóttirBoth in Cyprus and Iceland foreign funds flowed into the islands, in the end forcing the government to make use of extreme measures when the tide turned. These measures are normally called ‘capital controls’ which in these two cases hides the fact that the measures used are fundamentally different in all but name. In Iceland, the controls contain the effect of lacking foreign currency, effectively a balance of payment problem – in Cyprus, the controls were a way of defending banks against bank run, i.e. preventing depositors to move funds freely.

In Europe

ECB optimism a good omen for traders

The Corner | March 6, 2015 | Markets are likely to be buoyed by the positive assessment of Mario Draghi yesterday, which will probably be backed up by euro zone growth figures for Q4, released later this morning. In other news, Spanish 10-year bonds are up for auction too, while Spain’s industrial sector is expected to return to positive territory

BCE_reflejoTC
In Europe

Memento: How QE will work

The Corner | March 5, 2015 | Whatever it takes, don’t miss the mechanics of the European Central Bank’s next purchase programme starting on Monday. 

ECB's QE country breakdown
In Europe

OECD: “There are risks of persistent stagnation over the Eurozone”

BRUSSELS | March 5, 2015 | By Alexandre MatoWhen presenting its annual report, ‘Going for growth’ in Brussels, the Paris-based institution raised some doubts about the ongoing recovery in Europe. Structural, long-term unemployment and low productivity in some Member States are becoming the main economic issues of concern, with neither investment nor fiscal adjustments seen as the antidote.

Juncker and Rajoy
In Europe

Greece: The gathering storm

ATHENS | By Nick Malkoutzis via MacroPolisAs the dust settles from Greece’s negotiations with its lenders and the arduous work of implementing their agreement begins, it is becoming increasingly evident that the next four months will be an extremely testing experience for everyone concerned.

Greece's PM Alexis Tsipras
In Europe

ECB to detail QE plans

The Corner | March 5, 2015 | Markets are again looking to the ECB for a gauge as to where the continent is headed, with Mario Draghi expected to announce more detailed descriptions of the bank’s QE plan. Elsewhere, data from Germany, Italy and Greece are likely to highlight the divergent fortunes of countries within the single currency area.

CRISI: FT: DRAGHI PERSONA DELL'ANNO, HA SALVATO L'EURO
Companies

Why Bankia’s dividend matters

MADRID | March 4, 2015 | By Fernando G. UrbanejaNo financial entity which enters a crisis and needs an external rescue retains its identity. Usually it just becomes integrated into another financial group which allows for a change of brand. Bankia may be the first exception to the long list of Spanish financial crises of the last half century. 

Bankia