Trading places benefit from regulatory reform

EXANE BNP Paribas | While we expect exchanges to benefit from regulatory reform and are sanguine on their long term prospects, we are Neutral on the sector as a whole – in our view, the risks from competition and downside risks to volumes are not fully discount.

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China: An Excess Of Foreign Currency Reserves

China’s problem continues to develop. And it can be resumed in three lines: for many years, the external sector, the exchange rate and its currency reserves have been essential for China. Between 1990-2014 approximately, China enforced a competitive exchange rate policy which allowed it to maintain a very low interest rate differential. As a consequence, its reserves saw a continuous increase.


Government Does Matter

The outcome of the recent general elections in Spain was such a patchwork that the job of forming a cabinet has become a nightmare. The Socialist leader taking on this awesome task finds himself trapped. Both the middle-of-the-road Ciudadanos party and the extremist Podemos movement flatly refuse any joint agreement to secure enough support in Parliament.

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Italian Debt As An Alternative To Spanish Debt?

The current uncertain political panorama in Spain after the December 20 elections has not been reflected in any significant way in sovereign debt spreads. The yield on the 10-year bond compared with the German bund is around 130 bp, no more than 10-15 bp above the pre-elections level. One alternative to reduce (or diversify) exposure to Spain’s public debt may be take positions in Italian debt.

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