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

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UBS: Fed realizes a reverse repo program isn’t the answer

World economy

MADRID | The Corner | The continuous U.S. labor market upturn (on average 213K jobs/month were created so far this year) paves the way for the consumption and investment growth. The economy strength and the employment trend enabled the Fed to continue to reduce the QE program even after the weak beginning of the year. But apparently the Fed itself is still far from consensus.

Markets

RMB as reserve: Rebalancing the global financial system

By Peter Wong via Caixin | It is unlikely that the RMB or yuan, China’s “people’s currency,” will replace the dollar outright as the world’s only investment and reserve currency any time in the foreseeable future. But there is every indication that the dollar will have to make room for a second global reserve currency within the next 15 years. A revolution allowing investors to diversify risk – and creating a system with more choice and better ability to resist shocks – should be welcomed.

yuan-dollar-paperplane
World economy

War lessons

MADRID | By Álex García.

Alex War
In Europe

PMIs in the EZ: Business activity close to 3-year highs

MADRID | The Corner | Thursday’s Eurozone PMI data for July provide welcome relief after a series of weak short- term indicators, particularly for May, UBS analysts point out. While the PMIs for France remained soft, those for Germany and the broader Eurozone were much stronger again, signalling business activity close to three-year highs, particularly in services.  

PMIs
World economy

Risk: Geography trumps Economy

WASHINGTON | By Pablo Pardo | Geopolitics have returned with a vengeance in Europe right when Barack Obama’s economist view of international relations seemed to be on track with the negotiations for the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Trade and Investment Partnership (TTIP). The IMF warns that geopolitical risk is back on stage.

russia sanctions
In Europe

Spanish debt and stock market reap benefits from recovery

MADRID | By Francisco López | It’s fiesta time: The Spanish stock exchange has been the EZ’s most profitable so far this year, and also the one that might be revaluated even more, according the analysts. This is just the consequence of the good momentum that Spain’s economy is living as well as the positive expectations for the next quarters. Also, companies listed on the Ibex 35 performed better than expected. International investors know there’s no risk of a euro breakdown within a context with low interest rates for a long period of time.

spanish stock exchange
World economy

How the hammer falls as China nails corruption

BEIJING |By Gao Yu and Wang Heyan via Caixin | Curiosity is one reason the website of the Central Discipline Inspection Commission (CDIC) attracts up to 2 million page views every day. Another reason is fear. Some website visitors, for example, want to know whether they or anyone they know has been targeted by a government campaign to root out corruption led by the CDIC Inspection Team.

China corruption