The president of the ECB’s Supervisory Board, Daniele Nouy, recently again expressed concerns about the profitability challenge faced by the European banks, suggesting mergers as a solution. This consolidation process is also on the cards in India.Read More
Francisco López | BBVA chairman, Francisco Gonzalez, is the one who usually speaks out about the banking sector’s problems, without worrying too much about the criticisms he may receive. González was the one who most actively spoke out in international fora (in particular at the Institute of International Finance (IIF)’s spring meeting) about the bad situation of some of the savings banks, although by doing that he damaged the image of the whole Spanish banking sector.
The European Commission did not want to meddle with Spain’s general elections on June 26th and has postponed until July its decision regarding a sanction for the country’s non-compliance with its deficit target. But none of the European community experts have ventured to confirm that this sanction will finally be imposed.
UBS | Improved EM asset performance this year has been driven by a) the tremendous credit stimulus from China, b) a change in the reaction function of the Fed, which helped EM currencies rally against the USD, and, c) the rebalancing in the oil market. Investors are already questioning the first two, but oil has continued to trade very well.Read More
Zhu Haibin via Caixin | A recent government plan to invest 4.7 trillion yuan in over 300 infrastructure projects from 2016 to 2018 received wide attention and raised questions about whether this was another massive stimulus similar to the one rolled out in 2008 in the aftermath of the global financial crisis.Read More