Today China’s GDP Growth Bolsters Case for Stimulus Restraint (Bloomberg)
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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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Monetary policy: Does Israel want to become Sweden?

World economy

SAO PAULO | By Marcus Nunes via HistorinhasIt may sound strange, but that´s what comes to mind when central bankers start playing “alternative roles”. In the case of Sweden things started unraveling when the Riksbank decided to “prick” a housing “bubble”.

In Europe

Déjà vu: More German investment, but France can’t cheat with reforms

BERLIN | By Alberto Lozano | The debate continues. Paris demands more flexibility, more time and investments in Germany. Berlin says investment will be strengthened, but France cannot cheat and must start with the reforms.

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Markets

Waiting for stress tests…

MADRID | By Álex García.

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Markets

There, but for the grace of ECB, go spreads

LONDON | By Soren Willemann at Barclays | Credit spreads (here, iTraxx Main) have a strong relationship to the ZEW survey of eurozone expectations for economic growth (Figure 1) over long time horizons. In the past months, however, this relationship has shown a significant disconnect: the ZEW survey reveals a material worsening of sentiment, whereas credit spreads have been largely unchanged.

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In Europe

Greek banks may soon breathe sigh of relief on capital needs

ATHENS | By Manos Giakoumis via MacroPolis | Greek banks are always at the forefront of domestic market developments. Despite the strong rebound of 6.4 percent on Friday, their shares still recorded cumulative losses of 7.8 percent last week and 23.9 percent over the past three months. Concerns about the outcome of the upcoming comprehensive assessment European Central Bank are one of the key factors weighing on investors’ minds. 

Athen - Der Tag danach
World economy

Germany officially leaves the growth track… More chances for Asia?

BEIJING | By Peter Lundgreen via Caixin | There are a host of reasons to doubt Europe’s growth prospects for this year and next, so investors would be wise to look for opportunities in Asia.

Companies

US corporate results boosted by “ultra-low” interest rates

MADRID | The Corner | US corporate results from the third quarter might be around +4%/5% (earnings per share), but it is highly probable that European results will be weak. Also, there should not be great expectations on central banks to save the situation this time, except, possibly, a more “dovish” refocusing by the American Fed (the US central bank delayed an interest rate increase or even tapering, which would give support to markets).