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Paris talks mark start of Greece’s most crucial troika review

In Europe

ATHENS | via MacroPolis The first round of the new review of Greece’s Economic Adjustment Program (EAP) is kicking off in Paris today and will last until September 4. The IMF spokesman has recently clarified that the aim of these meetings is to “discuss the way forward on the forthcoming review and is expected to be followed by the full mission to Athens in late September” for the full review. 

World economy

In depth: Equatorial Guinea on the brink

By Donato Ndongo-Bidyogo | On 24 July, thousands of students took for several hours the precincts of the National University of Equatorial Guinea (UNGE) and made it to the streets of Malabo. An unusual fact, they were demanding the payment of their grants. Although the Army and police forcefully repressed the demonstrations, the government reaction was far from the bloodbath occurred in December 1992, when more than a hundred of students, teachers, opponents and priests were tortured in police stations. Now President Teodoro Obiang hurried to meet the demands of students and national oil company’s GEPETROL workers, who were missing several months’  wages.

Equatorial Guinea UN Prize
Companies

Spanish bank Santander to issue 2.5bn euros in CoCo bonds

MADRID | The Corner | Spanish biggest bank Santander announced a bond issue contingent convertible (Coco) by an amount of €2.5 billion, which will be directed exclusively to qualified investors. Another Spanish company seeking financing in the capital markets is construction firm ACS, issuing of €500 million debt, which that was forced to suspend it some weeks ago due to the Portuguese bank Espirito Santo scandal.

Markets

Do equities and bonds live on different planets?

MADRID | The Corner | While bonds are considering a world without growth nor inflation, equities seem much more optimistic. On their Monday comment, JPMorgan analysts point out that, on a global level, monetary policies are still increasingly more expansionary in aggregate form.

 

bonds and equities
In Europe

This is how some get back to work in Spain

MADRID | By Álex García.

viñeta semanal
World economy

Deng Xiaoping: A great legacy posing a great dilemma for China

BEIJING | By Iris Mir | Three decades after admired reformist leader Deng Xiaoping launched his experimental plan of economic reforms, the new Chinese president Xi Jinping is nowadays facing the exact same challenges (and pressures) than his revered comrade. Moreover, Mr Xi’s political survival depends on his ability to earn the trust of the masses and offer them real options for progress. He will have to find a way to do so without tamping the privileges of all those wealthy entrepreneurs who benefited from Mr Deng’s capitalist reforms.

 

chinese consumer
In Europe

GLAC, a term you’ll need to become familiar with after the summer

MADRID | By Raimundo Poveda | Those who are interested in banking policy are doomed to learn some new term day in, day out. GLAC (i.e. “gone-concern loss-absorbing capacity”) is the capacity to absorb the losses of an unfeasible bank. Let us recall that the banking regulation declares a bank “unfeasible” not when it collapses but when it fails to comply with the minimum capital requirements –even if its financial assets are positive.

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