It seems like the million-dollar question: what if the ECB stopped sitting on its hands, change its monetary policy and pump some cash into the suffering euro peripheral countries? George Mason University Economics professor Tyler Cowen wonders about the consequences in his blog Marginal Revolution.
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Spanish corporate financing: indebtedness down, diversification up
BARCELONA | By CaixaBank Research | Corporate debt has fallen from the peak of 1,495 billion euros recorded in 2010 (144.4% of GDP) to 1,372 billion in the fourth quarter of 2012 (131.7% of GDP).
David Cameron sits alone in the corner
LONDON | By Dr Simon Usherwood | Cameron needs to be able to show that a British agenda of market-based integration has traction in the EU and that he is ‘winning the argument’. He’s being ‘tough’ policy helps little.
Oklahoma tornado costs: huge and polemic
NEW YORK | By Ana Fuentes | The last huge tornado in Oklahoma could cost as much as 2 billion dollars. The center of the state has been devastated, 24 people dead, around 13,000 homes destroyed, cars and schools totally ruined. The final bill for the State, the regional government and private insurers is going to be one of the highest in US history.
The slow but sure repo market
BARCELONA | CaixaBank Research | The action taken by the ECB has prevented a disaster and is designed to ensure a gentle, gradual normalization. Several signs support this second interpretation. For example, the early repayment of LTRO loans.
Investment in Europe’s periphery becoming sexier
Sure, the eurodrama is a fact. But there is a growing interest about investing in the peripheral Europe. Morgan Stanley has conducted a survey among investment managers and 38% of them expect the CDS of the Spanish sovereign bond to be between 150-200bp over the next 12 months.
Wednesday’s chart: ECB negative interest rates
LONDON/MADRID | ECB negative interest rates might fail to re-activate credit activity because of a too cautious Germany.
Against the Eurocrisis: more monetary ammunition, more reforms
BARCELONA | By Jordi Gual, economist | The euro area’s double dip recession is due to inopportune management of the sovereign debt crisis and slow advances towards European integration.
Spanish banking rescue II
MADRID | By JP Marín Arrese | Rumours openly point to a further rescue package to save the day. It may take months to come but many are taking for granted that a fresh call for help might be launched at the end of the year, once the new German government takes over.
Tax haven crackdown won’t go far
MADRID | By JP Marín Arrese | So long fiscal havens apply close to zero taxation, companies engaged in cross-border business will continue to profit from these favourable arrangements.
