It has taken a long time. We have all suffered together but
is already here. The message I have dreamed of sending, and that
we have been meticulously building over the last two or three
years. Enjoy it!
Eurozone economy exits record-long recession with
GDP rising 0.3% q/q in Q2, slightly ahead of consensus
expectations for a 0.2% increase.
Germany economy expanded 0.7%,
beating expectations for a 0.6% increase.
The French economy grew 0.5% after two straight
quarters of contraction,
ahead of consensus expectations for a 0.2% increase.
Fund managers more upbeat on Europe
: The FT noted that investor confidence in
Europe has surged this month to the
highest level in nine years, highlighting
the shift in sentiment away from emerging markets and
towards developed economies.
BofA Merrill Lynch paper said that 88% of European fund
managers expect the Eurozone economy strengthen in the year
ahead, twice the level seen in July and the highest since
US money-market funds starting to lend to Eurozone
: Growing confidence in a European recovery, US
money-market funds are starting to lend to Eurozone banks
again. Citing data from JPMorgan, lending to Eurozone banks
has grown 9% since the start of the year, while lending
to US banks has fallen by 13% over the same period.
According to Fitch, the 10 biggest US money-market funds
allocated ~15% of their $652B in assets to short-term
deposits and debt securities with Eurozone banks in the
first half of the year, nearly double the level in June
2012. However, the money-market funds continue to
largely avoid banks on the crisis-hit periphery. European
banks are trying to dampen their reliance on short-term
funding from US money-market funds.
BlackRock has resumed purchases of Italian debt
: Rick Rieder, Chief Investment Officer of Fixed Income
at BlackRock, told Repubblica on Wednesday that the world's
largest money manager has started buying Italian bonds
again. He said that BlackRock believes that Italy can
resume growing, adding that it is a rich country with
good export capacity. He also said that it will benefit
from the ECB's support.
Spanish banks continue to reduce dependence on ECB:
Bank of Spain noted that Spanish banks borrowed
€251.9B from the ECB in July, down from €253.1B in June.
July marked the 11th consecutive month of decline.
Borrowing from the ECB reached a record high of €411B in
August of 2012.
Merkel pushes back against tax increases, says she
will not resign early
: Merkel described tax increases as "poison".
She also offered her most explicit denial of reports
that she plans to step down during a prospective third
term. Recall that a 7-Aug report in Stern magazine said
that she planned to leave office in 2016 if re-elected.
Merkel declined to rule out a coalition with the
opposition SPD, though she said that such an alliance is
not the goal of her CDU/CSU bloc.
Merkel says Greece needs more time
: Chancellor Angela Merkel told German voters that
Greece needs a little more time to achieve its bailout
targets. Merkel rebuffed questions about a possible
new bailout for Greece and instead noted positive
signs that the Eurozone economy is beginning to
recover. She also said she will maintain the same
crisis-resolution approach following her re-election.
INSA’s weekly poll, published on Tuesday, showed that
Merkel’s CDU is expected to receive 39% of votes, setting
the stage for a possible reprisal of a grand coalition
with the SPD. (Last week’s polls gave her 41% of
votes. We will see).
And now, What?
Indeed, I am not going to change our estimates for European
markets, peripheral debt, EUR currency, European equity, etc…
The estimates contained in the last document of Corporate
Review (Outlook for August – September), are in full force today.
Warm Regards and … be cautious
(Informatin provided by Street Account)
Alex FUSTE MOZO