Sunday , September 22 2019
Home / Tag Archives: Europe – Spain

Tag Archives: Europe – Spain

One of World’s Construction Giants Admits Using Risky Hidden-Debt Loophole “Across Group.” Australian Subsidiary Crushed

This “crack cocaine for CFOs” was also extensively used by Carillion until it collapsed. By Nick Corbishley, for WOLF STREET: The world’s seventh largest construction and services company (by sales), with subsidiaries around the globe, Grupo ACS, has revealed it is making extensive use of reverse factoring, a controversial financing technique that played a key role in the collapse of UK construction giant Carillion. In a conference call with analysts, ACS chairman, Florentino Perez,...

Read More »

ECB’s NIRP-Forever Policy “Destroys Banks’ Profitability Equation”: Bankia CEO. Spanish Banks Reel. Problems Stack Up

Spain’s Big Five banks (already down from the Big Six) could soon be four. By Nick Corbishley, for WOLF STREET: The ECB’s NIRP forever policy is crushing Eurozone banks’ ability to turn a profit, warned the CEO of Bankia, José Sevilla, on Monday. “It is clear that the current rate scenario is hurting the profitability of the banking business,” he said. “We think low rates are good and perhaps even desirable. But the same cannot be said of negative interest rates since they destroy...

Read More »

Busted Housing Bubble 1 Morphs into Housing Bubble 2 in Spain?

Madrid, Barcelona, other markets are well on their way. But some markets are still crushed. Spain’s last epic housing bubble, one of the biggest in living memory, propelled median home prices to €2,100 per square meter, at which point the bubble began to burst. The national median price eventually plunged 31%, according to government data, as Spain’s financial system began to collapse only to get bailed out by an international aid package. The long-drawn-out event wreaked all kinds of...

Read More »

Unemployment in Spain Still Miserably High Despite Six Years of Economic Growth. Now it Ticked Up Again

“The worst labor market” on the planet: unemployment exceeded 20% in three downturns over the past 35 years. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Spain’s unemployment rate ticked up by a quarter percentage point to 14.7% in the first quarter of 2019, when economists had expected a down tick, as the number of people claiming unemployment benefits increased by 50,000 to 3.35 million, according to data released by the National Statistics Institute (INE)....

Read More »

Threat of Contagion to Eurozone from Spanish Banks’ Huge Bet on Emerging Markets: UBS

Spanish banks expanded aggressively into Emerging Markets to flee the consequences of the euro debt crisis. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. UBS has alerted that Spanish banks’ outsized exposure to Latin American markets could serve as a source of contagion for future crises: 80% of the Eurozone’s total banking exposure to the region is channeled through Spain whose banks have around €384 billion of counterparty claims in the region. A ‘shock’ in...

Read More »

All Heck Breaks Loose After Spanish Banks Block Thousands of Accounts with Chinese Names & Folks Can’t Get to Their Money

The banks claim they’re complying with anti-money laundering regulations.  By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Spain’s Association of Financial Users (ASUFIN) has announced it will be representing Chinese residents in Spain in their legal struggle against three of the country’s biggest lenders, BBVA, Caixabank and Bankia, which it accuses of contravening Spain’s data protection and consumer protection laws and even the Spanish constitution. The three banks...

Read More »

Spanish Grocery Giant Unveils Big Losses, Teeters on Brink of Bankruptcy, after Allegations of Accounting Fraud

What could this mean for one of its big creditors, the ECB? By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Spanish supermarket chain Dia, once one of Europe’s largest grocery chains, has just unveiled its results for 2018 and they do not make for pretty reading. In what it describes as “probably its hardest year ever,” the company racked up €352 million in net losses. EBITDA (earnings before interest, tax, depreciation and amortization) of €246 million plunged by 47%...

Read More »

Uber, Cabify “Evicted” from Barcelona as Turf War with Taxi Drivers Gets Ugly

Will Madrid be next? By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Less than a year has passed since Uber returned to Barcelona, after a three-year leave of absence. But it’s already planning to leave the city again in the wake of renewed conflict with the city’s highly mobilized taxi drivers as well as the passage of unfriendly regulation. Late last week the Catalan regional government unveiled legislation that would force customers to request the services of...

Read More »

Brexit’s Ironic Twists Hit Spain’s Biggest Industry

“Peak Tourism” has already set in. Brits account for 22% of tourists in Spain. Now add Brexit. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. In a delectable irony, two of the biggest corporate victims of a disorderly Brexit could turn out to be Spain’s flagship carrier Iberia and low-cost airline Vueling. Both companies are majority owned by British Airways’ parent company International Consolidated Airlines Group (IAG), which is UK-based. And current EU rules...

Read More »

Long-Term “Buy & Hold” Crushed Stockholders in Largest Markets Except US & India. But for the US, Luck’s Running Out

Ugly long-term charts that Wall Street doesn’t want us to see. And now US stocks are infected too. How well does a buy-and-hold strategy work in the stock market over the long term – as measured in years and decades? In the largest markets around the world, it has crushed investors. There are two exceptions: the US and India. And the US is infected too. The Everything Bubble in the US, a period of nearly 10 years when just about all asset classes have skyrocketed, was perhaps the most...

Read More »