Business

European stock markets showed resilience this week, with the EuroStoxx 50 gaining 0.4% in early trading on Friday, while Spain’s Ibex 35 saw a modest increase of 0.1%. Despite the Ibex 35’s slower pace, both it and the EuroStoxx 50 are poised to record a positive week overall. Investor sentiment has buoyed markets, as most European indices have now gained over 2.5% compared to the previous month. Driving this optimism has been encouraging economic data from the United States, which has helped ease fears of a potential recession in the world’s largest economy. Globally, stock markets have rebounded after facing declines in the previous week, reflecting improved confidence among investors. The EuroStoxx 50, Europe’s benchmark index, has been on an upward trajectory for the past four months, ...

BBVA has introduced a new issuance of subordinated Tier 2 bonds, raising billions of euros to strengthen its capital structure. These bonds offer a lower repayment priority compared to traditional bonds, meaning that in the event of liquidation, bondholders will be repaid only after other creditors have been satisfied. The newly issued Tier 2 bonds have a six-year payback option, allowing BBVA to repay investors within twelve years at its discretion. The market’s response to the offering has been overwhelmingly positive, with demand exceeding €3 billion—three times the initial issuance volume. This strong investor interest led to a price reduction, with the final price set at “mid swap” + 200 basis points, down from the initial guidance of “mid swap” + 225 basis points. This transaction is...

For over a decade, Angola has been a key competitor with Saudi Arabia in supplying oil to China. While it held the title of Africa’s largest oil producer between 2008 and 2010 and was the second-largest supplier to China during that period, its current output is now only half of what it was fifteen years ago. This decline, coupled with China’s increasing relationships with other suppliers, particularly from the Gulf region and Russia, has strained the trade ties between Angola and China. OPEC reports that Angola aims to maintain its crude oil production around one million barrels per day, seeking more flexibility in both production and export strategies. However, the long-term outlook remains challenging due to declining reserves and restricted production capabilities. In 2010, Angola rank...

This week, the latest inflation figures captured investors’ attention, with the Consumer Price Index (CPI) dipping to 2.9%, marking a 0.2% annual decrease. Although this aligns with market forecasts, market responses were subdued, leaving market movements ambiguous. Analysts note the Federal Reserve’s success in managing inflation, prompting a shift in focus towards the labor market. During its recent meeting, the Federal Reserve highlighted the increasing significance of its staff in decision-making processes. A notable change in communication emphasized a dual focus on potential risks to price stability and employment, hinting at a shift away from inflation concerns towards labor market dynamics. As the Fed gears up for its upcoming September meeting, the impact of employment data on int...

European equity markets are poised for another day of gains, riding on a wave of optimism following recent uncertainties. Investors are optimistic about the forthcoming macroeconomic data, shifting their focus towards assessing corporate fundamentals for investment opportunities. Technically, the EuroStoxx 50 faces a challenge in surpassing the 4,700-point mark. According to Ecotrader advisor Joan Cabrero, breaking this level could pave the way for a notable upswing towards 4,870 and 4,900 points, offering a buffer against bearish risks. Cabrero underlines that the current market conditions present favorable prospects, particularly if the index finds solid support within the 4,600-4,675 points range. However, he advises a more cautious approach, suggesting waiting for a stronger support le...

Latin America has encountered one of its most lackluster growth periods since the turbulent “lost decade” of the 1980s, with a mere 0.9% growth rate recorded between 2015 and 2024. José Manuel Salazar-Xirinachs, the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), warns that the region risks entering a third decade of stagnation unless significant structural reforms are implemented. Within this context, Panama emerges as a notable case study. Despite ECLAC revising its growth projections downward to 1.8% for 2024 due to global uncertainties and the slowdown of major economies like the US and China, as well as tight financial conditions, Panama is forecasted to achieve a growth rate of 2.7% for the same year, positioning itself mid-range compared t...