Sovereigns and banks in the euro area : a tale of two crises

This study attempts to identify and trace inter-linkages between sovereign and banking risk in the euro area. To this end, we use an indicator of banking risk in each country based on the Contingent Claim Analysis literature, and 10-year government yield spreads over Germany as a measure of sovereign risk. We apply a dynamic approach to testing for Granger causality between the two measures of risk in 10 euro area countries, allowing us to check for contagion in the form of a significant and abrupt increase in short-run causal linkages. The empirical results indicate that episodes of contagion vary considerably in both directions over time and within the different EMU countries. Significantly, we find that causal linkages tend to strengthen particularly at the time of major financial crises. The empirical evidence suggests the presence of contagion, mainly from banks to sovereigns.

Banks, Lies and Bricks: The Determinants of Home Value Inflation in Spain during the Housing Boom

During the first decade of this century, Spain experienced the most important economic and housing boom in its recent history. This situation led the lending industry to dramatically expand through the mortgage market. The high competition among lenders caused a dramatic lowering of credit standards. During this period, lenders operating in the Spanish mortgage market artificially inflated appraised home values in order to draw larger mortgages. By doing this, lenders gave financially constrained households access to mortgage credit. In this paper, we analyze this phenomenon for this first time. To do so, we resort to a unique dataset of matched mortgage-dwelling-borrower characteristics covering the period 2004–2010. Our data allow us to construct an unbiased measure of property’s over-appraisal, since transaction prices in our data also includes any potential side payment in the transactions. Our findings indicate that i) in Spain, appraised home values were inflated on average by around 30% with respect to transaction prices; ii) creditconstrained households were more likely to be involved in mortgages with inflated house values; and iii) a regional indicator of competition in the lending market suggests that inflated appraisal values were also more likely to appear in more competitive regional mortgage markets. Keywords: Housing demand, appraisal values, house prices, housing bubble, credit constraints, mortgage market. JEL Classification: R21, R31

Towards new botanical pesticides: the toxic effect of Eremanthus goyazensis (Asteraceae) leaves essential oil against Brevipalpus phoenicis (Acari: Tenuipalpidae)

This work reports the chemical characterization of Eremanthusgoyzensis essential oil and its toxic effect over Brevipalpus phoenicis. The essential oil displayed a major composition of sesquiterpenes (61.87%) including trans-caryophillene (26.81%) and germacrene-D (13.31%). The fumigation test indicated a promising bioactivity over adult B. phoenicis individuals at 24 h (2.03 µL/L of air) and 48 h (1.08 µL/L of air) of exposition. A brief discussion of essential oils composition and their singular role on the toxic effect over B. phoenicis is provided here. Our results may contribute to a new and profitable use of a species of Brazilian flora on agribusiness.

Characteristics of credit risk assessment methods of major Nordic banks in allocating capital when extending credits to large corporations

Credit risk assessment is an integral part of banking. Credit risk means that the return will not materialise in case the customer fails to fulfil its obligations. Thus a key component of banking is setting acceptance criteria for granting loans. Theoretical part of the study focuses on key components of credit assessment methods of Banks in the literature when extending credits to large corporations. Main component is Basel II Accord, which sets regulatory requirement for credit risk assessment methods of banks. Empirical part comprises, as primary source, analysis of major Nordic banks’ annual reports and risk management reports. As secondary source complimentary interviews were carried out with senior credit risk assessment personnel. The findings indicate that all major Nordic banks are using combination of quantitative and qualitative information in credit risk assessment model when extending credits to large corporations. The relative input of qualitative information depends on the selected approach to the credit rating, i.e. point-in-time or through-the-cycle.

Caracterização de um vírus baciliforme isolado de Solanum violaefolium transmitido pelos ácaros Brevipalpus phoenicis e Brevipalpus obovatus (Acari: Tenuipalpidae)

Solano-violeta (Solanum violaefolium) é uma planta ornamental rasteira usada para cobrir solos de áreas sombreadas. Um vírus que induz manchas anelares nas folhas desta planta, tentativamente designado Solanum violaefolium ringspot virus - SvRSV, transmitido pelo ácaro Brevipalpus phoenicis (Acari: Tenuipalpidae) foi encontrado em Piracicaba, SP. Trata-se de um vírus baciliforme que se assemelha a outros vírus do tipo citoplasmático transmitidos por Brevipalpus sp. Este trabalho teve como objetivo relatar propriedades biológicas e estabelecer uma caracterização molecular parcial do SvRSV. O vírus pode ser transmitido mecanicamente a várias outras espécies botânicas, causando lesões localizadas. Entre as espécies avaliadas, Datura stramonium mostrou-se a melhor hospedeira experimental. Observou-se também a manifestação de sintomas nestas plantas após infestação das mesmas por B. obovatus previamente alimentado em lesões de SvRSV, confirmando esta outra espécie de ácaro como vetor do vírus. Suas propriedades físicas in vitro foram: temperatura de inativação 40-45 ºC; ponto final de diluição 10-3-10-4; longevidade in vitro 12 dias. Em secções ultrafinas, as partículas do SvRSV mostraram-se levemente mais delgadas e mais longas que as de outros vírus do mesmo grupo. A partir do dsRNA do SvRSV foi construída uma biblioteca de cDNA e foram identificadas duas possíveis regiões codificadoras das proteínas de movimento e replicase viral. Baseado nestas regiões foram desenhados "primers" para amplificação do RNA do SvRSV por RT-PCR. Sondas baseadas nas seqüências obtidas hibridizaram com ss- e dsRNA de D. stramonium infectadas pelo vírus. Ensaios preliminares de RT-PCR e hibridização não resultaram em reação com o vírus da leprose dos citros, tipo citoplasmático (CiLV-C).

Primeiro registro de Oligonychus yothersi (McGregor) (Acari: Tetranychidae) em Eucalyptus grandis Hill ex Maiden no Brasil

Relata-se a infestação de um ácaro-vermelho em mudas clonais de Eucalyptus grandis Hill ex Maiden, mantidas em casa de vegetação no município de Martinho Campos, Minas Gerais. O ácaro foi observado na parte superior das folhas que exibiam sinais de sucção de seiva e bronzeamento. Essas injúrias causaram desenvolvimento anormal e morte de plantas. O ácaro foi identificado como Oligonychus yothersi (McGregor) (Acari: Tetranychidae), e isso representa o primeiro registro dessa espécie em mudas clonais de E. grandis no Brasil.

Flutuação populacional e sintomas de dano por ácaros (Acari) em seringueira no Estado do Mato Grosso, Brasil

Apesar da grande importância da cultura da seringueira (Hevea brasiliensis Muell. Arg.) para o Brasil, pouco se conhece sobre a flutuação populacional dos ácaros nessa cultura. O objetivo deste trabalho foi estudar a flutuação populacional de ácaros na seringueira no Estado do Mato Grosso, bem como observar a evolução dos sintomas de ataque de tais pragas nessa planta. O estudo foi conduzido em campos de seringueira de Itiquira e Pontes e Lacerda, Estado do Mato Grosso, com seis clones: FX 3864, RRIM 600, IAN 873, IAN 713, PB 260 e PR 255, cujas coletas foram realizadas de agosto de 1998 a julho de 2000. Na safra de 1998/1999, a amostragem foi de 150 folhas de cada um dos estratos basal, mediano e apical, em 10 plantas ao acaso. A metodologia de coleta na safra de 1999/2000 foi alterada devido aos resultados da parcial anterior de cinco folhas do estrato mediano de cada uma das 15 plantas ao acaso. Calacarus heveae Feres foi a espécie mais freqüente em Itiquira e Phyllocoptruta serigueirae Feres em Pontes e Lacerda. A queda prematura das folhas foi observada apenas em Itiquira.

The role of ear mites of the genus Raillietia (Acari: Raillietiidae) in otitis of domestic ruminants

This paper presents a hypothesis on the involvement of species of the genus Raillietia Trouessart in the pathology of parasitic otitis in domestic ruminants. The chelicerae and claws of the tarsi are structures that contribute significantly towards producing primary lesions. The movable digits of the chelicerae accidentally injure the epithelium that lines the ear canal, while the claws of the tarsi perforate the epithelium, allowing the mites to affix themselves while feeding. The lesions in the epithelium caused by the chelicerae and the claws favor multiplication of the bacteria that inhabit the ear canal, resulting in typical cases of otitis.

Nordic banks’ entry into the Russian market: motives, processes and challenges

The importance of services in the global economy has grown steadily in the past decades and the growth of services sector’s direct investments has been increasing. Nowadays, all companies are influenced by the much changing global environment and the financial services companies are no exception. The internationalization of financial services companies is an expanding and accelerating phenomenon which has various motivations. The overall aim of this thesis is to shed light on the market entry processes of the Nordic financial services companies when they have entered the Russian market. In this study, the factors affecting Nordic banks’ market entry to Russia are presented in order to better understand what have been the main motives for market entry, what kind of processes the banks have used and what kind of challenges they have faced along the way. A case study approach was used in conducting the empirical research and it aims at investigating a specific case: Nordic banks’ entry into the Russian market. The empirical research was carried out by conducting qualitative interviews for employees involved in entry processes of the case banks. These interviews aimed at examining the Nordic banks’ motives for entering the Russian financial market. This includes reflections on the reasons why the studied banks have decided to enter Russia and what have been the motives behind these decisions. Also, the market entry processes the banks have used when they have entered the Russian market were investigated. The findings allowed comparing the related theories and different market entry modes the case banks have used. Furthermore, the market-related challenges faced by the case banks were mapped and described. In addition, the main factors related to the entry processes of the studied banks were identified and key elements of successful market entry were mapped. The findings suggest that the main motivator for banks have been to follow their customers and hence, increase the revenues and add the value to the shareholders; consequently, being a win-win-win situation to all the related parties. It was also discovered that the banks market entry processes have had resemblances but the banks have taken different paths to get where they are nowadays. As the Russian market environment differs from the one in Nordic countries, also challenges were faced by the case banks. However, the internal challenges were considered more troublesome than the external ones. As the foreign market entry process is complex as well as time and resources consuming, it is vital to understand the specifics of the target market, organizational capabilities and individuals enabling a successful entry process.

Additional information about a mange outbreak by Allopsoroptoides galli (Acari: Psoroptoididae) in commercial laying hens in the state of São Paulo, Brazil

This paper reports additional information about a mange outbreak by the mite Allopsoroptoides galli in a commercial egg-laying hen facility in the state of São Paulo, Brazil. About half of the 76,000 multi-age birds of the flock were affected. Experimental infestations carried out on naive hens resulted in clinical signs similar to those diagnosed in naturally infested hens, such as generalized scaly dermatitis, presence of mucus-like material and yellowish crusts on the skin and around the calami, feather loss and strong unpleasant odor. About 30% drop of egg production was estimated. The possible source of infestation were wild birds identified on the ground and roofs of the sheds.

Evolution of Ryegrass Seed Banks Depending on Soil Tillage and Crops

The seed bank is characterized by the amount of seeds and other viable reproductive structures in the soil and it is changed by the input and output of seeds, being classified by its permanence in the soil as transient or permanent. The tillage and crops used decisively influence this dynamic and more disturbed areas tend to have richer seed banks. The purpose of this study was to test different soil tillage and crop systems, aiming to reduce or eliminate the ryegrass in the area. The experiment was conducted from 2010 to 2012. In the first year, the effect of chemical tillage was assessed, compared to the area without tillage. From the second year on, in the area that received chemical tillage, the second experiment was installed, where it was assessed the effect of soil tillage and crop rotation in the ryegrass seed yield. The soil tillage treatment was chisel plow and non-chisel plow. The crop rotation was: fallow/soybean; wheat/soybean; black oat/maize. The samples of soil were taken three times a year and split in 0-5, 5-10, 10-15 and 15-20 cm. After sampling, the seeds were separated from the soil and sterilized. Afterwards, germination and tetrazolium test were conducted. In the same plots used for soil sampling, the emergence flow of ryegrass was assessed in the winter 2011 and 2012. In the first year it was observed that chemical tillage had considerably reduced the amount of ryegrass in the soil. The crop rotations used were more effective than soil tillage in reducing the seed banks in the soil. The rotation oat/maize and wheat/soybean, in only two years, practically zeroed the ryegrass seed banks in the area.

Phytosociology of the remaining xerophytic woodland associated to an environmental gradient at the banks of the São Francisco river - Petrolina, Pernambuco, Brazil

Floristic and phytosociological surveys were carried out for 12 months in the Embrapa-SPSB, Petrolina, Pernambuco, Brazil. A transect was laid on starting at the river bank extending for 790 m away from the river and divided into 140 10 × 10 m contiguous plots. In each plot, all standing plants, alive or dead, with stem diameter at soil level > 3 cm and total height > 1 m were sampled. Along this transect, an elevation range of 9.40 m was registered and five topographical environments were identified: riverside (MR), dike (D), floodable depression (DI), boundary terrace (TL) - all of them belonging to the fluvial terrace with Fluvic Neosol and Haplic Cambisol both silty textured eutrophic soils - and the inlander tableland (TS), with medium sandy-textured Red-Yellow Argisols. Fourty-eight species/morphospecies, distributed into 39 genera and 21 families, were identified. Four phytogeoenvironments (MR, D + TL, DI + TL, and TS) were registered based on environmental variations and floristic similarities among plots using cluster analyses. The MR environment showed the largest total density, total basal area, maximum and medium heights and maximum diameter. Moreover, it had 8.1% of plants with heights above 8 m against 0.6% for D + TL, 0.2% for DI + TL, and 0% for TS. The species with the largest importance value were Inga vera subsp. affinis (DC.) T.D. Pennington in MR, Mimosa bimucronata Kunth in D + TL and DI + TL and M. tenuiflora (Willd.) Poir. in TS.