Germany: time to invest
The investment deficit is a reality in Germany and, if not corrected, could undermine one of its strong points like productivity.
The investment deficit is a reality in Germany and, if not corrected, could undermine one of its strong points like productivity.
Banc Sabadell | The demand for steel in Europe (40% EBITDA) is somewhat weaker than expected (the expected recovery in car making has not happened), which means price rises are not expected. However, ArcelorMittal has showed that it is doing its homework in reducing cash outflows, given a tight financial situation, which could lead to announcements of improved shareholder remuneration in 2020.
Renta 4 | Mediaset España has issued a communiqué on its results for July and August, again characterised by cost flexibility (savings of almost 20 million euros because of the absence of the world cup) and the reinforcement of incomes not depending on conventional ads.
The International Energy Agency (IEA) has fixed the global growth of solar and wind power and other clean energies at double digits for this year. 200 GW of new clean energy capacity is expected to be installed by the end of 2019. The largest part of the new capacity will come from solar energy with 115 GW, despite a small contraction in the China market.
Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.
Bankinter | Santander UK has completed a revision of its UK operation, with a cut of 1.5 Bn€. This writedown is due to a deterioration in business perspectives (generation of future incomes) as a consequence of the severe regulatory environment and uncertainty about Brexit, which obliges it duplicate certain functions and, therefore, raise costs and reduce the expectations for the generation of profits.
Marie Lassegnore (La Française AM) | Climate change is a reality which affects all of us. We are both responsible for and damaged by this environmental impact. As committed investors with strong convictions, we want to participate actively in the energy and ecological transition necessary to conserve our planet as we know it.
European Views | In a landmark decision, the European Court of Justice ruled Tuesday that “the right to be forgotten”, one of the core data privacy protections enshrined in the EU’s flagship General Data Protection Regulation (GDPR), only applies to search results inside the European bloc. The ruling has reassured those worried that the right to be forgotten constitutes an extension of European law beyond the EU’s borders.
Peter Isackson (Fair Observer) | With the integrity of a monopoly to ensure, Mark Zuckerberg, the enfant terrible, has taken a major step forward in becoming a Washington insider.