Labour leader Jeremy Corbin is considering the nationalisation of the UK’s energy transportation and distribution lines, offering Treasury bonds as compensation to their owners, but at below market valuation. If this new energy policy was put into effect it would have a significant impact on Iberdrola.
CaixaBank Research | The underlying conditions are in place for a new leap forward in the European integration process, but this is unlikely to happen over the next five years. The euro area will make progress in completing its institutional framework, especially with regards to the banking union. Defence, the relationship with China and migration are becoming focal points in the political sphere for joint decision-making (although this is still some way off).
The Consumer Price Index (CPI) in Spain rose 1% in April compared to the previous month and raised the yoy rate by two tenths to 1.5%, its third consecutive increase since February and its highest level since last November, according to the definitive figures published this Tuesday by the National Institute of Statistics (INE), which coincide with those advanced at the end of last month.
Bankinter | DIA´s Q119 results show a very negative evolution in its business. The following stand out: income 1.6646 Bn € (-7.2%), EBITDA 12.4 M€ (-77.7%), EBIT -119.9 M€ (vs -6.1 M€ in Q118) and losses of -144.4 M€ (vs -16.2 M€ in Q118). On 26 April DIA had already published an advance of the preliminary results for Q119. It anticipated sales of 1.615/1.715 M€ vs 1.793 M€, an EBIT of -115/-125 M€ and net annual profits of -140/-150 M€.
Renta4 | Aena has published the traffic statistics for Spanish airports in April, where we continue to see how it remains well above the annual forecast of +3.7%, being for the year so far at +6.1%.
Alphavalue | Telefonica´s poor figures for Q119 traded with falls of 31%. Sales of 11.98 Bn€ › 11.81 Bn€ estimated by the consensus. Our analysts highlight that the operator improved income in all the geographic areas where it is present, especially in Spain and Brazil, its two main markets.
Banc Sabadell | IAG results in Q119 in line with expectations in EBIT and better in financing post tax profits: Sales: 5.318 Bn€ (+5.9%); EBIT: 135 M€ (-51.8%); post tax profits: 70 M€ (-66%). Sales evolved slightly below expectations (-0.7% vs BS expected) affected by unitary passenger income after currency change which fell -1.4% (vs -1% BS expected). Thus was compensated by unitary non-fuel costs which fell -0.6% at constant exchange rates (vs 0% BS expected). This poor income performance contributes a certain negative trend.
Renta 4 | Repsol Downstream investors’ day showed not only the firm’s resilience but also its capacity for future growth. We recall that within its growth target for operational cash flow from 4.6 Bn€ in 2017 to 6.5 Bn€ in 2020 at 50%/b, Downstream cash flow would grow 800 M€: 300 M€ from international margins, 200 M€ from improvements in profitability from greater efficiency and 300 M€ from expansion and new low carbon business preparing for the energy transition.
Renta4 | According to media reports, the Spanish electricity company is in preliminary conversations with Neoelectra and SDCL to sell its electricty co-generation business in Spain, where it has 19 plants producing 368 MW.
Central bank independence is increasingly at risk around the world.