The sudden finding last week that Deutsche Bank’s operations in the US would need to be cut back as the Federal Deposit Insurance Corporation was worried about the bank’s local funds is disastrous news. The situation does not allow for a recapitulation of some kind.
The twentieth anniversary of the creation of the ECB coincides with renewed financial tensions in the Eurozone. According to Caixa Research, the irreversability of the single currency requires ambitious advances in the European project.
Santander Consumer USA, a subsidiary of the Spanish bank, has assured the US markets regulator (the SEC) that it is in talks with Fiat Chrysler about its plans in the US.
The potential upside of European shares is now an attractive +10% in AlphaValue’s valuations and +16% for the banks. The best upsides are in BBVA and Banco Sabadell, each with +40% on a 6-month horizon.
According to the economic press, Unicredit and Societe Generale have been studying their merger for months, but the political instability in Italy has caused this to be delayed. The combination of the two banks would create the third largest bank in Europe in term of market capitalisation.
DS Smith has lodged a bid for Spanish paper and packaging company Europac, valuing the latter at 1.9 billion euros. The UK firm has offered 1.667 billion euros for 100% of Europac’s capital (16,80 euros/share).
US imposed steel (25%) and aluminum (10%) duties on Europe, Canada and Mexico on May 31, reflect Trump’s view of the world economy as a zero-sum game, meaning each country has to fight tooth-and-nail to get its hands on the biggest slice of the pie. As pointed by Philippe Waechter, Chief Economist at Ostrum AM, “this view is admittedly not helpful in understanding economic and growth momentum, but it is the view we are dealing with here.”
The number of jobless people registered in the public employment services’ offices fell by 83,738 in May compared to the previous month (-2.5%). The total number of unemployed stood at 3.25 million end-May.
Giacomo Bracci | The result of the latest Italian political elections has been interpreted by many observers as the outcome of deep, popular discontent. Recent developments in the country have also revived the possibility once again of an Italexit in the political debate of the entire euro area.
The household savings rate lay below 6% of gross disposable income in 2017, a figure similar to 2007 just before the real estate bubble burst, and well below the peak reached in 2009 of 13.4%. What factors explain the sharp decline that has occurred in the last few years? CaixaBank Research focuses on this issue.