Spanish banks registered net profit of 7.987 billion euros in 2016, 23.1% less than a year earlier, according to data provided on Thursday by the Spanish Banking Association. These results were affected by special temporary and specific factors in 2016, without which earnings would have been 12% higher than in 2015.
Ezentis ended 2016 with an order book worth €848.4 million and a ratio of 2.8x sales. This figure, combined with the fact the bulk of the order book is recent (79% of the contracts awarded in 2016), guarantee a large part of the group’s future results, as well as reducing their volatility.
J. L. M. Campuzano (Spanish Banking Association) | Stable inflation centred around levels of 2.0%…A scenario dominated by rising inflation is as complicated as one where deflation and potential low economic growth can create a vicious circle difficult to exit. Especially in a context of high indebtedness.
Italian motorway and airports operator Atlantia is considering a tie-up with Spain’s Abertis by launching a tender offer. The transaction is valued at some 15-16 billion euros, taking into account the current market value of Abertis. The offer will be made partly in cash and partly in Atlantia shares, with the end result a merger between the two companies.
Carlos Bravo | To be able to maintain current Spanish pensions model in 2050, when the large majority of the baby-boom generation will reach retirement age, we will need to raise pension spending to around 15% of GDP. This is a significant challenge, but one which is perfectly doable. The challenges of the system are two-fold: guarantee its financial sustainability and ensure there are sufficient funds available.
Wolfango Piccoli via Macropolis | As both the Justice and Development Party (AKP) and President Recep Tayyip Erdogan are likely to win any upcoming elections, the approved constitutional changes will institutionalizs a populist one-man system equipped with vast additional powers. These will be usurped from other institutions without introducing the checks and balances required to safeguard against a further authoritarian turn.
So-called ‘soft’ data, such as strong sentiment indicators and survey levels for the US economy, have raised the debate whether the real economic indicators ahead – the so-called ‘hard’ data – will be able to fulfil the expectations created, or whether they will instead disappoint and lead to market unrest.
Particularly affected by the Brexit vote, due to its UK exposure, Sabadell’s share price has moved sideways and accumulated underperformance vis-à-vis the broader sector until the US election. As reported by Carax-Alphavalue, the latter’s outcome was “rapidly digested”, freeing the stock’s upside potential which has regained a large portion of the lost ground.
Families are investing money in the stock market. And a lot of it. In fact, households and non-profitable organisations providing services for Spanish households own 155.313 billion euros worth of shares, according to figures published by the Bank of Spain.
Benjamin Cole | The last time commercial property prices topped out was July of 2007. House prices appear to be rising still, though at a slower rate by various indices. On a per-square-foot basis, house prices in the U.S. have not budged since May of last year. That could be important, suggesting that houses now selling are larger, and the middle-class is dropping out of the market.