Compared to American companies, European companies have a higher average dividend yield and lower valuations, which are attractive for those investors who prefer to be more defensive in the last stages of the cycle.
Telefónica’s decision to reduce its reliance on Huawei is in line with the company’s strategy to have several different providers for the equipment for its 5G networks, which is expected to be widely deployed by 2022.
Ana Isabel González García, CIIA (IEAF) | Adolfo Domínguez S.A.is a small designer fashion textile group, based in Ourense (Spain), specialising (c. 40 years) in the design and sale (both retail and wholesale) of fashion items. With international presence (35% o/revenues), it is managed by the founding family (31% of the capital), which prevails in the Board. After the renewal of the business its effectiveness remains to be tested.
Spanish real estate still has growth to deliver. Regardless of global economic slowdown, Brexit or trade tensions, we think the country’s competitive labour market should support one of the highest economic growth rates in Europe. Spanish GDP should grow at 1.7% pa over the next three years vs 1.1% in the Euro area, according to BofA economists.
Morgan Stanley’s Equity Analyst Alvaro Serrano had raised his recommendation of Spanish Banco Sabadell (SAB) to Overweight (OW) in May with the expectation that NPA sales, improvement in Britain’s TSB and a capital near 12% CET1 would improve the visibility of benefits from 2020.
BofA | Offices across Europe are enjoying a resurgence, owing to: i) rising property prices as prosperity and hence urbanisation increase in cities, ii) 2.6x faster growth in office-related jobs vs total employment across Europe as the economy becomes more service-oriented (70% of GDP); iii) office vacancy in the central business districts of Madrid, Barcelona and Paris standing 40% below the long-term average, resulting in a tighter supply/demand balance and driving up rents.
Alphavalue | We have lowered the EPS estimates for Repsol (2019 by – 12.2% and 2020 by – 7.63%) after incorporating the results of the last quarter and lower expectations of gas prices in the US.
Santander (SAN) Brazil on Friday closed the agreement to buy the remaining 40% of Banco Olé Consignado for 355 million euros.
Ana Fuentes | The home delivery start-up has become the second unicorn in Spain after obtaining 150 million in an investment round. This brings the four-year-old company’s total funding up to €460m. Only ride-hailing giant Cabify had reached that status before.
Morgan Stanley | Our estimates of Naturgy (NTGY) for 2022 are 18% below the objectives set by the company. This is due to our negative vision in LNG and in Latin American currencies.