Bankinter | Unicredit´s ordinary BNA has fallen to 1.024 billion euros in the second quarter of 2018 (Q2 2018) (-13.3%) but has beaten expectations. The principle figures compared with expectations for Q218 (Reuters): Gross Margin: 4.947 M€ (-4.3%; -3.3% t/t); provisions: -504 M€ (-23%; 1.5% t/t); BNA: 1.024 B€ (-13.3%; -7.9% t/t vs 975 M€ expected).
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.
Eurozone GDP growth in Q1 arrived in line with a GDP tracker at +0.4% on a quarterly basis estimated by AXA IM strategists (versus a consensus of 0.6%) and reflected “the weakness in industrial production in several member states during January and February.”
Spanish fund manager, Francisco García Paramés, has recently proved he is able to see value in stocks which the market has not looked at very closely, or has simply undervalued. There are two Portuguese stocks, Correios and EDP, in his Iberian Fund.
There are rumours of a corporate transaction. Iberdrola, Gas Natural, Engie and Enel are tipped in the press to be candidates for a key role in a corporate deal with EDP. These companies would potentially be interested in participating in an operation, so as not to be outmanoeuvred in the next wave of mergers in the sector.
European buybacks seem to be increasing by approximately 25 billion euros to a universe of 420 shares (excluding the banks) with a combined market capitalisation of 8 billion euros.
Is the fact that the state owns a stake in a company, with the corresponding voting rights, an obstacle for it or not? AlphaValue has arbitrarily established the level of 15% as a sufficiently big enough quota to be able to offer an opinion about the strategy which may not coincide with the best interests of other shareholders.
German energy firms RWE and E.ON have announced an exchange of assets as part of a major deal which will transform the country’s electricity sector and could be worth some 20-22 billion euros (which according to Alphavalue’s calculations corresponds to an EV of 43 billion euros: market cap + debt).
In a preliminary analysis of European companies’ results, consensus-beating EPS and higher-than-forecast sales stand out.
Deutsche Bank’s shares fell 6.21% on Friday, after the bank unveiled weak Q4 figures and a third consecutive year of losses. Germany’s biggest bank reported net losses of 497 million euros in 2017, following losses of 1.35 billion in 2016 and 6.77 billion in 2015.