IBEX

Arcelor Mittal

Demand for steel is not recovering, but ArcelorMittal is doing its homework

Banc Sabadell | The demand for steel in Europe (40% EBITDA) is somewhat weaker than expected (the expected recovery in car making has not happened), which means price rises are not expected. However, ArcelorMittal has showed that it is doing its homework in reducing cash outflows, given a tight financial situation, which could lead to announcements of improved shareholder remuneration in 2020.


mediaset

Mediaset: TV advertising market will fall -3% vs previous -1.5%

Renta 4 | Mediaset España has issued a communiqué on its results for July and August, again characterised by cost flexibility (savings of almost 20 million euros because of the absence of the world cup) and the reinforcement of incomes not depending on conventional ads.


CIE Automotive acquires the Italian company Somaschini for 5x ebitda

Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.


Santander: 1.5bn hit to UK operation, without visible impact in the accounts

Bankinter | Santander UK has completed a revision of its  UK operation, with a cut of 1.5 Bn€. This writedown is due to a deterioration in business perspectives (generation of future incomes) as a consequence of the severe regulatory environment and uncertainty about Brexit, which obliges it duplicate certain functions and, therefore, raise costs and reduce the expectations for the generation of profits.




Cellnex

Cellnex: lower capital costs 4.8%-4.9% (from 5.2%-5.6%)

Santander Corporate &Investment | We have adjusted our estimates (including its recent acquisition of Cignal in our forecasts). Nevertheless, the main novelty is the modification of our suppositions on the cost of capital to take into account the current interest rate scenario.


telefonica

Telefonica seeks growth: O.P. de 7.2 €/share vs 9.2 €/share before

Renta 4 | Telefonica shares hit their lowest level in August since 2006, since when they have recovered more than +10%. We see that investors have turned their back on the operator, disappointed by a business evolution which has not improved at an operational level and lacking confidence in a significant and sustained improvement in the future.


Santander and BBVA best positioned for cut in ECB deposit rate

Bankinter analysis team believes that the cut in the deposit rate to -0.50% (from -0.4%) further penalises keeping excess liquidity in the ECB. Tiering (or the method of charging in tranches) only partially mitigates the impact with a volume of up to six times the coefficient of obligatory reserves (currently 1.0%) exempt. This favours banks with higher and more internationally diversified ratios of credit investment/typical resources like Banco Santander and BBVA.