Dodd-Frank deregulation could turn banks into massive sellers of treasuries
The possible modification of the Dodd-Frank law to create a less regulated market, which Donald Trump wants to implement, could give a fresh boost to Treasuries’ IRR.
Markets
Talgo Sets Up A Company To Compete With Renfe’s AVE
Talgo has set up the company Motion Rail to break into the high-speed and long distance rail market when Spain’s rail transport sector is liberalised and opens up to competition in Europe. This is expected to happen end-2020.
ECB faces the NPLs burden: over €900 MM, almost 9% of Eurozone GDP
The problem loans of the big banks directly under ECB supervision totalled close to 1 trillion euros at end-2015, although they declined to 921 billion in September 2016 (almost 9% of the euro area’s GDP), according to the data disclosed by Vítor Constâncio on February 3. But the problem is that this figure is not distributed homogeneously across the banks.
Gamesa, Survival Of The Fittest: Price Target From €19,50 To €21
Returns in offshore wind projects have come under pressure with intense competition and aggressive assumptions. As the technology matures, Citi analysts believe falling costs should support a 7-9% project return in the long ter. The case of Gamesa.
Banking Regulation: Do We Stop Extending This Or Go Further?
J. L. M. Campuzano (Spanish Banking Association) |So where do we go now? Do we stop extending banking regulation or do we keep including more conditions? We look to the US, but actually the debate already started a few months ago in Europe. Many experts (some from the ECB itself) warned about the complexity of the measures taken up to now and about the risk this implied for the sector’s stability. And for the financing of the economy.
Europe Vs US: The Earnings Comeback
US is at a 40-year high relative to Europe(outperforming by 105% since 2008). With big secular shifts in the wind, investors are naturally curious to evaluate the case for Europe. The conclusion is the region is cheap vs the US.
Opportunities In Mexico Despite Trump
Mexico seems to be one of the countries most threatened by Trump’s protectionism plans. The prospects, however, for Mexican companies are better than many investors fear.
ACS Strengthens Positions in US, Australia
The joint venture formed by Leandlease and Turner (subsidiary of ACS) has been awarded a project to extend the Jacob K. Javits convention centre (New York) for a total of 1.5 billion dollars (approx. 1.4 billion euros).
UK Banks: The Calm Before The Storm
UK macro data continues to surprise positively, but the same is no longer true of bank volumes. Mortgage loan growth slowed “slightly” in 4Q16, while corporate loan balances contracted, “as a combination of higher stamp duty and Brexit -related fears” served to delay investment decisions and dampen loan demand, say Citi’s analysts.
Spanish Small & Midcaps: Atresmedia
Intermoney | For 2017, the forecasts for private consumption indicate that Spain’s advertising market will continue to grow. We reiterate our Buy recommendation for Artresmedia and maintain our Target Price of 13,0 euros/share with a potential upside of 24%.