CaraxAlphavalue has revived the idea of investing in Telefonica, one of the most international profiles in the telecom sector with nearly 75% of the business outside its home market and a reference point in the Spanish- and Portuguese-speaking markets. Indeed, if this global position allowed to deliver modest organic growth in the early 2010s despite a sluggish European market, it has caused a devaluation of Telefonica’s market cap since 2015 with the collapse of almost all the South American currencies vs the euro.
Fernando Rodríguez | Analysts who study banking stocks every day do not seem to pay much attention to the factors which condition the systemic banks. In general, they feel that whether a bank is systemic or not should not influence its stock market performance or its dividend policy. It should not be the only criteria for investing in a bank.
The 2014 -15 oil price crash led to sharp pullbacks in upstream capex, leading to the “conventional wisdom” (as held by the IEA, EIA, and OPEC Secretariat) that a supply gap will open up by the end of the decade due to limited greenfield projects and accelerating decline rates… but Citi’s analysts disagree with this consensus.
Sopra Steria and Indra Sistemas are small market caps (respectively €2.2bn and €1.7bn) compared to their peers Atos and Capgemini with market caps of €10.0bn and more. Both stocks trade at reasonable 2017 P/Es (respectively 13.4x and 13.6x) and analysts see significant upsides for both stocks. Indra is clearly more of a high risk- high return proposition while Sopra may have to cope with Brexit-induced uncertainties
The last meetings of the Federal Reserve and the Bank of England have fuelled sharp moves in the major currencies. The euro has extended its year highs against the dollar (it’s over 1,08 against the greenback) and on Thursday it appreciated over 1.3% against the pound (the exchange rate is at 0,86). Is near a new “currency war”?
Cellnex signs up for two new projects in France worth €854 mn, in line with its strategy for boosting its international expansion. It will now become the second biggest independent towers operator in France.
José Luis M. Campuzano (Spanish Banking Association) | Without doubt, banks can benefit in the medium and long-term from those companies which the term “fintech” encompasses. And competition in the short-term, particularly in the segments of payments and loans, is a small price to pay considering the synergies and the revitalising effect for the banks of being digitally closer to the client.
BBVA said on Wednesday that net attributable profit rose 31.5% to 3.475 billion euros in 2016 from a year earlier, the highest figure since 2010.
Spanish business woman Alicia Koplowitz has made an initial investment of 2 million euros in wind turbine manufacturer Gamesa via her sicav. The move comes at a time when Gamesa and Germany’s Siemens are involved in merging their wind energy business.
Assuming that Trump’s getting US presidency has turned global establishment upside down, markets are under currents of diverging US, but not leaving aside domestic factors. In the case of Asian, on one hand, the likelihood of stronger US data leading to higher USD rates is pulling Asia rates higher, as reported by BoAML. On the other hand, flush local liquidity conditions, lackluster pick up in domestic demand and easing stance of Asian central banks are pushing Asian rates lower.