Markets

Spain-Catalonia

Spain’s Tramuntana: buy Spanish stocks if they fall more than 5%

Carax Alphavalue | Up until last Sunday’s events in Catalonia, Spain’s economic recovery was well discounted in market terms, Carax Alphavalue says. But after the Catalan government’s “pretence poll” and the central government’s “heavy-handed” response, investors view Spanish stocks as a more risky bet and less of a buy opportunity for now.


electricity companies

Regulated assets will weigh on electricity sector results in 2017

Mirabaud |The electricity sector’s results, which have traditionally given some stability to the corporate earnings season, will be weak in 2017. This year we are seeing generalised declines amongst the utilities, especially in the deregulated businesses due to the low levels of hydroelectric power. But the commercialisation business is also being negatively affected by the fact the prices fixed for this year are below the pool prices.




US housing prices

How Monetary Policy Determines Housing Prices

Benjamin Cole | While taxes and trade get the headlines, a major issue in the US is ubiquitous restrictive property zoning, and the false signals zoning sends to the Fed. Indeed, the “housing bubble” that led to Fed over-tightening in 2007 barely surfaced in Houston, but was highly prominent in San Francisco.  Obviously, the “housing bubble” was not Fed-induced.



Brazil-privatisations

Brazil’s Privatisations Plan: Which Spanish Companies Would Be Interested?

Víctor Peiro (GVC Gaesco) | The emerging markets are performing well this year and so the context is favourable for revisiting the privatisation process in those countries. Brazil is set to sell off a raft of different assets, including state-owned utility Electrobrás. Several big Spanish companies could be interested in acquiring these assets.

 



Q3 earnings in Europe

Where Are New Earnings Coming From?

To have a closer look at where new money is coming from, Carax-Alphavalue focuses on Q3. They think the 2017 picture “is gaining certainty.” They also point that 2017 earnings should be up €101bn, which is the largest variation of the last 11 years excepting €170bn rebound in 2010.


Coin and cryptocurrencies

Bitcoin And Other Cryptocurrencies, Under Suspicion of A Bubble

The People’s Bank of China (PBoC) issued last week a statement banning ICOs, while also planning to shut down local cryptocurrency exchanges. In order to combat capital flight, money laundering and other fraudulent activities, Chinese authorities have decided to disallow trading between fiat currencies and digital currencies within China. This has led to prices of cryptocurrencies such as bitcoin sliding over the weekend.