Markets

ACS struggles for Abertis

ACS Could Struggle To Enter Abertis Against Atlantia

The construction company is studying a possible counter-bid for Abertis in order to improve Italian Atlantia’s offer price of 16.5 euros, but no decission has been made yet even though the Spanish Securities and Exchange Commission CNMV has already been notified.


Acerinox target price

Acerinox Stuck With No Investment Proposition; Target Price From €14 To 10.50 €

The metal industry is not performing well on the stock exchange in current year due to lower expectations about the US infrastructures investment plan and fears of contraction in China’s growth. Specifically, Acerinox has dropped around 14% in the last three months, while in the whole year lost near 5%. Analysts have been supporting the company with a recomendation of “hold” and buy”, but Citi has broken the tendency by downgrading to “sell” and cutting target price to €10.50 from previous €14.


FCC restructuring

FCC, A Utility With A Cement Call

FCC is an (ex) domestic construction company that moved into Environmental Services & Water management. It is not alone in embracing new business models including Sacyr, ACS and Acciona, which moved from a domestic construction business model to respectively an international concession one, an international civil engineering one and an international electricity generation one, while Royal BAM partnered with PGGM to grow in the PPP area and Bilfinger shifted to industrial services.


global liquidity drivers

Considering This: “The Shifting Drivers Of Global Liquidity”

While stability of global liquidity is key to growth for both emerging and developed markets, the Global Financial Crisis (GFC) changed the role and influence of its key drivers. A paper by Bank of International Settlements’ Stefan Avdjiev, Leonardo Gambacorta, Linda S. Goldberg and Stefano Schiaffi, defines the main components of global liquidity as cross-border bank loans and international bond issuance, distinguishing also between local (pull) and global (push) factors. AXA IM experts have summarised this work.


Wall Street

Wall Street Trapped In The Inability Of Yields

Many important assets have been trapped in broad trading ranges in recent years despite substantial political upheaval Some examples are the US Treasury 10-year yield which moved between 1.5-2.5% for 3 years or the German Bund 10-year yield between 0-1% for 3 year. According to BoAML, “this inability of yields, the US dollar & volatility
 to break out reflects the inability of the economic cycle to generate strong growth & inflation.”


commodities, out of reflation debate

Commodities, Isolated From The Reflation debate

The reflation trade that boosted a rally in global stockmarkets after Donald Trump’s victory has been put to the test in recent weeks with the inflation data failing to deliver the sought-after hard facts. However, commodities as an asset class have for some time been somewhat isolated from the reflation debate


Iberdrola to enter Italy

Iberdrola Will Compete Head-To-Head With Enel Within The Italian Market

Iberdrola is preparing itself to enter the Italian electricity trading market before current year ends, in which the company will offer its own tariffs in the distribution segment. They will compete with operators such as Enel, Eni and Edison and expect to reach a market share of 5%-7% in next six years, namely a million of customers in 2020 and three millions in 2023. Iberdrola is not considering any acquisitions in order to carry out this strategic move.


Iberia 'Air Brigde' services

Iberia And Vueling Challenge High Speed Train

Starting tomorrow, Iberia and Vueling, both owned by IAG,  will coordinate their schedules to allow passengers the option to choose among 26 daily frequencies in each direction (16 Iberia and 10 Vueling) against 18 daily connections of the railway operator Renfe, all taking a less-than-3-hour-travel time.