Markets





normality in interest rates

The Convergence Of Interest Rates After Euro Crisis

The fact the German bund (as well as the French bond) continue to offer significant yield differentials compared with the US bond, shows us we have not yet returned to complete interest rate normality after the euro crisis. But, since Macron’s elections as the President of France, the doubts over the irreversibility of the euro are dissipating.



US Millenials can afford to buy a home

US Millenials Can Afford To Buy A Home, But Do They Want To Do It?

The homeownership rate among young adults in the United States has plunged to a record low, helping 
to explain the slow recovery in single family homebuilding. In order to understand the future of the housing stock, it helps to tell that there are currently 75 million individuals considered to be Millennials in the US with an average age of 27.5. Acording to BoAML, “in theory, this should underpin growth in homeownership. But, it is complicated – we have to understand the ability of Millennials to afford housing and the desire to become homeowners vs. renters.”


ArcelorMittal acquisition of Ilva

The Consolidation Of The European Steel Sector: The Example Of ArcelorMittal

Íñigo Recio (GVC Gaesco) | The acquistion of the Italian company Ilva is a strategic operation for ArcelorMittal for the following reasons: 1)it did not have any industrial presence in Italy; 2)the deal means it can cope with steel imports in the Italian market – one of the principal access ports to Europe from non-community steel producing countries (mainly Asia) – and 3) it allows for greater steel prices discipline in Europe.



Banco Santander's capital increase

Banco Santander’s Capital Raising Operation Will Have A Higher Discount Than Market Expectations

Banco Santander will raise 7.072,4 billion euros as expected via a rights issue in order to”provide sufficient coverage for the acquisition of 100% of Banco Popular’s capital.” The operation will consist in issuing 1.458,2 million new shares at 4,85 euros/share, which includes the nominal value of 0,5 euros plus an issue premium of 4,35 euros/share. This capital hike implies a discount of 17.75% with respect to theoretical price excluding the subscription right.