Wolfango Piccoli via Macropolis | The collapse on 7 July of the latest UN-sponsored talks to resolve the Cyprus issue has increased the risk of a naval confrontation between Turkey and the Republic of Cyprus when Total of France and Eni of Italy begin exploratory drilling in Block 11 of the Cypriot exclusive economic zone (EEZ) this week.
The positive trend, which started in the last reporting quarter, should also be confirmed in the upcoming reporting season. However, it should be highlighted that the expected figures are below those from the previous quarter although Julius Baer’s analysts expect positive sales and earnings growth.
On Wednesday, Banco Santander completed a senior non-preferred debt issue for a total of 800 million Australian dollars (534 million euros). This is the first debt issue to be executed in Australian dollars by a Spanish bank.
This week Spanish pharmaceutical firm Almirall issued a profit-warning, citing the negative impact of its US business. The stock price has dropped 30% in two days.
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.
Acciona has obtained one of the biggest rail contracts currently underway in Australia, namely the upgrade of a line to boost the service in Melbourne worth 518 million Australian dollars (around 350 million euros). It sees 100 billion euros of infrastructure development opportunities in Australia and New Zealand in the next 10 years.
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.”
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.
Pablo Fernández | A company uses its accounts (balance sheet and profit and loss account) and its annual report to communicate its past peformance and its current situation. But are these accounts a real reflection of the company’s financial health? Abengoa is a case in point.