Markets


Banco Santander

Santander records €1.566 Bn on its balance sheet related to its 49% stake in joint venture with Blackstone

Private equity fund Blackstone and Banco Santander have injected 300 million euros in the property fund in which both have a stake. The alliance is a mix of societies under the umbrella of parent company Project Quasar Investments 2017, which includes what was previously Banco Popular’s real estate portfolio. Its gross assets are valued at 30 billion euros, with a net value of 10 billion.



euro-dollar

Dollar-euro exchange rate: 1,21 seems fairly normal

Ofelia Marín-Lozano |The variations in the exchange rate, over short periods of time like quarters, sales performances or results expressed in euros which can lead to simple, erroneous conclusions. This is even more true in the case of a European company with a greater weighting in markets where the dollar is the currency of reference. That is to say in any market outside, if not the Eurozone, then at least Europe.


Sabadell

Sabadell is starting to stabilise

Société Générale |The situation seems to be calming down in TSB and there is more visibility. The IT problems and the negative PR will have an impact on the UK franchise, which we hope will be profitable this year. It looks like Sabadell is beginning to stabilise now, we expect a more limited impact from 2019 and reiterate our Neutral stance.

 


Almirall

Almirall: recommendation raised from Sell to Neutral

Bankinter | Almirall Q1’18 results were better than expected, with sales of 189.3 million euros (-0.1%); Ebitda of 58 million (+5.4%); Net Attributable Profit of 30.9 million (+57.1%) and net debt of 150 million euros. Finally, the DN/PN ratio has reached 7.4%.



ECB

EZ: When Greece financed itself cheaper than the US

Ignacio de la Torre | The ECB’s deposit rate, which is now at -0.4%, will move to -0.2% during 2019 and later to 0%. At the same time, during the second half of 2019 the logical thing is for the ECB to begin to raise interest rates. These two factors should fuel a progressive rise in the Euribor from the summer of next year.



European stocks

Europe’s irrelevance in the Iran issue is boosting European stocks

Alphavalue | Trump’s capacity for confusing the markets is now a distinctive trait. Tearing up the nuclear agreement with Iran does not seem to be fuelling a new wave of fear about a war breaking out or an energy shock. The markets learned an early lesson with North Korean, when the conversations about nuclear glaciation suddenly led to the handshake on the other side of the border.