Capital Madrid | For the first time in its history, Bankia reached the level of 20,000 million euros in assets managed in investment funds. This was done at the end of January, during which Bankia again led the market in terms of net income, according to data from Inverco.
Renta 4 | Ferrovial (FER) obtained a net profit of 268 million euros last year, which managed to settle in “black numbers” and thus reverse the losses with which it had closed 2018 and had been justifying over the first three quarters of 2019, thanks to the capital gains from the sale of the Ausol highway in Malaga.
Naturgy has agreed with Eni and Egypt to end their dispute over Unión Fenosa (UFG), in which the Spanish and Italian firms own 50% each. The company said the agreement includes the payment of 600 million dollars (about 547 million euros) in cash and most of the company’s assets outside of Egypt, excluding UFG’s business activities in Spain.
BBVA Research | Covi-19 jolts equities and sovereign yields again as mounting coronavirus cases outside China dashed hopes that the outbreak had been contained. U.S. Treasury 10Yyield hit historic lows, dropping below 1.30%. Elsewhere, the WHO stated that the covid-19 has the potential to become a pandemic, while the U.S. warned not to travel to Spain to avoid potential dangers.
Microsoft and Telefónica have agreed to expand their global strategic collaboration to accelerate their customers’ digital transformation. As part of this collaboration, the US company will open a Data Centre in Spain that will take advantage of Telefónica’s infrastructure, which in turn will accelerate the use of Microsoft’s cloud internally.
CdM | Today CELLNEX presented its 2019 results, with a 40% reduction of its losses, reported at 9 million euros. CELLNEX increased its revenue to more than 1 billion (EUR 1.035 billion), which is a 15% year-on-year improvement.
Endesa board of directors includes Italian members of Enel, such as the CEO of the Italian energy company, Francesco Starace, who is vice president of the Spanish company, and who, due to this plan, did not attend the meeting of the company’s governing body convened to approve the company’s last year’s results.
Stock and bond investors seem to have very different assessments of the impact of the virus: despite a pickup in realised volatility, equity markets (especially in the developed world) have reached new highs over the last couple of weeks. The VIX index rose above 17 at the end of last week, but is well below the levels seen in August 2019 in the midst of the US-China trade war (24.6) or at the end of December 2018 when recession fears gripped markets (36). Implied earnings growth rates for equities remain solidly positive, even for the MSCI Emerging Markets index (about 5% over the next year). The view from the equity market seems clear: COVID-19 is a risk but should not derail the supportive context for corporate earnings and stock prices.
The agreement between Renfe Operadora and Central Texas reached in 2019 to develop the first high speed project in the US, that will link the cities of Houston and Dallas / Fort Worth, in the State of Texas. The contract will involve a turnover of 6,000 million dollars for the Spanish railway operator, the largest industrial contract of a Spanish company abroad, along with that of the AVE to Mecca.
Equity markets tumbled worldwide following the wide spread of the coronavirus epidemic beyond China. European stocks dropped most since 2016, with Italy’s MIB index dropping 5.43%, while the declines were more contained in Asia. Elsewhere, implied volatility increased further (VIX 23+6 points).