Banc Sabadell | Ence has published bad results for 3Q19, although more or less in line with expectations at the level of Ebitda. Thus sales fell -8.4% vs 3Q18, somewhat better than expected (-11.1% BS expectation and -12.6% consensus) above all because of a greater volume of sales.
Banc Sabadell | 3Q19 results above expectations in EBITDA (+4.6% vs +3.3& BS expectation and 3.0% consensus) due to margins slightly above expectations (70.3% vs 69.6% consensus vs 70.5% in 3Q18) where the key has been the acceleration of incomes in the international area (5.6% sales) which has been able to compensate the increase (already known) in personnel costs.
BOfAML | Orange’s Q3 results were broadly in line with expectations with revenues 0.5% ahead, (+0.8% in Q3 vs +0.4% in Q2) and EBITDAaL +0.2%, in line with consensus expectations. The mix was somewhat weak however with France and Spain delivering slightly below
Christian Scherrmann (DWS) | As has been widely anticipated, the Fed is again lowering key rates by 25 basis points – the third step in the current cycle. Judging from the obligatory statement, it seems quite plausible the Fed might be done with cutting for a while. From now on, its main focus seems to be on monitoring the U.S. economy, rather than, say, on pondering whether the current interest rate level appears appropriate, given the current situation. In short, the Fed is once again data-dependent.
The Spanish technology company Indra is closing to winning a contract in the US to install a managed lanes system in a motorway in Virginia.
Alphavalue | A key of ACS is the management’s ability to copy Vinci’s business model (add, target € 114) in the Anglo-Saxon world, thanks to the expected complementarity between Hochtief (German construction company) and Abertis (highway concessionaire).
Joan Bonet Majó (Banca March) | In recent years, the unicorns have not ceased to multiply. Their growth is so strong that it could be said that they are reproducing like rabbits. According to CB Insights, currently there are 403 unicorns with a joint value of 1.3 trillion dollars, similar to the GDP of countries like Spain.
BOfAML | We still see EURUSD somewhat weaker by the end of the year, to 1.08, before appreciating again next year to 1.15, in a gradual move towards our equilibrium estimate of 1.20-1.25. However, our more optimistic forecasts for next year assume that US-China and US-EU trade tensions ease. We also assume a Brexit deal, the likelihood of which have recently improved.
Alexandre Mato (Brussels) | Job and office cuts, mergers of different banking cultures, necessary digital transformation, lower profitability because of the interest rate environment … “In a context of profound market changes, banks cannot allow themselves to spend three years looking inwards!” concludes Wim Mijs about the long process of cross-border operations in the sector. The CEO of the European Banking Federation, the sector´s main interlocutor with European institutions, explains the sector´s main challenges just after presenting a project to boost EU capital markets.
Spanish airport operator Aena expects an increase in capacity of + 0.5% for this winter, which represents a significant slowdown compared to the 19% summer traffic growth of + 4%, as well as the + 6% winter growth of 2018-19.