According to a report about dividends from Allianz Global Investors, European companies have an investor-friendly dividend policy compared to their international peers. At the end of December 2018, their average dividend yield across all market segments (based on MSCI Europe) was around 3.8 %.
The two largest Italian banks, despite various efforts by their management teams to sanitise their balance sheets, seem to be suffering from the “Italian risk” by association. In opinion of experts at Banco Santander, this specific risk is exaggerated, and the current depressed valuation is an opportunity to buy.
Last Tuesday in the city of Aachen, Emmanuel Macron and Angela Merkel signed a treat to give a new impulse to the EU. This is heir to the Elysee Treaty that was signed by Charles de Gaulle and Konrad Adenauer in 1963. The German-French alliance may not be important in terms of political convergence, but the economic reality of globalisation has already achieved it with listed shares.
The National Commission for Markets and Competition (CNMC) and its French counterpart, the Energy Regulation Commission (CRE), have rejected the Step project, one of the key phases of MidCat, the main gas interconnection project between France and Spain. Valued at some €3 Bn, it was called on to play a key role in the reconfiguration of the energy geopolitics of the EU.
Lidia Conde (Frankfurt) | All the labour market data in the country are brilliant. Since 2007 it has gone from 40.3 million people in work to 45.2 million in 2019 (45.5 in 2020). In ten years Germany has gone from 8.6% unemployment to 3.1%. There is even a shortage of skilled labour. And its citizens are happier than ever with their quality of life.
Theresa May wants to secure an orderly withdrawal from the EU (she was a lukewarm remainer in the Brexit referendum). But she also wants to hold her political party together. She does not want to be the Prime Minister which breaks the Conservative Party. Above all she does not want to be the new Ramsay MacDonald, the first Labour Prime Minister in 1924, who saved the national economy, but split the party.
Today the proposal of the British government will be known, although we do not know it will be a text agreed with the opposition , which insists it will not negotiate unless Theresa May renounces a no-deal Brexit. The UK is the fourth largest destination for Spanish exports. And the main foreign recipient of investment, so a hard Brexit would do significant damage to the country. All Spanish companies with presence in the UK have been discounting complicated scenarios since 2016.
Now the UK parliament has the last word on Brexit agreement. The calendar is the problem and, obviously the problems associated with the decision taken, but a hard Brexit may be less of a risk. The experts from Alphavalue have taken the share prices of Getlink, the public company that manages and operates the Eurotunnel, and the London Stock Exchange Group, as examples of companies whose performance has discounted a soft Brexit scenario for some time.
The TLTROs, or ECB credit lines to European banks, have for years regulated bank liquidity.We are talking about some 725 billion euros in financing, of which 170 billion corresponds to Spanish banks. They are little by little being reduced. It is still not known if they will be withdrawn completely. According to analysts at Morgan Stanley, replacing this quantity of TLTROs would not be a panacea for the banks.
Tahir Abbas | The underlying structural and cultural problems of the UK are not going to change by leaving the European Union. The austerity program that was initiated in light of the events of the 2008 global financial crisis hit Britain far more severely than other countries within the EU. As has been reported by the UN special rapporteur, this austerity policy was ideological in nature and not based on sound economic thinking.