Spanish economy

Telefónica

Significant impact on Telefónica if energy costs double: -6% on Ebitda margin and -11% on the opFCF margin

Morgan Stanley | The figures are not available in all areas but we estimate that the telecos’ exposure to the spike in energy costs for the marjority of the stocks is around 1-2% of sales (on average). To give a more complete view, using as a reference the margins and Capex, for an operator with an EBITDA margin of 38% and Capex of 19%, a cost of energy x2 would…


Exports

China Becomes Spain’s Leading Supplier

Luis Alcaide (Capital Madrid) | The current account balance of payments recorded a surplus of 8.428 billion euros in 2021, when exports grew by 21% and imports by 24%, with China as the leading supplier (11.9% of our imports vs. 9.6% for Germany and 9.1% for France). In the face of the avalanche of unquieting news, Spain’s political and economic health in the first months of this year 2022 and…


Air Europa

IAG will grant Globalia a €100 M loan, implying a €500 M valuation for Air Europa

Bankinter | IAG will grant Globalia a 100 million euros loan. At some point in the future, it could convert that into an up to 20% stake in Air Europa. This loan will give Iberia exclusivity in negotiations. Analyst team’s opinion: Neutral impact. On the one hand, this provides Iberia with more time to reach an agreement and block the entry of a third party. In practice, it implies putting…


spanish economy

Growth Of The Spanish Economy Unlikely To Reach The Expected 5% In The Face Of The War In Ukraine

Oriol Aspachs (CaixaBank Research) | The outbreak of war in Ukraine has occurred at a time when things were looking favourable for the Spanish economy. Economic activity gained traction during the course of the past year and in Q4 it grew by a significant 5.2% in year-on-year terms. In addition, the impact of the new wave of infections caused by the Omicron variant was lower than feared. The high proportion…


Lamanodedios

“Saving The PSOE”

On 1 October 2016, the day the PSOE executive kicked Pedro Sánchez out of the party’s general secretariat (his subsequent revenge would be merciless) El País defined Sánchez’s profile in its editorial “Saving the PSOE”: “The inevitable and legitimate dismissal of Pedro Sánchez is the only way out for the party”. “The departure of the PSOE’s secretary general, Pedro Sánchez, is essential…. Sánchez has not turned out to be a…


Strike

Truck drivers’ strike Threatens To Collapse Spanish Economy

El Mundo headlines today: “The transport strike is overwhelming the government and putting the country’s supply chain in check”. “The government no longer supports the right to strike and calls the transport workers ‘radicals’”, underlines El Español. “The socialist law of pickets turns against the government in the radical transport strike” recalls the digital newspaper Vozpopuli.com… ArcelorMittal and Azucarera have decided to stop production. The dairy, steel and fishing industries…


iberdrolaTC

Iberdrola postpones its Investor Day, scheduled for March 22nd, in light of the current context

Bankinter | The company has decided to postpone sine die its Investor Day, during which it gives an update on its earnings outlook, dividend and strategic coordinates. This year’s Investor Day was set for Tuesday 22nd March. The company is maintaining current estimates for its future performance. Analyst team’s opinion: Iberdrola’s decision to postpone its annual meeting with investors is logical. The group is facing a high level of uncertainty…


NuñezFeijoo

“The Government Gets Rich”, Feijóo Gets Down In The Mud

Fernando González Urbaneja | From Núñez Feijóo we expect seriousness, consistency, experience… he himself has reiterated this is what can be expected of him at this stage of his political career. He is not lacking in evidence and reasons, although national politics, that which is called Madrid, has its handicap for those of us who come from outside. For those in the PP, Feijóo’s direct attack on Sánchez, with the…


Inditex

Inditex posts 2021 profits of €3.243 Bn, up 193% vs 2020

Inditex posted net profit of 3.243 billion euros in its fiscal year 2021, up 193% from a year earlier, when its earnings were hit by the Covid-19 pandemic. The figure was still 11% below the 3.639 billion euros recorded in 2019. Total sales at the Zara owner rose 36% to 27.716 billion euros year-on-year, while online sales increased by 14% to 7.5 billion euros, 25.5% of the total in 2021….


Spanish companies' cost of financing at minimum lows

More Than 3 Million Companies Created In Spain In The Last 30 Years

According to a study presented by Informa D&B, during the last three decades more than 3,173,000 companies have been incorporated in Spain. Among those created in 1991, 2001 and 2011 it can be seen that most of them are no longer active. Of those incorporated in 1991, 16% are still in the market, among those created in 2001, only 21% are still in business and 32% of those that started…