Today’s market chatter in Spain

European stocks get a negative inertia coming from Wall Street, despite the reduced geopolitical risk. Bankinter forsees moderate falls on stock markets today as they assimilate this ‘hawkish’ message from the Fed. In the medium term the strategy will have a negative effect on investment towards emerging countries while Eurozone may benefit from a gradual currency depreciation. In Spain, another operation moves forward Prisa’s assets disinvestment. Top management means business.

Here’s what market makers are talking about today:

CORTAL CONSORS forecasts an unemployment rate under 7 % in 2Q14. 34,600 less jobless in the UK in February (-25,000 expected).  Bank of England keeps interest rates at 0.5 %, 375 GBP asset purchase and reiterates forward guidance: unemployment under 7 %, inflation under 2.5 % in the next 18/24 months and  stable financial and inflation prospects. In this regard, analyst foresee no move from BoE. Strategic Plan for the upcoming three years was released where the monetary authority goal was redefined: “Foster society well-being through the upholding of monetary and financial stability”.

RENTA 4. Spanish leading engineering company Tecnicas Reunidas got a consortium contract to build a power station in Turow, Poland. Project value totals €772M and TR participates by 22.3 %. The news open up a good year when it comes to contract awards (accumulates €670M year-to-date).  RENTA 4 recommendates to overweigh, target price 44.7 €/share and estimates a 15 % potential.

BANKINTER. Prisa sold its publishers Alfaguara and some brands of Santillana operating across 22 countries. The buyer, Penguin Random House (world leading publishing house) paid €72M. But market makers are more interested in the sale of Digital Plus to Telefónica or Al Jazeera, which could ultimately determine Prisa’s fate.

SABADELL. Siemens is considering dividing its actual structure of 4 divisions (Energy, Healthcare, Industry and Infraestructure&Cities) to reduce burocracy.  Besides, Siemens CEO confirmed that stock repurchase plan (€4bn in two years) was not started yet and would be deferred until May, due to possible impact of new strategy in share price. New structure brings uncertainty to investors and such a sizeable restructuring may display a negative situation. Regarding the delay in the stock repurchase plan is not a good sign either as CEO may imagine markets not welcoming the new structure.

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