Telefonica’s Blown It With Telxius IPO

These are not good times for IPOs. Telefónica has been obliged to cancel the IPO of its infrastructure affiliate Telxius, with the agreement of the placement banks. With the stock market listing, Telefonica had hoped to reduce its hefty debt pile of over 52 billion euros. But market pressure has forced it to backtrack. Telefónica’s shares opened down 4% on Friday. So far this year, the shares have still lost over 8%.


OPEC Gives Up Its Role As Central Bank Of Oil

Citi Research | That a deal might have been made in OPEC informal meeting in Algiers is a surprise. Looking deeper the “deal” becomes less and less meaningful, and more and more rhetorical. Furthermore, there is no detail yet on the quota levels per country, which would be the major dispute. We reaffirm our Brent crude oil price view of a $40-50 trading range in 2H’16.


“There Is No Capital Flight In Colombia, Quite The Contrary”

Guillermo Pérez Flórez | Colombia’s government and the FARC signed a peace deal after 52 years of war. On the economic front, Carlos Gustavo Cano, co-director of Colombia’s central bank, is firmly in favour of raising interest rates to try to contain inflation, as well as allowing the opening of dollar accounts.

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Spanish Banks: R.I.P (Rust In Peace)

Listed Spanish banks have an exposure to sovereign debt equivalent to almost 2x their tangible equity and those bonds generate, on average, almost 1x the banks’ PBT, as said by Exane BNP Paribas’s Spanish banks analyst Santiago López . His views about central banks operations do not necessarily reflect the house view.

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