market chatter

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Roaming fares and air traffic capture Friday’s market chatter

MADRID | By Jaime Santisteban | European Parliament could eliminate roaming mobile phones rates as of December 2015. Although they’ve been reduced in the last years, it still means 2 % of Telefónica Group income. ACF foresees an impact worth 4 % in the company’s EBITDA.

 

IAG released March air traffic figures which were under target but keep the recent trend. Demand grows (+10.2 % vs March 2013) for the second straight months. Iberia lost -5.1 % compared to February whereas Vueling (+21%) and British Airways (+3.2%) improved. RENTA4 expects no impact on IAG share price.


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Today’s market chatter in Spain

MADRID | By Jaime Santisteban | Market makers woke up with a torrent of data explaining how first quarter played out: Spanish public deficit, Eurozone’s activity indicators, and many more.


FCC’s refinancing deal captures Spain’s market chatter today

MADRID | By Jaime Santisteban | Spanish builder and services firm FCC wrapped up a debt refinancing agreement worth €4.5bn with 99 % of creditor banks, which could turn debt into corporate capital. Market makers like ACF find the move possitive but warn that this move would increase debt average cost.


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Market chatter: goodbye to a quite unsettling quarter

MADRID | By Jaime Santisteban | Today we close a rather complicated quarter. Beyond 10-year Spanish bonds, this term turned out a little unnerving with Ukraine’s crisis, fears of deleveraging in China and Fed’s “hawkish” messages. J.P. MORGAN downgraded 1Q14 global growth prediction from 3 % to 2.3 % and now reduces US’s  from 2 % to 1.5 %. Harsh weather may have affected the GDP by up to 1 %.


Market chatter: Repsol, Gas Natural and much more

MADRID | By Jaime Santisteban | Repsol could sell its 30% participation in Gas Natural before the summer. 20 % of it would go for sovereign wealth funds (yet unidentified) and 10 % through quick placement of shares. RENTA 4 believes the company will monetize the operation if other worthy investment opportunities are identified. SABADELL finds the move logical within negotiations with La Caixa (which controlls 1/3 of Repsol’s capital). ACF highlights that Gas Natural shares are turning out very profitable in dividend for Repsol (4.5%), making this sale not that attractive for that firm.


Market chatter: bonds await ECB’s move

MADRID | By Julia Pastor | European sovereign bonds markets have put some champagne bottles on the fridge for next neek in the case the ECB decides to inject some stimulus on the euro zone at last. Without setting a precedent, president Mario Draghi and Bundesbank’s head Jens Weidmann seem to bring their positions over the mechanism closer. This change of direction led Spanish 10-years bonds to 2005’s minimum yields of 3.27% and was behind the successful issue of Italian public Treasury, which sold €2.5 bn at also very low prices. Just Greece’s bonds are trending downwards.

 


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Today’s market chatter in Spain

MADRID | By Jaime Santisteban | Spanish government plans to create a state firm to house the failed toll roads, which will issue a 30-year bond of around 2.3 billion euros to pay the motorways’ debt. Also, creditor banks will be forced to accept a 50 percent haircut. In this regard, analysts at ACF and Sabadell don’t expect a considerable harm on licensed building companies’ share price.


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Today’s market chatter in Spain: gas reform, tourist sector rocking and much more

MADRID | By Jaime Santisteban | 13.8 million people checked in Spanish hotels last month, 5.5 % more than February’s last year, according to official data.  Frontur Spain highlights that 6.2 million tourists have visited the country so far this year. Bankia analysts highlight how this crucial industry for the country’s GDP seems to be overcoming the crisis, growing for the third consecutive month.


Today’s market chatter in Spain

MADRID | By Jaime Santisteban | After the storm always comes the calm, and the dividend. Bankia’s Chairman José Ignacio Goirigolzarri revealed in the General Shareholders Assembly on Friday when first dividend will be distributed, probably in 2015. Restructuring plan (in record-breaking time) prevented the bank from doing so in 2014 and 2014. Reward wouldn’t just benefit small stockholders but also the State, that would get back part of the €22.4bn disbursed for BFA-Bankia bailout. 


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Today’s market chatter in Spain

MADRID | By Jaime Santisteban | Moderate falls on European stock markets today as they assimilate this ‘hawkish’ message from the Fed.  In Spain, another operation adds to Prisa’s restructuring of its debt burden of over 3 billion euros.