Carax Alphavalue | Mrs May’s talk of energy price controls sent the UK sector into a downward spin. The Catalan mess also pushed sharply down the Spanish utilities’ share prices. The only surprise is that it took three days for markets to react to the Spanish risks.
While the telecoms sector (mainly represented by Telefónica) is very attractive for investors, “looming pressure on returns” is clouding investor interest in the utilities.
The European Central Bank (ECB) will today begin its corporate debt purchasing programme (CSPP). This means it will acquire, via approximately 12 national central banks, investment grade debt issued by companies. Spain could benefit from this programme to the tune of nearly 60 billion euros.