Bankinter | The Governing Council of the Bank of Japan (BoJ) decided by seven votes in favour and two votes against, to raise the benchmark interest rate to 0.25%, from the previous range of 0% – 0.1%. The market consensus expected no change, although it perceived an upward move as a possible risk. In addition, the BoJ unanimously approved a reduction in government bond purchases to a monthly pace of…
CdM | The Spanish economy grew by 0.8% in the second quarter of the year, the same as in the previous quarter, and accelerated its year-on-year growth by three tenths of a percentage point to 2.9%, according to the advance National Accounts data published on Tuesday by the National Statistics Institute (INE). Domestic demand contributed two points to year-on-year GDP growth, while foreign demand contributed nine tenths of a point….
Deutsche Bank (Thomas Rothaeusler) | The company has finally set the financing structure for its data centre expansion by raising €921 million in new equity, confirming our scenario, which reflects an increase in earnings after two years and non-recurring revenues after one year and equates to a target price of €13 per share. We view the capital increase as a very positive development, as it lays the foundations for significant…
Link Securities | In reference to the sale and purchase agreement reached with Blackstone, Enagás (ENG) has announced that yesterday, following the closing of the sale and purchase agreement, it has transferred 100% ownership of its shares in Tallgrass Energy LP to Blackstone. The price received by Enagás on this date amounts to a total of $1,050 million, with $50 million still to be received, subject to Tallgrass Energy LP…
Alicia García Herrero (Natixis) | Chinese President Xi Jinping’s European tour, his first in five years, was a true reality check for Europeans. Not only did Xi take his time to visit the continent, but his choice of destinations — Serbia, Hungary and France — was telling. French President Emmanuel Macron was an important target for Xi due to his recent harsher stance on Russia’s war in Ukraine and strong…
The Court of Auditors has raised a preliminary question to the Court of Justice of the European Union (CJEU) regarding the amnesty law, considering that the alleged diversion of funds for the “referendum” of October 1 and the external action of the ‘procés’, for which the former Catalan president Carles Puigdemont and 34 other people are indicted, affects the financial interests of the EU. In an order, the councilor of…
There is an agreement in principle between the socialists and ERC (Esquerra Republicana de Catalunya) to invest the socialist Salvador Illa as president of the Generalitat. The pact includes a “solidarity economic agreement” that will take Catalonia out of the common regime of autonomic financing and will cede to the Generalitat the management of 100% of the taxes. Although, according to the socialists, it will differ from the so-called “Basque…
Bankinter | The Hungarian consortium Ganz-MaVag is willing to reserve part of Talgo’s capital to a Spanish partner designated by the Government. With this proposal Ganz-MaVag hopes to overcome the Government’s reluctance to approve its takeover bid for Talgo. Between 9 and 10 August, the government must decide on the takeover bid, although the deadline may be extended by three months as more information has been requested. Analysis: This solution…
Link Securities | In an interview with Europa Press, the CEO of Banco Sabadell, César González Bueno, has not ruled out the possibility of paying extraordinary dividends to distribute to its shareholders all the excess capital that the bank generates above 13% of CET1, as the bank had committed to do even before the hostile takeover bid announced by BBVA at the beginning of May. Asked about the limit set…
Bankinter: The Personal Consumption Expenditure deflator was up 2.5% in June versus +2.5% expected and +2.6% previous. Underlying rate +2.6% versus +2.5% expected and +2.6% previous; (ii) Personal Income +0.2% month-on-month in June versus +0.4% estimated and +0.4% previous (revised from +0.5%); (iii) Personal Spending +0.3% m/m versus +0.3% estimated and +0.4% previous (revised from +0.2%). Analysis team’s opinion: Good news for bonds, although with a moderate impact on stock…