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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
IAG

Companies 9th August 2023

British Airways reaches agreement on 13% pay rise to curtail strike risk

On Friday, British Airways (IAG) (45% of 1H23 EBIT) and Unite (UK union) reached an agreement to increase pay by 13% in 2023 (~24,000 employees; excluding pilots). In addition, a one-off lump sum payment of £1,000 (~1,150 euros) was agreed. The agreement has already been approved by the union’s membership. Assessment: Positive news insofar as the risk of strike action is mitigated in peak season (~40/50% of EBIT is generated…

italia bolsa

In Europe 8th August 2023

Italy announces extraordinary banking tax that could raise up to 14% of sector’s profits

Bankinter: The Italian government surprises negatively by announcing an extraordinary tax on banks. Assessment: It seems that the government intends to raise up to €2 billion in this way. The details of the tax are still unknown, but it seems that its scope would be limited to the results of 2023. This is bad news because the collection target represents ~14.0% of sector Profit in 2022 and ~10.5% of estimated…

DIA supermarkets

Companies, In Spain, Relevant News Item 8th August 2023

DIA makes profit in Spain for the first time in six years: €6.3 million

Norbolsa | DIA achieves profits in Spain for the first time in six years. The company presented its first-half results with a net profit of €6.3 million, compared to the almost €55 million it lost in the first half of 2022. This is mainly due to the transformation process that the company is carrying out where one of the strategies is to reduce the commercial network, since 2018 they have…

china exportaciones

Markets, Relevant News Item 8th August 2023

China’s trade balance deepens economic slowdown

Renta 4: Stock markets point to a flat opening (Eurostoxx futures -0.07%), after a Monday session where there were no major corporate references after the conclusion of the 2Q23 results season (in the absence of Bayer today). In China, weak July trade balance figures were published, with exports falling at their fastest pace since February 2020 (-14.5% vs 12.5% estimated and 12.4% previously) and imports surprisingly down when an improvement…

eurozone.a tope

European economy, Relevant News Item 8th August 2023

Eurozone investor confidence ends three-month decline at -18.9 in August (vs. -22.5 in July)

CdM: Investor confidence in the euro area rebounds more than expected. In August, the Sentix index stands at -18.9 from -22.5 in July. The consensus expected it to fall further to -23.4. This puts an end to three consecutive months of declines. The data was driven entirely by an increase in the future expectations indicator, which rose 7.3 points to -17.3. However, the figure still “underscores current recessionary conditions” and…

iberdrola megachuli

Companies, Ibex, Relevant News Item 7th August 2023

Iberdrola reduces debt maturities in 2023 to less than €2 billion

Link Securities | Iberdrola (IBE) has reduced its debt maturities in 2023 to less than €2 billion, after obtaining €4.855 billion in new financing and extending the duration of €6.1 billion so far this year, as reported on Monday by Expansión newspaper based on Europa Press. Specifically, the electricity company has received the support of the market, having executed some 30 operations between loan extensions and new financing in the…

bancos financiacion recurso

EuroStoxx Reports, Markets 7th August 2023

European bank trade still has upside: at 7x P/E it still trades at 50% discount to the market

Morgan Stanley: 100% of the sector has beaten NII so far, still a clear buy. Álvaro Serrano (analyst) highlights another quarter of solid results from European banks with 100% beating NII (rising rates and lower deposit betas) and contained credit risk. That said, the good results and the lack of growth in RWAs allowed banks to boost shareholder distributions with several of them (CABK, DBK, HSBC, BARC…) announcing new buyback…

telefonica alemania2

Companies, Relevant News Item 7th August 2023

Telefónica secures growth targets in Germany despite 1&1 and Vodafone deal

Norbolsa | Telefónica (TEF) secures growth targets in Germany despite the 1&1 and Vodafone agreement. Telefónica reported that operator 1&1 has contractual obligations until 2025, regardless of Vodafone’s announcement to cooperate on German national roaming. Telefónica confirmed that thanks to the momentum of its new O2 brand, it expects to grow in line with targets, highlighting volume growth in all its divisions

COLONIAL2

Relevant News Item, Spanish economy 7th August 2023

Investment in Spanish real estate sector expected to fall by -50% to €9 billion in 2023: Colonial’s assessment cuts by 3%

Intermoney| According to the newspaper Cinco Días, referring to a report by the real estate consultancy Colliers, investment in the sector’s assets in Spain will suffer a cut of close to 50% over the course of this year, remaining at €9 billion. The reasons given for this include the aggressive monetary policy of central banks, which has pushed yields up. Another negative factor, which particularly affected the second quarter, was…