Peter Goves (MFS) | This was as guided at the last meeting and is largely due to inflation projections being “too high for too long”. On QT, the policy was extended (again, as widely telegraphed) across all APP from July 2023. EGB spreads remain relatively tight and continue to exhibit relatively low volatility. There were minor changes to the forecasts which show medium term inflation at 2.2% (in 2025, +0.1ppt)….
CoM | The US Federal Reserve (Fed) decided on Wednesday to pause interest rate hikes and keep them in a range of between 5 and 5.25%, after a historic round of ten consecutive rate hikes since March 2022. “Recent indicators suggest that economic activity has continued to grow at a moderate pace. Employment growth has been solid in recent months and the unemployment rate has remained low,” the agency said…
Banca March| Russia has announced a windfall tax on its large companies as a method of financing the war. Putin’s government announced a bill to levy a one-off 10% windfall profits tax on large Russian companies, the country’s Finance Ministry said on Tuesday. It targets companies that annually generated more than 1 billion roubles, or $11.9 million, in profits from 2021, according to the announcement. The new levy could raise…
Cepsa will build the largest green ammonia plant in Europe at its San Roque Energy Park (Cadiz), thus accelerating its commitment to green hydrogen with an investment of €1 billion. With an annual production capacity of up to 750,000 tonnes, which could avoid the emission of three million tonnes of CO2, the facility is expected to be operational in 2027. It will also create 3,300 jobs, including direct, indirect and…
BancaMarch: The European Union is in favour of concluding the agreement with Mercosur before the end of the year. The President of the European Commission, Ursula von der Leyen, defended on Monday before the President of Brazil, Luiz Inácio Lula da Silva, the need to close the trade agreement between the European Union and Mercosur before the end of the year. Doing so would thus conclude a pact that has…
Spain will boycott a meeting of NATO defence ministers with the defence industry on Thursday in protest at the Alliance’s decision not to invite any of Spain’s leading firms. Minister Margarita Robles, who will be in Brussels for a meeting with her 30 colleagues at NATO headquarters, will be absent from the room when the meeting begins, however, as she is very upset about the selection of companies, the opacity…
Alphavalue / Divacons| The chairman of the Catalan bank, José Ignacio Goirigolzarri, believes that the balances of credit portfolios in Spain will remain stable or register slight increases over the next three years, as he said during his speech at the conference that Cinco Días is holding to celebrate its 45th anniversary. Meanwhile, the credit rating agency Fitch Ratings decided to maintain unchanged the BBB+ rating assigned to CaixaBank as…
Link Securities| Gabriel Escarrer, CEO of Meliã International, said the company operates a record 110,000 rooms worldwide, digital portal Bolsamania.com reported yesterday. Meliã’s hotel occupancy is the highest in its history. The company will also add capacity in Vietnam, Italy, Cuba, Seychelles and Montenegro and will start operations in Albania and Tanzania in 2023. Additionally, the hotel chain has raised its bookings to 30% above 2019 and expects margins to…
Alicia García Herrero (Natixis) | The Bank of Japan (BoJ) has begun to highlight the rising inflation bias. At the Lower House, Governor Ueda testified on June 9th that corporate price-setting behavior has been shifting upward. Furthermore, as the spring wage negotiation resulted in the largest wage increase in 30 years, inflation could surprise on the upside.Price transfer of higher input costs has become broad based. For sure, small companies,…
Jeremy Cunningham, Investment Director, Fixed Income at Capital Group| The European Central Bank (ECB) will face an even more challenging policy environment in 2023. Core inflation appears to have already peaked in the major European economies and should continue to fall as the effects of last year’s sharp increases in energy prices fade. However, underlying inflationary pressures are rising. Higher energy prices are being passed through to a wide range…