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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.
SpainConstitucionalCourt

Spanish Politics 20th December 2022

The Constitutional Court upholds the right of minorities to participate in law-making and suspends the government’s express reform

In a scenario of unprecedented institutional crisis, the Constitutional Court agreed yesterday by a slim majority of its members (6 votes to 5) to paralyse the legal reform promoted by the Government parties in Parliament to change the functioning of both the General Council of the Judiciary and the High Court by express means. This reform allowed the Government majority to reduce the 3/5 majority required until now to appoint…

Sabadell

Companies, Ibex 20th December 2022

Sabadell would have bought back 20% of its back office subsidiary

Renta 4 | In line with information in the press and without any official figures on the transaction, Sabadell would have put an end to the alliance with Indra and NTT Data, who own 20% of if its back office subsidiary (BSOS). This move would be in response to the change in the bank’s strategy and the reduction in the workforce at BSOS after the voluntary departure programme in 2020….

Santander

Companies, Ibex 19th December 2022

Santander: EPS 2023 estimates lowered by 3% as US subprime auto loans delinquencies rise

Morgan Stanley | The increase in delinquencies in subprime auto loans in the US, as well as the normalisation of second hand car prices, is not being caught by consensus. When this happens, the debate will begin over the weak yield in the region, preventing a rerating of the security. The analyst is lowering EPS 2023 forecasts for Santander by 3% due to the increase in the level of provisions…

poverty

Spanish economy 19th December 2022

Almost 16 million Spaniards have collaborated financially with non-profit organisations in the last year

Almost 16 million Spaniards (39% of the population) have collaborated financially with a Non-Profit Entity (NPO) during the last 12 months, that is, one million more than in 2020 (37%) have decided to donate to a social cause. This is according to the study ‘Profile of the Donor 2022’, prepared by the Spanish Association of Fundraising (AEFr) in collaboration with Kantar and conducted on a sample of 1,200 interviews that…

Inditex

Companies, Ibex, Spanish economy 17th December 2022

Resilient growth and margins, reasonable valuation, sustained cash generation: Buy Inditex (T.P. 27,5 euros/share)

Bankinter | Inditex’s Q3’22 results (August-October) met expectations. Sales were up 11% vs expected 9%. Despite some deterioration in a difficult context, margins are holding up at levels close to historic highs (M. EBIT 21.3% vs 21.7% in Q3’21). The Q4 kickoff, which includes the Christmas season (on average 30% of annual sales), is good. In the first 5 weeks (from November 1 to December 8) sales grew 12%, gaining…

ArcelorMittal

Companies, Ibex, Spanish economy 17th December 2022

ArcelorMittal presents offer for Iberdrola’s macro renewables portfolio in Spain valued at some €1.2 B

Link Securities | According to financial sources consulted by the daily Cinco Días, Arcelor Mittal has presented an offer, teaming up with the fund Copenhagen Infrastructure Partners, for Iberdrola’s macro renewables portfolio in Spain. This is valued at some 1.2 billion euros. The decision on which offer will be selected by the electricity giant for the so-called Proyecto Romeo is expected to be published next week. Separately, Cinco Dias said Iberdrola…

european banks2

Companies, Ibex, Spanish economy 16th December 2022

Increase in capital requirements for some Spanish banks (BBVA, Sabadell, Caixabank)

Singular Bank | The ECB revises and determines minimum capital requirements for each lender annually so that, in function of its own funds, it has an established guarantee of solvency. In this respect, for 2023, BBVA will have to have a CET1 ratio of 8.72% (vs 8.60% in 2022) and a total capital level of 12.97% (vs 12.76%). In the case of Sabadell, the CET1 will have to be 8.65%, compared…

repsolatardecer

Companies, Ibex, Spanish economy 16th December 2022

Repsol buys 7.700 MW renewables portfolio from Asterion Energies for €560-580 M

Bankinter | Repsol has bought a portfolio of over 7.700 MW of renewable projects from Asterion Energies. The assets are located in Spain (84%), Italy (12%) and France (4%). The Spanish oil and gas company is paying 560 million euros for the portfolio, plus an additional amount of a maximum 20 million euros for contingent payments. Analyst team’s view: Positive news because: (i) it expands its position in renewables. We…

Companies restructuring

Spanish economy 16th December 2022

Insolvency proceedings soar 71.5% in November

Company insolvency proceedings stood at 693 registrations in November, 71.5% more than in the same month of the previous year, according to the advance monthly data published on Thursday by the Association of Registrars. Madrid, with 213 insolvency proceedings, Catalonia, with 125, and the Valencian Community, with 107, accounted for nearly seven out of every ten insolvency proceedings filed in November. The Association of Registrars explained in its statement that…

ECB night

European economy 15th December 2022

The ECB is committed to continue to increase rates significantly

Annalisa Piazza (MFS Investment Management) | The ECB is committed to continue to increase rates significantly, at a steady pace and to keep rates in restrictive territory until the medium inflation target returns to target. The central bank announced that it will start quantitative tightening (QT) related to the APP at the beginning of March 2023, with a “measured and predictable pace”, allowing the Eurosystem balance sheet to decline by…