Santander Corporate &Investment | We have adjusted our estimates (including its recent acquisition of Cignal in our forecasts). Nevertheless, the main novelty is the modification of our suppositions on the cost of capital to take into account the current interest rate scenario.
Renta 4 | Telefonica shares hit their lowest level in August since 2006, since when they have recovered more than +10%. We see that investors have turned their back on the operator, disappointed by a business evolution which has not improved at an operational level and lacking confidence in a significant and sustained improvement in the future.
Santander Corporate & Investment | The global scenario has not been especially positive for the flow of funds in assets which traditionally imply greater risk, like equities and raw materials. The investment in fixed income has received the majority of new investment in the last six years. Nevertheless, the global high yield category (the kind of asset most like equities) has differed from this trend in the last three years, with hardly any new investment, reflecting the situation with equities.
Bankinter analysis team believes that the cut in the deposit rate to -0.50% (from -0.4%) further penalises keeping excess liquidity in the ECB. Tiering (or the method of charging in tranches) only partially mitigates the impact with a volume of up to six times the coefficient of obligatory reserves (currently 1.0%) exempt. This favours banks with higher and more internationally diversified ratios of credit investment/typical resources like Banco Santander and BBVA.
Bankinter | Non-binding negotiations to buy selected assets from Senvion group. Siemens Gamesa has just announced the beginning of exclusive, non-binding negotiations for the possible acquisition of selected assets, free from financial debt.
Antonio Castillo Espinosa via The Conversation | Spain proposes to tax the operations most undertaken by citizens (buying and selling shares, which the peculiarity that, in addition, households and families own about a quarter of the market, twice the European average.
Alphavalue | As a European leader in urban hotels, the Spanish chain has experienced a very positive first half of 2019, benefiting from solid momentum in European cities, especially noticeable in the strong recovery in Catalonia. However, the good results have not driven the group´s value, despite very attractive fundamentals, as 94% of the capital in in the hands of MINT (Minor International). The lack of liquidity, together with an unpredictable strategic plan from its Thai owner, have sadly driven investors away.
(European Views) | Referring to the EU as a “bloc” doesn’t make enough sense any way you look at it.
Société Générale Markets | We remain cautious about the Investment Bank sector, with estimated decline in incomes of -9% in 2019, followed by stabilisation in the next two years. Our estimates of EPS are generally below the consensus.
BofAML | We reiterate Buy on Grifols A&B for durable double-digit EPS growth driven by strong global plasma market position. Margin expansion is returning as plasma cost stabilises. AMBAR study in Alzheimer’s disease; may increase IG/Albumin demand through off-label use.