Analysts believe this tightening makes sense due to the strong growth in credit consumption in recent years. The metrics for the concession of mortgage credit which already had the highest Loan-to-Value (LTV) in recent years, much higher than in the years of the housing bubble.
via The Conversation | The International Monetary Fund (IMF) has become increasingly infatuated by the negative consequences of excessive inequality. This new-found mission is laudable, but neglects the manifold ways its own policy advice contributed to growing income inequality.
The Spanish media company published its results for the first half and second quarter of 2019. The principle figures compared with the Bloomberg consensus are: Income 256.4 M€ (-7.9%) vs 253€ estimated; EBITDA 92.7 M€ (+0.8%) vs 87.3 M€ estimated; EBITDA margin 36.1% (vs previous 33.0%); EBIT 87.7 M€ (-1.2%) vs 84.3 M€ estimated; EBIT margin 34.2% (vs previous 31.9%); NAP 74.3 M€ (+3.1%) vs 65.9 M€ estimated and EPS 0.24€ (+9.0%) vs 0.18€ estimated.
Telefonica published its Q219 results. According to Bankinter market watchers, they are slightly better than expected: Income +0% to 12.142 Bn€ vs 11.981 Bn€ expected by the consensus. Operational profits -12% to 1.802 Bn€ vs 1.755 Bn€. Net profits -4.5% to 862 M€ vs 880 M€. Net debt 40.230 Bn€ vs 40 Bn€.
Morgan Stanley | We reviewed the European telecoms sector where we thought, confronted by an environment where there have been numerous profit warnings in the global technology sector (Ericsson, Hexagone, Netflix, Software AG, Tieto), together with our global recommendation downgrade from RV to UW, that the telecoms are well positioned to offer a better performance than seen in Q418.
Banc Sabadell | The provisional government in Spain, if its finally confirmed in office, will immediately renew most of the Council of the competition regulator (CNMC – six of the ten council members end their term in September 2019) and open the door to restructuring the body.
The impact of Netflix and Amazon on terrestrial TV in Europe has been remarkable. The worst countries are Spain (-7%), the UK (-6%) and France (-5%). Morgan Stanley decided to cut their forecasts and objective prices for European broadcasters. The principal cut is Prosieben, for which they see a downside potential of 20%.
The relatively poor performance continues. “So far this year, Spanish banks have been the worse performing subsegment in the universe of European banks we cover, with average fall of c.14% (total returns)”, analysts at Santander point out.
Stefan Scheuer (Allianz GI) | What will the Federal Reserve do? This is the question most asked by investors. In the US, the labour market remains in shape, households remain wiling to spend and inflation data has been better than expected.
Chinese investment in Spain has reduced drastically in the first of half of 2019, falling to a modest 10 Mn$, according to a study published by Baker McKenzie.