Link Securities | We highlight the negative impact that the new conflict between the European Commission (EC) and the populist government of Italy is having on the European securities markets and on the euro. Rome has not taken the necessary measures to contain the public deficit, which it will lead to a further increase in Italian public debt, whose weight could surpass 135% of GDP in two years.
José Benito de Vega | In the last twelve months, the Spanish firm Vidrala has had a better stock performance than the IBEX35, with a revaluation of 1% compared to a decrease of 8% in the index, although the stock has not been spared from moments of volatility.
Bankinter | The private sectors credit stock increases +3.4% in April (vs +3.2% before). A strong performance in company credit stands out (+3.9% vs 3.6% before) as well as credit for buying houses (+3.6% vs +3.5% before).
Renta 4 | On 13 June the Ibex´s Technical Advisory Committee will hold a routine meeting. If we look at the volumes traded over the last 6 months, MasMovil is a clear candidate to enter.
Morgan Stanley | Fitch has raised its rating perspective for Portugal to positive. This was unexpected and seems to support the market thesis that Portugal’s fundamentals are at similar levels to Spain and Italy. Our macro analysts agree but see posible downside risks.
Caixabank Research | The current expansionary phase in the US economy is on course to be the longest in history and so far has avoided upheavals. Nevertheless, over recent years, it has produced financial imbalances, especially in the corporate sector, which could destabilise the economy as a whole in an adverse economic scenario. Below we analyse it in more detail.
Link Securities | According to Bloomberg, citing sources close to the issue, the European Commission is considering opening disciplinary proceedings against Italy next week because of its inability to control its debt.
Bankinter | The rate of Spanish banks´non-performing loans fell in March to 5.73% (-1.07 pp m/m), the lowest level since 2010. It is good news for the sector, which confirms the improvement in the credit quality indices observed in recent years. Bad debt is therefore distancing itself from the highs of 2013 when it reached 13.61% in the middle of the economic crisis in various Eurozone countries.
Bankinter | Iberdrola has detailed a little more the destinations for its investments in the 2018-22 Strategic Plan. The principal destination will be the US, where it counts on its subsidiary Avangrid and where it will invest a total of 12 Bn$ (10.7 Bn€) over the next few years. It foresees investing 6.5 Bn€ in Brazil and 4.5 Bn€ in Mexico.
Santander Corporate & Investment | The publication of results is nearing its end, and European company profits have shown resilience in face of a global environment dominated by uncertainty: the trade war, volatility in emerging markets and weakness in their currencies, Brexit, the growth of populism etc. Spanish companies are very exposed to international markets, given that only a third of their benefits come from the domestic market.