Crédito y Caución (Atradius) | High inflation is the current hot economic topic. In June, inflation was running at over 11% in the Netherlands1; for the eurozone it was nearly 9%, which is surely a record. It is also sure that the inflationary bite is being felt, particularly in the purchasing power of lower income groups. The question is, how long will this high inflation last? In recent months, energy…
The Independent Authority for Fiscal Responsibility (AIReF) now expects Spain’s Gross Domestic Product (GDP) to contract by 0.4% in 3Q2022 compared with 2Q2022, as reflected in the latest update of the real-time GDP trend forecasting model (MIPred) published by AIReF after the publication of the data on the number of workers registered with the Social Security (monthly average) for the month of August 2022. The aforementioned contraction of 0.4% quarter-on-quarter…
Santander : Record primary issuance in August (€60 billion), 43% higher than the previous record in 2018, which is starting to drag down secondary issuance, also affected by attractive NIPs. In fact, €22.5bn was issued on Tuesday and Wednesday alone in what is set to be the highest volume in a week since May. The fear of more frontloading, even in less stable markets, is also a matter of concern…
Ifo | The current situation in the German automotive industry deteriorated sharply in August. In the ifo survey, the value of the indicator fell to minus 10 points, down from plus 7.5 points in July. Expectations, however, brightened somewhat, from minus 4 points to zero. This is the first time since April that the overall climate was below zero. “The general darkening of mood in the economy is also reflected…
Sabadell | ENAGAS Sell (T.P. 20,13 €/share) On Thursday, after the meeting between Spanish Prime Minister P. Sánchez and German Chancellor O. Scholz, where they defended the need to increase interconnections in Europe, the French Economy and Finance Minister, B. Le Maire replied that he will take a look at the MidCat project. Up to now, France had opposed MidCat, alleging it would be a project which would take too…
Alphavalue | Iberdrola (Reduce, Target Price €11,4 ++/share): The Court of Justice in Maine (US) has dismissed the referendum which was blocking Iberdrola’s clean energy connection project New England Clean Energy Connect (Necec). It is being developed by the Spanish company’s US subsidiary Avangrid.
Link Securities | Iridium, a concessions subsidiary of ACS, via its US arm ACS Infrastructure Development, Inc., has reached an agreement to buy 44.5% of US firm Blueridge Transportation Group (BTG). The latter is the concessionary company for a 17 km segment of the SH-288 highway in Houston, Texas, which includes on the central reservation two toll lanes in each direction. After this acquisition, ACS’ stake in the BTG will…
Intermoney | According to today’s Expansion, ACS (Buy, T.P. 40 euros/share) is beefing up its works portfolio in the US, after signing two new contracts in California with a budget of 800 million euros. Through Flatiron, one of its main subsidiaries in the US along with Turner and Dragados, the Spanish firm has teamed up with local group Myers & Sons to reformulate the current motorway Interestatal 105 (I-105) in…
Renta 4 | ACERINOX. Possible new production halt in Algeciras plant due to energy prices. 1-. Acerinox has informed workers’ representatives at its Algeciras plant that it will begin to implement the ERTE (Temporary Employment Regulation) agreed on in March from September 11, for a maximum period of 15 days. This move is the result of high energy prices. 2-. The aim is to cut production of steel lines, hot rolled and…
Morgan Stanley | ARCELORMITTAL, OVERWEIGHT. The Spanish firm’s JV “Nippon Steel India” has agreed to buy various assets in India (ports, energy and infrastructure assets) from Essar Group. The net cost is $2.4 billion and the aim of the move is to optimise logistics and the supply chain of raw materials and finished steel products for domestic sales within India, as well as for export. We acknowledge the strategic benefits…