Spain’s estimated annual Consumer Prices Index (CPI) stood at 10.4% in August, according to an advance of the data from the National Statistics Institute (INE). If this figure is confirmed, it would mean a decline of four-tenths of a percentage point from the 10.8% recorded in July. INE said the trend in inflation in August is mainly due to the fall in fuel prices, which rose a year earlier. And…
Link Securities | According to Europa Press yesterday, ACCIONA has won a new contract to upgrade a train line in Perth, in western Australia. It includes eliminating six level crossings and building five new stations for 701 million Australian dollars (some 485 million euros). The Spanish firm will carry out these works as part of a consortium formed along with US company Aecon, Canada’s WSP and the Australian firm BMB…
Morgan Stanley | In reality, during H1 2022 the market was already discounting the FED and the toughening of financial conditions. So we do not see the FED as an additional risk: the biggest risk we see is the declines in future profits. In this respect, our advance profits’ model projects a significant drop in EPS growth over the coming months. A key input in this model is the ISM…
Alphavalue | BBVA (Buy, Target Price 6,24 euros +) plans to hire 400 people in Spain this year with a technological profile. The Spanish bank revealed it foresees the incorporation of 2,000 employees into its workforce with this kind of profile in 2022. As analysts at Link explain: “As the group announced yesterday, almost 1,000 engineers have joined BBVA in H1 2022, a figure which the bank expects to double…
Spanish property firm Colonial has 2.557 billion euros in liquidity, which can be earmarked for acquisitions amongst other things, according to the daily Cinco Dias, citing the company’s recent H1 accounts presentation. Colonial has 467 million euros in cash and 2.090 billion in credit lines which have not yet been used, Cinco Dias said. The newspaper flagged that the Ibex 35-listed Socimi’s management has been saying since last year that…
Renta 4 |Spain overnight stays in July almost at levels of same month 2019 1-. The number of visitors to Spain in July was almost (-2%) on a par with that of the same month in 2019, although prices are very much higher (+21%). 2-. The figures are significantly better than in 2021 (+61%), confirming the trend of recovery of 2019 levels versus previous quarters: Q1’22 (-22%) and Q2’22 (-6%)….
Renta 4 | 1. Saudi Arabia’s Energy Minister, prince Salmán bin Abdulaziz, has hinted that Saudi could cut its oil production. This decision has been based on the extreme volatility and the lack of liquidity of oil futures which are leading to a decorrelation in the price with the fundamentals of supply and demand. For that reason, OPEC+ could see itself obliged to reduce output. 2. Saudi Arabia is the…
The downturn in the German private sector economy deepened in August, as business activity fell for the second month running and at a fasterrate in August. This is according to the latest ‘flash’ PMI® data from S&P Global. The deepening downturn was linked by surveyed businesses to a combination of factors, S&P Global noted. These included uncertainty, high inflation and rising interest rates. That said, companies’ expectations registered an uptick…
Alphavalue | Iberdrola (Reduce, TP €11,5 ++) : Iberdrola’s share price rose 0.37% yesterday, despite the criticisms received in France after the Spanish utility decided to terminate power contracts with thousands of its customers there. It cited high energy costs. Let’s not forget that Iberdrola has lodged a complaint against France with the European Commission, regarding supposed state aid to EDF (reduce, TP 11,8 ++) for over 5 billion euros….
Morgan Stanley | Enagás’ recent Capital Markets Day (CMD) was a disappointment for investors. A poor growth outlook, limited capital comitment which demonstrates this, and a lack of protection against inflation in Spanish regulated assets. Despite its recent poor performance and the temptation to get rid of the shorts, I still believe that Enagas is an appropriate relative UW in the sector.