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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.
Acerinox

Relevant News Item 2nd June 2022

Greater pressure on US imports in H2’22: Acerinox, from Overweight to Equalweight, T.P. 11,70 to 13,30 euros/share

Morgan Stanley | The market is assuming normalised profits and not extrapolating the extraordinary profits in Q1 2022 due to macroeconomic uncertainties. For the time being, we remain neutral on the sector and are changing our order of preference. Aperam has been the one which has most lagged behind out of all the steel stocks YTD. We believe the recent derating is exaggerated and its exposure to Europe clearly compensates that….

MOVISTAR

Spanish economy 1st June 2022

Auction begins for sale of 45% of Fiberco, Telefónica’s rural fibre optic affiliate; valued at €1 B

Renta 4 | There are various finalists for participating in the capital of Telefónica’s rural fibre optic network (FET) in Spain, according to several media outlets. Allianz, CDPQ (Quebec pension fund), PGGM (Dutch pension fund) and Vauban Infraestructure Partners (Natixis Group) would be the finalists to buy 45% of the rural fibre network in Spain. However, there could be some other incorporation or exit. Allianz y CDPQ could team up as a consortium.  Final, binding proposals…

Big tech

Spanish economy 1st June 2022

The Government Reduces Waiting Time For Calls To Call-Centres To Three Minutes And Eliminates Robots

The Council of Ministers, at the proposal of the Ministry of Consumer Affairs, has approved the draft bill to regulate companies’ customer services. This will limit the waiting time for information, complaints and after-sales services to three minutes. As detailed by the Minister for Consumer Affairs, Alberto Garzón, at the press conference following the Council, the law reduces the maximum time for resolving general complaints from thirty to fifteen working…

The Bank of Spain

Spanish economy 31st May 2022

Crypto-Assets: A Financial Authority’s View

Pablo Hernández de Cos (Bank of Spain’s Governor) | “With over 16,000 existing tokens, around ten new crypto-assets are estimated to be launched every day on average” “For the time being, however, our ability to take effective action is fairly limited as we have neither the tools nor sufficient legal powers to be able to protect crypto-asset users in the same  way  as  we  protect  bank  customers… In  any  case, …

gestamp china2

World economy 31st May 2022

Pandemic And Security Shocks Shake But Won’t Destroy Global Value Chains

Theo Smid (Atradius) | We do not expect a major shift in production strategy following Covid-19 pandemic and the Russia-Ukraine conflict. It could lead to some strategic reorientation, but no major step back on the globalisation ladder. The most important argument is that the key rationale of global value chains – labour cost arbitrage opportunities – still holds and the alternatives to GVCs are not necessarily better.

Cellnex

European economy 31st May 2022

Cellnex negotiates joint bid with Brookfield for Deutsche Telekom towers

Bankinter | Cellnex is negotiating an agreement with Brookfield Asset Management to make a joint bid for Deutsche Telekom’s telecommunications towers affiliate. The deal consists of a group of 40.600 towers in Germany and Austria, worth close to 20 billion euros. The process for lodging bids has already started and will extend over the coming weeks. Bankinter analyst team’s opinion: We foresee the news having a neutral impact on the…

Iberdrola2

Spanish economy 31st May 2022

UK confirms ‘windfall tax’ for energy firms: Iberdrola, one of the most exposed

Banc Sabadell | The UK has confirmed the creation of a temporary tax on the windfall profits of energy companies (including oil and gas), with which it would raise 5 billion pounds (6 billion euros). The tax charge will be up to 25% on profits. At the same time, there will be compensations with tax exemptions on 90% of investments. In the Spanish press, and contrary to what other media…

pensiones playita

Spanish economy 30th May 2022

Spain: Spending On Pensions Reached A Record 10.81 Billion Euros In May, Up 4.8%

The Social Security allocated a record 10.81 billion euros to the payment of contributory pensions this May, 4.8% more than in the same month of 2021, the Ministry of Inclusion, Social Security and Migration said on Friday. The Department headed by José Luis Escrivá estimates that spending on pensions stood at 11.8% of GDP in the fifth month of the year, a lower percentage than in 2020 (12.4% of GDP),…

Spain, Nadia Calviño

Spanish economy 30th May 2022

Spain’s Public Spending Consolidates Above 50% Of GDP, With 14 Consecutive Years Of Deficits

Spain’s public spending breaks records and settles above 50% of Gross Domestic Product (GDP). The country has thus accumulated two consecutive years – 2020 and 2021 – in which the average disbursement reaches 51.5%, after surpassing all historical spending milestones. However, the revenue figures do not match the expenditure figures and the public deficit is widening. In 2021, with record tax pressure and state revenue, revenue has not managed to…

Meliá

Spanish economy 29th May 2022

Strong recovery in demand, significant margin improvement, return to profits: Buy Meliá (T.P. 7,76 eur/shr)

Bankinter | The Q1 2022 results reflect a greater impact from inflation on costs. For that reason we are lowering our estimates (-6% at EBIDTA level) and target price -5% to 7,76 euros/share. That said, we believe that the share price has over-reacted (down 10% since the publication of results). So it’s a good opportunity to take positions in the stock. The news flow will improve in the coming months….