After the presentation yesterday by the EC of a new battery of contingency plans for specific industry sectors in the case of a no deal Brexit, IAG´s airlines which comprise Spanish Iberia and Vueling, will not be allowed to operate domestic flights within the EU, nor connections with stop-overs in Europe.
Ultimately, May’s deal represents a compromise of the vague objectives for Brexit. However, Brexit has never been about compromise and with both sides of the debate envisaging different outcomes to the process, neither appear about to make concessions now. In this context, analysts at AXA IM continue to see the ‘most likely’ outcome as a compromise, similar in substance to the current Agreement.
Financial markets expect the US Federal Reserve (Fed) to raise its federal funds target rate on Wednesday for the fourth time this year, by 25 basis points (i.e. between 2.25% and 2.50%). Looking ahead, the FOMC will likely revise its “dots” lower for 2019, while the Fed will emphasise data dependence as relevant for its policy stance, rather than guidance by FOMC ‘dots’.
Banco Sabadell has reached an agreement to sell 80% of the capital of its property platform Solvia to Lindorff Holding Spain, a Swedish company belonging to Intrum Group. Solvia has been valued at a total of 300 million euros.
Inflation fell six decimal points in November to 1.7%, the lowest in seven months in Spain. Within the deflationary evolution, almost general across components, energy process (electricity and oil) stand out. Analysts at Bankia Estudios predict a further fall for next year: It will recover in the first months of 2019 to around 2% and close the year at 1.5%.
If both parties do reach an agreement over the Italian budget, eurozone bond and equity markets will have something to celebrate.
Tristan de Bourbon (London) | House prices have been falling in the British capital for two years. The reason: the uncertainty surrounding Brexit, which have joined the increase in stamp duty and interest rates. On the other hand, prices are increasing significantly in regions of the country which have been ignored in recent years.
Alphavalue | Inflows from IPOs in European stock markets reached $35 bn, or what is the same, -37% compared to last year which makes this 2018 the worst year for IPOs since 2013, only surpassed by fateful 2016.
In less than a month, France’s gilets jaunes (yellow vests) have gone from being a celebrated example of Facebook’s ability to power a spontaneous revolution to a cautionary tale of how social networks can be manipulated by outsiders to provoke outrage and sow dissent.
Lélia Rousselet via Macropolis | On November 19, the EU’s foreign and defense ministers approved the project of a joint intelligence training school (Joint EU Intelligence School – JEIS), led by Greece with the participation of Cyprus.