Intermoney | A slightly higher opening (Eurostoxx futures +0.3%) after yesterday’s 2% falls in the main American and European indices, with the Ibex registering a better relative performance, buoyed by the tourism and defensive sectors. This environment of greater risk aversion and fears about economic growth also translated into additional moderation of IRRs. In the case of Europe, this was also supported by the statements from Villeroy, the governor of…
Grifols and Tiancheng Pharma, the main shareholder of Germany’s Biotest, have agreed that Grifols will buy Biotest with the aim of increasing its plasma collection capacity. Tiancheng Pharma owns 89.9% of Biotest’s ordinary shares and 1.1% of the preferred shares. The consideration of €1.6 Bn for the 100% of Biotest will be paid in cash and represents a premium of 23%.
J.C. González Vázquez * | On August 3rd, the Council of Ministers finally approved the long-awaited Bill for the adaptation of our insolvency legislation to EU Directive 2019/1023 regarding preventive restructuring frameworks, discharge of debt and disqualifications. In addition, measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt. Great hopes had been placed on it because it was thought that it would help to save…
Randstad | Comparing the figures provided by the State Public Employment Service (SEPE) from ten years ago, we can see that the hospitality sector generated 912,401 contracts during the summer campaign, i.e. during the months of June, July and August. A figure 76% higher than last year, when 518,263 contracts were recorded, but still 28.8% below the 1,281,964 signed in 2019, before the outbreak of the pandemic. Whatsmore, this volume is on a par with that obtained in the summer of 2014, when 908,436 contracts were signed.
Nitesh Shah (Wisdom Tree) | After staging a recovery for most of Q2 2021, drawdowns in June and August 2021 have set the metal back. Based on our modelling framework, gold looks severely under-priced. Red-hot inflation – currently above 5% – should point to a gold price above US$2000/oz, yet we are currently languishing around the $1785/oz handle. As Figure 1 below shows, our model indicates that in July 2021,…
Nathan Meyer (Capital Group) | With remarkable speed, the COVID-19 pandemic has accelerated select investment themes across a number of industries. In my view as an equity analyst, nowhere is that truer than the media and entertainment sectors where technological advances and work-from-home trends are rapidly changing the landscape. For exmaple, streaming services such as Netflix, Disney+ and Amazon Video are the primary replacement for traditional pay TV bundles.
Naturgy, the third Spanish electricity company in terms of number of customers, behind Endesa and Iberdrola, is freezing electricity tariffs at the levels they were before the price hikes. This is to prevent users from suffering the uncontrolled increases the market is experiencing. To this end, from 15 September, it is offering to apply a cap of 60 euros per megawatt hour to all customers currently on regulated tariffs. Beyond…
The government’s energy reform is stirring up the whole sector, according to the daily Expansión. Not only the large electricity companies, such as Endesa, Iberdrola and Naturgy, which are already preparing a legal battle. Renewable energy companies are also coming out en masse demanding that this reform be softened by modifying some aspects as the the energy sold outside the daily market, through bilateral contracts (or PPAs, in technical jargon) will also be reduced. These bilateral contracts are the essence of the current development of the renewable energy sector, because they serve to finance it.
China’s country’s largest real estate company, Evergrande, which is on the verge of bankruptcy with more than $300 billion in debt (about 2% of China’s GDP), has announced that it will not be able to pay interest next week. Weak home sales, especially in the last year, have put it in this cash-strapped position. Therefore, the situation is becoming increasingly tense. The group is described by Beijing as a “grey rhinoceros”, i.e., a large company with an alarming debt load representing a systemic financial risk.
CdM | The Government cuts electricity companies’ “extraordinary” income by €2.6Bn: €1.221Bn for Iberdrola, €976Mn for Endesa, €188Mn for Naturgy, €144Mn for Acciona and €71Mn for EDP. On Tuesday, the government approved through a Royal Decree-Law a shock plan to contain the escalation of electricity and gas prices. According to Morgan Stanley’s analysis team the measures – assuming they are effective in Q4’21 and Q1’22- will have a strong impact…