Spain’s mortgage financing grew 9.7% in 2017, although in terms of borrowed capital the rise was much higher at 16.6%. So it can be seen that the recovery in the mortgage market is consolidating after the strong adjustment suffered during the crisis.
The German Federal Administrative Court has ruled that cities can veto access to diesel engines as an option to curb air pollution, following the court-indicted grace period until September. Other measures such as pollution stickers are also feasible. However, the ruling does not mean that diesel cars are vetoed in German cities from now on.
Bankia’s 2018-2020 strategic plan is forecasting a significant increase in profits, the distribution of nearly half of these profits to shareholders and improvments in various profitability and efficiency measures.
Nick Malkoutzis | The decision earlier this month by an anti-corruption prosecutor to send to Parliament a case file that contained statements from three protected witnesses who accuse 10 politicians of accepting bribes from the Swiss pharmaceutical giant has unleashed all the negative and vomit-inducing elements that Greek politics has to offer.
The latest Financial Stability Report by the Bank of Italy concludes that “risks are diminishing in the banking sector”. This could give a false sense of security. The decline of non-performing loans reflects one-off write-downs rather than an improvement in credit quality.
A report from Deloitte urges Spain’s Energy Minister Álvaro Nadal to change the current model for asset remuneration and go for one similar to that in use in other European countries. The proposal implies an improved remuneration system for companies and, at the same time, forecasts reductions in electricity bills thanks to bigger demand in a more electrified economy.
Ferrovial has succeeded breaking into the US market with its services division as well, thanks to the business Broadspectrum has brought it in that country. It bought Broadspectrum two years ago in Australia.
The fact dividends in the Pharmas and Food & Beverages sectors are increasing and are well covered for the next three years is not up for discussion. In such a way that their high yield actually reflects a buy at low share price levels (buy-in-the-dip opportunity) in those big, safe sectors.
Despite the improvement in macro data over the last few years (GDP has risen by 13% and employment – Active Population Survey – 12.1% from its lows), the consequences of the crisis on the destruction of Spain’s businesses fabric still remain.
One factor that could alter the judgement on current stock market prices are long-term interest rates, indicators of the alternative no-risk returns to the stockmarket, which are not fixed directly by the central banks but by the market itself.