Alphavalue | A third of Spanish telco Telefonica’s board has bought shares since the fall of August. The investment is around € 26 million, led by Francisco Riberas. Pallete, Echenique, García Blanco, Vilá and Carvajal have also acquired titles.
Link Securities | According to Moody’s credit rating agency, the sharp decline in consumer confidence in Spain during 2H19 reflects the growing concerns of Spaniards about the economy and employment. The agency believes that consumer confidence data represent an advanced indicator of the increase in the risk of assets and the consequent deterioration of the evolution of securitized loans.
The first ministers cabinet meeting in Spain on Tuesday approved the rise in pensions by 0.9%. The increase will be applied retroactively from January 1 and will affect more than 10 million Spaniards, both contributory and non-contributory and passive class pensions. It will cost the Spanish coffers 1.4 bn euros.
Renta 4 | Reservations for the January / April period are + 1% higher than those of a year ago. This means positive news for the sector and mainly for European companies
DWS | Once again, strange things begin to happen in the subprime (that is, higher risk) segment of the US consumer loan market. We can see it, without going any further, in the delinquency rates of credit card balances held by thousands of small US commercial banks. Since autumn 2016, the percentage of delinquent loans (defined as loans with overdue balances for thirty days or more that continue to accrue interest) among these banks has doubled to approximately 6%, a figure higher than the levels reached during the financial crisis 2008. On the contrary, the loan books linked to credit cards of the one hundred largest banks are much more healthy.
BofA | We turn tactically neutral on European equities: We lower our weighting on European equities from positive to neutral following the 14% rally since August. Our macro projections remain unchanged: we expect a further 1.5 points upside for the Euro area composite PMI new orders to 52 by February, following the 2-point rise since September.
Neil Dwane (Allianz) | The financial markets are signalling that the situation in the Middle East won’t get out of hand, but US-Iran friction could continue for some time. The defence industry and oil and gas-related sectors could remain well-supported, but overall we believe investors should be cautious yet patient. Look to higher-quality stocks with lower correlations to the broader market and “hunt for income” if headline volatility is a risk you wish to avoid.
Unemployment rate in the Eurozone in November stood at 7.5%, in line with estimates. This minimum level was reached in June 2019.
Joanna Eva (European Views) | For the best part of two years, wireless carriers in the US and Europe have been hailing the imminent onset of 5G technology. In Europe, Switzerland, Spain and the UK have already adopted commercial 5G coverage in major cities. Beyond the obvious benefits of the new technology, however, most consumers remain wilfully ignorant to the geopolitical realities of the ongoing roll-out; 2020 presents nothing less than an existential crossroads for democracies around the world.
Yannis Mouzakis (Macropolis) | In a recent opinion poll by MRB, those surveyed were asked who they would like to see as next Greek President if the incumbent, Prokopis Pavlopoulos is not awarded a second term. Twenty-six percent said they would like to see former prime minister Kostas Karamanlis be appointed Greece’s new head of state.