UK Economic Viewpoint: No deal risks up again
BoAML | The risks of a no deal Brexit have risen in our view. No deal is not our base case, but that is now a close call.
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Tougher cuts than expected in distribution networks (30%) hurt regulated Spanish companies
Spanish regulator (CNMC) is preparing new regulations which will lead to a greater than expected cuts in the returns for natural gas transportation and distribution networks and also, possibly, for electricity distribution networks.
Eurozone credit to companies and households increases +0.3%
Credit statistics for Eurozone residents elaborated by the ECB for May shows an increase in the balance for companies of households of +0.3% (+35.775 Bn€), in line with the monthly increases so far this year and the same as the increase in May 2018, according to Bankia Estudios.
Who will take most advantage of a recovery in the German residential sector? Not German companies
Alphavalue | The tight German residential market could be about to start a new cycle of construction. Spending on housing will increase the contribution of internal demand to German GDP growth, something investors would welcome.
CAF continues at full speed (P.O 47.89 euros/share (potential + 22.80%)
Sabadell | Despite the poor performance of the stock this year (-3% vs IBEX) and especially since the beginning of April (where it reached its maximum of 44.25 euros / year / -12% since then), possibly due to an market towards more defensive values, until now we see no reason to stop trusting CAF.
Central banks do not do miracles
Fernando Fernández (IEAF) | Perhaps the moment has arrived to abandon the temptation to arbitrate, to recover humility and discuss what should be the aim of monetary policy.
FDA approves Grifols’ Xembify in the US
Spanish multinational pharmaceutical and chemical manufacturer Grifols (GRF) has received the approval of Xembify (20% concentrated subcutaneous immunoglobulin) by the FDA for the treatment of primary immunodeficiencies.
Real estate sector: Monetary policy and bond IRR could boost investment flows
Morgan Stanley | As we indicated in our last real estate strategy report, this has been the worst sector in Europe in 2Q19 (oversold and with a relative performance of 3.5sd below its 12MA). This has been mainly motivated by concerns about the proposal to freeze rental prices in the city of Berlin (and its possible spread to other cities in the country) as well as the uncertainty regarding Brexit.
Massive KPMG fine: the straw that breaks the Big Four’s back?
European Views | Accountancy giants KPMG are set to pay €44 million in fines to settle allegations by the U.S. Securities and Exchange Commission (SEC) that the audit firm, one of the so-called Big Four, inappropriately altered already-complete audits. KPMG is accused of illegally obtaining information that several of their clients were in line for investigation by an American non-profit in charge of overseeing the audits of public companies—and then subsequently doctoring records to conceal transgressions.
MasMovil quotes a very attractive return on cash flow attributable to shareholders: 11.7%
Santander Corporate & Investment | In 1Q19, MásMóvil (MAS) registered 140,000 new net subscribers in fixed broadband (compared to expectations of less than 100,000 for the entire market) and the trend in 2Q19 remains solid, considering fixed ports, suggesting no less of 100,000 net connections in 2Q19 and implies a risk of upward deviation for the scenario that we handle of 350,000 net connections in 2019E.