DS Smith has lodged a bid for Spanish paper and packaging company Europac, valuing the latter at 1.9 billion euros. The UK firm has offered 1.667 billion euros for 100% of Europac’s capital (16,80 euros/share).
US imposed steel (25%) and aluminum (10%) duties on Europe, Canada and Mexico on May 31, reflect Trump’s view of the world economy as a zero-sum game, meaning each country has to fight tooth-and-nail to get its hands on the biggest slice of the pie. As pointed by Philippe Waechter, Chief Economist at Ostrum AM, “this view is admittedly not helpful in understanding economic and growth momentum, but it is the view we are dealing with here.”
The number of jobless people registered in the public employment services’ offices fell by 83,738 in May compared to the previous month (-2.5%). The total number of unemployed stood at 3.25 million end-May.
Giacomo Bracci | The result of the latest Italian political elections has been interpreted by many observers as the outcome of deep, popular discontent. Recent developments in the country have also revived the possibility once again of an Italexit in the political debate of the entire euro area.
The household savings rate lay below 6% of gross disposable income in 2017, a figure similar to 2007 just before the real estate bubble burst, and well below the peak reached in 2009 of 13.4%. What factors explain the sharp decline that has occurred in the last few years? CaixaBank Research focuses on this issue.
Victoria Torre (SelfBank) | A tense day was expected in Spanish financial markets, with the vote on the censure motion against the government of Mariano Rajoy and doubts about whether the President would resign. He didn´t and the censure motion was adopted with 180 votes in favour.
In Spain today all eyes will be on the voting on the no-confidence motion which we expect will be successful. Unless current Prime Minister Mariano Rajoy decides to resign ahead of the vote. So everything points to PSOE leader, Pedro Sánchez, becoming the new Prime Minister. It looks like he will not propose new elections immediately, which we believe will prolong the political instability in the country.
The situation in Turkey is a good example of the negative consequences of stances which call into question the independence and credibility of the central banks. Currently, the deteriorating credibility of Turkey’s institutions make it fairly difficult for actions like the increase in rates (last week they were raised by 300 bp) to attract capital flows.
The shareholders of the Testa Residencial, Santander (37%), BBVA (26%), Acciona (20%) and Merlin Properties (17%), have finally chosen to list the Socimi on the MAB instead of making a public offer of part of its share capital. The reason behind the decision is the tensions in the financial markets over the last few days.
As all signs point to a trade war with the United States, should the US impose tariffs on EU steel and aluminum, the European Union has decided to immediately activate balancing measures as an alternative to US tariffs which are intended to take effect on Friday June 1st.