Trump’s Tax Plan: Welfare for the Wealthy
Why do Americans think Trump’s tax plan will benefit them if even Treasury secretary, Steven Mnuchin, referred to the projected economic growth of up to 6%, as “optimistic”?
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Independence Sentiment Aroused In French Catalonia
Ainslie Noble via Atlantic Sentinel | Catalonia’s independence referendum has aroused separatist sentiment north of the border, where a Catalan-speaking minority has long been content to live under French rule.
Why It Makes Sense For ESM To Swap Greece’s IMF Loans
Yiannis Mouzakis via Macropolis | In an interview over the weekend, the head of the European Stability Mechanism (ESM) Klaus Regling aside from the optimism on the progress of the current review hinted of one of the options that eurozone lenders might be willing to consider for the debt relief that Greece is due to receive by the end of the programme.
SiemensGamesa’s New Contract In Denmark Represents 20% Of Its Off-Shore Portfolio
There has been a lot of positive news from SiemensGamesa this week. On the one hand, it has presented two new products: the onshore wind turbine SG 4.2 – 145 and the SG 8.0 – 167 DD for off-shore which will boost annual energy production by 20%.
Global Utilities: LatAm And Asia Growing Fastest, US Trading At Highest PEs, Japan At Tightest Yields
A recent report by Citi attempts to contrast global utilities valuations and highlight key investment opportunities. Summarizing, Asian and LatAm utilities, while growing fastest at 14-16%, trade at dividend yields of 3.5% and 5.3% reflecting risks. Japanese, US and European have dividend yields of 2.4%, 3.5% and 5.5% consistent with their growth profiles of 7%, 6% and 2.7%, respectively.
The Ibex35 Could Offer Returns Of Over 6% At The Start Of 2018, But Watch Out For Catalonia…
Morgan Stanley said this week that the uncertainty over Catalonia which has weighed on Spain’s performance has meant that the MSCI Spain has underperformed the EMU by 8% since August. And Spanish SMEs have underperformed by 13%. That said, there is a reason for betting on the Spanish market: it has had the fourth best EPS growth examples.
Repsol Obtains Improved Credit Rating Ahead Of Time
Standard & Poor’s has announced an upward revision in its long-term credit rating for Repsol from BBB- to BBB. It has also improved its short-term rating from A-3 to A-2, with both ratings assigned a stable outlook. S&P had already improved its outlook for the Spanish oil major from “stable” to “positive” in July, leaving the door open for a ratings upgrade.
The European Union Calls Into Question Aid For Spain’s Coal Industry
The European Commission (EC) has started an investigation into the aid which Spain’s coal-powered electricity plans receive for the installation of filters which reduce the levels of contamination and so comply with legal targets. Since 2007, fourteen plants have received €440 million in subsidies for this concept and payments are expected to continue until 2020.
The Bridge To Connect Asia: The Wakhan Corridor
Mirwais Parsa | China, an economic giant, has started the move to revitalize the ancient Silk Road. Its ambitious Belt and Road (B&R) initiative includes a major investment in South Asia: the $46-billion Wakhan corridor, which would connect if built, China, Pakistan, Afghanistan and Tajikistan, bringing stability to the region.
Santander UK Does A good Job In The BoE Stress Tests
According to the stress tests carried out by the Bank of England (BoE), the UK banking system could absorb £50 billion of losses with the capital they have in excess of the minimum requirements. Banco Santander’s UK subsidiary did a good job in the tests.