The problem loans of the big banks directly under ECB supervision totalled close to 1 trillion euros at end-2015, although they declined to 921 billion in September 2016 (almost 9% of the euro area’s GDP), according to the data disclosed by Vítor Constâncio on February 3. But the problem is that this figure is not distributed homogeneously across the banks.
Spain’s mortgage system, which is one of the cheapest and with the best financing conditions in Europe, has allowed more than 80% of families to own their own home. So a priority should be put on maintaining the system’s characteristics, in terms of depth and stability.
Returns in offshore wind projects have come under pressure with intense competition and aggressive assumptions. As the technology matures, Citi analysts believe falling costs should support a 7-9% project return in the long ter. The case of Gamesa.
While three more rate increases have been forecast for 2017, growing populism is a crisis of entitlement, and those higher interest rates will squeeze some countries more than others.
J. L. M. Campuzano (Spanish Banking Association) |So where do we go now? Do we stop extending banking regulation or do we keep including more conditions? We look to the US, but actually the debate already started a few months ago in Europe. Many experts (some from the ECB itself) warned about the complexity of the measures taken up to now and about the risk this implied for the sector’s stability. And for the financing of the economy.
US is at a 40-year high relative to Europe(outperforming by 105% since 2008). With big secular shifts in the wind, investors are naturally curious to evaluate the case for Europe. The conclusion is the region is cheap vs the US.
Mexico seems to be one of the countries most threatened by Trump’s protectionism plans. The prospects, however, for Mexican companies are better than many investors fear.
The joint venture formed by Leandlease and Turner (subsidiary of ACS) has been awarded a project to extend the Jacob K. Javits convention centre (New York) for a total of 1.5 billion dollars (approx. 1.4 billion euros).
UK macro data continues to surprise positively, but the same is no longer true of bank volumes. Mortgage loan growth slowed “slightly” in 4Q16, while corporate loan balances contracted, “as a combination of higher stamp duty and Brexit -related fears” served to delay investment decisions and dampen loan demand, say Citi’s analysts.
Intermoney | For 2017, the forecasts for private consumption indicate that Spain’s advertising market will continue to grow. We reiterate our Buy recommendation for Artresmedia and maintain our Target Price of 13,0 euros/share with a potential upside of 24%.