Julis Baer Research | This ruling against May came rather surprisingly and nourished hopes of the Brexit opposition that Parliament would still be able to prevent a Brexit. We however do not believe that Parliament would fully cancel the Brexit, standing up against the majority of voters. Furthermore, the last word is not spoken yet, it will depend on the Supreme Court.
Donald Trump has finally triumphed in the US presidential elections, after winning in key states like Florida, Ohio and Pennyslvania. The Republican Party has a secured control of the House of Representatives (the lower house of the US Congress) and it also looks like it will maintain control of the Senate (the upper house).
BoAML | The last few months have been jammed with corporate bond issuance in Europe: refinancing deals, M&A supply, foreign issuers, debut names and unrated bonds, for instance. Mario Draghi spoke highly of the Corporate Sector Purchase Programme at the last ECB meeting, and we think it reflects precisely this. The central bank has been able to quickly generate corporate bond supply (and buy it), helping to counter the frustrations with low sovereign debt issuance.
Gesconsult | Grupo Iberpapel Gestión (IBG) is one of the key players in the printing and writing paper market in Spain. We like Iberpapel because of its high level of vertical integration and its healthy financial situation. It generates a lot of cash and has no debt.
BoAML | Euro area GDP grew 0.3% qoq in 3Q, in line with consensus expectations and our tracker. Meanwhile, inflation was again weaker than the release would suggest, if we look at the finer details.
AXA IM | Those wishing for a successful constitutional reform in Italy need to be aware that it could actually trigger a referendum on the euro. Growing nerves here likely explain the widening of the spread between German and Italian bonds as investors try to hedge ‘currency’ risk.
Natixis AM | The two US presidential contenders offer very different programs, and often vastly diverging, solutions. The combination of both would have a number of somewhat contradictory effects that would affect all US citizens.
Deutsche AM | Should investors care about political campaigns? As we argued in the CIO View Special introducing our 2016 U.S. elections watch, it is easy to get carried away by rash campaign promises in the ups and downs of 24-hour news cycles
J.L. M. Campuzano (Spanish Banking Association) | It’s still early days yet to affirm that the uptick in medium and long-term interest rates really reflects a change in trend. But it’s true that the central banks in the main developed countries are sending ever more clear signals about the limits of continuing to increase expansionary monetary policy.
Cie Automotive, the Spanish company which specialises in producing components for the automobile sector, registered a 25.5% rise in net profit to 123 million euros in the nine months to September from a year earlier. Link Securities has calculated a new valuation for the company which at current prices offers a potential upside for CIE’s shares of over 7%.