Spain’s risk premium has fallen almost 5% with respect to Friday’s close after the socialist party’s decision to abstain and facilitate, finally, the formation of a government. So Mariano Rajoy will become President again after nearly 11 months in a caretaker role.
Nick Malkoutzis via Macropolis | It was perhaps the most fitting finale that the people of Lesvos did not receive the Nobel Peace Prize earlier this month. Not because they did not deserve it for showing such dignity and solidarity in these selfish and unsettling times, but because the help, warmth and care that they did provide was done so selflessly.
J.L.M. Campuzano (Spanish Banking Association) | The Bank of Spain has published the financial accounts for households and companies in the second quarter. The cash and deposits component was the highest, standing at 44% of total financial assets, representing a 1.3 percentage points rise in the period. This says a lot about their huge lack of confidence in the future.
The Industry Ministry is preparing new renewable energy auctions. It plans to invite tenders for between 3,000 and 4,000 technology neutral MW. That means auctions in which any kind of renewable energy can compete: wind, biomass, thermosolar, photovoltaic etc. This new boost for the renewables is happening to ensure Spain complies with the EU directive of fulfilling at least 20% of its total energy needs with renewables by 2020.
AXA IM | Markets have reacted to his trade policy proposals, but implications are more far-reaching. A key macroeconomic difference between Clinton and Trump victories is the short-term cyclical outlook, with a more forceful fiscal stimulus under a Trump presidency. This would imply Clinton win (baseline) stronger GDP growth, steeper Fed tightening, a stronger dollar and higher US treasury yields.
Silvia Merler | The year 2016 has not been good to Italian banks. While resilient to the first wave of financial crisis in 2008, due to their low exposure to US sub-prime products and to the fact that Italy did not have a pre-crisis housing bubble, they have been suffering much from the euro sovereign crisis and the ensuing deteriorating economic conditions.
Barcelona-based on-line agency eDreams, is an investment opportunity, according to Bankinter analysts. They offer three reasons: it is trading at much cheaper multiples (more than half) than its peers. The range, applying reasonable multiples, is slightly higher than the current one but much lower than the sector. So it has significant potential.
The group representing the small creditors and bondholders affected by Abengoa’s situation has recommended they do not sign up for the Spanish company’s financial restructuring plan. In the opinion of the representatives of this organisation – La Plataforma de Perjudicados por Abengoa – the best solution is to go ahead with bankruptcy proceedings.
Ferrovial, which owns 25% of Heathrow, could benefit from the possible extension of the airport’s installations: apart from being able to participate in the construction of a third runway, the increase in the number of passengers would mean higher revenues, profits and dividends for the Spanish services and infrastructure operator.