J.L.M. Campuzano (Spanish Banking Association) | The private sector in Spain is continuing to reduce debt. Financing for companies and households has fallen an annual 0.7% and 1.7% respectively, according to August data from the Bank of Spain. One might conclude from these figures that there is still restrictions on credit in Spain. But nothing could be further from the truth.
UBS | Since 2010 US productivity growth has been just over 1%, a deceleration not only from the long-term average but also weaker than the rate of productivity growth seen in the 70s and 80s. That said, a 10-year average does not look too low relative to history.
Diego Salvador (Gesconsult) | N+1 is a financial institution focusing on two business areas: advising on mergers and acquisitions and the management of a venture capital firm. The company is developing a very successful franchise thanks to the purchase of “boutique” investment banks in the US, as well as in countries like Germany, Austria and Japan in the near future. We are confident that it can continue to expand their business inorganically with continued acquisitions in attractive countries like the US.
It’s been over 280 days since the general elections on December 20th and Spain is still without a government. This has its consequences. On October 15th the country’s caretaker government is due to present its 2017 Budget to Brussels and provide information on the adjustments and other measures which it plans to implement to correct the public deficit. But BS Markets says this draft can only be, at most, an extension of the 2016 Budget, a document without any changes.
The volume of global investment in property assets has slipped back for the first time since 2007, according to Cushman & Wakefield. Investment tends to be concentrated in “prime” assets. It’s likely the investment flow will begin to favour “Tier II” cities like Copenhagen or Madrid, say Bankinter analysts.
José A. Santos (Patrivalor) | The stock market value of the 60 Spanish companies analysed totalled 557.375 billion euros at end-September 2016, down 5.5% from end-2015.
UBS | Santander updated the main targets of its 15-18E business plan. The new 11% Group ROTE18E figure (previous 13%) is largely aligned with our existing forecasts, to which we make modest changes.
“With the recovery embedded we see greater scope for selective risk, taking on asset management in core locations while also considering opportunities in well connected edge of CBD overflow locations,” Deutsche AM Spanish Real Estate Strategic Outlook notes.
The US money market remains subject to material dislocations. To start with, there is the reform of the money market funds (MMF) that was agreed in 2014 and will come into effect on 14 October 2016.
Earlier this week, OHL sold 4.425% of Abertis (43.83 million shares) at 13,65 euros/share via placement with institutional investors. With this operation OHL will reduce its debt and also free itself up from its previous strategic commitment to Abertis in Brazil, which prevented it from expanding in a country which will have privatisations in the coming quarters.