Spain’s inflation rate rose to 10.8% in July year-on-year, as confirmed by the National Statistics Institute (INE) on Friday. The figure is six tenths of a percent higher than that recorded in June and represents the highest level since September 1984. The INE had given an advance of the July CPI figure at the end of last month. Inflation has now been over 10% for two months in a row,…
Warinca Arce | At the presentation of the new temporary and extraordinary taxes on large energy companies and the country’s big banks, Patxi López, spokesman for the socialist parliamentary group in Congress said: “Those who are protesting are the same people who, when they, the financial institutions, had problems, knocked on the door of ‘papa Estado’ to fix their problems. And ‘daddy state’ put in 60 billion euros…”…. “So far,…
Crédito y Caución (Atradius) | The eurozone is struggling with a strong divergence between a weak industrial sector plagued by supply bottlenecks, higher input costs and weakening sentiment on the one hand, and a solid services sector, which is experiencing a post-Covid rebound. We expect 2.9% GDP growth in 2022 and 2.5% in 2023. Among major economies, 2022 GDP growth since our previous Economic Outlook in April has been downwardly…
The International Monetary Fund (IMF) has lowered its GDP growth forecast for the whole world, including Spain. Spain will grow by 4% in 2022, which is eight tenths of a percentage point lower than the forecast published in April. The fall in GDP will be more pronounced next year if Russia’s war against Ukraine continues. According to the report ‘World Economic Outlook’, published on Tuesday, the IMF considers that in…
J.P. Marín-Arrese |Christine Lagarde announced the first rate hike in a decade as an upfront offensive against inflationary pressures. While no one doubts this tightening aims at cutting short the current price race, the claim that it is an early reaction fails to match the records. For more than a year, all advanced economies have witnessed soaring prices. Yet, the ECB dismissed this trend as a temporary mismatch betwen demand…
Peter Goves, MFS Investment Management | A historic decision and the end of an era. No more negative policy rates from the ECB following the bold 50bp hike at the July meeting. Clearly, the ECB remains focused on its primary mandate: price stability. The shift in guidance is interesting and makes the ECB much data dependent as an institution. In turn, it likely means short rates will retain their sensitive…
Between January and May, the Spanish trade deficit increased to 26.569 billion euros, 6.5 times more than in 2021. This is the highest level since the Great Recession of 2008, when it reached 42.63 billion euros. The figures for exports of goods to other countries have been above the maximums of the historical series, which began in 1995, since 2022 began. In the cumulative figure between January and May, sales…
Intermoney | Colonial (Hold, Target Price 9,5 euros) celebrated its Capital Markets Day (CMD) in Paris on Monday. The socimi confirmed its main strategic points, such as focus on its three markets, maintaining a stable financial structure, asset rotation policy and reinforcing ESG policy. In the face of doubts from some investors, Colonial confirmed the high occupancy levels in its portfolio in service, and in the one where it will be…
Intermoney | The lack of personnel and strikes are leading to the suspension of over 40,000 operations out of those forecast for Europe over the summer months (25,000 alone between British Airways, Easyjet and Lufthansa). They are also provoking innumerable delays and problems with luggage. The fast increase in demand has been mixed with both the airlines and the airports’ difficulties’ in recovering the volume of their workforces which decreased…
Renta 4 | During Q2’22 the stock market indices have had to deal with the consequences of the war in Ukraine, the environment of high inflation, the uptick in IRRs and downward revisions to economic growth. In this context, the IBEX Medium Cap (-1.5% in Q2’22) has offered a relatively better performance out of the three benchmark indices (-4.1% of the IBEX-35 and -6.1% of IBEX Small Caps). Our Selection…