Spanish real estate still has growth to deliver. Regardless of global economic slowdown, Brexit or trade tensions, we think the country’s competitive labour market should support one of the highest economic growth rates in Europe. Spanish GDP should grow at 1.7% pa over the next three years vs 1.1% in the Euro area, according to BofA economists.
Morgan Stanley’s Equity Analyst Alvaro Serrano had raised his recommendation of Spanish Banco Sabadell (SAB) to Overweight (OW) in May with the expectation that NPA sales, improvement in Britain’s TSB and a capital near 12% CET1 would improve the visibility of benefits from 2020.
BofA | Offices across Europe are enjoying a resurgence, owing to: i) rising property prices as prosperity and hence urbanisation increase in cities, ii) 2.6x faster growth in office-related jobs vs total employment across Europe as the economy becomes more service-oriented (70% of GDP); iii) office vacancy in the central business districts of Madrid, Barcelona and Paris standing 40% below the long-term average, resulting in a tighter supply/demand balance and driving up rents.
Alphavalue | We have lowered the EPS estimates for Repsol (2019 by – 12.2% and 2020 by – 7.63%) after incorporating the results of the last quarter and lower expectations of gas prices in the US.
Santander (SAN) Brazil on Friday closed the agreement to buy the remaining 40% of Banco Olé Consignado for 355 million euros.
Ana Fuentes | The home delivery start-up has become the second unicorn in Spain after obtaining 150 million in an investment round. This brings the four-year-old company’s total funding up to €460m. Only ride-hailing giant Cabify had reached that status before.
Morgan Stanley | Our estimates of Naturgy (NTGY) for 2022 are 18% below the objectives set by the company. This is due to our negative vision in LNG and in Latin American currencies.
The purchase of casing collagen division from the Japanese Group Nitta Gelatin Inc. by Spanish group Viscofan (VIS:SM) will be made via debt for 10.7 million dollars and in cash for 2.8 million dollars. The price paid corresponds to an EV / EBITDA of 9.0x.
BME will distribute to its shareholders on December 28 the second interim dividend against 2018 earnings, with a value of €50 million. The figure represents a gross €0.6 per share, the same as that distributed a year ago, to be paid on December 30, implicit DPR 1.7%.
Spanish lender BBVA would be considering spending cuts for 2020 which would affect not only the commercial network and central services, but also the strategic Client Solutions division, where workforce could be reduced by 3% and investment frozen.