madrid airport

IAG-Air Europa: Competition issues more likely to arise in Spain

The operation reinforces the position of Iberia owner IAG on the Europe-LatAm routes, where it will have a 26% share (vs 19% current). One of the main competitors of IAG in these routes disappears, since Air Europa was the sixth operator Europe-LatAm, and the main one in the hub of Madrid.


IAG’s Air Europa acquisition announced: Checking into more Latam exposure

BOfAML | IAG has agreed to acquire Air Europa, a value carrier, for €1bn as it seeks to increase its market share in the South Atlantic market and turn Madrid into Europe’s next hub airport. The acquisition is in cash and will be funded by external debt increasing IAG’s net debt / EBITDA by 0.3x (from 1.2x at 3Q19). This raises questions on the potential cash return to shareholders.


Orange Revenue improving, Spain the weak spot (again)

BOfAML | Orange’s Q3 results were broadly in line with expectations with revenues 0.5% ahead, (+0.8% in Q3 vs +0.4% in Q2) and EBITDAaL +0.2%, in line with consensus expectations. The mix was somewhat weak however with France and Spain delivering slightly below

Arqiva DAB transmitter

Cellnex: +7% in fundamental valuation following purchase of Arqiva

Banc Sabadell | The acquisition of the Arqiva towers in the UK for 2 billion pounds (2.24 billion euros, 19.7% capitalisation and c.39% of NFD for Cellnex) means the integration of c.3,800 installations (+18.4% of Cellnex total) with a tenancy rate of c. 1.4X (vs c. 1.57X for Cellnex) and with contracts of 10 years duration (less than the current portfolio) linked to inflation.

huawei semiconductor industry

What’s at stake in Trump’s war on Huawei: control of the global computer-chip industry

Clinton Fernandes (The Conversation) | Silicon Valley may now be more popularly associated with software companies such as Google and Facebook but it takes its name from the material most used to make semiconductors. Semiconductors – or computer chips – power everything from mobile phones to military systems. The semiconductor industry sits at the centre of the modern world. This point is key to appreciating what’s going on in the US government’s battle with Chinese technology giant Huawei.

apple 1

When Apple seems more Chinese than American

Ofelia Marín-Lozano (Capital Sicav) | Political events have always had a certain influence in the behaviour of financial markets in the short term. Although what dominates in the long term are company results, any uncertainty coming from the world of politics has a cost, and currently there are many uncertainties weighing on the minds of investors.