2017 very satisfactory earnings growth (c. 17%) for European equities is still largely due to Banks recovering from a disastrous 2016 and miners doing surprisingly well, again. “This hides a dramatically improving picture for Non-Financials at large” , say experts at Carax/Alphavalue.
The UK real yields are likely to rise and close part of the gap with neutral rates. The analysts of AXA IM retain open long-volatility positions via options on Treasury notes. As they explain “sovereign bonds posted mixed performances over the month Since mid-September, European bonds have earned 0.6% and 0.5% respectively in UK and Germany, while US and Japanese bonds lost respectively 0.2% and 0.4%.”
The recovery seen in the banks’ activity at an international level at the beginning of this year has been temporary. In line with data from the BIS, the banks’ international activity fell $91 in the second quarter from the first. With the exception of loans to non-banking institutions.
BME announced yesterday that it will adapt its fixed income market so that intermediaries can transfer all their operations to the regulated market and comply with the new transparency and reporting requirements of MiFID II.
Banco Santander earned attributable profit of € 5,077 M to Sept this year, a rise of 10 % compared to the same period last year after €515 million of one-off items. These are the first results presentation after Banco Popular integration last June.
Since it announced the sale of its concessions division in Mexico, its biggest source of earnings, OHL is expected to look for alliances to regain muscle. A merger with another European construction company could be a possibility.
CaixaBank is one of the two Catalan banks which recently moved its headquarters and its fiscal centre from Barcelona to Valencia, due to the p0litical crisis in Catalonia. In the first nine months of 2017, the lender obtained net attributable profit of 1.488 billion euros (up 53.4% from September last year), and its largest quarterly profit, with 649 million euros.
According to market sources, Tecnicas Reunidas has presented the most competitive offer to construct two gas projects tendered by Saudi Aramco. Other companies involved in the bid are Saipem and Samsung E&C. The result could be announced at the beginning of November.
Liberbank has signed a binding agreement to set up a company with Bain Capital Credit and Oceanwood. The aim will be to administer, develop and dispose of a portfolio of foreclosed property assets belonging to the LBK group.
Hochtief has launched a €18.76 cash or share offer on Abertis, raising speculation around a potential price war between Atlantia and Hochtief.