The German authorities have come out en masse to criticise the public bailout the Italian government is planning for Monte dei Paschi. For many observers, this decision implies “direct public aid” which goes against the European directive on banking solutions and restructurings.
Most analysts believe the recovery in the stock prices of Spain’s four big Socimis will continue over the coming months. Between 70% and 80% of all brokerage houses have a buy recommendation. The fact these property investment vehicles have quite high returns and there is very little competition are amongst the positive factors.
UBS | As attention turns towards fiscal stimulus as a means to drive global growth, infrastructure investment is considered a politically feasible way to justify government spending. Despite increased focus, however, deploying additional meaningful funds for infrastructure spending is never easy. The US infrastructure, for instance, has received intermittent attention over the last several years.
The bond market started this year with euphoria and ended with losses, for 2017 we see the mirror image. Bond investors should keep the powder dry and only buy duration when yields are clearly overshooting.
Spanish midcap CAF has won a €51.3 million contract in Germany to supply 9 three-car light rail vehicles for the Schönbuchbahn and their maintenance over 19 years, with the option to request up to an additional 19 trains. The contract will strengthen CAF’s position and reputation in a key strategic market niche.
UBS | After Outlook conferences in 8 countries, we highlight that 2017 is expected be the first time in 7 years that global nominal GDP growth accelerates.
Carax- Alphavalue | 2016 is no great vintage for Spanish group Ferrovial (Add, France) which spent the year sailing into headwinds including the bankruptcy of one of its US toll roads in March, Brexit in June (36% of sales are generated in the UK) and the widening of South European sovereign spreads from October.
Of all the arguments I have heard against monetary normalisation, I would definitely highlight the potential destablising effect which it could have on some financial markets. And I am not emphasising this in a positive way: I sincerely believe that delaying a decision which can help reduce uncertainty in the medium and long-term to avoid a negative impact (which I think will be limited) in the short-term is, without any doubt, questionable.
According to Moody’s, the markets where there are the highest possibilities of integration are Spain, Italy, Germany and Austria. Unlike Italy’s banks, Moody’s believes the Spanish lenders are under less pressure to reduce their unproductive assets, thanks to the improving economic cycle and increased profitability at the operating level
Natixis AM | The Fed decided On Wednesday to increase its main rate by 25 bp. The US central bank had mentioned so many times this hike that it has to do it. But what will happen now?