Japan’s additional budget disappoints
Julius Baer | For the market, the additional budget package is insufficient to stimulate the economy but seemingly too much to leave yields where they are.
Markets
ACS H1 results overall in line; disparities in regional sales performance
Citi | ACS’ first half 2016 results were broadly in line with consensus estimates, although net income came in slightly lower at €388 million euros vs consensus of €411 million (-5%).
Tecnicas Reunidas Q2 top line results beat consensus; show robust pipeline
Citi | Tecnicas Reunidas (TRE) reported second quarter 2016 EBIT of €50 million vs consensus of €41 million (+20%), driven by higher revenues. Citi analysts flag that the operating margin of 4% was in-line with the company’s guidance, with the execution progressing as planned on all key projects.
Sabadell, Bankia H1 results prompt different stock market reaction
The banks’ non-performing loans ratio continues to show signs of recovery amid the ongoing deleveraging process on the part of households and companies. The balance of impaired loans fell by 18.3% in May to 121,865 billion euros. Against this backdrop, Banco Sabadell and Bankia were the first banks to present their first half results’ report. And the Spanish stock market reacted in a completely different way to each report.
Santander, Unicredit End Talks On Asset Management Deal
Italian lender Unicredit has announced the cancellation of an agreement reached in November with Spain’s Santander to create a new asset management company by combining their respective subsidiaries Pioneer Investments and Santander Asset Management.
Abertis Posts H1 Net Profit Of €510M Thanks To Recurrent Business
Abertis’ key figures improved in the first half of 2016, with growth in net profit (+9% like-for-like) to €510Mn , EBITDA (+7% like-for-like) to €1,502Mn and revenue (+5%) to a total of €2,243Mn, in a period featuring a resilient recurring business, traffic increases and the addition of new assets to the consolidation scope following the acquisition of 50% of Autopista Central in Chile.
Cellnex Obtains €24M Net Income in H1’16 as a recent Ibex 35 debutant
Cellnex Telecom is the leading independent operator of wireless telecommunications’ infrastructure in Europe and is a newcomer to the Spanish stock exchange (it made its debut on June 9). In the first half to June, the company obtained revenues of €338 million and EBITDA of €134 million. Net income reached €24 million compared to €18 million a year earlier. At end-June, Cellnex had a portfolio of 15,135 towers located in Spain, Italy, the Netherlands and France. Cellnex is a subsidiary of Abertis.
FCC H1 net profit €54.8 M; Carlos Slim Largest Shareholder at end-June
FCC’s story this year has been marked by the mandatory takeover bid by Carlos Slim’s fund Inversora Carso. The bid was launched in March and completed on July 15. Grupo Carso now owns 61.11% of FCC and is the largest shareholder, while Esther Koplowitz is the second biggest with 20%. The company has just left the Ibex 35 blue chip index.
Do negative nominal interest rates make sense?
J.L.M. Campuzano (Spanish Banking Association) | Negative interest rates are starting to become a usual thing, although there are some very different arguments for their implementation. These range from the need to resist currency appreciations and/or provide greater monetary stimulus. Overall, an additional instrument to improve financial conditions and promote a certain stabilisation of exchange rate tensions.
As Telefonica Presents H1’16 Results, It Faces Up To Effects Of Failed Attempt To Sell 02
Telefonica has presented on Thursday its first half results. These have highlighted the new contribution from its O2 UK subsidiary, which returns to the multinational’s permiter after five quarters on the outside. Revenues in the UK during H1’16 reached 3,464 million euros against 25,235 in the consolidated group. Meanwhile, Telefonica’s frustrated attempt to sell its UK unit O2 to Hutchison is beginning to have consequences.