Adam Vettese (eToro) | Bitcoin is not the top cryptoasset, according to a new Chinese report that ranked global cryptoassets based on their technical merits. According to a report from China’s Centre for Information and Industry Development (CCID) Bitcoin, the world’s oldest and largest crypto asset by market cap, ranked 12th.
Prointec, Indra’s civil engineering subsidiary, will participate in the largest railway infrastructure project in Europe, Rail Baltica. This is a rail network for passengers and goods linking the Baltic countries, Estonia, Latvia and Lithuania to the Trans-European Transport Network (TEN-t). In consortium with German engineering consultancy Obermeyer Planen + Beraten GmbH, it will design a 93.5 km section of the works for a total of €10.8 M.
Mona Mahajan (Allianz GI) | With equities rallying more than 30% since late March, driven most recently by cyclicals, financial markets were perhaps due for a period of consolidation. New risks could emerge, but we continue to believe in the ongoing economic re-opening story — so cyclical sectors may remain market leaders in the near term. Markets could be supported further as elevated levels of cash are put back to work.
This figure is the result of a corporate reorganization undertaken by the lender in recent months. The bank bought 25% of the capital of Santander Consumer Finance which it did not control directly from one of its subsidiaries. This stake has been valued at 3.193 billion euros which means valuing 100% of the subsidiary at nearly 12.8 billion.
Yves Bonzon (Julius Baer) | The global equity market has seen a multi-percent- age correction for a variety of reasons, from re- newed fears of a second wave of coronavirus infec- tions to disappointment about Federal Reserve (Fed) Chairman Jerome Powell’s policy stance. In the wake of a rally of almost 50% from the lows of March, it is fair to say that such a decline cannot come as a surprise.
Renta 4 | Iberdrola has announced a takeover bid for 100% of the Australian renewables company Infigen Energy at a price of AUD 0.86$ per share. This is in line with Infigen Energy’s current stock price, but 6% higher than the offer made by UAL Energy on 9 June. It values Infigen at AUD 841 M (510 million euros approximately, 0.7% of Iberdrola’s market cap), with an EV/EBITDA multiple of 8.2x (vs 10x at Iberdrola’s current price).
The Spanish oil and gas group has announced an agreement with Saudi state oil company Aramco for the development of synthetic fuels. The agreement begins with an industrial conversion project in the Petronor factory (Basque Country) and would later be transferred to the rest of Repsol’s facilities globally. Repsol will invest 80M euros to modify some of Petronor’s production processes via two projects.
Darwei Kung (DWS) | The oil rally continues. On the supply side, OPEC and Rus-sia reached an agreement to extend the June production cap into July instead of implementing the planned scaling down of cuts. This is perhaps a sign that the major produc-ers are conscious of the oil market’s fragility despite the recent rise in oil prices. Large inventory overhangs support that fear. On the demand side, the re-opening of economies across the globe has brought significant optimism, even though the amount of realized demand that has emerged give little support for it.
Adam Vettese (eToro) | The US Congress is mulling the idea of creating digital dollars to help the unbanked in America. It laid plans, according to Decrypt, for the Federal Reserve to provide bank accounts to those whom the banking industry does not. So-called “FEDaccounts” would operate through US Post Offices. Meanwhile former chairman of the US Commodities and Futures Trading Commission Chris Giancarlo recommended a form of Central Bank Digital Currency at a Congressional hearing.
Grifols announced yesterday that it has started production of hyperimmune immunoglobulin as a potential therapy for Covid-19. This makes it the first company to begin manufacturing anti-SARS-CoV-2 hyperimmune immunoglobulin, the first doses of which will be available in July. The aim is to integrate it into a clinical trial to evaluate its efficacy and subsequently begin the regulatory process for its approval.