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investment banks

Markets 25th February 2020

Equity And Bond Investors Agree To Disagree

Stock and bond investors seem to have very different assessments of the impact of the virus: despite a pickup in realised volatility, equity markets (especially in the developed world) have reached new highs over the last couple of weeks. The VIX index rose above 17 at the end of last week, but is well below the levels seen in August 2019 in the midst of the US-China trade war (24.6) or at the end of December 2018 when recession fears gripped markets (36). Implied earnings growth rates for equities remain solidly positive, even for the MSCI Emerging Markets index (about 5% over the next year). The view from the equity market seems clear: COVID-19 is a risk but should not derail the supportive context for corporate earnings and stock prices.

renfe america

Markets, Spanish Small & Mid Caps 25th February 2020

Renfe Begins Its Activity In The US With $6,000 M Contract

The agreement between Renfe Operadora and Central Texas reached in 2019 to develop the first high speed ​​project in the US, that will link the cities of Houston and Dallas / Fort Worth, in the State of Texas. The contract will involve a turnover of 6,000 million dollars for the Spanish railway operator, the largest industrial contract of a Spanish company abroad, along with that of the AVE to Mecca.

How effective is China’s response to the coronavirus outbreak?

Markets, World economy 24th February 2020

Virus Spread Maintains Pressure On Equity Markets

Equity markets tumbled worldwide following the wide spread of the coronavirus epidemic beyond China. European stocks dropped most since 2016, with Italy’s MIB index dropping 5.43%, while the declines were more contained in Asia. Elsewhere, implied volatility increased further (VIX 23+6 points).

NYSE bull

Markets 24th February 2020

Global Financials: Upgrade From Neutral To Overweight

Patrik Lang (Head Equities & Global Equity Strategy, Julius Baer) | Global financials typically outperform when purchasing managers’ indices and bond yields rise. Growing scepticism with regard to the negative interest rates and increasing chances for the beginning of tangible fiscal easing are also potential positives.

renewables

Markets, Spanish economy 24th February 2020

Renewable Transactions In Spain Rose 14% In 2019 To Over €23 Bn

The value of the 63 transactions recorded in Spain in the area of renewable assets amounted to 23.067 billion euros in 2019, up 14% from a year earlier, according to Mergermarket data analyzed by KPMG. For the international services firm, this increase is due to the ‘boom’ in green energy in recent years, which has meant that the sector’s assets are “going through a sweet moment, whether they are in the operation or development phase and are breaking records in sales transactions.”

The challenge for Spanish banks in 2019: improve profit margins, still at historic lows

Ibex, Markets, Spanish Small & Mid Caps 21st February 2020

Spanish banks: less profit, more dividends: M&A on hold (for now)

The credit quality of Spanish banks looks solid, despite the pull-back in reported profits. Solvency ratios sitting comfortably above requirements offer greater leeway for capital distribution and will result in higher returns, benefiting investors, says Scope Ratings. Spanish bank creditors should see the banks’ improved capital-generation capacity as a sign of strength, even if capital ratios have peaked for this cycle.

Global Economy

Markets 20th February 2020

Headlines Do Not Wipe Out Market Caution

BBVA Research / Stocks reversed yesterday’s gains with the technological sector underperforming as investors weighed the fall in coronavirus cases, after China changed once again its counting methodology to report infections. Additionally, both Iran and South Korea announced their first fatalities from the epidemic, while two more deaths were confirmed in Japan, raising investors’ concerns.

Paladio

Markets 20th February 2020

Palladium Prices Are On A Tear

Aneeka Gupta, (Director, Research, WisdomTree) Palladium prices are on a tear, as safe-haven demand coupled with forecasts of a widening supply deficit supports its record-breaking rally. Palladium’s demand outlook (nearly 80%) is closely linked to the automotive market, as it is used heavily in catalytic converters in gasoline powered vehicles.

Spain will impose a 5% tax on foreign and Spanish companies’ digital services

Markets, Spanish economy 20th February 2020

Spain Pushes Ahead A Regulatory Sandbox For The Banking Sector’s Digital Transformation

The draft law for the digital transformation of the financial system is a long-awaited measure by the banking sector. The project anticipates the implementation of a test bench or regulatory sandbox, which is instrumental in promoting innovation in financial services. It is also a tool for the competition authorities, as it allows for synchronization between supervisory practices and financial regulation and the current pace of innovation and digital transformation.