Inditex: less promotional than 2018
BOfAML | We see a lower percentage of SKUs on discount in November compared to November 2018, which reflects a less aggressive discounting strategy by Zara in 2019, in our view.
Markets
Banco Sabadell: from Over to Equal-Weight, and P. O. from 1.20 to 1.10 eur/share
Morgan Stanley | Bank analysts raised the sector to Attractive a few weeks ago because our macro no longer expects depo-type cuts and this increases confidence that profit estimates have hit a minimum in 2H19. We estimate a flat growth of the NII (+ 0.6%) in 2020 and 2021. There is optionality in the charge for deposits (could add 3% to the NII of the Eurozone banks).
Unicredit, Santander and Lloyds Are Morgan Stanley’s Top Picks To Invest In The European Banking Sector
In their “European Banks: At a turning point?”, Morgan Stanley analysts explain that interest rates are still low but seem to have reached their bottom and that they don’t expect any further cuts to depo rates.
Santander Designated Bank Of The Year In Spain, Western Europe And The Americas
Banco Santander has been named Bank of the Year in Western Europe, the Americas, Spain, Portugal, Argentina and Chile by The Banker magazine. The Banker recognized the bank’s “peerless commitment to an enhanced customer experience”, its pursuit of operational efficiency and its development of new digital, global trade and global merchant services.
Iberdrola Merges Offshore Wind Farms In the UK Into A Mega Project Of €7,600 M
Iberdrola will promote via its subsidiary Scottish Power Renewables a marine wind mega-project, called East Anglia Hub, which will add an installed capacity of 3,100 MW and involve an approximate investment of 6,500 million pounds (more than 7,600 million euros). The three projects will be procured together to leverage their scale with a continuous installation programme.
57% of firms in the Eurostoxx 600 had a positive earnings surprise
Unigestion | With the third quarter earnings reporting season behind us and investors looking at what’s ahead for equities, it is helpful to distinguish between short-term and longer-term factors. Over the short term, the context for stocks looks supportive, if perhaps less so than it did a couple of months back. However, pressures are building that may become significant headwinds for some firms.
European equity funds see first inflows in 85 weeks
Morgan Stanley | First sign of inflows in Europe: Europe has suffered the greatest outflow of flows during the last two years. According to EPFR estimates, there has been a 100bn outfow of dollars in shares and 50bn dollars in fixed income.
European Banks Strategy: The monetary policy cacophony
BOfAML | It is difficult for forward guidance to be credible when the institution is discussing whether any of its tools or targets are likely to be around in a few months. Embarking on a wide ranging discussion about monetary policy targets, communication and tools, with 25 relevant ECB board members, guarantees a cacophony. Volatility lies ahead for sure, we think.
Grifols: 35% revaluation in 2019 Vs IBEX35 9%
José Benito de Vega | Grifols has had a very positive stock market performance in 2019, with a 35% revaluation compared to 9% of the IBEX35. The positive evolution of its results, its powerful cash flow generation and debt reduction, together with its potential growth thanks to a treatment for Alzheimer’s that is under study, explain the good behavior of the stock.
Macro is priced in
A&G Banca | The last macro data from November are generally better , but as the indexes of economic surprises point out, the rebound is less remarkable than the consensus forecast.