Intermoney | The S&P500 index has gained almost 35% since its lows recorded in December 2018. The Stoxx Europe 600 surged about 25%, approaching its highest records. Markets have priced in the reduction of the main sources of uncertainty on a global scale. Now, it is key that macroeconomic indicators end up confirming the improvement advanced by investors.
Acerinox and MásMóvil will increase their weight in the Spanish stock index, accounting for 100% of its capital vs current 80%. On the contrary, Colonial will see it reduced to 60% (vs current 80% ) while Naturgy goes from 60% to 40%.
DWS | Although many experts accuse central banks, private sector savings and investment trends are equally important. Eurozone sovereign debt yields have rebounded since the August lows but remain firmly anchored in negative territory. The question is not whether the ECB will raise its interest rates again but how to create an environment in which companies are willing to invest to generate profitability and that part of that profitability returns to the lenders.
Nicola Mai and Peder Beck-Friis (Pimco) | We believe that negative policy rates could do more harm than good to economies and markets, due to their impact on banks, insurance companies and pension funds, and also a possible adverse effect on consumption. Below, we discuss potential implications for investors.
Santander Corporate & Investment | Waiting for PMI business confidence indicators to show signs of substantial improvement and in the absence of developments in trade negotiations, interest rates on government bonds have receded slightly, which has again given prominence to defensive companies while cyclicals take a break after the rally that began in September.
José A. Santos (Patrivalor) | The stock valuation of the 60 Spanish companies amounted 609.718 billion euros at the end of November 2019, which represents an increase of + 8% compared to the end of 2018.
Cellnex has reached an agreement with Orange Spain to acquire a portfolio of 1,500 telecommunications sites, which means 11% of the current Cellnex portfolio in Spain, and 4% of the total portfolio of towers and antennas located in urban, suburban and rural areas. The operation involves an overall investment of € 260 M. The acquisition will be financed through available cash.
Repsol expects to adjust the accounting value of some assets, with a post-tax accounting charge of approximately 4.8 billion euros in order to achieve net zero emissions by 2050. This adjustment will reduce specific reported income for 2019 but does not alter the company’s cash flow for the year nor the announced proposal to increase shareholder remuneration.
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.
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).