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.
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.
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.
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.
As Peter Kinsella, UBP’s global FX strategist highlights, the US dollar bull market has likely run its course as we enter 2020. Indeed, since 1995, long-cycle inflections in the US dollar exchange range have coincided with long-cycle under/outperformance of US equities relative to non- US equities.
BOAML | For a while, we’ve been asked by clients how “big tech” might compete with the European banks. This question now seems to need an answer. We think the European banks sector faces plenty of challenges, but a head-on challenge from the likes of Amazon and Google etc aren’t among them, in our view.
Esty Dwek (Natixis AM) | Recent data has continued to point to a slowdown in global growth, but at a softer pace. We believe that this slower growth is unlikely to translate into a deeper downturn for the time being thanks to accommodative central banks, a robust global consumer and easing trade tensions.
The broadband market continues to grow in Spain: 31% penetration in Spain vs. 42% on average in other European countries, analysts at Morgan Stanley point out.
The operation needs 50% support from BME’s capital. However, it also depends on the relevant authorizations. The purchase depends, in addition to the green light of the Spanish Competition Authorities, the approval of the Spanish market regulator CNMV.
The firm reported revenues up 13% and EBITDA up 13% in first nine months of 2019.