Yves Bonzon (Julius Baer) | One of the unintended consequences of zero / negative interest rates is the fuelling of a broad-based start-up / venture capital (VC) boom. This carries the seeds of a huge capital misallocation. Investors are relentlessly funding non-profitable companies on the hope of surfing the next disruptive business model. Yet, venture capital is a game of capital scarcity not of capital abundance.
Banc Sabadell | IAG’s Capital Markets Day focused on cash generation. The reduction of some operational objectives (AKO’s 2020/23 growth from + 6% to + 3.4% per year; annual BPA growth from + 12% to + 10%), is in line with market forecasts and BS (e) .
Banca March | The Spanish utility prepares its launching in Australia with a portfolio of renewable projects for 650 MW in the states of Queensland and South Australia, with an estimated market investment of approx. € 500M.
Olivier de Berranger (La Financière de l’Échiquier) |”Let’s have fun”. Have the words of President Charles de Gaulle been prophetic? He was against the United Kingdom’s entry into the Common Market in 1963… More than 50 years later, although the tribulations of Brexit may cause amusement or disappointment, the truth is that they have been poisoning investors’ lives for more than three years, by separating them from British stocks. However, the outcome of this endless soap opera could well change the situation.
Bankinter | The main challenge of the group is the restructuring of Nordex. The market interprets this acquisition as a defensive movement to protect its investment in the turbine producer. A waiting period is now open to see if you are able to recover profitability with this injection of Acciona funds. This greater uncertainty could slow down the evolution of the stock.
Igor de Maack (Natixis) | Years of negative rates may well be coming to an end, with a reversal of investor sentiment for bonds over the last few weeks. In fact, the French 10-year rate is now verging on 0%. However, these years will leave their mark in terms of the extravagance of the monetary policies implemented for the purposes of “Saving Private Capitalism”, lost on the battlefield of excessive debt and driven into the trenches of complex finance.
BOfAML | Growth has started to improve and macro uncertainty is fading, but much of the good news is already priced into markets. We remain positive on European equities, but only see a further 5% upside to 425 on the Stoxx 600 by March.
DWS | Quarterly earnings are down year-on-year and 2020 forecasts are being cut further. It’s hope that is driving markets for now.
Christian Gattiker (Julius Baer) | With all the macroeconomic numbers, political news flow and earnings season reporting that has been going on, investors have had their hands full finding time to assess the situation. At the same time, there has been a quite substantial price reaction. So, the easing of the news intensity has brought a pause to investor activity.
Unigestion | October began in the shadow of highly negative expectations but ended on a positive note, as key dangers were avoided. Will this trend continue, which assets will end up flying to the moon, and how can we position ourselves for the final 40 trading days of the year?