Yves Bonzon (Julius Baer) | Some investors and market commentators have interpreted the recent and persistent tensions in overnight repo markets in the US as a potential early warning signal of trouble. They draw parallels with the early warnings in credit market in 2007 right before the Great Financial Crisis. The current situation could actually not be more different: same symptoms, but very different cause.
Hans-Jörg Naumer (Allianz) | The debate on helicopter money, which is once again gaining traction, must be seen against a backdrop of rising public debt ratios and the debate on the policy options remaining for major Central Banks. It is about the monetisation of government debt, i.e. the financing of budget deficits, using monetary policy. It was none other than the retiring President of the ECB himself, Mario Draghi, who once called helicopter money “a very interesting concept” during the press conference following a meeting of the Governing Council in March 2016.
Renta 4 | Due to a more adverse market environment than initially anticipated and the increased competitive pressure in Southeast Asia and Europe, VIS revised downwards its 2019 guidance, slightly in revenue (-1%) and more markedly in recurring EBITDA ( -7%) and recurring net profit (-18%). The new estimates consider an increase in sales + 5 / + 7% and recurring EBITDA + 2 / + 5% and a fall in recurring net profit -6 / -12%.
Spanish infrastructure group Acciona is increasing its shareholding in German wind turbine manufacturer Nordex. First it will buy in the first stage 10% of Nordex for € 99M – raising its stake to 36.3% – and subsequently will launch a takeover bid for the rest of the share capital to € 10.32 / share.
Spanish oil-and-gas company Repsol SA just created a new subsidiary for its renewable energy business: Repsol Renovables. This new company will be responsible for carrying out the new green energy projects that the oil company has for more than 1Bn investment.
Cellnex acquired the Telecoms unit of Arqiva for 2,000M GBP. The Spanish company reached an agreement with Arqiva to acquire c.7,400 new locations and the commercialization rights of c. 900 locations throughout the United Kingdom.
Renta 4 | Spanish bank BBVA´s Board has approved the payment of the dividend on account of the 2019 results for a gross amount of 0.1 euros/share (versus 0.12 euros/share expected by R4), which implies a return per dividend of 2.2%.
Alphavalue | The bank aims to finance or re-finance green activities, social or sustainable.
Banc Sabadell | The bank guarantees of around 1 Bn€ held by Ferrovial´s Services Division (which we value at approximately 2.5 Bn€; ~7X EV/EBITDA) are complicating its sale and could lower its valuation to 2 Bn€ (vs 2.5 Bn€ rumoured).
MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.