Bankinter | Santander UK has completed a revision of its UK operation, with a cut of 1.5 Bn€. This writedown is due to a deterioration in business perspectives (generation of future incomes) as a consequence of the severe regulatory environment and uncertainty about Brexit, which obliges it duplicate certain functions and, therefore, raise costs and reduce the expectations for the generation of profits.
Marie Lassegnore (La Française AM) | Climate change is a reality which affects all of us. We are both responsible for and damaged by this environmental impact. As committed investors with strong convictions, we want to participate actively in the energy and ecological transition necessary to conserve our planet as we know it.
Allianz Wealth Report | Rising uncertainty took its toll on financial markets in 2018 – and households felt the brunt: Private financial assets fell by 0.1% in 2018, the first decline since 2008. Gross financial assets in the 53 countries we analyzed thus remained more or less flat at EUR 172.5 trillion. The decline in gross financial assets in 2018 was widespread, both emerging and advanced countries ended the year in the red. For emerging markets, it was the first time in this century, for advanced markets the third time since 2008 and 2002.
Link Securities | Iberdrola, through its Brazilian subsidiary Neoenergia, will construct its largest terrestrial wind-farm complex in Latin America. Named Oitis it will be composed of a total 12 farms with a combined installed capacity of 566.6 MW.
Bankinter | Acerinox has communicated to the regulator (CNMV) a proposal to cut 300 jobs which it will also communicate to the Company Committee for the factory in the Campo of Gibraltar. The sector´s environment remains difficult.
Chris Iggo (AXA IM) | The market is trading like it believes the mid-cycle correction story rather than the impending recession narrative. Equity and credit markets are doing “ok” and rates have bottomed for now.
José Carlos González Vázquez (UCM/MA Abogados) | Following the Anglo-Saxon model, the new European directive transforms the duties of directors – to the benefit of financial creditors. When? When insolvency is close.
Funcas | The capitalisation of cryptocurrencies increased 159% in the first half of 2019 and went from 125 Bn$ at the end of 2018 to 325 Bn$ at the end of June, according to the Report on “Cryptomarkets and Blockchain” by the Observatory of Financial Digitalisation (OFD) of Funcas and Finnovating.
DWS | “First, do no harm.” That command may, or may not have been part of the Hippocratic Oath among medical practitioners since ancient times. Central bankers, however, appear increasingly keen to follow that maxim on both sides of the Atlantic. On Wednesday, the U.S. Federal Reserve (Fed) once again lowered key rates by “only” 25 basis points to a target corridor of 1.75%-2.00%. And once again, its reasons included subdued inflation as well as risks resulting from weaker global growth and various trade conflicts, justifying another insurance cut. In that sense at least, President Trump has seems to have influenced central-bank policy.
Santander Corporate & Investment | Although the new deposit rate that is applied to bank liquidity in the ECB has increased 10 bp to -0.5%, the new tiering system will compensate for this increase and allow the European banks to reduce the interest from the previous -0.4% to -0.27%, as some 750 Bn€ remains exempt of payment (considering that part of the total of 788 Bn€ which supposes 6X the current reserve requirement of 131 Bn€ exceeds the excess of reserves of countries like Italy).