Renta 4 | Indra (IDR) has been designated as national coordinator of the FCAS programme, the future European combat aircraft. It is the major joint European defence project so far and the most ambitious in terms of technology development.
José Benito de Vega | Amadeus has seen a revaluation in 2019 of 12.2% including dividends, compared to 5% for the Ibex 35 with dividends. This relatively strong performance partially compensates for the poor close to 2018, when it fell 24% in the last quarter compared to -8% for the index.
The four mobile operators in Germany have signed a declaration of intentions with the government and local authorities to roll out the LTE network at national level. Telefonica Germany will construct 333 new mobile installations by the end of 2021. As compensation, the government has committed itself to improve the method of payment for the 5G licences auctioned in June.
Gilles Möec (chief economist at AXA IM) | In our view, the ECB’s narrative lacks consistency at the moment. Most of the members of the Governing Council who have expressed themselves called for more fiscal stimulus. This was evident again in Bank of Spain Governor De Cos’ speech last weekend. We agree with that. But if even central bankers now consider that the fiscal leg of economic policy should take the lead, while they also recognize that additional monetary stimulus can come with adverse effects – to the point that another deposit rate cut must be “mitigated” – then the question of whether the monetary push is going to be a net positive arises.
Miguel Navascués | The slope of the interest rate curve has become negative in several countries, among them the most important. As we know, whenever this happens there is a high probability that it is anticipating a recession, in this case global. Some countries will come out of this better than others, but the recession is highly likely.
Alphavalue | With most of the results for the first half of 2019 already published, the annual estimates of earnings per share (EPS) for 2019 point to an increase of +4.4% yoy, downgraded from the +10% forecast at the beginning of 2019 (when the 2018 figures were still estimates).
Telefonica is considering selling mobile and towers and fibre cables to its subsidiary Telxius (50.01%9 with the aim of giving greater visibility to the value of these assets, taking account of the major recognition telecommunications infrastructure is receiving in the markets.
Christine Lagarde, the nominee to be the European Central Bank’s next president, vows for the issuance of financial instruments that group bonds from different EU members which could act as refuge assets and increase the supply of bonds with high credit quality in the EMU.
Bankinter | Iberdrola will enter the Stoxx 50 index on 23 September. The Spanish electricity company will form part of the Stoxx 50 index which groups together the 50 largest companies in 17 European countries, including Switzerland and the UK.
Experts at UBP believe that fiscal stimulus or, more effectively, fiscal- monetary coordination presents the most potent upside catalyst to risk-assets.