Investment intentions fall in both Europe and the US
J.P. Morgan | It seemed that the trade tensions between the US and China were relaxing, but a breakdown in the negotiations has caused concerns to re-emerge in recent weeks.
Markets
Siemens-Gamesa: from Maintain to Overweight, O.P. 16.43 eur
Ángel Pérez Llamazares (Renta 4) | In Q219 results we saw how Siemens-Gamesa (SGRE) secured a portfolio in maximums of 23.6 M€, offering elevated medium term visibility, and allowing the lower limited of sales guidance to be covered 100%.
Repsol trading at more attractive ratios than rivals (PER 5,8x vs 11,7x)
Bankinter | Recomendation Buy and Objective Price 17,4€/share. The rise in oil prices and growth opportunities will drive the share price. Repsol will be driven by exogenous (the sharp increase in oil prices benefits it directly – Brent YTD +39%) indigenous factors.
In a market governed by traders, the final investor sits out
J.J.Figares (Link Securities) | As expected, the news that the US Commerce Department has approved a list of companies exempt from the prohibition on technology transfer to Chinese companies, amongst them Huawei, served as a catalyst for western variable income, allowing the main US and European stock markets to recover part of the losses suffered on Monday.
Europe breaks down barriers to investment funds
Manuel Moreno Capa (Gestores) | While the incompetent British political class continue to debate this Brexit impossible to apply (because there is no sense in leaving the EU, a select club which half the world wants to join), the European investment fund market refuses to raise new borders and does the opposite: breaks down existing borders and moves towards a new unification.
Repsol: intuitive purchase with short term potential return of 10%
Morgan Stanley | With oil up 30% YTD, fairly decent quarterly figures, dividends easily covered, with potential to grow and clearly above a market without upside, and with a process of positive profit revisions, we insist in dedicating half an hour to two ideas which are now being oversold and which have lost all they gained in Q1 and which their high dividend is clearly attractive in the market and which we believe could have returns of around 10% in the relatively short term.
After selling Nicaragua (390 M€, NFD -1%) Telefonica leaves Central America
Banc Sabadell | Telefonica (TEF) confirmed last week the sale of its subsidiary in Nicaragua for 390 M€ and so completes the sale of all its activities in Central America for a total of 2.052 M$/reduction of debt by 1.4 M€ (7.4x OIBDA 2018 vs our valuation of 6/7x for all the subsidiaries). The Spanish telco will reduce its net financial debt by 1% with this operation.
No need to fear the inversion of the yield curve
Jeroen Blokland (Robeco) | The yield curve for US 10 year/ 3 month Trasury bonds inverted in March. This phenomenon has accurately predicted the last seven recessions. However, analysis shows that is does not cause extreme variations in returns on assets.
CIE Automotive renews a loan of 690 M€ until 2024
At the close of Q12019 CIE signalled that it’s net financial debt has risen to 943.6 M€, which implies a NFD/EBITDA ratio of 1.74X. Positive news for the firm, as it has more funds to increase the loan and extend repayment to 2024.
Abengoa will build the largest reverse osmosis desalination plant in the EAU
Abengoa will begin construction of an inverse osmosis desalination plant of 909,000 cubic metres per day in Taweelah (UAE), which will be the largest plant of this kind of technology in the world. The project is valued at more than $700 M (623 M€), of which $243 M (216 M€) corresponds to Abengoa over the next 3 years, according to the Sevilla-based firm´s communication to the regulator (CNMV).