Last week, the Superior Administrative Tribunal in Münster decided not to allow RWE to clear the Hambach forest for mining. This decision, which was not expected (the share value of the company fell almost 8%), could imply a significant reduction in the extraction of lignite, and thus in RWE’s electricity production. Strategists at Santander consider three different scenarios for a solution:
Acerinox recently celebrated its Capital Markets Day, in which it confirmed its strategy based geographical diversification of its plants (distributed over 4 continents), a policy of differential investment, the control of costs and strengthening its balance sheet, with a special stress on the generation of cash. Its exposure to the US, where the fundamentals remain solid, amounts to around 45% of its sales.
Last week Grifols received a negative recommendation from the global broker UBS, referring to the potential negative impact the commercialisation of a new alternative treatment for autoimmune diseases could have on its sales of intravenous immunoglobin.
Cepsa’s single shareholder, Mubadala (Abu Dhabi Sovereign Fund), expects to raise up to 2.019 billion euros for the capital of the oil company put up for sale, which implies a value for the company in the range of 7.010 – 8.085 billion euros (more than 11.2 billion euros if the debt is included).
The Spanish stock market regulator (CNMV) has confirmed its authorisation for the bid of Minor Hotels for the 53.75% of the capital which it still does not control in NH Hoteles (NHH), fixing the purchase price at 6.3 euros per share and valueing the Spanish hotel company at some 2.5 billion euros. Minor now has a period of five working days to disseminate the offer.
Ryanair has issued a profit warning which, in reality, amounts to a warning for the entire European industry as it shows that the sector is beginning to be affected in both earnings and costs (margins) by three negative factors: increasing oil prices (aviation fuel), slowing of demand because of the slowing of the global economic cycle and the increased likelihood of strikes (greater in Ryanair´s case, but not only in their case).
According to a document given by the Spanish bank to the SEC, Brexit could result in increased financial instability and reduced economic growth, as well as increased unemployment and inflation in the UK, in addition to having adverse impacts on the bank´s business.
A few hours after the announcement that Santander (market capitalisation of 71.3 billiones euros) will have a new CEO in 2019, Andrea Orcel, BBVA the second Spanish bank by stock market capitalization (36.7 billion euros) reported that its chairman Francisco González will also leave his post at the beginning of next year. From January 1, the current CEO Carlos Torres Vila will be the new chairman of the Group.
The King of Saudi Arabia, Salman Bin Abdulaziz Al Saud, has officially inaugurated this Tuesday the high speed railway (AVE) from Mecca to Medina. This is considered the major infrastructure Project by Spanish companies abroad. According to the consortium of companies building the railway, the price of the project has already risen to 7.1 billion euros.
Santander | To adopt a more optimistic view of the price, we would like to see Meliá increasing its debt exposure to the dollar and solves its profitability problems in leased assets.