European economy

ECB night

ECB: Tomorrow, March 27th, the last big maturity (€216 billion) of the TLTROs

Banca March: tomorrow, March 27th, the ECB and European banks will face the last large maturity of the TLTROs (“Targeted Longer-Term Refinancing Operations”) for an amount of approximately €216 billion. According to our estimates, this maturity will represent a reduction in the balance sheet of around -1.6 p.p. in terms of GDP, and will leave an outstanding balance of €177 billion (8% of the programme’s initial amount). It is important…


Talgo

Trilantic negotiates possible counter-bid for Talgo with Stadler, no high-speed positioning but increasing presence in Spain

Renta 4: According to press reports, the private-equity fund Trilantic could be negotiating with Stadler the launch of a counter takeover bid on Talgo after the possible rejection of the takeover bid of Magyar Vagon by the government. Assessment: The news could be considered to be positive because it may open a door to the success of a takeover bid for Talgo, but it may be difficult for it to…


construccion gruas

Heidelberg, Saint-Gobain, Wienerberger, construction stocks with most potential

Morgan Stanley: The construction sector (SXOP) trades at a premium in line with the 10Y average, not reflecting the increase in returns the sector has seen since 2018. According to Cedar Ekblom, 12M forward ROE SXOP/SXXP is 12% versus the 10Y average of -1%. Within the sector it is noted that the discount in valuation weighs more among heavyside companies, which trades at 11x P/E (-19% discount vs historical) against…


adidas edificio

Adidas loses contract as a supplier to German Football Association (DFB) to Nike after 77 years

Bankinter| Adidas loses the contract as supplier to the German Football Association (DFB) to Nike from 2027 until 2034. ADR falls -4.6% in NY. Adidas has been the official sponsor of the DFB for 77 years; its contract expires at the end of 2026. The DFB explains that Nike’s financial offer was the best “by far”. Some media reports suggest it could have been as much as €100m/year. Analysis: If…


BankofEngland

Bank of England keeps official interest rates unchanged with no voter in favour of rise

Banca March: Eight members of the Bank of England’s Committee yesterday supported maintaining the level of the cost of money at 5.25%, with only one in favour of a first cut. This marks the first meeting since September 2021 at which not a single voter has supported a rate hike. The governor of the Bank of England has stated that, although it is not yet time to cut rates, they…



Airbus 320

Airbus confirms it will not purchase BDS, Atos’ data and cybersecurity business, valued at up to €1.8bn

Link Securities| Airbus (AIR) confirmed on Tuesday that it will not buy BDS (Big Data and Security), the data and cybersecurity business of Atos, worth an estimated €1.5 billion to €1.8 billion, Europa Press reported. The aeronautical manufacturer, which has not indicated any reason in its statement for not going ahead with the acquisition, had a turnover of €3.789 billion euros in 2023, 11% less than in the previous year…


alemania nuclear

Germany ends 2023 with energy trade deficit of €2.29 billion for first time in years due to cheaper imports and nuclear shutdown

Norbolsa| Germany recorded a €2.29 billion deficit in international electricity trade last year, driven by the closure of its last nuclear power plant and cheaper foreign energy imports. Germany imported electricity at a cost of €5.7 billion in 2023, offset by export revenues of €3.5 billion, pushing Europe’s largest economy into a negative electricity trade balance for the first time in years. Germany switched off its last three nuclear power…


Applus

European Commission requires Amber EquityCo to apply for formal clearance for Applus+ takeover

Alphavalue/DIVACONS | The European Commission required Amber EquityCo, a consortium formed by the private equity funds I Squared and TDR, to submit a formal request for authorisation for its takeover bid for Applus+ (APPS) on the understanding that this transaction must be analysed in the light of the foreign subsidies regulation. In mid-September, Amber launched a takeover bid for 100% of Applus+ at a price of €9.75/share to compete with…


caf cartel fachada

CAF wins contract to supply 10 commuter trains in Netherlands

Link Securities| The Spanish industrial company CAF (CAF) announced on Friday that it has been awarded a new project in the Netherlands. The public transport operator Qbuzz, part of the FS Group, has chosen CAF to supply 10 commuter trains and their corresponding fleet parts, which are scheduled for delivery from 2028 onwards. Qbuzz is a public transport company in the Netherlands serving the Groningen-Drenthe region, the city of Utrecht…