Banco Sabadell| According to press reports, Iberdrola has agreed to give Masdar (the renewable energy arm of Abu Dhabi’s sovereign wealth fund) a stake in its East Anglia 3 offshore wind project in England. The project, with a capacity of 1,400 MW, began construction in 2022 and is scheduled to run until 2026. The deal values the project at €4 billion and Masdar would acquire up to 49% for €2…
BancaMarch: Business confidence indicators in Germany and France this morning continue to show weakness in growth in the coming months. In Germany, the composite PMI deteriorated more than expected, falling back to 45.8 from 46.4 and below the 46.7 expected. This performance was mainly explained by a sharp drop in confidence in the German services sector (48 vs. 50.3 previously) while manufacturing continued to contract (40.7 vs. 39.6 previously). In…
CdM| In the second quarter, public debt in the euro area fell to 90.3% of GDP compared with the previous quarter, while the government deficit remained at 3.3% of GDP, according to data from Eurostat, the EU’s statistical office. In the EU, the government debt ratio also declined, from 83.4% to 83.1% of GDP. For both the euro area and the EU, the decline in the government debt-to-GDP ratio is…
Banc Sabadell| Adidas announced better preliminary 3Q23 results with LfL sales growth of +1% (-6.4% reported against -7.6% consensus) and EBIT of €409m (-27.5% against -53.5% consensus), thanks to a better gross margin evolution (c.+20 bps in 3Q23), Yeezy sales and a better-than-expected evolution of the rest of the businesses. All this allows them to raise again the 2023 guidance to a low single digit LfL decline in sales (as…
Bankinter: Inflation has fallen significantly and more than expected in September. The General Rate stands at +4.3% against +4.5% expected and +5.2% previously. In the month-on-month comparison, inflation has risen more than expected,+1.7% against 1.3% expected and +0.2% previously. The Underlying Rate, which excludes the most volatile items of the indicator, stands at +4.5% against +4.8% expected and +5.3% previously. By components, energy is the one that has most contributed…
Link Securities| Germany’s Federal Statistical Office, Destatis, published on Wednesday that Germany’s producer price index (PPI) rose 0.3% in August from July, slightly more than the 0.2% expected by FactSet consensus analysts. On a year-on-year basis, Germany’s PPI fell by 12.6% in August (-6.0% in July), slightly less than the 12.8% expected by the analysts’ consensus. August was the second consecutive month of a year-on-year decline in the PPI, the…
As the risk of stagflation scenarios gains momentum, ideas to cut excess liquidity (close to €3.5trn) and the costly size of the ECB’s huge balance sheet are re-emerging. And the problem for credit markets, and especially peripheral ones, is that the ECB may already be looking for alternatives. According to Reuters, the ECB is discussing the option of accelerating the end of the Pandemic Emergency Purchase Programme (PEPP) from early…
Renta 4: European stock markets open without major movements (Eurostoxx futures +0.2%, S&P -0.1%), in a session that is expected to be transitional as we await the week’s big releases: US CPI (Wednesday) and the ECB (Thursday). In the background, new negative news on the cycle, with the European Commission revising downwards its eurozone growth forecasts for 2023 to +0.8% versus +1.1% previously and 2024 to +1.3% versus +1.6%, while…
Bankinter : August CPI (final) confirms moderation: +6.1% vs +6.1% estimate and preliminary vs +6.2% previously. In month-on-month terms +0.3%, same as estimated, preliminary and previous. Assessment: Unchanged and representing a new moderation in the price level. This is good news as it takes pressure off the ECB to keep tightening its monetary policy. The downside is the entrenchment of underlying inflationary pressures above +5%.
Bankinter: Sentix Investor Confidence (September), below expectations: -21.5 vs -20.0 expected and -18.9 previous. Investor confidence falls again after the recovery of the previous month. Both the Expectations component (-21 vs -17.3 previously) and the Current Situation component (-22.0 vs -20.5 previously) fell. In the case of the Current Situation, they are at their lowest levels since November 2022. Assessment: Investor confidence in Europe continues to show weakness in the…