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European economy

Cepsa

European economy 2nd March 2023

Cepsa sells Abu Dhabi exploration and production business to TotalEnergies

Cepsa has sold its Exploration and Production business in the United Arab Emirates to France’s TotalEnergies. This comprises the transfer of Cepsa’s 20% interest in the Satah Al Razboot, Umm Lulu, Bin Nasher and Al Bateel well concession (SARB and Umm Lulu Operation) and the subsequent transfer of its indirect 12.88% interest in the Mubarraz concession through the sale of its shares in Cosmo Abu Dhabi Energy Exploration & Production…

europa energy rehab

European economy, In Europe 2nd March 2023

Construction sector: 75% of Europe’s building stock needs energy improvements by 2030

Morgan Stanley : The Alphawise survey confirms that investment towards renovating Europe’s energy-inefficient buildings is on the rise and is essential to reach the NET ZERO target by 2050. In this regard, Cedar Ekblom (analyst) points to over €2.8tr of investments until 2030 and over €5tr until 2050. We analyse the possibilities for European stocks exposed to this dynamic in the note. An example of what lies ahead is that…

bolsas europeas

European economy 1st March 2023

Fourteen European stock exchanges plan to provide information jointly

F.R. : Fourteen European stock exchange groups present in 26 EU Member States, including Six -BME-, Euronext, or Nasdaq, have announced a “joint initiative to participate in the future selection process for the provision of a CT (Consolidated Tape) for equity information in the European Union”. The CT is an electronic system for real-time dissemination of quotes and trading volumes, among other information. The project, for which no dates or…

ECB night

European economy 28th February 2023

QT begins: €15 billion a month of APP reinvestment ceases

Goodbye to primary market frontloading. The window for issuance before the start of the QT has closed. And therefore the pressure in some segments, such as covered bonds (+43% YTD, €70mm), is expected to ease. And although the ECB has made it clear that it will continue to participate in the primary green issuance after the start of QT, the utilities sector is the other sector that has advanced its…

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European economy 28th February 2023

European 2/10-year curve most inverted for 30 years

The German 2Y bond yield reached 3% on Friday for the first time since 2008. Likewise, the US 2Y UST rebounded 12bps to the highest since 2007. As a consequence, the US 2s10s curve has continued to invert… to the most inverted in 42 years. Similarly, the European 2s10s curve has never been so inverted in the last 31 years.

inflationCM copia

European economy 25th February 2023

Consumers’ one-year inflation expectations to rebound (+4.2% vs. +3.9%) for first time in 10 months

Renta 4 : European opening with slight gains (Eurostoxx futures +0.4%, S&P futures -0.1%), on a day of numerous 4Q22 results in Spain. In the background, and on the day that marks one year of war in Ukraine, a peace proposal presented by China that does not seem to have the support of the US and the EU. Today’s macro focus will be on the US core private consumption deflator…

inflacion CM

European economy, In Europe 23rd February 2023

Eurozone final CPI could be revised slightly upwards to 8.6% with underlying at 5.2%

Renta 4 : European stock markets open slightly higher (Eurostoxx futures +0.3%, S&P futures +0.4%), supported by Nvidia which raises its guidance (IA) and boosts Nasdaq futures (+0.8%). On the macro front, the focus of the session will be on the eurozone January final CPI, which could be revised slightly higher to +8.6% overall (vs +8.5% preliminary and +9.2% previously), with core CPI stable at yearly highs +5.2%. This maintenance…

Bundesbank

European economy 22nd February 2023

Bundesbank predicts German economy to enter mild recession in 1Q2023

Link Securities | According to the German central bank, the Bundesbank, in its monthly bulletin, and reported yesterday by Europa Press, the German economy will probably enter recession in 1Q2023 as the evolution of GDP will be weaker than in 4Q2022, when activity contracted by 0.2%. The Bundesbank also says it is confident that this contraction in economic activity will be milder than it expected in its December projections. According…

working at office

European economy 22nd February 2023

Bankruptcies rise 27% and hit record highs in Europe

Santander | One good one, and then… And while flows into IG funds reach record highs of $19mm YTD globally, corporate bankruptcies have also jumped to record highs in the EU. And they grew by +27% in Q4 to the highest level since Eurostat has been collecting data (2015). On the other hand, although the technical picture is undoubtedly good, the trajectory is not. And while Europe is experiencing a…

Liquidity

European economy 21st February 2023

Eurozone liquidity falls 12% in three months

Morgan Stanley analysts explain that excess liquidity in the European market multiplied in the post-Covid phase: from €1.7tn in December 2019 to a peak of €4.8tn in September 2022 and this increase helped stabilise the equity market during 2020. But “in the last three months we have seen this excess liquidity reduce by -12% (part of the ECB’s plan, by ending APP reinvestments and reducing TLTROs)