Intermoney | On the European continent, we will be looking forward to the activity data that will be offered by the preliminary PMI readings for February. For the first time in several months we will see readings above 50 in several economies and in the eurozone as a whole, especially in the indicators for services and the composite indicator, while in manufacturing activity the PMIs will again show a very…
Morgan Stanley : The banking sector’s earnings release was again very successful with PBT beating consensus by 10%, up 20% on last year. Revenues were +9% year on year (+13% eurozone banks), 3% better than consensus, thanks to the strength of NII which offset the fall in fees and commissions. Costs rose 3-4% and were slightly worse than expected. NII was up on average +13% year-on-year and 3% better than…
The European Commission has raised its 2023 growth forecast to 0.9% vs 0.3% and lowered its inflation forecast from 6.1% to 5.65% for this year. The note highlights that domestic demand could turn out to be stronger than expected if the recent declines in wholesale gas prices are passed through to consumer prices more strongly, which we doubt, and consumption proves more resilient. In fact, this has had little reaction…
F.R. | Helena Viñes, director of the CNMV, is the new Chair of the Platform on Sustainable Finance, the European body that advises the EC on sustainability, including the strategy and also the drafting of specific projects such as the taxonomy. Viñes will lead the new path of a Platform that has reduced its number of members from 57 to 35 in an attempt to improve its efficiency and operability….
Banca March | The lack of support from Germany and Spain for labelling nuclear-derived hydrogen – pink hydrogen – as “green” within the European taxonomy has infuriated the French government, which claimed to have the commitment of both countries. The dispute could call into question the construction of a gas pipeline linking Germany and Spain, as well as delaying European green legislation.
Divacons / Norbolsa | A total of five Spanish banks are in the ECB’s top 20 in terms of assuming lower capital requirements in what is known as Pillar 2 by 2023, according to supervisory data published yesterday by the ECB. According to Alphavale-Divacons, these are Kutxabank, Bankinter, Santander, Caixabank and BBVA. Kutxabank is the Spanish institution that has received the lowest capital ratio for this year in Pillar 2,…
On Monday we once again had statements from ECB council members after last week’s appearances following last week’s meeting. There are few novelties, except for the reaffirmation of similar broad movements for March. According to Committee member Robert Holzmann, inflation must be actively combatted until the citizens of the Eurozone feel that price stability is part of their daily lives. Holzmann did make an interesting point in explaining that the…
Banca March : There was a mixed bias in the German activity data released yesterday. On the one hand, factory orders grew by 3.2% month-on-month in December, accelerating the growth trend -the highest recorded by the indicator in thirteen months- and beating forecasts. The series is down, however, on a year-on-year basis (-10.1%), reflecting lower activity after the start of the war. In contrast, this morning we have learned about…
CoM | German factory orders last December registered a 3.2% increase over the previous month, when they fell by 4.4%, thus surpassing market consensus expectations and removing fears that the “European locomotive” will enter recession this winter. According to data released by Germany’s Federal Statistical Office (Destatis), German factory orders experienced a 10.1% decline compared with December 2021, although they were 1.2% above the level recorded in December 2019, before…
Banco Sabadell: According to press reports, the EU plans to respond to the US $369 billion (€340 billion) Inflation Reduction Act (IRA) by relaxing state aid rules on tax credits for green investments. A portion of the €800 billion NGEU fund could also be directed towards tax credits. By relaxing restrictions on tax credits, the EC seeks to emulate one of the advantages of the IRA, simplicity of access. The…