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European economy

ECB night

European economy 15th December 2022

The ECB is committed to continue to increase rates significantly

Annalisa Piazza (MFS Investment Management) | The ECB is committed to continue to increase rates significantly, at a steady pace and to keep rates in restrictive territory until the medium inflation target returns to target. The central bank announced that it will start quantitative tightening (QT) related to the APP at the beginning of March 2023, with a “measured and predictable pace”, allowing the Eurosystem balance sheet to decline by…

french interconexion

European economy 13th December 2022

Gas consumption in Europe fell by 19% in November

In Europe, in November, the fall in natural gas demand was 19%, much more than the 15% drop estimated by the EU. In addition, November is the first month in which we can see how the residential and commercial segment is reacting to higher energy prices. Demand from the industrial customer has already been falling for several months (-28% vs 5 year average) and has not been surprising. But the…

Sabadell

Companies, European economy, Ibex 9th December 2022

Banco Sabadell gets offers of €300-350 M from France’s Worldline and Italy’s NEXI for its payments business

Alphavalue/ Divacons | The Catalan lender has received binding offers from France’s Worldline and Italy’s NEXI for its payment business which it put up for sale in September. The offers are between 300 and 350 million euros, with that from Worldline (part of our model portfolio) seeming to be the highest. Sabadell is said to be looking for 400 million euros.

Telefónica

Companies, European economy, Ibex 1st December 2022

The EC gives green light to Vauban, Crédit Agricole’s entry in Telefónica’s rural fibre optic arm

Bankinter | The European Commission (EC) has authorised the entry of Vauban Infrastructure Partners and Crédit Agricole in Telefónica’s rural fibre optic affiliate. The company, called Bluevia, will have the 3.5 million premises which has the group’s fibre optic and will roll out an additional 1.5 million fibre optic connections in the next two years. Bluevia will also signs provision of services contracts with Telefónica. The consortium formed by Vauban and CA…

iberdrolaTC

Companies, European economy, Ibex 26th November 2022

Iberdrola seeks investor for 49% Baltic Eagle offshore wind farm in Germany; would obtain €750 M

Banco Sabadell | According to press reports, Iberdrola has put up for sale a minority stake (49%) in the offshore wind farm Baltic Eagle in Germany (476 MW, with the start of construction expected for 2023, becoming operational in 2024). The wind farm could be valued at 1.5 billion euros (1.1% EV) of which Iberdrola would obtain 750 million. Valuation: The sale of minority holdings to fund renewables expansion is…

LexHoodguin

European economy 23rd November 2022

Netherlands Should Consider Euro Exit: Former Central Banker

Syp Wynia (Atlantic Sentinel) | The Netherlands should consider exiting the euro, argues Lex Hoogduin, a former director of the country’s central bank. Hoogduin, now a professor of financial markets at Groningen University, points out in an interview with Wynia’s Week that the nineteen countries that share the euro have broken almost all the rules they agreed in the 1990s, when the currency was introduced. High inflation and low interest…

Heathrow Ferrovial

Companies, European economy, Ibex 17th November 2022

Ferrovial eyes participation in new Warsaw airport, a project valued at €8 B

Bankinter | Ferrovial is interested in participating in the development of the new airport in Warsaw, which will be located between the Polish capital and the city of Lodz. The project is valued at around 8 billion euros and the Spanish firm has put itself forward to invest in it, along with other partners. Analyst team’s view: Good news for Ferrovial. The operation would make strategic sense, as it would…

geopolitics

European economy 15th November 2022

Geopolitics, geopolitics and, for dessert, geopolitics

Clàudia Canals (Caixabank Research) | Economic prosperity and the transformation of societies has been indisputably linked to technological revolutions. Today, in the midst of the Fourth Industrial Revolution and an intense geopolitical battle that is likely to lead to a multi-polar world, the major economies must choose their game-play strategy. This is a strategy that will be developed on many fronts, and where we are already seeing a prominent role…

Arcelor Mittal

Companies, European economy, Ibex 14th November 2022

Problems related to demand worsen for ArcelorMittal due to a persistent de-stocking in Europe

Morgan Stanley | Arcelor’s conference call focused on the outlook for the business, on Q4 results, on the dynamics of the working capital and returns on capital. Our economist Alain Gabriel highlights the following issues: The problems surrounding demand are worsening due to a persistent de-stocking in Europe, which Alain expects to further exacerbate in Q4.EBITDA 4Q: fewer deliveries and lower prices are offset (partly) by lower variable costs. Energy coverage…

iberdrolaTC

Companies, European economy, Ibex 10th November 2022

Iberdrola teams up with Axa to develop four offshore wind parks in France

Renta 4 | Iberdrola would have reached an agreement with Axa for the development of four offshore wind farms in France, with a total of 1.750MW. Via the agreement, the French firm would have a minority stake in the event the projects are awarded to Iberdrola in the auctions expected to take place in 2023. The implementation is planned for 2030. Valuation: This is a repeat of the strategy of…