ifo | Only just under one-third of German companies has an emergency plan for dealing with the energy crisis. This is the result of the new Randstad ifo Personnel Manager Survey of 700 HR managers. “The smaller the company, the less often measures were in place. Among companies with more than 500 employees, 60 percent have taken appropriate precautions. For companies with up to 50 employees, the figure is only…
Santander | Calls are growing for a European fiscal programme. Financed by joint SURE-style emissions guaranteed by member states. In this case, to combat the energy and security crisis as proposed in their open letter by EC Commissioners for Economy and Home Affairs Gentiloni and Breton last Monday. Yesterday it was the turn of Von der Leyen, who called for the EU to seek other sources of funding to accelerate…
Link Securities | On Monday, Iberia (IAG) chairman Javier Sánchez-Prieto warned about the implementation of asymmetric sustainable policies in Europe, which could be a drag on Spain’s tourism business, the daily Expansion reported. Specifically this could mean the loss of up to 11 million tourists and 450,000 jobs, according to Deloitte. Imposing taxes on flights within the European Union (EU) would be prejudicial for those companies which operate in the…
Santander’s analysts explain that the primary is practically closed. The strong market volatility has been accompanied by an almost total closure of the European primary. With only €2.3 billion in the week and with little investor appetite, as orders barely covered the nominal amount of the issue (average b/c of 1.2x). Most of the issues were of a defensive nature, being covered bonds (€750mn) and senior IG debt (€1mm), while…
Miguel Navascués | Giorgia Meloni’s election victory is a new warning to the errors of European bureaucracy, to the stiff Commission, to the false and undemocratic Parliament, and to the no less disoriented European Central Bank. Italy is fed up. It is fed up with this Europe, it is fed up with the Euro (which, it thinks, prevents it from growing with dignity and makes it long for its Lira,…
Franco Macchiavelli (Activotrade) | During Monday’s Asian session, sterling experienced a flash crash with percentage falls not seen since Brexit. In just 20 minutes, sterling plunged to near parity with the dollar at the 1.03 level (Asian session lows), levels not seen since 1985. In addition to the sharp fall in the currency, bonds also experienced intense moves, with jumps of 50 basis points (the largest daily jump in UK…
Morgan Stanley | Despite Gazprom cutting the gas supply via Nord Stream 1, Martijn Rats (our Commodities strategist) believes that rationing will not be necessary this winter. However he warns that Europe could enter winter 2022-24 with inventory levels which are too low. In response to this, the European Union has suggested introducing different measures: Limit the price of electricity for the “fixed cost” energy generators, 2. Limit the price…
BBVA Research | European Commission proposals to mitigate the impact of electricity price inflation on households disposable income and business costs must consider how they affect security of supply and decarbonization.
Ifo | Extending the operating lives of Germany’s three nuclear power plants would reduce the German electricity price by 4 percent next year, according to calculations by the ifo Institute. The nuclear power plants would generate about 4 percent of Germany’s electricity. However, the share of natural gas in power generation would drop only from 8.3 percent to 7.6 percent. “This is because nuclear power isn’t a 1:1 replacement for…
According to a report by the Bank for International Settlements, global real house prices increased by 4.6% year on year in aggregate in the first quarter of 2022. This strong growth in real terms reflected a surge (+11.2%) in nominal terms – the first double-digit one recorded since the eve of the Great Financial Crisis – partly offset by the acceleration in consumer price indices. Real house price developments continued…