In Europe

Leverage loans. The next trigger?

€738 billion: record euro issuance in 12 months

Santander : Issuance of €738 billion YTD (year to date) continues to set an all-time record for the last few years, thanks to record financial issuance. This year’s financial issuance of €434 billion surpassed the previous record of €379 billion in 2022 YTD. Within these, the €183 billion of covered bond issuance was also above the previous record of €176 billion last year. This year’s corporate issuance of €303mm exceeds…


SantanderUK

Santander UK potentially interested in buying up to £3bn of residential mortgages from Metro Bank

Norbolsa | Metro Bank announced on Sunday a £325m capital increase and a £600m debt refinancing, following a weekend of urgent talks to strengthen its balance sheet and improve its capital ratios. This deal would hand majority control to its largest investor, Jaime Gilinski (53% when the transaction is completed). The debt restructuring will extend the maturity of its loans and holders of the £250m bond due June 28 will…


Logista

Logista shares hit by UK tobacco ban; tobacco business accounts for 57% of sales

Banc Sabadell: Shares fell -1.7% in Thursday’s session after British Prime Minister Rishi Sunak suggested the possibility of a vote on a total ban on the sale of tobacco in the UK to new generations. This would raise the legal age for buying tobacco by one year every year, so that those born after a certain year would not be able to buy tobacco legally for the rest of their…


In 2017 global sales of electric cars surpassed the 1-million-unit mark

EU officially launches anti-subsidy procedure against Chinese BEV imports, Renault and Stellantis potentially biggest beneficiaries

Santander : Yesterday, the EU officially launched an anti-subsidy procedure against Chinese imports of battery electric vehicles (BEVs). The launch of the investigation comes after Commission President Ursula von der Leyen announced the initiative during her State of the Union address in mid-September. According to the statement published in the EU’s official journal, the EC “has gathered sufficient evidence” that BEV producers in China “have benefited from a number of…


exports gorgeous

EC identifies four sectors to limit exports to: semiconductors, AI, quantum computing and biotechnology

Banca March : The European Commission (EC) has identified four technology sectors to limit exports to. The European Union considers the overdependence of semiconductors, artificial intelligence (AI), quantum computing and biotechnology on exports to be a potential risk to the European economy. It therefore calls for unity among the 27 member states before taking action. Manoeuvres could include encouraging investment in these areas, collaboration between countries and export restrictions. Currently,…



Comision europea fachada

European Commission recommends reducing fiscal stimulus to lower Fiscal Deficit by 2024

Bankinter: It is only a recommendation because fiscal policy is the competence of each member state, but it has consequences on inflation, monetary policy and bonds. The EC relaxed the Fiscal Deficit and Public Debt targets due to the CV19 pandemic (2020) and the Russian invasion of Ukraine (February 2022), but for months it has been insisting on the need to return to fiscal discipline in 2024. The key date…


europa detalle billete

EMU CPI comes out better than expected, both headline (4.3%) and core (4.5%) rates

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…


Germany labour market

German business confidence remains weak with IFO in September at 85.7 vs 85.8 previously

Banca March: In September the IFO business sentiment index fell by one tenth of a point to 85.7, this weakness was mainly due to a drop in the reading for the current situation, which fell by three tenths to 88.7, while the expectations component improved by two tenths to 82.9. Overall, this confidence indicator is in line with last week’s PMI and points to the deterioration in Germany’s growth continuing…


contaminacion

Price of carbon allowances in EU could fall by 11-36% after 900% revaluation

Morgan Stanley| Analysts have revised their European Union (EUA) carbon allowance price estimates downwards, after a 900% rally from 2018, and see little appeal at €80/tonne as the energy crisis has accelerated emissions reductions, pushing the team’s 2030 emissions estimates to be -14% below the 2019 pre-crisis outlook.They also expect the CBAM (Carbon Border Adjustment Mechanism) to undergo a softer start to implementation or even a delay. The team estimates…