Norbolsa: EU fiscal plan: The European Commission reported that France’s 2025 draft budget and medium-term plan to reduce public debt are in line with EU rules (it is projected to have a budget deficit of 6.1% of GDP this year and by 2025 aims to reduce it to 4% and then bring it below the EU limit of 3% in 2029), while the Netherlands’ spending plans are high. The European…
Link Securities | According to financial sources close to the process, the European Commission (EC) gave its approval to BBVA’s takeover bid for Banco Sabadell (SAB) after verifying that BBVA will not benefit from aid from third countries to take over Sabadell, according to the newspaper Expansión. On 21 October, the European Commission (EC) Directorate-General for Competition opened proceedings against BBVA to explore the existence of potential subsidies from foreign…
Alphavalue/ Divacons | Shares in the Spanish olive oil company fell 6.09% on Friday. The company reported that Carapelli Firenze, its Italian subsidiary, has received from the Italian court of second instance the notification of an unfavourable ruling in relation to the tax claim linked to its dispute with Italian customs, which dates back to 2014. Deoleo adds that, once it has been notified of the full content of the…
Link Securities | The French government has prequalified 12 bidders to develop new offshore wind farms off the coast of France through the AO9 tender for up to 2.9 gigawatts (GW) to install offshore wind farms at four sites, including Iberdrola (IBE), according to Expansión newspaper. One will consist of the extension of an existing farm in southern Brittany, two others will be located on the Mediterranean coast and the…
Intermoney: The confidence indicators were published yesterday in the Eurozone, both the one referring to consumers and the one referring to businessmen. Regarding the former, in the Euro zone as a whole we saw a noticeable change for the worse, with consumer confidence as compiled by the EC falling to -13.7 pts (vs. -12.5 est.). Concerning the business climate, in this case we had the national reading in France, which…
Bankinter: Final 3Q24 GDP data defies estimates, -0.3% year-on-year vs. -0.2% estimated and -0.3% previous. The German economy confirms its weakness and now has five consecutive quarters with negative growth rates. This evolution offers more arguments for the ECB to accelerate rate cuts in its next meetings, as we expect. This would ensure that it can implement them before the measures planned by the incoming Trump administration cause US inflation…
Link Securities | Eurostat published yesterday that hourly labour costs in the Eurozone rose by 4.6% year-on-year in 3Q2024, slightly less than the 5.0% (upwardly revised rate) in 2Q2024. Wages and salaries per hour worked grew by 4.5% year-on-year in the quarter, down from 4.9% in 2Q2024, while the non-wage component increased by 4.9%, down from 5.6% in the previous quarter. In the euro area’s main industrial sectors, labour costs…
Morgan Stanley | Acerinox confirmed on Friday that Austrian authorities have issued an antitrust clearance for the Haynes acquisition, reinforcing the possibility that the deal will close in 4Q24. While the deal will generate revenues immediately, given the planned $200m investment in Haynes (plus acquisition costs), it will not have a significant impact on FCF until 2028. While this should likely delay the prospect of excess shareholder returns, Ioannis Masvoulas…
Bankinter | Moody’s maintains Portugal’s rating and outlook at A3 “Stable”. For our analysts this is good news for the Portuguese economy. “The financial rating agency considers that this rating is a reflection of a competitive and diversified economy”. Moody’s forecasts GDP growth of +1.6% in 2024 and +2.2% in 2025. However, it continues to point to challenges such as the high public debt ratio, although it acknowledges that it…
Link Securities | The ZEW institute published yesterday that its index measuring sentiment about Germany’s economy among major investors and analysts declined in November to 7.4 points from 13.1 points in October, also below the 13.3 points expected by FactSet’s consensus of analysts. This was negatively influenced by Donald Trump’s victory in the US presidential election and the collapse of the German coalition government. The index measuring their perception of…