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European economy 1st December 2023

Relief for ECB as eurozone inflation falls to 2.4% in November, lowest since July 2021, and close to target

Ulrike Kastens (DWS) | Eurozone inflation fell surprisingly in November. The increase in the cost of living was only 2.4%, down from 2.9% in October, its lowest reading since July 2021, according to Eurostat’s flash estimate. Across Europe, falling oil prices and easing gas and electricity prices had a notable impact. The energy price component fell by 11.5%. Food prices, on the other hand, hardly eased the situation. In this…

ECB night

European economy, In Europe 29th November 2023

Debate opens at ECB on whether to end bond buybacks to accelerate balance sheet reduction

Banca March: The European Central Bank will consider ending bond buybacks to accelerate balance sheet reduction. As announced by Christine Lagarde at the European Parliament Hearing, it is expected to tighten monetary policy by reducing bond purchases next year. The €1.7 trillion Pandemic Emergency Purchase Programme (PEPP) provided for the reinvestment of asset gains until the end of 2024. However, the debate has opened up between the hawks, who defend…

alemania bandera

In Europe 27th November 2023

German IFO rebounds in November for second month in a row to 87.3 from 86.9 in October

Link Securities| Germany’s business climate index, compiled by the IFO institute, rose in November to 87.3 points from 86.9 points in October, its second consecutive monthly improvement. The reading was slightly below the 87.5 points expected by the FactSet consensus of analysts. Sentiment reached its highest level in four months as companies became less pessimistic about both their expectations for the coming months (85.2 points versus 84.8 points in October)…

BCE Largarde Atenas Octubre2023

In Europe 26th November 2023

ECB to keep tightening until inflation shows clear signs of moving closer to 2% target

Link Securities| According to the minutes of the October meeting of the European Central Bank (ECB) Governing Council, at which the institution kept interest rates unchanged after 15 months of consecutive increases, its members opted for a more cautious “wait and see” stance, influenced by the gradual easing of inflationary pressures and concerns about an imminent recession. This decision follows a series of ten consecutive rate hikes since July 2022,…

alemania ampelmann

European economy 24th November 2023

Germany’s final GDP revised down 1/10th of percentage point to 0.4%, one quarter short of technical recession

Bankinter: 3Q 2023 GDP (final) is revised down one tenth of a percentage point (year-on-year) with respect to the preliminary figure, unchanged quarter-on-quarter. 0.4% (year-on-year) versus -0.3% preliminary and versus +0.0% previously. In the quarter-on-quarter comparison, -0.1% same as preliminary and against +0.1% previously. Assessment: In year-on-year terms GDP is revised down by one tenth of a percentage point. This means a return to negative year-on-year growth rates after +0.0%…

alemania germany ZEW

In Europe 23rd November 2023

Germany freezes public spending after court ruling on Covid funds reallocated to climate initiatives

Banca March : The court in Karlsruhe has declared unconstitutional the transfer of €60 billion that had initially been earmarked to tackle the pandemic, but was not spent, to an off-budget fund with climate and energy initiatives. The finance minister has sent an information letter to the rest of the cabinet warning of the blocking of new spending. With the increase in the deficit, the German constitution’s rules on the…

IAG

In Europe 23rd November 2023

IAG to not return to dividend until balance sheet is robust and investment plans more advanced

Intermoney| IAG held its Capital Markets day this morning at its London Heathrow headquarters, where it announced its strategic priorities and medium-term outlook for the Group, as well as the initiatives with which the Group intends to achieve sustainable growth and maximise long-term shareholder returns. The medium-term objectives (2024-2026) include the following: Sales growth will remain attractive thanks to organic capacity growth of 4-5% per annum.Target EBIT margin of 12-15%…

Europarlament

In Europe 22nd November 2023

European Parliament to debate ‘Threats to the rule of law as a consequence of the government agreement in Spain’ today

The draft Amnesty Law and its impact on the rule of law comes to the heart of Europe amid great expectations. The Strasbourg plenary session is holding a debate on Wednesday on “Threats to the rule of law as a consequence of the government agreement in Spain” with positions becoming inflamed. In the Conference of Presidents it was approved by all groups except the Social Democrats, Greens and the Left….

Tecnic

In Europe 22nd November 2023

Técnicas Reunidas wins contract to design and execute decarbonisation at three ArcelorMittal plants

Bankinter | ArcelorMittal is to renovate its plants in Dunkirk, Ghent and Bremen. The budget amounts to €2,000M. Técnicas Reunidas will carry out the design and execution of the projects. This order is part of ArcelorMittal’s objective to decarbonise its plants by 2050, for which it plans to invest €75 billion. Assessment: Positive news because it allows it to increase its presence in a high-growth segment such as decarbonisation (it…