So far this year, European companies have bought back shares worth $80 billion, the highest figure to date, with half of this concentrated in just 20 companies. In March alone, a monthly record of €30 billion was reached, and it is expected that over the next three months, 3% of the free float will be bought back. Analysis by Morgan Stanley The volume of share buybacks so far this year…
The Eurozone is in decline. Business activity suffers its sharpest contraction in 17 months. Rising prices and disruptions to travel and supplies are causing concern, as they threaten to worsen the slowdown. Consejeros Editorial Team The Eurozone economy has contracted for the first time in nearly a year and a half. Final data for the April PMI “confirm the early signs of an economy heading toward decline, as the war…
CdM | Growth in the Eurozone manufacturing sector rebounded in April. However, “although the PMI index has reached its highest level in almost four years, the survey is causing more concern than joy”. Input price inflation rose sharply again, approaching its four-year high. Furthermore, production and the order book were driven by the build-up of safety stocks, “as a result of widespread concerns over supply shortages and rising prices stemming…
CdM | The European Central Bank (ECB) has kept interest rates at 2% and acknowledges that “upside risks to inflation and downside risks to growth have intensified”. However, it states that “the Governing Council remains well positioned to deal with the current uncertainty”. As stated in the press release following the April meeting, the eurozone entered this period of sharp rises in energy prices with inflation close to the 2%…
Link Securities | As announced yesterday by ECB analysts, median inflation expectations in the Eurozone for the next 12 months rose in March to 4.0% from 2.5% in February, reaching their highest level since October 2023. Furthermore, March saw the largest monthly increase in this figure since early 2022, when the war in Ukraine began. In March, the conflict in the Middle East, which has led to the blockade of…
Link Securities | The European Automobile Manufacturers’ Association (ACEA) reported that passenger car registrations in the European Union (EU) rose by 12.5% year-on-year in March and by 1.4% compared to February, reaching 1.2 million units, the highest monthly figure in over six years. In March, new and revised tax incentives and schemes in the major European countries were the main factor driving registrations in the region. During the month, sales…
Bankinter | Car sales rose by 12.5% year-on-year in March. This brings the year-to-date growth to 4.0%, with units sold exceeding 2.8 million. During the month, pure electric vehicles led the growth (48.9%), followed by plug-in hybrids (28.2%) and non-plug-in hybrids (20.1%), whilst combustion engines declined (12.3% for diesel and 9.4% for petrol). Analysis team’s view: Sales of electrified vehicles are gaining momentum and expanding their market share thanks to…
Link Securities | The Eurozone consumer confidence index fell in its preliminary April reading to -20.6 points from -16.4 points in its final March reading, according to the European Commission (EC). Analysts had expected a slightly better reading of -17.3 points. This decline was a result of consumers in the region’s concerns about the economic outlook, as the conflict in the Middle East is increasing energy price volatility and inflation…
Bankinter | The ZEW Economic Sentiment Survey surprises on the downside in April and stands at its lowest level since December 2022. The ZEW survey shows a sharper-than-expected decline and falls into negative territory for the second consecutive month. Bankinter analysis team’s view: The sharp fall reflects concerns about economic growth and the impact on energy prices arising from the US-Iran conflict. The figure is even weaker than that recorded…
Banco Sabadell | In the new strategy of measures to tackle the energy crisis that the European Commission is set to present this week, Brussels is reluctant to push for a European tax on energy companies’ windfall profits despite rising oil prices. Although Spain and four other countries are calling for a coordinated levy, the EC is leaving the decision to individual Member States. The new European plan to tackle…