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In Europe

ECB buying corporate

In Europe 13th November 2023

ECB’s Bank Lending Survey clearly shows contraction in credit supply and demand

Peter Goves (MFS Investment Management)| We believe ECB policy rates have most likely peaked for this cycle. This argument is based on three pillars: growth dynamics, the inflation outlook and what the ECB itself is communicating. On growth, the euro area is currently operating in a quasi-recessionary environment. Although we don’t technically have two quarters of negative GDP prints, Q3 growth was -0.1% and below ECB expectations. The vast majority…

Alemania PIB

European economy 11th November 2023

Germany’s inflation falls to 2021 lows after moderating to 3.8% in October; core stands at 4.3%.

CdM | Germany’s inflation stood at August 2021 lows after the Consumer Price Index (CPI) moderated to 3.8% in October, in line with the initial and consensus estimate, which is seven tenths lower than the previous month, according to confirmed data from Destatis, the federal statistics office. Compared with the previous month, German prices were unchanged in October. In particular, prices for energy products stood at 3.2 per cent, below…

Alemania industria

European economy 8th November 2023

Germany’s new drop in industrial production, down -1.4% in September, again fuels fears of protracted recession

Bankinter : Industrial Production falls more than expected in September and remains in negative territory for the fifth consecutive month. Industrial Production (September) falls -1.4% m/m against -0.1% expected and -0.1% previous (revised from -0.2%). By items: Manufacturing & Mining -1.7%; Intermediate Goods -1.9%; Capital Goods -0.2%; Consumer Goods (-4.9%); Energy -1.7%; Construction 0%. Assessment: Again, another bad Industrial Production reading, one that will once again fuel fears of a…

antonio costa Portugal PM

In Europe 8th November 2023

Portuguese Prime Minister António Costa resigns over corruption scandal

Portugal’s Prime Minister António Costa has resigned after being implicated in a corruption scandal. On Tuesday morning the Portuguese Public Prosecutor’s Office announced that it was launching an investigation against him for possible prevarication, active and passive corruption, and influence peddling in lithium and hydrogen deals. Costa has acknowledged that he has not committed any crime, but has decided to put an end to eight years of a government that…

telefonica logo nuevo

In Europe 7th November 2023

Telefónica launches takeover bid for the 28.19% it does not own in Telefónica Deutschland at €2.35/share

Bankinter | Telefónica has launched a takeover bid for 28.19% of its subsidiary in Germany. The company owns the remaining 71.81% of the capital and voting rights of the German subsidiary. The Offer will be formulated as a purchase and sale of shares. The consideration offered to Telefónica Deutschland shareholders is €2.35 in cash per share, representing a premium of approximately (i) 37.6% to the closing price of Telefónica Deutschland…

Vonovia

Companies, In Europe 7th November 2023

Real estate giant Vonovia, Europe’s largest, sells assets worth €1.7 billion in first nine months of year

Singular Bank: Europe’s largest real estate company has presented its results for the first nine months of the year, where the highlight is the sale of assets for a total of €1.7 billion, such as 30% of its northern German portfolio to Apollo for €1 billion, a portfolio to CBRE for €357 million at a discount of 4% and other small sales at an average discount of 7% to fair…

ryanair aviones

European economy 6th November 2023

Ryanair posts adjusted net profit of €1.515bn in fiscal Q2 and announces €0.35/share dividend this year

Bankinter : The airline reports solid 1H fiscal results and announces dividend payment. Key figures versus market consensus (Bloomberg): Revenues €4,926M (+23%) vs €4,874M estimated; EPS (adjusted) €1,515M (+26%) vs €1,493M estimated; EPS (adjusted) €1.324 vs €1.337. Passengers reached €105.4M (+11%) and Occupancy Rate 95%. Prices are +24% higher than last year. Highlights: (i) Announces that it will pay a dividend this year of €400M (€0.35/share), which represents a dividend…

Innovation Europe

European economy, In Europe 6th November 2023

Euro area aggregate GDP falls by one-tenth of a percentage point in 3Q23, highlighting credit tightening

Intermoney| Euro area aggregate GDP fell by one-tenth of a percentage point in 3Q23, highlighting the transmission of tighter credit conditions. But we should not magnify the stumble of the aggregate if we take into account that Germany, which accounts for 30% of GDP, fell by -0.3% q/qtr. However, we see a series of favourable factors for the EMU countries’ economies to hold up at moderate rates over the coming…

Renfe CAF

In Europe 2nd November 2023

Renfe to start operating Leo Express in Slovakia from December 10

Leo Express, the Czech railway operator in which Renfe holds a 50% stake, will start operating in Slovakia on 10 December with 21 Alstom trains on a 95-kilometre line along the Danube River linking the capital, Bratislava, and Komárno, on the Hungarian border. Ticket prices will start at €5.25.Slovakia will thus become the third country in which the Spanish public company operates, after Saudi Arabia and France. Leo express will…

alemania brandenburgo

European economy, In Europe 2nd November 2023

German GDP falls as CPI slows

Bankinter| Germany’s economy and inflation surprised positively in 3Q23. GDP declined -0.3% year-on-year in the period compared to -0.7% expected and +0.0% previous (it was revised up from -0.2%). On a quarter-on-quarter basis, growth was -0.1% compared to -0.2% expected and +0.1% previously (revised from +0.0%). On the CPI side, the headline rate rose by +3.8% year-on-year compared to +4.0% expected and +4.5% previously. On a month-on-month basis, inflation was…