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europa inversion

European economy 30th October 2023

EU directive to claw back excess exemptions on foreign dividends would save taxpayers €5.17 billion a year

Banca March | Last July, the European Commission published the proposal for the so-called Faster directive, to achieve more efficient taxation of European capital market returns. At the Congress of the Association of Tax Inspectors held late last week, the Spanish Ministry of Finance shared its progress towards a regulation that would free investors from tedious processes to recover excess withholding taxes. The Treasury hopes that Ecofin will be able…

ECB's next move

In Europe 30th October 2023

Lending contracts in peripheral countries: corporate loans down -6.8% and -3.4% in Italy and Spain

Santander : A new slowdown in lending to the private sector in September, already contracting in the peripheral countries. The fall in corporate lending in Italy is the largest since the ECB has recorded historical data (2004). The ECB published, on October 25, data on lending to the private sector in the eurozone, confirming the sharp slowdown in bank credit to +0.3% year-on-year in September against +0.7% in August and…

Inditex Junta 2023

In Europe 28th October 2023

Inditex announces launch of Zara Pre-Owned in Spain and other EU countries by 31 January 2024

Link Securities| Óscar García Maceiras, CEO of Inditex (ITX), during his speech at the 38th Aecoc FMCG Congress, announced the launch of Zara Pre-Owned, the platform that allows the repair, recycling and second-hand sale of its products in the United Kingdom in 2022, which has already arrived in France and will land in Spain and other EU countries before the end of its fiscal year (which ends on 31 January),…

bce lagarde 1

In Europe 26th October 2023

ECB leaves policy rates unchanged after Thursday’s Governing Council meeting

Annalisa Piazza (MFS Investment Management)| The ECB left policy rates unchanged after yesterday’s Governing Council meeting, with the depo rate remaining at 4%. Forward guidance remained unchanged, with future decisions being completely data dependent. Based on the current assessment, the ECB will leave rates at sufficiently restrictive levels to make sure inflation returns to 2%. EGBs rallied after the relatively dovish press conference and spreads marginally tightened. At the current…

wind power

In Europe 26th October 2023

Brussels seeks to accelerate share of wind energy from current 16% of energy consumed in Europe to 34%

Banca March: The EU aims to double wind power by 2030. Brussels is seeking to accelerate the relative importance of wind energy from the current 16% of energy consumed in Europe to 34%, from 204 gigawatts to 500 gigawatts. In doing so, it aims to reach the renewable energy consumption target of 42.5% of the total. Europe’s main wind turbine producers are suffering significant financial losses as a result of…

iberdrola offshore

European economy 25th October 2023

Iberdrola sells 49% of East Anglia 3 offshore wind farm to Masdar for €2 billion

Banco Sabadell| According to press reports, Iberdrola has agreed to give Masdar (the renewable energy arm of Abu Dhabi’s sovereign wealth fund) a stake in its East Anglia 3 offshore wind project in England. The project, with a capacity of 1,400 MW, began construction in 2022 and is scheduled to run until 2026. The deal values the project at €4 billion and Masdar would acquire up to 49% for €2…

eurozona mapa billete 1

European economy, In Europe 25th October 2023

Business confidence in Germany and France still showing weakness

BancaMarch: Business confidence indicators in Germany and France this morning continue to show weakness in growth in the coming months. In Germany, the composite PMI deteriorated more than expected, falling back to 45.8 from 46.4 and below the 46.7 expected. This performance was mainly explained by a sharp drop in confidence in the German services sector (48 vs. 50.3 previously) while manufacturing continued to contract (40.7 vs. 39.6 previously). In…

Innovation Europe

European economy, In Europe 24th October 2023

Eurozone public debt falls to 90.3% of GDP, deficit remains at 3.3%

CdM| In the second quarter, public debt in the euro area fell to 90.3% of GDP compared with the previous quarter, while the government deficit remained at 3.3% of GDP, according to data from Eurostat, the EU’s statistical office. In the EU, the government debt ratio also declined, from 83.4% to 83.1% of GDP. For both the euro area and the EU, the decline in the government debt-to-GDP ratio is…

UE gas

In Europe 23rd October 2023

EC considers extending application of gas price caps; proposal due in November

Banca March : The armed conflict between Hamas and Israel has been joined by the sabotage of the Baltic pipeline earlier this month (after the existence of an “external force” was confirmed). While the Commission warns of no negative effects at present, the list of events prolongs the threat to gas supply for the winter. The gas price cap in question, which is triggered if the Dutch TTF index reaches…

adidas Primeknit

European economy 22nd October 2023

Adidas reports gross margin improvement (+20 bps) in preliminary results, thanks to positive destocking management

Banc Sabadell| Adidas announced better preliminary 3Q23 results with LfL sales growth of +1% (-6.4% reported against -7.6% consensus) and EBIT of €409m (-27.5% against -53.5% consensus), thanks to a better gross margin evolution (c.+20 bps in 3Q23), Yeezy sales and a better-than-expected evolution of the rest of the businesses. All this allows them to raise again the 2023 guidance to a low single digit LfL decline in sales (as…