In Europe

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Barcelona-Lyon AVE service to start on July 13th and Madrid-Marseille on 28th

The president of Renfe, Raúl Blanco, has announced that the high-speed AVE routes in France will start on July 13 with the Barcelona-Lyon connection, to be followed on July 28 by the Madrid-Marseille connection. Tickets for these routes will go on sale tomorrow, Wednesday. June21st. The Barcelona-Lyon connection will stop in Girona, Figueres, Perpignan, Narbonne, Béziers, Montpellier, Nimes and Valence. The Madrid-Marseille connection will stop in Zaragoza, Tarragona, Barcelona, Girona,…


christine lagarde

ECB: market gives 100% probability of another rate hike in July

Banca March: The ECB followed the script and at Thursday’s meeting increased the price of money once again, raising all its interest rates by 25 b.p., bringing the benchmark rate to 4% and the deposit rate to 3.5%. However, the most relevant aspect was economic expectations and clues as to the monetary authority’s future moves. In these sections, it should be noted that the ECB lowered its GDP growth forecasts…


Christine Lagarde IMF director

ECB hikes 25bp at its June meeting, deposit rate now at 3.50%

Peter Goves (MFS) | This was as guided at the last meeting and is largely due to inflation projections being “too high for too long”. On QT, the policy was extended (again, as widely telegraphed) across all APP from July 2023. EGB spreads remain relatively tight and continue to exhibit relatively low volatility. There were minor changes to the forecasts which show medium term inflation at 2.2% (in 2025, +0.1ppt)….


Russian invasion of Ukraine has begun as Putin039s tanks roll

Russia announces windfall tax on big business to finance the war

Banca March| Russia has announced a windfall tax on its large companies as a method of financing the war. Putin’s government announced a bill to levy a one-off 10% windfall profits tax on large Russian companies, the country’s Finance Ministry said on Tuesday. It targets companies that annually generated more than 1 billion roubles, or $11.9 million, in profits from 2021, according to the announcement. The new levy could raise…


bce lagarde 1

ECB faces dilemma as inflationary pressures remain at high levels

Jeremy Cunningham, Investment Director, Fixed Income at Capital Group| The European Central Bank (ECB) will face an even more challenging policy environment in 2023. Core inflation appears to have already peaked in the major European economies and should continue to fall as the effects of last year’s sharp increases in energy prices fade. However, underlying inflationary pressures are rising. Higher energy prices are being passed through to a wide range…


Italia fachadas

Italian industrial production falls 1.9% month-on-month and 7.2% year-on-year-year

Intermoney: Transalpine industrial production left a bad taste in the mouth in April, falling -1.9% month-on-month and -7.2% year-on-year. The secondary sector accounts for 16.2% of Italy’s GDP, so it is bad news that there was a generalised contraction in practically all the items, with a particular focus on the -2.1% m. in manufacturing activity. Moreover, the fall was especially visible in the production of base metals and materials, when…


UE gas

European Commission calls for end to emergency energy measures

Banco Sabadell: According to information in the press, the EC in a report sent to the Council and the European Parliament is calling for the withdrawal of emergency interventions in the wholesale market, such as the cap on income in the electricity market (€180/MWh in Europe and €67/MWh in Spain) for infra-marginal technologies (renewable, hydro and nuclear). The EC considers that electricity price peaks are not expected next winter like…


BCE grandeTC

Corporate lending significantly higher in Germany (+7.9%) and France (+6.6%) than Italy (-1.5%) or Spain (-0.6%).

Santander Corporate & Investment : Rising interest rates continue to take their toll on bank lending in the eurozone, as shown by the ECB’s data on lending to the private sector in the eurozone published last week. It confirms the progressive slowdown in bank lending to +3.5% year-on-year in April vs. +4% in March and a peak of +6.5% in September last year, thus approaching its pre-pandemic levels of +3%…


IAG

IAG interested in Portugal’s TAP

Banco Sabadell: From the declarations in Bloomberg of IAG’s CEO, Luis Gallego, we highlight: They expect a better summer, although there are still difficulties such as air traffic control in France. In any case, they see very strong demand in Q2 and Q3, with less visibility for Q4. Premium traffic is offsetting the weakness of corporate traffic, which remains at 70% of 2019 levels. On consolidation opportunities, apart from the…


airbus A320

Airbus reportedly favourite (over Boeing) to win IndiGo’s 500 A320 aircraft order

Banc Sabadell | According to Reuters, Airbus (AIR) is reportedly the favourite (over Boeing) to win IndiGo’s 500 A320 aircraft order, making it the industry’s largest order by volume (versus one for 470 aircraft placed by Air India a few months ago). On the other hand, both Airbus and Boeing are reportedly also competing to sell 25 aircraft (AIR’s A330neo or Boeing’s 787) to the same airline. No statement has…