Link Securities | European Central Bank (ECB) chief economist, Ireland’s Philip Lane, said in a recent speech that there is still plenty of momentum in food prices and core inflation. He also noted that real wages have fallen as inflation has outpaced wages in recent years, but that he believes real wages will recover in the coming years. In this regard, Lane said that he sees wage inflation peaking this…
Bankinter : Industrial Production falls more than expected in March. The year-on-year rate remains positive On a month-on-month basis, Industrial Production fell by -3.4% in March versus -1.5% year-on-year and +2.1% year-on-year. On a year-on-year basis, it remains positive +1.8% from +0.7% year-on-year. Assessment: The rapid rise in global interest rates is affecting the demand for industrial goods in Germany. The same trend was evident in Germany’s March Factory Orders…
Bankinter : Eurozone Services PMIs (final) have been revised slightly downwards, with the exception of Germany. These indicators have had little impact on the market and reflect what was known already. Services PMIs, which account for around 2/3 of GDP, remained comfortably in the expansion zone (>50 points), reflecting the strength of consumption in Europe In particular, the services PMI was revised down by four tenths to 56.2, which lowered…
Norbolsa | Volkswagen yesterday posted sales and operating profit above consensus expectations, €76,198M (+21.5%) against €72,300M estimated and €4,730M (versus -29.9% year-on-year) as opposed to €4,076M, respectively, mainly driven by volume, strong pricing and product mix. Geographically, growth was largely attributable to strong growth in Europe and NAFTA, while on the negative side, deliveries in China declined by -14.5%. Meanwhile, BMW released its 1Q23 results, coming in above consensus expectations….
Annalisa Piazza (MFS IM) | The ECB announced today its decision to hike policy rates by 25bp after hiking by 50bp at its March meeting. Inflation is high and pushing it down to its 2% target in the medium term remains the ECB top priority. However, a slower pace of hiking was not a surprise as current levels of rates are already in restrictive territory and the economic picture for…
Link Securities | Eurostat published on Tuesday that, according to the preliminary estimate of the data, the Eurozone consumer price index (CPI) rose 0.7% in the month of April compared to March. In the year-on-year rate, the Eurozone CPI rose in April, also according to the preliminary reading of the index, by 7.0% compared to 6.9% in March, which was expected by the analysts’ consensus. In April energy prices rose…
Link Securities | Cepsa has awarded Técnicas Reunidas the contract to develop the engineering for the largest second-generation (2G) biofuels plant in southern Europe, which the company will start up together with Bio-Oils through an investment of up to €1 billion, in the La Rábida Energy Park (Huelva). The new plant, which will use agricultural waste and used cooking oils as feedstock, will have two pre-treatment units and a flexible…
Banca March : The new tool called Aggregate EU started its work yesterday and will receive 12-month demand forecasts from June onwards from the different European gas suppliers that wish to participate. From 3 May, these will be aggregated and studied to provide a joint demand proposal that will be launched to the market in search of bids. Finally, on 17 May, the supply and demand matches will be published,…
Santander Corporate & Investment’s flash services PMIs released this morning will once again be a headache for the ECB, as they show an unexpectedly strong rebound in France at a delicate time of rallies (56.3, 53.5e, 53.9p). But also in Germany (55.7, 53.4e, 53.7p). And at a time when services inflation remains one of the real workhorses as our economists recalled after the release of the final March figure a…
Link Securities | The construction company OHLA has been awarded a contract in the Czech Republic valued at around €100 million to modernise the Brno North thermal power plant, one of the largest renewable energy projects announced this year in the country, Europa Press reported yesterday. The scope of the contract, awarded by the state-owned company Teplárny Brno, consists of modernising part of the plant for the combined production of…