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inflation rises

Spanish economy 30th November 2022

Inflation falls to 6.8% in November due to the lower cost of electricity and petrol. Core inflation rises to 6.3%

The Consumer Price Index (CPI) fell by one tenth of a percentage point in November compared to the previous month and cut its year-on-year rate by half a point to 6.8%. This is its lowest figure since January, just before war broke out in Ukraine, when the CPI stood at 6.1%, according to advanced data published on Tuesday by the National Statistics Institute (INE). In the midst of European economic…

SpainConstitucionalCourt

Spanish Politics 30th November 2022

Separation of powers, what the hell is that (*)?

Fernando González Urbaneja | This is what the government spokeswoman might say now – what the hell is this separation of powers? – about the appointment of two members of the Constitutional Court, a government quota, in favour of two former high-ranking officials with direct socialist affiliation or sympathy. Minister Bolaños, who is dealing with the matter on behalf of and with the confidence of Prime Minister Sánchez, argues that…

Abertis

Companies, Ibex, Spanish economy 29th November 2022

ACS and its Atlantia partners will approve €1 B injection for Abertis

Intermoney | ACS, along with its partners in Atlantia, will tomorrow approve at an EGM a 1 billion euros injection of cash for Abertis. The aim of the move is to provide the concessionary with more ammunition for new investments, according to the daily elEconomista. Meanwhile, the company is also analysing opportunities for refinancing its debt, in the face of rising interest rates. That said, it is still benefiting from…

poor

Spanish economy 29th November 2022

Today 12.5% of Spaniards consider themselves to be “low class or poor” compared to 8.4% in April, according to the CIS

In barely half a year, with the sharp rise in prices and the loss of purchasing power, Spaniards who consider themselves to be “low class” or “poor” have increased by around 50%, from 8.4% of the total in April to 12.5% in November, according to the monthly surveys carried out by the Sociological Research Centre (CIS). In November this year, 47.9% of Spaniards aged 18 and over considered themselves to…

Bankinter

Companies, Spanish economy 29th November 2022

S&P understands that the preferred means of resolution for Spanish mid-size banks is the sale of all their business

Santander Corporate & Research | On Friday, S&P changed their ratings for several of the mid-sized Spanish banks. On the one hand, the ratings agency revised its view on resolution strategies for the mid-sized lenders. It indicated that it now thinks the authorities’ preferred means of resolution for banks of this size is the sale of its entire activity. S&P indicates it “has gained visibility on this means of resolution…

Meliá

Companies, Ibex, Spanish economy 28th November 2022

Meliá’s goal is to cut debt by half in two-three years, leaving it under €650 M

Bankinter | Meliá’s CEO said in an interview with a local media outlet that one of the group’s big goals is to cut its net financial debt to less than half in a period of two-three years. This would mean trimming it to below 650 million euros from the 1.271 billion currently (excluding leases). To do this, it forecasts that demand will remain strong, at levels close to those of 2019…

ERTES extension

Spanish economy 28th November 2022

Effects of the labour reform: 62% of permanent contracts signed up to October did not create real jobs

In the first ten months of 2022, the enrolment of workers with permanent contracts totalled 2.6 million people. For this, 5.95 million contracts had to be signed, which means that almost 3.7 million of them, 62%, ‘vanished’ without being translated into new stable employment. This gap, moreover, is growing intensely: it has widened by half a million in the last month alone. The newspaper El Economista explains that although this…

Ferrovial2

Companies, Ibex, Spanish economy 28th November 2022

Ferrovial gets the I-66 in the US up and running after $3.600 B investment

Intermoney | Ferrovial (Hold, Target Price 24 euros/share) announced on Wednesday that the consortium which owns the concession, in which the Spanish group has 56%, has started opertations on the I-66 Managed Lanes in the vicinity of Washington DC, in the state of Virginia (US). This project has involved an investment of 3.6 billion dollars, of which 786 million euros correspond to capital contributed by Ferrovial itself, without taking into…

Property sector

Companies, Ibex, Spanish economy 27th November 2022

Leverage remains key for property sector; Colonial (EW, T.P. from 7,5 to 6,2 euros/share);Merlin (OW, T.P. from 11 to 10 euros/share)

MS | Bart Gysens (analyst) has this Thursday published a report reviewing his preferences within the European property market, positioning himself for a transition from an environment of rising rates to one of recession. Leverage is still the determining factor which the team uses to see where the value is and is not. But as we enter 2023, where the macros see a potential recession, thus driving a greater importance…

Montero

Spanish economy 26th November 2022

Spain’s 2023 budgets are based on optimistic economic forecasts

Jakob Suwalski (Scope Ratings) | Yesterday, the Spanish parliament approved the budgets for 2023. The government’s starting point is real GDP growth of 2.1% in 2023, compared with our estimate for 1.0-1.5%. The IMF is forecasting 1.2% and the European Commission (EC) 1.0%. In addition, the government estimates an increase in tax revenues of around 6% next year, supported by a new tax on wealth and temporary taxes on the…