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MOVISTAR

Spanish economy 1st June 2022

Auction begins for sale of 45% of Fiberco, Telefónica’s rural fibre optic affiliate; valued at €1 B

Renta 4 | There are various finalists for participating in the capital of Telefónica’s rural fibre optic network (FET) in Spain, according to several media outlets. Allianz, CDPQ (Quebec pension fund), PGGM (Dutch pension fund) and Vauban Infraestructure Partners (Natixis Group) would be the finalists to buy 45% of the rural fibre network in Spain. However, there could be some other incorporation or exit. Allianz y CDPQ could team up as a consortium.  Final, binding proposals…

Big tech

Spanish economy 1st June 2022

The Government Reduces Waiting Time For Calls To Call-Centres To Three Minutes And Eliminates Robots

The Council of Ministers, at the proposal of the Ministry of Consumer Affairs, has approved the draft bill to regulate companies’ customer services. This will limit the waiting time for information, complaints and after-sales services to three minutes. As detailed by the Minister for Consumer Affairs, Alberto Garzón, at the press conference following the Council, the law reduces the maximum time for resolving general complaints from thirty to fifteen working…

The Bank of Spain

Spanish economy 31st May 2022

Crypto-Assets: A Financial Authority’s View

Pablo Hernández de Cos (Bank of Spain’s Governor) | “With over 16,000 existing tokens, around ten new crypto-assets are estimated to be launched every day on average” “For the time being, however, our ability to take effective action is fairly limited as we have neither the tools nor sufficient legal powers to be able to protect crypto-asset users in the same  way  as  we  protect  bank  customers… In  any  case, …

Iberdrola2

Spanish economy 31st May 2022

UK confirms ‘windfall tax’ for energy firms: Iberdrola, one of the most exposed

Banc Sabadell | The UK has confirmed the creation of a temporary tax on the windfall profits of energy companies (including oil and gas), with which it would raise 5 billion pounds (6 billion euros). The tax charge will be up to 25% on profits. At the same time, there will be compensations with tax exemptions on 90% of investments. In the Spanish press, and contrary to what other media…

pensiones playita

Spanish economy 30th May 2022

Spain: Spending On Pensions Reached A Record 10.81 Billion Euros In May, Up 4.8%

The Social Security allocated a record 10.81 billion euros to the payment of contributory pensions this May, 4.8% more than in the same month of 2021, the Ministry of Inclusion, Social Security and Migration said on Friday. The Department headed by José Luis Escrivá estimates that spending on pensions stood at 11.8% of GDP in the fifth month of the year, a lower percentage than in 2020 (12.4% of GDP),…

Spain, Nadia Calviño

Spanish economy 30th May 2022

Spain’s Public Spending Consolidates Above 50% Of GDP, With 14 Consecutive Years Of Deficits

Spain’s public spending breaks records and settles above 50% of Gross Domestic Product (GDP). The country has thus accumulated two consecutive years – 2020 and 2021 – in which the average disbursement reaches 51.5%, after surpassing all historical spending milestones. However, the revenue figures do not match the expenditure figures and the public deficit is widening. In 2021, with record tax pressure and state revenue, revenue has not managed to…

Meliá

Spanish economy 29th May 2022

Strong recovery in demand, significant margin improvement, return to profits: Buy Meliá (T.P. 7,76 eur/shr)

Bankinter | The Q1 2022 results reflect a greater impact from inflation on costs. For that reason we are lowering our estimates (-6% at EBIDTA level) and target price -5% to 7,76 euros/share. That said, we believe that the share price has over-reacted (down 10% since the publication of results). So it’s a good opportunity to take positions in the stock. The news flow will improve in the coming months….

BBVA

Spanish economy 28th May 2022

Organic profitability and solid credit risk profile: Overweight in BBVA despite the rapid shift away from its historically conservative financial management

Santander Corporate & Investment | Fitch announced this week that it has affirmed its ratings for BBVA (A3e, Ae, BBB+e). This includes its long-term issuer default rating of BBB+. According to Fitch’s note, the confirmation of the ratings reflects the capacity for resistance of BBVA’s profits through the economic cycles. This is thanks to its geographic diversification, strong retails franchises in its key markets (Spain, Mexico, Turkey and various Latin…

congreso

Spanish Politics 27th May 2022

PSOE And UP Clash Over The Audiovisual Law, Which Was Finally Saved By The PP’s Abstention

Another heart-stopping vote. Now for the audiovisual law. Once again, the Government has ended up at odds with its partners and, on this occasion, also with itself. The PSOE and Unidas Podemos have split with a vote in favour and an abstention, respectively, despite the fact that it is a law that has been sponsored by the Executive itself. This was evident in the vote: 130 yeses (PSOE, PNV, CC,…

ibex35 copia

Spanish economy 27th May 2022

IBEX 35 Companies Had €58 Billion In Net Profits, With A V-Shaped Recovery From Pre-Covid Levels.

BME | Revenues of large listed companies rebounded by 17.4% in 2021 from 2020 to €477.778 billion euros. The figure was still 8.3% lower than that achieved by IBEX 35 companies in 2019. A positive indicator for this group of leading companies in Spain is that, with less revenue than before the pandemic, they have achieved the highest aggregate profit figure in their history. IBEX 35 companies generated close to…