The yield on the ten-year Spanish sovereign bond in the secondary market hit a new historic low of 0.024% on Tuesday, below the August 2019 low of 0.035%. While the interest on the equivalent German bond was -0.611%, the risk premium offered to investors by Spanish bonds with respect to the ‘bund’ reference was around 63.77 basis points. The Portuguese bond yield fell into negative territory for the first time, standing at -0.013%.
Logista, a leading distribution company in southern Europe, was recognized as a world leader in sustainability by CDP, an international non-profit organization, by entering its prestigious A List for its fight against climate change. This is the fifth year in a row that Logista achieves this recognition, being the first European distributor to achieve it over such a long period of time.
Repsol announced the IPO of its renewables area or an alliance with a third party in its Strategic Plan 2021/2025 presented on November 26th. The operation could be carried out in less than two years and it will always maintain control of the shareholders. The company expects to raise at least 1.4 billion euros with the floating, which would mean valuing the division at around 3 billion euros. It would be one of the largest operations of the last decade.
Invest in Spain | According to the Foreign Investments Registry at the Ministry of Industry, Commerce and Tourism, gross FDI (holding companies and non-holding companies) received in Spain in the second quarter of 2020 amounted to 5,009 million euros, an increase of 83% over the figure for the previous quarter. Furthermore, foreign investment increased in all modalities.
On Thursday, Parliament approved the 2021 Budget with the support of 11 parties and 188 votes, including Catalan and Basque separatists. Thus, the future of the new accounts, the first of the minority, left-leaning coalition government, is finally clear. They would come into effect on January 1, leaving behind those of 2018, drawn up by the previous PP government and still in force. The budgetary plan includes broad tax increases and the birth of the Tobin and Google taxes.
It is now official. Spain has a common plan for 2020 Christmas in order to avoid a third wave of coronavirus infections. Among the measures approved are delaying the limit on mobility on Christmas Eve and New Year’s Eve until 1:30 a.m., perimetral confinements of regions throughout the Christmas period, except for travel of family and friends. In addition, dinners and lunches will be hold for no more than 10 people, without specifying whether children or adults, on December 24, 25 and 31 and January 1.
After ruling out its integration with Banco Sabadell and with improved macro perspectives in Turkey, where it owns over 49.85% of Garanti bank, BBVA can potentially devote a higher amount to increasing shareholder remuneration. This could be through share repurchases as it does not need to strengthen provisions and has excess capital. For its part, Banco Sabadell has announced it will develop a new business plan that will prioritise the domestic market as a formula to increase the creation of value.
Randstand Research | The labor market records in November reflect a relatively negative performance against the path of recovery that was observed during the previous four months. Social Security affiliation in November increased by 31,638 people, a 0.17% increase, the best figures in that month since 2006, but it masks a rising in those affected by temporary layoffs of 147.000 during that month. The total number of contributors exceeds the threshold of 19 million (namely 19.02 million people).
The renewable energy group has announced the inclusion of a new clause in contracts with suppliers and customers to protect itself against Brexit. The company itself describes this as a “Brexit clause. This will eventually offset the impact of new customs duties which will be applied to imported and exported equipment. This is currently duty free.
In his participation in today’s 4th Renewable Energy Congress organized by APPA, Chairman and CEO of Ence, Ignacio Colmenares, said the auctions of renewables will lead to “competition and the price of energy remaining increasingly competitive. Meanwhile, the non-executive president of Capital Energy, Juan Lasala, said the auctions “are a way to give visibility to the market.” But he stressed they must be “well conceived and designed.” The government plans to launch the auctions beore the end of this year.