UBS | The regulator CNMC has kicked off an investigation on the competitive status of the Spanish power generation market. Endesa and Gas Natural Fenosa, the companies most exposed to it.
Spain’s government will change the way the banks’ DTAs are taxed to remove discrepancies with European law. The reform’s impact on the lenders will be €420 M in taxes against €28 Bn of DTAs.
Year 2015, with all the problems and possible scenarios, will mark a new record in terms of listed companies’ earnings, exceeding the 32 billion euros registered in 2014.
Spanish politics will be under the spotlight this week in Europe. The most likely consequence is that Spain’s risk premium will increase and the Ibex will underperform relative to other European stock exchanges.
UBS | Pro-independence parties in Catalonia have won a majority of seats – but not of the total of votes cast. As a result, we would advise investors to remain cautious about buying Spanish sovereign debt until some clarity emerges over the next steps of the new regional government.
Parties staunchly supporting independence have won the elections to the regional Parliament only in terms of seats, not votes.
The Organization for Economic Cooperation and Development (OECD) recently said Spain’s tax system and the “strict” labour laws do not help the country to deal with a black economy accounting for around 18% of GDP. This piece of advice is not new.
In the seven months to July, Spain’s trade balance registered a new record high since registers began in 1971.
Spain, along with the UK and Ireland have been the most active portfolio transaction markets in Europe given that banks locally have been very active in cleaning up their balance sheets, a report by PwC points out.
Spanish public administration debt fell by €12.7 billion in July to €1.040 trillion