Fernando González Urbaneja | Wages are set by the market, by hook or by crook. But behind this axiom there are exceptions or nuances. Wages are set by agreement, often asymmetrical, between the payer and the payee. Either through a verbal or individual contractual agreement or through a collective bargaining agreement of any range. In this dynamic, the State intervenes, of course, with mandatory rules. The most typical intervention is…
Morgan Stanley | The European banks are the most sensitive to rate movements. So pricing in a hike of 50 bps (in line with my macro) implies an over 9% upside for 2023 profits and an increase in ROTE of some 70 bps. This means a >10% upside on the sector valuation. Whatsmore, the sensitivity is even greater in the peripheral banks, particularly the Spanish, Italian and German lenders. For…
Renta 4 | According to some media, Repsol may have put up for sale its stake in the Duvernay basin, in the west of Canada, which is still in the first phases of development. The 688 km2 in Duvernay could fetch a price of some 750 milion Canadian dollars. Repsol also has assets in the basins of Greater Edison and Chauvin in Alberta. Valuation: It is already common knowledge since…
Spanish SMEs received the most resources from the European Investment Bank last year, totalling EUR 7.25 billion, an unprecedented volume. This figure represents an increase of 73% compared to 2020 and 57% of the total financing received by Spain from the institution. The EIB Group financed Spain with a total of EUR 12.771 billion last year, 51% more than the previous year. This amount was channelled through direct loans granted…
Intermoney | ACS (ACS) and OHLA (OHLA), contracters in the state of Maryland (United States) involved in the construction of a light train in the metropolitan area of Washington, will see their budget for this project increased by 1.2 billion euros. This will address the rise in prices which has happened since the contract was tendered, according to the daily newspaper Expansion. The initial budget was 1.743 billion euros. Maryland…
The European Commission has responded Monday to the Spanish Popular Party that Spain is not on the list of countries it has asked to reduce public spending in its recommendations last October. These include Italy, Lithuania and Latvia, Europa Press reported. “Several countries in the Euro Zone, Italy, Lithuania and Latvia, have received a call for caution in public spending, but Spain was not included in these countries that have…
Fernando González Urbaneja | There is an abundance of modern, current literature on how democracies die; it is a subject that interests academics who theorise on the subject and retired politicians who use their heads to think and review what they have experienced and suffered. In almost all these works there are two indicators that do not fail. Firstly the practice of destroying adversaries turned enemies, and secondly the discrediting…
CaixaBank Research (Pedro Álvarez Ondina) | Spain’s tourism industry has developed exceptionally in recent years, becoming one of the country’s main sources of business, income and employment. However, this strong development had also led to the emergence of some negative actions and social unease regarding the role played by tourism at certain destinations and moments until, in 2020, the coronavirus crisis paralysed the sector’s activity and highlighted its social and…
Intermoney | Ferrovial, via its affiliate in India, IRB, has won one of the biggest contracts for a motorway concession in that country. The project is for a 127 km long motorway corridor in the state of Uttar Pradesh, which will require an investment of 800 million euros. The duration of the concession is 36 years and it will receive a public subsidy of 200 million euros. IRB is listed…
Pablo Fernández (IESE) | The average return of mutual funds in Spain over the last 15 years (1.91%) was lower than the investment in 15-year Spanish government bonds (4%). The average return of the Ibex 35 index was 1.35%, that of the EuroStoxx 50 4.2% and that of the S&P 500 was 10.7%. 64 funds out of 562 Spanish funds with a 15-year history outperformed 15-year government bonds, 314 outperformed…