In April 2018 both banks and utilities had practically the same PER, around 12.5. Since then there has been an extreme relative movement between them, with electricity companies getting more expensive and banks cheaper, analysts at M&G Valores point out.
José Ramón Díez Guijarro (Bankia Estudios) | Fortunately, in the EMU, with the exception of the second half of 2014, when the expected inflation expectations traded by the five year German bond reached negative territory, this deflation risk seems much more contained. This could be the principal difference between the European and Japanese economies.
Sam Theodore (Scope Ratings) | In this merger of German banks, the less problematic partner appears to be Commerzbank (graded A by Scope with stable perspective) rather than Deutsche Bank (graded BBB+ with negative perspective).
Shaun Riordan | President Trump is in trouble. He lost control of the House of Representatives in the mid-term elections. But Trump is not like most US Presidents. Moreover, he knows that moderating his position will lose his base and consequently the 2020 election.This is all bad news for Europe. Germany’s economy is already teetering on the edge of recession. Tariffs on car exports to the US (not to mention a no deal Brexit) would push it over the edge, dragging the rest of Europe down with it.
Alphavalue | Inflows from IPOs in European stock markets reached $35 bn, or what is the same, -37% compared to last year which makes this 2018 the worst year for IPOs since 2013, only surpassed by fateful 2016.
The European Commission authorise the merger in Holland between Tele2 and Deutsche Telekom without preconditions , which drove the European teleco sector yesterday. Until now the Commission had shown itself radically opposed to allowing corporate operations which imply a reduction from four to three in the number of operators in a country.
Ofelia Marín- Lozano | In recent years, one of the most repeated commentaries when recommending investing in European stock markets tends to be: Why should invest in Europe when the US stock markets outperform year after year? In 22 years of history which coincide with the birth of the Euro Stoxx 50, for the first fourteen years the two markets moved almost in parallel. Only since 2011 can a clearly superior and sustained performance by the S&P 500 be observed.
Shaun Riordan | Social media companies may be sophisticated in the way they monetise data, but they remain remarkable naïve, almost innocent, when it comes to politics.
Shaun Riordan | The currency markets seem to have given the Turkish Lira a temporary respite. But the underlying problems remain the same: an unsustainable current account deficit; excessive dependence on foreign currency denominated (especially dollar denominated) debt; and high inflation.
Obsessed by minor issues, Europe forgets the important thing. If it really wants to avoid a repetition of the banking crisis, it should apply itself to guaranteeing high and sustainable growth, as well as introducing solid cushions of own funds for hard times and a more efficient preventive supervision. However, reducing the problems of the Eurozone to no more than the health of the banks is an exercise in short sightedness.