Foreign companies’ assessment of the business climate in Spain has remained unchanged since last year. Specifically, the business climate in Spain scored an average of three out of five, according to the “Barometer of the Business Climate in Spain from the Foreign Investor’s Perspective”, prepared jointly by ICEX-Invest in Spain, Foreign Multinationals for the Spain brand and the IESE.
The broadband market continues to grow in Spain: 31% penetration in Spain vs. 42% on average in other European countries, analysts at Morgan Stanley point out.
Morgan Stanley | As we indicated in our last real estate strategy report, this has been the worst sector in Europe in 2Q19 (oversold and with a relative performance of 3.5sd below its 12MA). This has been mainly motivated by concerns about the proposal to freeze rental prices in the city of Berlin (and its possible spread to other cities in the country) as well as the uncertainty regarding Brexit.
Jean-Christophe Delfim (Edmond de Rothschild ) | Economic growth in the Eurozone was 1.9% in 2018. However, in the last quarter a slowdown was observed to 1.2% yoy, due to the negative contribution of the trade balance (-0.4 pp), as a consequence of the sharp deceleration in exports provoked by international trade disputes.
J.P. Morgan | It seemed that the trade tensions between the US and China were relaxing, but a breakdown in the negotiations has caused concerns to re-emerge in recent weeks.
Naturgy expects to invest 2 billion euros during 2019, of which 70% will be destined for Spain: almost 1 billion euros in new renewable installations, 175 million euros for electricity networks and another 220 million euros in gas networks. This was announced by the company’s president, Francisco Reynes, during a press conference prior to the General Assembly of shareholders held in Madrid yesterday.
Investment in property in Spain by institutional investors rose to 13.385 billion euros at the end of September, according to CB Richard Ellis. That figure exceeds the 12.75 billion euros in the whole of 2017. The total volume of investment for the whole year would exceed 16 billion euros, which would mean the highest level for ten years.
Australia has awarded to a subsidiary of Naturgy a total of 180 MW installed capacity in a windpower project located approximately 150km from the city of Melbourne. The wind farm is expected to contribute gross operating profits (Ebitda) of approximately 22 million euros when it is in full operation.
J.L.M. Campuzano (Spanish Banking Association) | In a modern world ever more dominated by technology and the growing digitalisation, the performance and weight of investment in intangible assets draws attention. We are talking about software and R&D, but also about data and whatever activity that generates property rights and economic competences, including publicity and staff training
J.L.M. Campuzano (Spanish Banking Assocation) | We are echoing the IMF’s recent report on the evolution of the European economy. All of Europe is seeing growth, but this has dynamic has to be supported by structural reforms which boost potential growth and best financing to achieve this.