Bankinter | The rate of Spanish banks´non-performing loans fell in March to 5.73% (-1.07 pp m/m), the lowest level since 2010. It is good news for the sector, which confirms the improvement in the credit quality indices observed in recent years. Bad debt is therefore distancing itself from the highs of 2013 when it reached 13.61% in the middle of the economic crisis in various Eurozone countries.
Santander Corporate & Investment | The publication of results is nearing its end, and European company profits have shown resilience in face of a global environment dominated by uncertainty: the trade war, volatility in emerging markets and weakness in their currencies, Brexit, the growth of populism etc. Spanish companies are very exposed to international markets, given that only a third of their benefits come from the domestic market.
Alphavalue | Telefonica´s poor figures for Q119 traded with falls of 31%. Sales of 11.98 Bn€ › 11.81 Bn€ estimated by the consensus. Our analysts highlight that the operator improved income in all the geographic areas where it is present, especially in Spain and Brazil, its two main markets.
Link Securities | … After these rises both indices and many shares are somewhat over bought, which is why no-one should be surprised that they pit stop, even more so when considering how much they have risen since the beginning of the year.
Fernando G. Urbaneja | Deutsche Welle’s Tim Sebastian drove Spanish Foreign Minister Josep Borrell furious with very incisive, very biased and very provocative questions, repeatedly questioning the independence of the Spanish justice. However, Mr Borrell was not ready nor prepared to prove that Spanish democracy is a mature and advanced one.
Standard and Poor’s maintained Spain´s rating without changes, at A- with positive perspective. Among the reasons: the uncertainties over the next elections and the tensions in Catalonia.
Santander Research | The performance of the Eurozone economy in 2018 was far from meeting expectations. Having exceeded expectations in 2017, with GDP growth yoy of 2.5% – the strongest since the 3.1% in 2007 – the economy registered a strong slowdown in 2018 with caused up to a 1.8% fall yoy in GDP. Although, probably, the growth levels of 2017 were not sustainable – taking into account the economic fundamentals of the Eurozone and the performance of the rest of the world – , the economic slowdown was strong, especially in the second half of 2018. In quarterly terms, GDP went from growing a quarterly average of o.7% in 2017 to only 0.4% in the first half of 2018 and a quarterly average of 0.2% in 2018.
Spanish banks are last in Eurozone in Tier 1 and penultimate in regulatory capital. But they have an unquestionable competitive advantage: they are the only transparent ones in the Eurozone for the ECB and for the other investors being the only audited ones. There are no skeletons in the closet even if there is less capital to compensate.
Today the proposal of the British government will be known, although we do not know it will be a text agreed with the opposition , which insists it will not negotiate unless Theresa May renounces a no-deal Brexit. The UK is the fourth largest destination for Spanish exports. And the main foreign recipient of investment, so a hard Brexit would do significant damage to the country. All Spanish companies with presence in the UK have been discounting complicated scenarios since 2016.
Miguel Navascués | Theresa May has categorically denied Pedro Sánchez’ illusions over Gibraltar and co-sovereignty which he wanted to sell us. May has said that “Spain has gained nothing of what it sought over Gibraltar”, compared to Sánchez’ claim that “there has been an historic agreement” in relation to co-sovereignty. I don´t believe this issue matters in the slightest to Spaniards.