Tuesday, March 5, 2019

The Ibex-35 closes down but holds on the 9,100 points

The Ibex-35 closes down but holds on the 9,100 points

Bankia, Sabadell, Bankinter, Inditex and Telefónica collaborated to maintain selective Spanish

   Red numbers on the Ibex-35 after two consecutive promotion sessions. But the index managed to stay above the 9,100 points . At closing it gave a final change in the 9,136.4 points, with a cut of 0.21%.

The selective Spanish helped him contain the declines of some banks, such as Bankia, which gained 1.05%, while Sabadell scored 0.68%. Bankinter, meanwhile, added 0.17%. In addition, some of the major securities , such as Inditex and Telefónica, which contributed around half a percentage point , collaborated with the indicator .

   On a negative note, Cie Automotive fell the most , with a 3.02% cut. The risk of the United States establishing new tariffs after the report commissioned by Donald Trump on this industry, which has already been prepared, continued to weigh on the European automotive sector. Then ArcelorMittal, Cellnex and Meliá were placed, with losses of more than 1%.

The values responsible for the selective declines were probably Santander and BBVA, which fell by 0.87% and 0.73%, respectively. Repsol also quoted, leaving 0.56%, while Iberdrola was down 0.19%.

Across the Old Continent dominated the falls . Only the German Dax was saved, which gained 0.09%. Meanwhile, the PSI-20 of Lisbon fell by 0.08%. The French Cac 40, on the other hand, fell by 0.15%. The Ftse Mib of Milan and the British FTSE 100 fell by about half a percentage point.

Wall Street and the results
Wall Street did not help much to the Old Continent. After the long weekend in the United States (yesterday was a party and there was no stock trading), the indexes of the New York Stock Exchange were practically flat. This, after the publication of the results of the WalMart distribution chain, which were well received, because their titles were the ones that rose the most in the Dow Jones, with gains of almost 4%. The company has had its best last quarter of the year in a decade. It also accompanied the macro, with the confidence index of the property development sector rising from 58 to 62 points and beating expectations.

But in the United States, after the good tone on the negotiations around the commercial war, the fears that there is no agreement for March 1 and then raise tariffs automatically reappeared. In addition, there are uncertainties regarding what the Federal Reserve members can say this week about the evolution of the American economy and the monetary policy decisions that they would see better. And this, coinciding with the publication, tomorrow, of the minutes of the last meeting in which the authority decided not to move the price of money. The text could give clues about the possibility of an increase in March or that the interruption in the normalization process of monetary policy continues.

Although it was not just that it was on the other side of the Atlantic what weighed on the Stock Exchanges of the Old Continent. There were also domestic issues. For example, the disappointing results of HSBC, as well as the insistent statements of the European Central Bank regarding the economic weakness and the probable delay of the rises in interest rates. In this sense, we returned to see little reassuring economic data in Europe. Thus, the Zew index of confidence in the German economy disappointed in its assessment of the current context, despite placing slightly above expectations in its chapter of expectations, although, yes, in negative territory. To this we must add the uncertainty around the Brexit, whose official date is dangerously close, without there being an agreement or a plan to delay it.

In the currency market, the euro recovered positions against the greenback: at the close of the European session, it added 0.16%, to the level of 1.1329 units. In the debt market, the yield on the 10-year American bond declined from 2.66% to 2.64%. The German title remained stuck at 0.10% and that of its comparable Spanish, at 1.20%. With this, the risk premium was placed at 110 basis points.

In the commodities market , the Brent barrel, a benchmark in Europe, cut slightly after five consecutive sessions of advances: at the close, it was down 0.35% to 66.27 dollars. The barrel of West Texas, a benchmark in the United States, however, rose 0.86%, to exceed 56 dollars. The price of gold chained its fourth day of promotions to reach 1,340 dollars an ounce, maximum since April last year.

Red Eléctrica rules out that its plan to invest 3,200 million impact on the bill of light

Red Eléctrica rules out that its plan to invest 3,200 million impact on the bill of light

Anticipates a full program of 6,000 million in five years where includes the purchase of Hispasat

   The president of Red Eléctrica (REE), Jordi Sevilla , considers that the new investment plan foreseen by the company until 2022 is "removed" from what the company can carry out because "it would be absurd". This has referred to the possibility that the planned investments of 3,221 million in the Spanish system for five years will mean an increase in the receipt paid by consumers, as a result of a higher payment that the firm should receive. This figure will be determined by the criteria established by the National Commission of Markets and Competition (CNMC).

The total amount included in the new REE investment plan exceeds 6,000 million euros, of which 53% will go to energy transition chapters, such as the integration of renewables (more than 1,500 million), digitization or storage. In total, they will be about 640 million a year, 60% more than in the previous period.

In addition, REE plans to allocate money to consolidate its position in the field of telecommunications, a game that includes almost 1,000 million for the purchase of Hispasat; expand your international business (it will represent 17% of the plan) or accelerate innovation projects.

Monday, March 4, 2019

Iberdrola wins more than 3,000 million for the first time in its history

Iberdrola wins more than 3,000 million for the first time in its history

The company, which improves in all its business areas, will propose the re-election of Galán as president at the meeting on March 29.

   The annual profit of Iberdrola in 2018 was 3,014 million euros, which represents an increase of 7.5% with respect to the results of the previous year. For the first time in its history, the company chaired by Ignacio Galán has managed to record profits that exceed the barrier of 3,000 million euros.

   The result of the energy company, with presence in many countries from Spain to the United Kingdom, its two main pillars of business, has been based precisely on the good performance of all its activities as well as the impact of the sale of part of its assets in the United Kingdom. United. Last October, Iberdrola consummated the sale of Scottish Power Generation, its conventional generation assets in the United Kingdom, to the Drax group for 702 million pounds (approximately 777.6 million euros)

The corporation has made investments worth close to the 20,000 million made in the last four years, the international expansion, the normalization of operating conditions in Spain and the good progress of all businesses, as the company itself points out. In addition, the improvement was achieved despite the currency effect and the lower impact of extraordinary items.

The Networks business generated an operating result of 4,915 million, 16.2% more; that of Renovables, of 2,444.7 million, 39.3% more, driven by higher production and greater installed capacity; and that of Generation, of 2,038.4 million, 39.3% more, due to the normalization of conditions in the UK retail market, the greater capacity available in Mexico and the greater demand in Spain. Likewise, the company carried out divestments worth 1,112.9 million euros, compared to 309.2 million posted in 2017.

The president, Ignacio Galán, has indicated that »these results show the success of a sustainable model and encourage us to continue working for the transition towards a low carbon economy. The fight against climate change is an opportunity ». For this year, the firm estimates that the greater weight of regulated network assets, the new installed capacity and improvements in efficiency allow us to expect that the increase in profit and EBITDA will be "in the middle part of the first decade".

These annual accounts will be voted on March 29 at the shareholders meeting that will take place in Bilbao. It will be the moment in which the shareholders will vote for Galán's re-election as executive director, with which the director, who will turn 69 next September, will head the energy company until 2023. In this way, the president will lead the development of the strategic plan foreseen until 2022.

Last year, the president of Iberdrola already showed the big institutional investors his commitment to renew the position for a new mandate, which would fully pilot the new strategic plan 2018-2022 of the group.

Galán's last appointment as executive director of Iberdrola took place in March 2015, so his renewal for a new term of four years should take place this year. The entrepreneur of Salamanca origin was appointed in 2001 as executive vice president and CEO of Iberdrola. Since 2006 he is the president and CEO of the group.

The shareholders will also vote for the appointment of Sara de la Rica, professor of Economics at the University of the Basque Country and current director of the ISEAK Foundation, as a new independent counselor. With its incorporation to the board of directors, Iberdrola will become the leading Ibex 35 company by percentage of women in its governing body, with 42.8% of female directors out of a total of 14 members.

The energy group will practically double the average percentage of women in the boards of directors of the selective Spanish -22% according to the PwC Women to Watch study-, far exceeding the recommendation of the Code of Good Governance of the CNMV for 2020 (30% ) and that of the European Commission (40% for the same year).

In addition, Iberdrola strengthens its presence as independent in its governing body with the re-qualification of Xabier Sagredo from 'other external' to 'independent', agreed on Tuesday by the board of directors, counting 10 of the 14 members (71.4%) with this category. The renewal of this body will include the departure of Ángel Acebes, who was a counselor of the power company since 2012, and whose term expired this year.

Other proposals to the board will be the application of the result and distribution of the dividend for the year 2018, whose complementary payment will be carried out within the framework of the optional dividend system 'Iberdrola Flexible Remuneration', as well as the approval of two increases of capital related to this program.

Vodafone proposes to reduce to 1,000 the workers affected by the ERE

Vodafone proposes to reduce to 1,000 the workers affected by the ERE

The final offer lowers layoffs by 200 people and affects one in five employees of the company

  Vodafone Spain has offered in its final proposal to unions reduce the number of people affected by the Employment Regulation File (ERE) to 1,000 workers, one in five employees, reported this Wednesday union sources.

The unions with representation in Vodafone -UGT, STC and CC OO- and the management of the company held on Tuesday a meeting of the negotiating table of the ERE, originally planned for 1,200 workers (23.5% of the 5,100 employees) , with which the final offer supposes a reduction in 200 affected.

The company, which has agreed not to undertake another collective dismissal until March 31, 2021, has reported that if an agreement is not reached, the conditions for beginning this negotiation would apply, that is, 1,200 forced dismissals and 32 days / year up to 20 monthly payments, according to union sources. After the meeting on Tuesday, described as "marathon by the sources and that lasted throughout the day", Vodafone has convened a final meeting for next Friday to sign the final minutes of the process, with or without agreement.

STC has admitted that they have not achieved "many" of the claims they have defended and have convened a binding national referendum within their Vodafone organization on Thursday, to decide whether or not to accept the agreement. UGT, meanwhile, has considered that the negotiation has led to an offer "acceptable to the organization and staff" and held on Wednesday assemblies with workers.

In its proposal, which Efe has had access to, the operator has stated that exceptionally employees who, during the year 2020, will be 55 years old and have 10 or more seniority-a total of 102 employees-will be able to voluntarily join the ERE, with what the maximum of affected could be placed in 1,102 employees. The company also proposes gross compensation of 50 days of salary per year worked, prorating for months the periods of less than one year with a maximum of 33 monthly payments.

In addition, for employees with a fixed salary equal to or less than € 28,000 gross per year, with at least five or more years of service, an indemnity supplement of € 6,000 will be offered. As for employees with 55 years of age as of December 31, 2019 and 10 or more years old, they will be able to benefit from early retirement with 85% of the net fixed salary, plus the net 50% of the variable salary target.

The proposal foresees accepting the total number of voluntary requests up to the limit of the number of positions finally affected at the management level and with the right to veto by the group. The deadline for voluntary assignment for those affected in 2019 will begin on February 25 and close on March 4.

Vodafone has justified the ERE, the third of the company in the last six years, in economic, productive and organizational reasons. The operator already cut its workforce in 2015 by about 1,000 workers after integrating the operator ONO, which it acquired in 2014, and before, in 2013, by about 900.

The company reduced its revenues by 7.3% between October and December 2018 (its fiscal third quarter) with respect to the same period of 2017, to 1,165 million euros, after having cut them by 4.8% between July and September.

Iberia and Vueling would have six months to restructure their shareholders after a 'brexit' without agreement

Iberia and Vueling would have six months to restructure their shareholders after a 'brexit' without agreement

They should present a "precise and complete" plan in the two weeks following the entry into force of the new European regulation

  Brussels will give a margin of six months to Iberia, Vueling and other companies integrated in the IAG group, to restructure their shareholding and update the permits to continue carrying intra-European flights in the event of a 'brexit' without agreement. This is established by the new regulation drafted by the European Union (EU) to avoid a sudden interruption of air connections in this hypothetical scenario. The document would still have to be validated by the European Parliament and the Council but gives a respite to the Spanish airlines to show that more than 50% of their shares are in the hands of community companies and not third countries, a situation in which they would find themselves the United Kingdom with a brave divorce on March 29.

  "If, as a result of 'brexit', an air carrier that holds an operating license issued by a member state of the EU fails to comply with the community ownership and control requirements, it will have 6 months after the date of application of the Regulation to meet all these requirements », reflects the document that has achieved a first agreement between the European Parliament and the Romanian temporary presidency. It still needs the final approval of the European Parliament and the Council itself.

Iberia and Vueling are part of the Anglo-Spanish group IAG (International Airlines Group), which is also the parent of British Airways, Avios or Ireland's Air Lingus, which has a capital majority that would no longer be a community after a 'no deal'. Airlines in such a situation would have to submit "within two weeks" to the entry into force of the regulation "a precise and complete plan with the measures aimed at achieving full compliance with the ownership and control requirements" that should make cash in that half year margin.

Last 11th IAG tried a first shield by limiting to 47.5% the purchase of shares of the group to non-EU companies, in an attempt to circumvent the European restrictions that in principle would not correct the situation before a chaotic exit, since the restriction did not Excluded potential British investors.

What is involved is that these companies do not lose the operational license between airports in the community block. But the agreement reached includes a provision that reveals the hardening of the positions of Brussels in relation to a 'brexit' without agreement. In the proposal launched in December by the European Commission, as part of the contingency plans, it was proposed to avoid the total interruption of air traffic between the EU and the United Kingdom with a regulation guaranteeing for twelve months the provision of certain air services between the two sides of the Channel of La Mancha. It also considered extending the validity for nine months of certain aviation security licenses.

Now that option is cut to 7 months. This special provision "guarantees the right to continue to provide scheduled flights under public service obligations after the date of application of the 5eglamento, in order to ensure the continuity of public services while the national authorities make the necessary adaptations to the new situation », Says in the document.

All these contingency measures, such as the ones up to 19 raised to date by the European Commission (and which are mostly in process), are subject to reciprocity. That is, for the United Kingdom to have the same deference with the community part and maintain open channels that allow a certain transition that mitigates the possible impact of a chaotic rupture.

Valerio insists that they will approve changes in the labor reform "before exhausting the legislature"

Valerio insists that they will approve changes in the labor reform "before exhausting the legislature"

The PP asks him not to touch it while the PNV warns that they will not support their decrees if they do not share the full content

  The Ministry of Labor maintains its intention to modify by Royal Decree some aspects of the labor reform approved by the PP in 2012, just as it announced a few days ago this newspaper. This was reiterated today by Minister Magdalena Valerio during the face-to-face meeting she had with En Marea's spokesperson, Yolanda Díaz, during the control session of the Congress.

"The labor reform, do not worry, that there is still the figure of the decree law and we will bring it, and I hope that you validate it," said Valerio, even though the president of the Government, Pedro Sánchez, had postponed this promise for the next legislature, admitting that "things have remained in the pipeline" as the repeal of the most damaging aspects of the labor reform of the PP, and hoped to resume it after the elections on April 28.

  Yes, the minister acknowledged that she still does not know when the decree will be approved. "I can not say because I still do not know," settled the Minister of Labor, while government sources dismiss this Friday, probably because of the special interest in trying to achieve consensus in this area, so they continue to maintain contacts with the social agents (CEOE opposes frontally while the unions demand that it take it forward) and with the parliamentary groups to try to obtain support for their validation. "We will try to move things forward with agreement, with dialogue, because we want them to end up in the Official State Gazette," he added.

What Valerio did emphasize is that in Congress it is that "this Government is not in office, it will be in office as of April 28, until then it will be functioning", so it has "still possibility of legislating". Therefore, the Permanent Council can continue to approve regulations after the Cortes dissolves on March 5.

"We want facts and not words," answered the deputy from En Marea, while from the PP Carolina Spain asked him not to modify the labor reform because, if they do, Spain "can return to the six million unemployed." In turn, the PNV deputy Íñigo Barandiaran reminded the PSOE that they need the approval of their group to take forward the Royal Decree and warned that "we will not give any support if we do not agree on the full content of these initiatives" .

The measures that the Government intends to approve and that they had already agreed with the unions is to return the prevalence of the sectoral agreement over the company, to recover the ultra-activity of the agreements (that is, to extend them automatically until a new one is approved) , implement a daily record of working hours in companies and limit subcontracting are those measures already agreed.

The pensioners today receive the 'minipaga' of 13 euros

The pensioners today receive the 'minipaga' of 13 euros

The cost that this measure has for the coffers of Social Security is 123.4 million euros

  More than 9.3 million pensioners today receive compensatory pay that aims to compensate for the tenth deviation of the CPI that was recorded last year, when the benefits were revalued by 1.6% and prices went up by an average of 1.7% , as announced by the Ministry of Labor in a statement.

It is a single payment that will be around 13 euros for an average pension, which stands at 983.46 euros per month. Greater will be the payment for the more than six million retirees, which rises to 15.5 euros, while the more than 2.3 million widows will receive an extra of just over 9.5 euros. The cost that this measure has for the coffers of the Social Security is 123.4 million euros.

  This year, the Government has extended this additional payment to 194,393 family benefits for dependent children, over 18 years of age and disability equal to or greater than 65%. In this case, 1.08 million euros have been dedicated to guaranteeing the purchasing power of these benefits.

This payment is the result of the Royal Decree-Law approved on December 28 and which fixed the revaluation of pensions for 2019, recovering the update of the same with the evolution of prices. The regulation established the payment to pensioners of a payment equivalent to the deviation of prices, a measure that was not applied since 2013. The calculation has been made with the average value of the interannual variation of the CPI in the last 12 months (December from 2017 to November 2018), 1.7%, that is, one tenth above the revaluation of last year. It is worth remembering that on January 1 Social Security already applied the revaluation of pensions for 2019, which represents an increase of 1.6%, in general, and 3%, for minimum, SOVI and non-contributory.