Altice SA; Market Cap (as of 06/03/2015): €24bn Altice’s use of high levels of debt to fund its consolidation of the cable and telecoms sector in Europe has raised many eyebrows among investors and analysts, but so far the risks seem to be paying off. Since it’s initial public offering Read more…
There’s a famous saying among financiers : either stress tests are done correctly and banks fail miserably, either they are poorly done in order to make them a success. It is very likely we are in the second situation. Victor Constancio, vice-president of the ECB, declared that not only the Read more…
Oil has been completely crushed after peaking this summer: much has changed since our last article earlier this year (https://bsic.it/oil-quo-vadis/). Weakness in the price of crude was triggered by fear of a global slowdown: China growing at its lowest rate since 2009 (only 7.3%), together with cuts in economic forecast Read more…
Since 2001, Turkey has been subject to profound and remarkable economic and financial transformations that have led this emerging market to become the 17th largest economy in the world, with a nominal GDP of $800 billion. After the banking crisis that hit the country at the beginning of 2001, Turkey Read more…
The European debt crisis seems to have taken the way of recovery and the rates for European government bonds reflect a positive economic outlook in the Euro area. The Euro Stoxx 50 Index includes Europe’s leading Blue-chips companies. Actually, these companies are considered as safe as AAA European countries (Germany, Read more…
The main rationale for the trade is a possible positive surprise of the European economy by the end of the year. The periphery has performed well and the recent resolution of the Berlusconi’s issue has reduced the political risk of the area. Moreover, the economic performances outline the beginning of Read more…
After three days we decided to close our position on the EURUSD as our trade did not play out. In the end we were almost flat so we did not lose money. However we keep our bullish view on the USD and we decided to change the pair and to Read more…
Object: €3.0 billion issuance of Obrigações do Tesouro (OT) (fixed rate bonds), interest rate 5.65%, annual coupons On May 6th the Republic of Portugal issued its first new government bonds since requesting an international bailout two years ago, in a heavily-oversubscribed offer of 10-year debt that raised €3bn. The bonds Read more…
This week was dominated by the US and European central bankers speeches. They both confirmed their accommodative monetary policy. However the FED just confirmed its commitment to the bond buying program until the economy would have showed sign of improvement. The ECB, on the other side, decided to take really Read more…
Gold’s fall coupled with worrying macroeconomic data ignited a risk-off sentiment this week, turning investors far more pessimistic. If we add the UK downgrade, usual May sell-in and the weak momentum across markets of last week, we can imagine a bearish scenario for the coming days. In particular, we believe Read more…
How big is Cyprus’ economy? GDP of €18.0bn as of 2011 (latest official figure) Why does Cyprus need a bailout? Did Cyprus have an irresponsible/spendthrift Government? No, it is its banks that are the problem. Cyprus’ Debt/GDP ratio stood at 49% in 2008 and rose to 71% by 2011 Read more…
The EU financial transaction tax (EU FTT, aka the “Tobin Tax”) The tax that divides Europe. “Any US or Asian institutions trading securities issued in France, Germany, Italy or Spain would also be taxed”. Aims: Raise new revenues for the EU, thus plugging gaps in national budget deficitsand Read more…