José Alves (Capital Madrid) | France is experiencing a historic moment in its rail industry: the beginning of the end of the national public service monopoly for passenger transport. Since the nationalisation of the network (1937) this has been in the hands of the state-owned SNCF. The government had announced this, as required by the EU, but it will be another three and a half years before the decision taken…
Search Results for frANCE
Henry McCaw | In 2011, France dominated the European PPP market, accounting for 62% of the overall market value. According to the World Bank, this was reflected in the “wave of new ‘social infrastructure’ investments in health, education, defense, transport and urban planning sectors.” In the water sector, France is a global leader in private sector participation, with three French companies, Veolia, Suez and SAUR, dominating on the world stage. The French model of concession agreements in the water sector has increasingly been adopted in developing countries.
Crédito y Caución (Atradius) | In the first quarter of this year, French GDP grew 0.4% quarter- on- quarter, supported by the fact that another nationwide lockdown was held off until April. Growth was mainly driven by investment spending and a modest increase in private consumption. While the growth rate in Q2 will be affected by the comprehensive lockdownmeasures imposed in April, the gradual easing of those restrictions in May…
Funcas | The aim of this note is to outline the recent initiatives in terms of direct aid from the governments of Germany, Spain, France and Italy. While in Italy the aid has been extended to the whole economy, as in Germany and France, in Spain it is limited to the sectors most affected (commerce, hotels and restaurants, leisure, etc.). The amount of aid is relatively low in Spain compared to the other three countries, however Spain is the only country that grants a minimum benefit of 4,000 euros for all eligible businesses.
CAF could have withdrawn from buying the factory that Alstom has in Reichschoffen (Alsace, France). The European authorities are forcing the French company to sell in exchange for giving the green light to the 5.3 billion euros acquisition of Bombardier’s railway business. This purchase will be executed on January 29. On January 8, Alstom seemingly informed the trade unions of this plant that CAF was not interested in the situation of the operation.
The French public transportation operator RATP has selected the offer of CAF and Bombardier to supply 146 trains for the second busiest suburban line in Paris for a joint value of €2.56 Bn. The consortium would have beaten the bid made by Alstom which could have offered a price 500M euros higher than that of the Spanish-Canadian consortium. In any case, Alstom will complete the takeover of Bombardier in two weeks, so part of the CAF contract will also benefit the French industrial group.
The poor sales data in the main EU countries will eventually be reflected in production volumes, which we estimate in Q4’20 have evolved above the sales curve and will tend to adjust to the reality of the market. Even more so if we consider that the implementation of the new WLTP type-approval cycle as of January 1st will lead to an increase in the retail price of vehicles.
European national governments have responded to this crisis with battery of fiscal measures of various different types and sizes. According to the latest forecasts from the consensus of analysts (July 2020), the deterioration in the fiscal balance in 2020 will amount to 8.6% of GDP in Germany, 8.1% in Spain, 7.6% in France and 9.4% in Italy. For CaixaBank Research, this suggests that the fiscal stimulus of the major economies in 2020 will, in fact, be more similar than one might believe.
Scope Ratings | The appointment of a new prime minister and a shift towards greening the economy could help to restore political integration across government levels over the medium term but reviving the economy remains the key near-term priority. Emmanuelle Macron is facing the multi-faceted challenges of reviving the economy, addressing the climate imperative and resetting his presidency amid declining approval ratings.
BofA Global Research | We stay overweight France, Spain and Italy, as they should benefit from a continued rebound in PMIs. We raise the UK to marketweight after the recent undershoot. We remain marketweight Germany, as it discounts much good news. We are underweight Switzerland, as it tends to underperform when improving growth momentum lifts bond yields.