It's always intriguing to read in the news that one big European bank just purchased another, in particular at a time the clouds hanging over European banks are dark and wide. But perhaps those clouds are not as large as many perceive, or maybe they don't cover the whole European sky. The prolonged financial crisis that hit sovereigns and banks also created big opportunities for some entities. One of those seems to be Banco Santander (BME:SAN), which has been shopping at wholesale prices, while taking the opportunity to gain market share in key markets. At a time when few European banks seem to have the firepower for acquisitions, Santander purchased Portuguese bank Banif (at the end of 2015) and Spanish lender Banco Popular (6th June 2017).
The news of the acquisition outlines three important points relating to European banking: (1) Banco Santander has been building a strong financial position, which will likely translate into an increased market share at a time when the economy is turning more positive; (2) the new EU bank resolution framework is a success, as it has proven able to deal quickly with a bank failure before it translates into market instability and without creating a burden on the taxpayer; (3) banks' shareholders and junior bondholders do incur financial risks (as should have always been the case).
by Zak Mir| Trading| 1 mins. to read It seems appropriate to update the technical position on recent Chart of the Day favourite, Bos Global Holdings (LON:BOS). Although I have interviewed Bos Global on a couple of occasions, it has to be admitted I might have to interview the company a hundred times to get the full picture regarding the business.
by Evil Knievil| Evil Diaries| 1 mins. to read It took a day or two but, finally, Molins (LON:MLIN) has started to come good. MLIN has today announced the sale of its "Instrumentation and Tobacco Machinery" division for £27.5m net of all taxes and fees. Given that MLIN had net assets of £35m and goodwill of £15m and that goodwill has also been sold in this deal, the MLIN balance sheet is greatly strengthened and has to be worth well over 100p share.
by Zak Mir | Trading | 1 mins. to read I have to admit it took me so long to be able to spell and pronounce Petropavlovsk (LON:POG) that any opportunity to show off these skills is welcome, over and above the recovering the share price we are seeing at the momen.
by Robert Stephens | Equities | 5 mins. to read The general election result was supposed to be a foregone conclusion. The Conservative party was meant to increase the size of its majority, with opinion polls showing a lead of as much as 18 points over the Labour party in the last month.
by Nick Sudbury | Funds | 6 mins. to read A few weeks ago I wrote about a buying opportunity for CATCo Reinsurance Opportunities, which is a highly unusual fund that invests in catastrophe insurance bonds.
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