- The November 10 elections did not solve the political deadlock in Spain, suggesting ongoing political uncertainty.
- Most importantly, a passing of a 2020 budget looks unlikely. Further fiscal consolidation will depend mainly on growth and falling interest rate expenditures.
- The Spanish economy is set to slow but will still outperform the euro area average.
- With respect to financial markets we detect value in Spanish equities. They are relatively undervalued and the price earnings differential versus the EMU index looks extreme.
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RESULTS AND LOWING
The team translates macro and quant views into investment ideas that feed into the investment process.