The Point for Europe

Research evidence excerpt

The Point for Europe

there is a potential risk wholesale units remain skewed to ICE variants ahead of

EX60 ramp; this could limit absolute margin downside risks though we think on

balance the mood music around Q2 remains negative, expect shares to trade

lower.

Ross MacDonald | Harald C Hendrikse | Soumava Banerjee

Industry

European Chemicals - What your peers care about - US marketing feedback

Following our recent Diversifieds report and US investor meetings, we observed

limited enthusiasm for Diversifieds and a clear preference for Specialties. The core

theme of our report — the underappreciated likelihood and benefits of EU

safeguarding measures against Chinese imports — was largely dismissed by UK

investors, particularly hedge funds, whereas US investors were more receptive. US

accounts were also less bearish on upstream momentum names (BASF, Evonik)

than their European counterparts. Wacker attracted less attention than Lanxess,

where views were polarised. In contrast, sentiment towards Specialties was more

constructive: AkzoNobel featured in almost every meeting and is widely seen as

undervalued with clear catalysts. Novonesis was universally well regarded,

Symrise views were more positive than our positioning data suggests, and

investors were broadly comfortable holding Air Liquide.

Sebastian Satz, CFA | Ranulf Orr, CFA | Omi Pallavi

Spain Banks - Assessing the earnings risk from digital deposit competition

Digital competition in the Spanish deposit landscape is rising, with neobanks such

as Revolut and Trade Republic offering c.3-3.5% deposit rates for new customers,

yet the 3 large incumbent banks continue to dominate the deposit market, with

c.58% share in deposit flows in the last 12 months (with cost of deposits either in-