{"id":16223,"date":"2016-01-10T16:06:48","date_gmt":"2016-01-10T21:06:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16223"},"modified":"2016-01-10T16:07:30","modified_gmt":"2016-01-10T21:07:30","slug":"emerging-market-meltdown-sinks-spains-biggest-companies","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16223","title":{"rendered":"Emerging Market Meltdown Sinks Spain\u2019s Biggest Companies"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"...click on the above link to read the rest of the article...\" target=\"_blank\">Emerging Market Meltdown Sinks Spain\u2019s Biggest Companies<\/a><\/h3>\n<p class=\"entry-meta\"><b>A\u00a0Lethal Cocktail<\/b><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p>After years of uninterrupted domination, the old guard at\u00a0Spain\u2019s Ibex 35 stock index \u2013 two mega-banks Banco Santander and BBVA, oil giant\u00a0Repsol, telecommunications behemoth\u00a0Telefonica, and utility\u00a0Iberdrola \u2013\u00a0is beginning to lose it.<\/p>\n<p>Today the big-five\u2019s combined capitalization represents 45% of the ibex 35\u2019s total capitalization. This may seem like a ridiculously high percentage for five companies compared to most other stock markets, but it is actually its lowest share in decades. Over the last 15 years, the big five\u2019s combined share has averaged 60% and at times even\u00a0<a href=\"http:\/\/www.elconfidencial.com\/mercados\/2016-01-07\/santander-telefonica-bbva-iberdrola-y-repsol-pierden-la-mayoria-absoluta-en-el-ibex_1130903\/\" target=\"_blank\">reached as high as 65%<\/a>.<\/p>\n<p>There are many reasons for this change, including the rise of relative newcomers. Of particular note is the spectacular growth of Spain\u2019s clothing giant Inditex, whose brands include the world\u2019s biggest fashion retailer, Zara, and whose owner, Amancio Ortega, is now the world\u2019s second richest man. Inditex has a\u00a0market capitalization of\u00a0\u20ac92.7 billion, compared to Santander\u2019s \u20ac59.5 billion!<\/p>\n<p>The other main reason for the big five\u2019s shrinking market share is their sinking share prices. Telefonic\u00e1 and BBVA\u2019s shares are at their lowest point since 2013. Santander\u2019s shares, which have suffered the debilitating effects of countless capital expansions, haven\u2019t been this low since 2012. As for Repsol, the last time its shares plumbed their current depths was in the 1990s. The only member of the big five to escape this rout\u00a0is Iberdrola.<\/p>\n<p>One thing that all of these companies have in common is their massive exposure to emerging markets \u2014 in particular Latin America, whose commodity-rich economies are now suffering the fallout from dwindling Chinese demand. In the aftermath of Spain\u2019s real estate collapse, when opportunities at home were almost non-existent, Latin America\u2019s fast-growing economies were a godsend to many of Spain\u2019s biggest companies. But they are fast becoming a curse.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Emerging Market Meltdown Sinks Spain\u2019s Biggest Companies A\u00a0Lethal Cocktail After years of uninterrupted domination, the old guard at\u00a0Spain\u2019s Ibex 35 stock index \u2013 two mega-banks Banco Santander and BBVA, oil giant\u00a0Repsol, telecommunications behemoth\u00a0Telefonica, and utility\u00a0Iberdrola \u2013\u00a0is beginning to lose it. Today the big-five\u2019s combined capitalization represents 45% of the ibex 35\u2019s total capitalization. This may [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5660,1732,743,6118],"class_list":["post-16223","post","type-post","status-publish","format-standard","hentry","category-economics","tag-don-quijones","tag-emerging-markets","tag-spain","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16223"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16223\/revisions"}],"predecessor-version":[{"id":16225,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16223\/revisions\/16225"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}