Telefónica maintains that the political situation in Catalonia and its impact on the Spanish economy are possible Uncertainties for the group, and warns that if political tensions intensify it could generate a negative impact on financial conditions and the macroeconomic scenario.
In this sense, Telefónica argues that recent events are helping to reduce instability, but warns of the risks that can occur if political tensions resurfaced or intensify, as indicated in a document sent to the National Securities Market Commission (CNMV).
Another risk that the company cites is the Brexit. However, the company does not foresee a significant impact for the operations of O2 and the group after the departure of the United Kingdom from the European Union (EU).
The group believes that the Brexit will mean an economic adjustment "whatever the new economic-commercial relationship between the United Kingdom and the rest of Europe" in the future, and underlines the scarce commercial relationship between the British operator and the rest of the companies of the group.
It also highlights the uncertainty during the negotiations and the impact that this may have on investment, economic activity, employment and volatility in financial markets, which could limit or condition access to capital markets.
The company has also referred to the risks derived from Latin America, both by external and internal factors.
In this regard, the company highlights as possible sources of instability for the short and medium term the uncertainty derived from the pattern of monetary normalization in the United States, the general elections in Brazil and the negotiation of the Free Trade Agreement between the US, Canada and Mexico.
Telefónica indicates that in Brazil the political situation continues to be unstable, the pace of recovery is weak and internal financing needs remain high.
In addition, he argues that Mexico is a country with high commercial and financial exposure to the United States, which can generate uncertainty, and in the case of Argentina, Telefónica assures that both macroeconomic and foreign risks they remain elevated, and the challenges facing the country's economy are "enormous".
In the case of Ecuador, the operator emphasizes that the country's financing needs remain high.