Looking to weather a recession? Consider towers

About this update from Infrastrutture Wireless Italiane S.p.a.

LOOKING TO WEATHER A RECESSION? CONSIDER TOWERSTelecoms have emerged as winners during the tariff turmoil, briefly overtaking banks as Europe's best-performing sector this year, along with another defensive play: utilities. Within the telecom sector, HSBC is out with a note where it highlights how global towers - whose revenues are contractually agreed and independent from network usage - could be a "port in the storm" should fears of a recession come true."Interest rate expectations have traditionally been the key macro driver for tower stocks, and if trade tariffs are inflationary, there may be downside risks on valuation due to higher interest rates," say HSBC analysts."However, if macro conditions move towards a slowdown in the global economy or even a potential recession, the tower business model is likely to further show its defensive features".HSBC prefers Europe's Cellnex and INWIT over US peers American Tower and Crown Castle, citing cheaper valuations.(Danilo Masoni)*****WEDNESDAY'S OTHER LIVE MARKETS POSTS: WATCHING THE NEGOTIATIONS CLICK HEREWHAT ARE EUROPEAN STOCKS PRICING IN? CLICK HERETECH SECTOR PULLS STOXX 600 LOWER CLICK HEREEUROPE BEFORE THE BELL: FUTURES FALL AS TRADE TENSIONS TAKE ANOTHER TURN CLICK HEREMARKETS WOBBLE OVER US-CHINA WRANGLING CLICK HERE

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