Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 16 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, ACS, AENA, ARCELOR MITTAL, CAF, FCC, ROVI.

Market continues to be penalised by high inflation
Widespread drops on European stock markets (near -1%) in a session that ended worse than it began and where the market continues to digest the surprising US inflation data. In the Euro STOXX, Banks and Insurance led the gains, while Energy (due to falling oil prices) and Household Goods fell the most. On the macro side, in the euro zone, salaries rose +4.1% YoY in 2Q’22 vs. the previous 3.7%. Meanwhile, the Governor of the Bank of France is considering a neutral rate of 2.0% in the euro zone, which would be reached this year. In the US weekly jobless claims fell unexpectedly. Meanwhile, the Empire manufacturing index recovered more than expected, compared to the Philadelphia Fed index, which fell more than expected and back into negative territory; both figures suggest worse growth and investment outlooks, but also that inflationary pressures are easing. Lastly, core retail sales for August rose less than expected, jeopardising the 1.5% QoQ growth expected by the consensus for private consumption in 3Q’22, and August’s industrial output contracted unexpectedly. In China, both industrial output and retails sales for August rose more than expected, whereas housing prices contracted to -1.3% YoY. Lastly, the World Bank asked central banks not to be overly aggressive with monetary tightening in order to avoid a global recession.
What we expect for today
European stock markets would open with drops of ~-1.0% again, with cyclical companies being harder hit and with the good macro data in China not offsetting recession fears amid expectations of aggressive rate rises. Currently, S&P futures are down -0.66% (the S&P 500 was down -0.2% vs. the European closing bell). Volatility in the US rose (VIX 26.27). Asian markets are falling (China’s CSI 300 -1.37% and Japan’s Nikkei -0.98%).
Today in the euro zone we will learn August’s final inflation data and in the US the University of Michigan consumer confidence and September’s NAHB real estate confidence index.
Underlyings
Acciona SA

Acciona is the parent company of a construction group. Co. is engaged in general construction activities in the areas of civil engineering and buildings, including railways, marine and hydraulic works, motorways and airports, town planning, conduits, pavements, parking lots, and industrial and urban buildings. In addition, Co. is engaged in the provision of real estate services, the operation of parking lots, telecommunications, services, ecology and alternative means of energy. Co.'s operations are organized in six business divisions: Infrastructures, Real Estate, Energy, Water, Environmental & Urban Services and Logistic & Transport Services.

Actividades de Construccion y Servicios SA

ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.

Aena SME SA

Aena SME SA, formerly Aena SA, is a Spain-based company primarily engaged in the airports operation. Its activities are divided into four segments: Airports, which comprises Aeronautical subdivision, responsible for the management of airports, jetways, security, handling, cargo and fuel services, among others, as well as Commercial subdivision, including duty-free and specialty stores, restaurant services, car rental, as well as banking services and advertising; Services outside the terminal, which manages real estate assets, such as parking lots, warehouses and lands; International, which comprises operations of Company's subsidiary, Aena Desarrollo Internacional SA, that invests in other airport owners principally in Mexico, Colombia and the United Kingdom; and Others, encompassing corporate activities. It manages tourism, hub and regional airports, as well as heliports and general aviation areas. Furthermore, its destination range comprises Europe, the Americas, Asia and Africa.

ArcelorMittal

Construcciones Y Auxiliar De Ferrocarriles, S.A.

CORPORACION ACCIONA ENERGIAS RENOVABLES SA

Fomento de Construcciones y Contratas S.A.

Fomento de Construcciones y Contratas is the parent company of a group engaged in sanitation services, cleaning, maintaining, purification and distribution of water, construction of highways, hydraulic works, marine works, air and rail transport infrastructure, urban developments, housing, non-residential buildings, office buildings, toll highways, parking garages, marinas and water treatment plants. Co. is also engaged in the manufacture and sale of cement and cement infrastructures, such as precast concrete elements; and in the financial markets, and real estate development, leasing and tourism.

Laboratorios Farmaceuticos Rovi S.A.

Laboratorios Farmaceuticos Rovi is engaged in the sale of its own pharmaceutical products and the distribution of other products for which it holds licenses granted by other laboratories for specific periods, in accordance with the terms and conditions contained in the agreements entered into with said laboratories.

Provider
Sabadell
Sabadell

Analysts
Research Department

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