Report
Research Department
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IBERIAN DAILY 23 NOVEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACS, FERROVIAL, OHLA.

MARKETS YESTERDAY AND TODAY

Covid-19 still causing trouble on European stock markets
The US was on the brink of ending at new highs after Jerome Powell was named for a second term at the head of the Fed whereas European stock markets, with the exception of the Ibex, which recovered 8,800 points, ended with negative numbers due to the lockdown in Austria and the fear of new restrictions in Germany. The IBEX was the best performer in the euro zone, rallying to 8,800 points. Meanwhile, in the Euro STOXX the best-performing sectors were Telecoms and Basic Resources vs. the worse performance by Technology and Financial Services. On the macro side, in the euro zone November’s consumer confidence fell more than expected. In the US, the Chicago Fed activity index and second-hand home sales for October rose more than expected. J. Yellen admitted that inflation has reached worrying levels whereas J. Powell warned in view of his re-election that the Fed will use all the tools to avoid a problem with inflation. Meanwhile, Covid cases increase in some regions up to 2020 levels, with those areas with a lower percentage of vaccinated population being the hardest hit, and the government recommends not travelling to central Europe countries, including Germany where Merkel outlined that the situation is the worst since the beginning of the pandemic with collapsed hospitals. On another note, OPEC+ warned it could reconsider its normalisation process for production if countries use their strategic reserves.
What we expect for today
The European stock markets would open with a slightly bearish slant, still affected by the development of the pandemic and rising interest rates on inflation fears. Currently, S&P futures are down -0.15% (the S&P 500 was down -0.55% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 19.17). Asian markets are falling (China’s CSI 300 -0.03% and Japan’s Nikkei closed).
Today in the euro zone, Germany and France we will learn November’s PMIs and in the US the Richmond manufacturing index. Debt auctions: Netherlands (€ 3 Bn in bonds due 2029).

COMPANY NEWS

ANTI-TOB PROTECTION SPAIN. The Govt. could extend protection for strategic companies through 30 June’22.
The Govt. could extend the timeframe for TOB protection measures taken in March’20 (and extended since then) through 30/06/2022 (6 more months as the last extension expired on Dec’21). The measures were put in place to stop investors from being able to take control of Spanish companies in strategic sectors (energy infrastructure, transport, water, healthcare, communications, data treatment or storage, aerospace, defence, electoral or financial) and banned new stakes from these investors equal to or above 10% of share capital, meaning any investment requires the Government’s express authorisation. The reason behind this move would be KKR’s takeover bid for Telecom Italia and the possibility that this will lead to a bid for Telefónica. We believe that the latter is unlikely although we think that the government will extend the protection for another 6 months.
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.

AEDAS Homes SA

Aedas Homes is engaged in the housing development business in Spain. The company has a portfolio of approximately 1.5 million square meters of land that it develops for residential purpose. Co. develops multifamily homes for the housing market in Madrid, Catalonia, Levante and Majorca, Costa del Sol and Seville.

Ferrovial S.A.

Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.

Provider
Sabadell
Sabadell

Analysts
Research Department

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