IBERIAN DAILY 01 APRIL (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, BBVA, ELECTRICITY SECTOR, FLUIDRA, METROVACESA, REPSOL, SANTANDER.European stock markets continue to consolidate, awaiting more references
European stock markets suffered corrections of -1% in view of the lack of progress in the Ukraine war and fears stemming from inflationary pressures. In the Euro STOXX, the only sectors ending with gains were Utilities and Insurance, whereas Retail and Banks led the losses. On the macro side, in the euro zone February’s unemployment rate fell a tenth of a percent less than expected, coming in at 6.8%. From the ECB, Luis de Guindos expects inflation to rise over the coming months, but reaching a peak in 2Q’22. In the US, weekly jobless claims rose more than expected, whereas February’s personal income and outlays were in line. However, in real terms personal outlays fell more than expected. Lastly, Joe Biden will release 1 million b/d of strategic oil reserves starting in May (for at least 6 months, some 180 M barrels) in response to the timid production increase from OPEC (only +435,000 b/d, which will not cover the drop in exports from Russia). Furthermore, the production of electric vehicles will be fostered, and materials to manufacture batteries will be covered by the Defense Production Act of 1950. In Japan, the manufacturing and non-manufacturing Tankan indices for 1Q’22 were better than expected. In Russia, Putin signed the decree setting a mechanism to be able to charge for the gas it exports. Buyers will transfer foreign currency into a special account in a Russian bank that will then send rubles back to the foreign buyer to pay for the gas. Additionally, exceptions will be considered whereby foreign buyers would be able to buy gas while avoiding the process laid out.
What we expect for today
European markets would open flat, still consolidating the rise from lows and pending employment data, although this would have to be extremely disappointing to lower the outlook of rate hikes. Currently, S&P futures are up +0.4% (yesterday the S&P 500 ended -1.36% lower vs. the European closing bell). Volatility in the US rose (VIX 20.56). Asian markets are trading with mixed results (China’s CSI 300 +1.2%, and Japan’s Nikkei -0.4%).
Today in the euro zone we will learn March’s preliminary inflation and in the US the manufacturing ISM, non-farm job creation and March’s unemployment rate. There will also be an EU-China Summit by videoconference.
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.
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
Banco Santander is a holding company, providing a range of financial products. Co.'s products and services include: retail banking business that covers all customer banking businesses; wholesale banking business; as well as asset management and insurance business. Co.'s principal operations are in Spain, the U.K., Portugal, Germany, Italy and Latin America. As of Dec 31 2014, Co.'s total assets amounted to Euro1,266,296,000,000 and total customer deposits amounted to Euro647,627,000,000.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
Metrovacesa SA, formerly Metrovacesa Suelo y Promocion SA, is a Spain-based real estate developer. The Company specializes in construction and sale of sustainable housing, both single-family and multi-family residential properties. Its activities also include promotion, urbanization and parceling of real estate in general, as well as real estate management for own benefit or on behalf of third parties. Its asset portfolio includes more than 6 million square meters of building land across Spain, as well as already developed properties in cities, such as Malaga, Almeria, Cordoba, Barcelona and Madrid, among others.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
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