IBERIAN DAILY 14 JULY (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, AEDAS, CELLNEX, METROVACESA.MARKETS YESTERDAY AND TODAY
Gains increasing in Europe, but not in the US
Strong gains on European stock markets (more than +1.5%), but not in the US, which at the closing bell ended with losses in view of the setback in reopening the economies of some states like California and Texas. By contrast, in the Euro STOXX all the sectors posted gains, with Chemicals and Pharma leading the way, compared to Real Estate and Food, which were the worst relative performers. On the macro side, the ECB maintained the purchase pace from the previous session, with a total of € 25.1 Bn vs. € 25.9 Bn last week. A. Merkel and G. Conte showed union before the European Council this week. In Spain, the AIReF will worsen its public deficit estimates for 2020 to around -14% GDP. In Japan, May’s final industrial output worsened. In China, June’s external sector data beat expectations. In US business results, PepsiCo beat expectations.
What we expect for today
We expect a negative opening in view of the fears surrounding economic recovery due to new Covid-19 outbreaks and the China-US tensions (after the Trump administration rejected China’s request to expand its territory in the South China Sea). Currently, S&P futures are unchanged (the S&P 500 was down -2.17% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 32.19%). Asian markets are falling (Japan -0.91% and Hong Kong -1.70%).
Today we will learn in Germany July’s ZEW index and June’s inflation data, which will also be released in Spain, in the Euro zone May’s industrial output, in the UK May’s unemployment rate, and in the US June’s inflation figure. In debt auctions: Spain will issue € 3.5 Bn in 3M & 9M T-bills, Italy € 10 Bn in bonds due 2023, 2027 and 2040, and the Netherlands € 3 Bn in bonds due 2027. In US business results, JP Morgan, Wells Fargo and Citigroup, among others, will release their earnings.
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 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.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
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.
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