IBERIAN DAILY 17 OCTOBER + 3Q’22 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, AENA, ENDESA, NATURGY, UNICAJA.A highly volatile week
The week ended with European stock markets rising +1%, although it was a bit of a roller coaster during a week of falling global growth, high inflation data and the start of the US earnings campaign. The main risk was once again the rising US inflation expectations and the acceleration of core inflation. In the Euro STOXX, the week ended with Basic Materials (despite the Covid cases in Asia) and Household Goods as the best-performing sectors, whereas Technology and Energy closed with the biggest losses. On the macro side, in Spain September’s final inflation was cut -0.1% unexpectedly to 8.9% YoY. In the UK, Liz Truss sacked the finance minister (Hunt, the new minister will hold a press conference today) and would withdraw part of her fiscal programme (she would remove around £ 24 Bn from the stimulus plan along with an increase to corporation tax) in order to tackle the debt crisis, but conservatives would be seeking to replace the PM. In the US, core retail sales rose more than expected in September, suggesting growth in 3Q’22 private consumption slightly higher than the 1.4% QoQ expected by the consensus, whereas October’s U. of Michigan consumer confidence beat consensus estimates. Separately, September’s import prices fell more than expected. From the Fed, M. Daly suggested that the terminal rate is within 4.5-5.0%. In China, Xi Jinping will begin his third term, pushing leadership and technological independence while warning that he will insist in the reunification of Taiwan, even through the use of force. In US business results, JP Morgan, Wells Fargo and Citigroup beat expectations, whereas Morgan Stanley released disappointing earnings and US Bancorp was in line.
What we expect for today
European stock markets would open with a slight bearish slant from which they should recover. Currently, S&P futures are up +0.7% (the S&P 500 ended -0.62% lower vs. the European closing bell). Volatility in the US rose (VIX 32.02). Asian markets are falling (China’s CSI 300 -0.27% and Japan’s Nikkei -1.3%).
Today in the US we will learn October’s Empire manufacturing index and in the UK there will be a press conference from the new finance minister, Jeremy Hunt. In US business results, Bank of America and Bank of NY, among others, will release their earnings. Debt auctions: Germany (€ 6 Bn in 6M and 12M t-bills).
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, 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.
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
Unicaja Banco SA is a Spain-based financial institution (the Bank) engaged in the banking sector. The Bank offers services to individual and business customers. Its products and services range includes current and savings accounts, debit and credit cards, consumer and commercial loans, real estate credit, securities brokerage, funds management, leasing, factoring, pension plans, life and non-life insurance, international trade financing, money transfer, as well as treasury, among others. The Bank operates a number of branches in Spain and Morocco. The Bank is controlled by Fundacion Bancaria Unicaja.
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