IBERIAN DAILY 20 APRIL (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, BANKING SECTOR, FLUIDRA, GRIFOLS, MEDIASET ESPAÑA, OHL, REPSOL.MARKETS YESTERDAY AND TODAY
US spurs the rally
There were strong gains in Europe after Trump announced the guidelines of a gradual deconfinement plan and following the news on new drugs to fight COVID-19. The IBEX was once again the worst performer in Europe, closing the week with a -2.7% drop. In the Euro Stoxx, all the sectors closed in positive numbers, led by Autos and Travel & Leisure, whereas Utilities and Telecoms were the worst performers. On the macro side, in the euro zone both inflation and core inflation (March) confirmed the preliminary figure (0.7% and 1.2% YoY, respectively). From the ECB, J. Weidmann urged governments to consider more restrictive policies once the crisis is over in order to reduce debt. In Spain, the government announced that it will pay a basic income to struggling families to help them cope with the crisis and that the confinement measures will remain in place until 9 May. Meanwhile, Exceltur estimates € 124 Bn of losses for tourism in 2020, an -84% drop that could be greater if the delay in the economic recovery in Q4 is confirmed. In the US, the Government would reach an agreement with the Democrats to expand the aid package by another US$ 400 Bn (US$ 300 Bn for SMEs). In China, as expected, the PBoC cut the reference 1Y interest rate (LPR) by -20bps to 3.85% and 5Y rate by -10bps to 4.65%. Separately, the Chinese government downplayed the importance of meeting the 2020 growth target, but warned that stimulus measures will be increased to mitigate the impact from the pandemic. In Japan, exports contracted more than expected in March (to -11.7% YoY). In US business results, Regions and Citizens released worse earnings than expected, with Schlumberger beating expectations.
What we expect for today
The markets would open with slight gains that could be reeled in throughout the session. Currently, S&P futures are trading flat (the S&P 500 was up +1.18% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 38.15%). Asian markets are trading with mixed results (Japan -1% and Hong Kong +0.05%).
Today in the US we will learn the Chicago Fed activity index. In US business results, Norwood, Prudential Bancorp and Halliburton, 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.
Enagas is a gas transportation company based in Spain. Co. is engaged in the technical distribution and storage of gas through pipelines as well as the provision of regasification services. Co. and subsidiaries are engaged in the ownership, administration, storage, pipeline transportation, distribution flow, and sale of natural gas. As a transport company, Co. also provides gas and manages the gas infrastructures.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
Gestevision Telecinco is a television network company based in Spain. Co. heads a group of dependent companies, which form the Telecinco Group. Through its subsidiaries, Co. is engaged in the management and commercial exploitation of a television network. Co.'s television network acquires, produces, and distributes audiovisual content. Co. also sells the network advertising airtime, carried out by its subsidiary. In addition, Co. is involved in the sale of other advertising products; production of news programs; the production and sale of audiovisual property rights; and teleshopping.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
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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