IBERIAN DAILY 25 NOVEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, CAF, EBRO FOODS, ENAGÁS, LAR ESPAÑA, SACYR, TELEFÓNICA.MARKETS YESTERDAY AND TODAY
Doubts continue to surround the markets
It was another session of sell-offs on European stock markets, pending possible new Covid-19 restrictions and with fears the Fed will speed up tapering (yesterday the San Francisco Fed’s M. Daly joined in). The IBEX closed with its 8th drop in the past 10 sessions. Thus, in the Euro STOXX, Real Estate and Utilities were the best relative performers, vs. Autos and Basic Materials, which posted the biggest drops. On the macro side, in Germany November’s IFO fell more than expected, due partly to the drop in the expectations component. In the US, the 3Q’21 GDP was cut slightly, while weekly jobless claims improved more than expected, reaching a 52-year low, and October’s durable goods orders fell unexpectedly (although the core component rose more than expected). On another note, personal outlays rose more than expected in October and the core deflator of personal consumption climbed to 4.1% YoY, as expected. Lastly, the Fed meeting minutes did not bring relevant surprises, admitting a high and more persistent inflation, with some of its members in favour of speeding up the tapering, in line with the recent statements made.
What we expect for today
European stock markets would open with gains of as much as +0.5% with a similar performance of growth and value stocks. Currently, S&P futures are up +0.4% (the S&P 500 was up +0.29% vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 18.58). Asian markets are mixed (China’s CSI 300 -0.35% and Japan’s Nikkei +0.7%).
Today is the Thanksgiving holiday in the US. In Germany we will learn the final 2Q’21 GDP and in Mexico 3Q’21 GDP and September’s IGAE Economic Activity index. In debt auctions: Italy (€ 3.25 Bn in fixed-coupon bonds due 2024 and I/L due 2030).
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.
Ebro Puleva is a food manufacturing group based in Spain. Co. is engaged in the manufacture and marketing, export and import of sugar, rice, dairy products, and products destined for agriculture development and human and animal consumption. Co.'s brand names include: Panzani®, Ronzoni®, American Beauty®, Skinner®, Lancia®, Catelli®, Healthy Harvest®, etc. in pastas and sauces, Mahatma®, Sucess®, Carolina®, Lustucru®, Taureau Aile®, Oryza®, Bosto®, Reis-Fit®, Riceland®, Danrice®, Risella®, Brillante®, Nomen®, La Cigala® and La Fallera® in the rice sector, Puleva®, Ram® and El Castillo® in the dairy sector, and Azucarera® and Sucran® in the sugar sector.
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.
Lar Espana Real Estate SOCIMI SA is a Spain-based company primarily engaged in the operation of retail Real Estate Investment Trusts (REITs). The Company specializes in acquiring, managing and renting real estate assets within the Spanish market. Its business activities are divided into three segments: Shopping Centers, Offices, as well as Logistics. The Shopping Centers area is responsible for operation of a number of shopping malls, namely Txingudi, Las Huertas, Albacenter, Anec Blau, Hiper Albacenter, and Nuevo Alisal, among others. The Offices segment invests in office properties, such as Arturo Soria, Cardenal Marcelo Spinola, Egeo and Eloy Gonzalo. The Logistics division focuses on managing logistics warehouses, including Alovera I and Alovera II. The Company also owns a plot for residential properties development. It is a parent of a number of entities, such as Lar Espana Inversion Logistica SA, Gran Via Centrum Holdings SAU, Global Noctua and Puerta Maritima Ondara.
Sacyr is the parent company of a group engaged in the acquisition, development and construction of urban properties for their subsequent rental or resale. Co. primarily leases and sells office buildings and complexes, housing units, and shopping centers. Co. is also engaged in the operation of urban car parking facilities. Co. offers services related to the real estate industry such as technical assistance in energy savings, inventory management, architectural design, telecommunications management, property maintenance, as well as gardening and landscaping. Co. also provides consulting services in the real estate fund management sector.
Telefonica is engaged in the provision of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. Co.'s fixed business includes: traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-aplications services, and wholesale services for telecommunication operators. Co. also provides a range of mobile and related services and products to consumer and business customers, including mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and, trunking and paging.
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