EUR 100.00 For Business Accounts Only

IBERIAN DAILY 04 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AEDAS, CIE AUTOMOTIVE.

IBEX on verge of new high
The Spanish index once again stood out among European stock markets thanks to Inditex, thus stringing together its seventh straight session of gains. In the STOXX 600, Retail and Basic Resources were the best-performing sectors, with Financials falling the most. On the macro side, in the euro zone, November’s final services PMI was raised thanks to the improvements in Italy, Spain and France, which reached levels consistent with expansion for the first time in 15 months. In France, the Govt. will review aid to the renewable energy sector, which currently totals € 9 Bn, while the Director of the State Auditing is calling for deeper cuts to spending. In the US, the ADP employment survey unexpectedly showed job destruction at its lowest level since March’23, the services ISM rose more than expected to its highest level since February and lastly September’s industrial output remained in positive territory, as expected, after being lowered in August. Meanwhile, bond investors have warned of the risks of K. Hasset replacing J. Powell in the Fed. In US business results, Salesforce beat expectations and Snowflake released disappointing earnings.
What we expect for today
European stock markets would open with gains of around +0.5%. Currently, S&P futures are up +0.04% (the S&P 500 ended up +0.22% vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.16%, Japan’s Nikkei +2.13% and Kospi -0.19%).
Today in the euro zone we will learn October’s retail sales and in the US weekly jobless claims.

COMPANY NEWS

CIE. Accelerated bookbuild of 3.58% of capital. OVERWEIGHT.
Mahindra (7.2% CIE prior to this announcement), an Indian car manufacturer has closed an accelerated bookbuild of 3.58% of CIE at € 27.75/sh. (-7.5% vs. yesterday’s close) among institutional investors. This transaction takes place after the good recent share price performance (+25% in the past 6 months) but from a downward starting level (the stock was highly inexpensive) and with a good operating performance. Mahindra, which has been part of CIE’s shareholding structure since 2013, pledges to maintain its remaining stake for a 6-month period. Other relevant shareholders: Riberas family 15.7%, Antonio Pradera 10.0%, Egaña family 10.0%, Corporación Financiera Alba 10.0%.