Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 30 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AENA, CAF, FERROVIAL, IBERDROLA, NH HOTELES, PRISA, PROSEGUR CASH.

MARKETS YESTERDAY AND TODAY

Strong performance at the beginning of the week
It was a session of gains >1% for most European stock markets despite the unending increase in new Covid-19 cases in countries such as India, Brazil and the US. In the Euro STOXX, Chemicals and Banks were the best performers vs. Food and Real Estate that saw the biggest drops. On the macroeconomic level, in the euro zone, June’s economic climate indicator improved although less than expected. The EU announced it will open its borders to 15 countries, including China, but not to the US, Russia or Brazil. In Germany, June’s inflation remained at 0.6% q/q seen in May, while in Spain it recovered slightly to -0.5% q/q from -0.9% previously. From the ECB, C. Lagarde closed the war with the German CT that concluded that the Central Bank’s measures are proportional while F. Villeroy stated that the IMF forecasts are very pessimistic. In the US, May’s pending home sales climbed above expectations. In Japan, May’s industrial production slowed down more than expected, with very little improvement vs. April. In China, June’s PMI improved more than expected, consolidating at expansion (manufacturing at 50.9 and services at 54.4), while the National Congress approved the polemic domestic security law for Hong Kong, which could result in mounting tensions with the US and Europe and new round of sanctions.
What we expect for today
European stock markets would open flat, hesitant amid the political tensions with China, new Covid-19 outbreaks and the improvement of macro data. Currently, S&P futures are up +0.22% (the S&P 500 closed up +0.54% vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 31.78%). Asian markets are climbing (Japan +1.89% and Hong Kong +0.99%).
Today in the European Union we will learn June’s inflation, in Spain and the UK the final revision of the 1Q’20 GDP, in the US June’s consumer confidence and in Brazil May’s unemployment rate.
Underlyings
Aena SME SA

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.

Construcciones Y Auxiliar De Ferrocarriles, S.A.

Ferrovial S.A.

Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.

Grupo Prisa (PRS SM)

Iberdrola SA

Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.

NH Hotel Group SA

NH Hotel is engaged in the operation and management of hotels throughout Spain, the Benelux countries, Germany, and South America.

Prosegur Cash SA

Prosegur Cash SA, formerly Prosegur Cit Holding SA, is a Spain-based company engaged in the provision of security services. The Company's activities are divided into three business areas: Logistics, Cash management and Outsourcing. The Logistics division focuses on the provision of local and international transport services of cash and other valuable goods. The Cash management division offers counting, processing, custody, preparation and delivery of notes and coins, as well as replenishment of automatic teller machines (ATMs). The Outsourcing division includes a number of support financial services, such as automation of retail operations through self-service cash automatization machines (MAEs), ATMs management, as well as branch forecasting, reconciliation, settlement and credit card support services. The Company operates through own branches and joint ventures in Europe, Central and South America, Africa, Asia and Australia. It operates through Contesta Teleservicios SAU.

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