IBERIAN DAILY 06 OCTOBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: AENA, BANKING SECTOR, ENCE, REAL ESTATE SECTOR, REPSOL, TÉCNICAS REUNIDAS, TELEFÓNICA.MARKETS YESTERDAY AND TODAY
Stock markets rally heavily, but doubts remain
Global stock markets rallied thanks to banks and technology firms, and despite a new rise in oil prices. In the Euro STOXX, almost all the sectors posted gains, with Banks (following the rise in debt curves) and Technology leading the way, whereas Real Estate closed with slight drops and Household Goods practically flat. On the macro side, in Spain the agreement between the PSOE and Unidas Podemos for the general budgets set the minimum corporate tax at 15% of the tax base (as agreed on in OECD countries, and which would have almost no impact on companies) and an interventionist housing law (including price containment mechanisms in certain markets). In the euro zone, September’s final services PMI rose +0.1% vs. the preliminary figure despute the bigger drops in Italy and Spain. In the US, the non-manufacturing ISM improved unexpectedly in September, with the price component also rising.
What we expect for today
European stock markets would open with drops of as much as -0.50% although with the good relative performance of oil groups and banks in view of the widening of the US long-term curve. Currently, S&P futures are down -0.4% (the S&P 500 ended -0.34% lower vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 21.30). Asian markets are falling (China’s CSI closed and Japan’s Nikkei -1.13%).
Today, in Spain we will learn August’s industrial output, in Europe August’s retail sales, in Mexico July’s fixed investments and in the US September’s ADP private employment survey. In debt auctions: Germany (€ 4.0 Bn in bonds due 2026) and Greece (€ 625 M in 3M t-bills).
COMPANY NEWS
REAL ESTATE SECTOR
Apparently the government has reached an agreement on housing that should result in a new state housing law. Although the draft has not been released and the legal process before the new law is made public will be long, apparently the new housing law plans to discriminate between small and large owners of housing, regulate rents from the latter, leave in the hands of town councils the power to impose a 150% charge on the property tax for vacant flats, allocate a greater percentage of new housing to social housing (also in the hands of the regional administrations) and measures to avoid evictions, among others.
We believe that these interventionist measures are negative for the sector, although as the execution of the proposals will be largely carried out by the autonomous regions and town councils, the effectiveness of their practical implementation is not clear (for instance, according to the press, the region of Madrid has already stated it will not impose any of these proposals). Additionally, the legal process will be long and it is too soon to analyse the proposals.
The direct impact on our coverage universe is small, due to what we mention above and because the only company with direct exposure to the residential rental business is HOME, and a small proportion at that (
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.
Ence Energia Y Celulosa is engaged in the manufacture and commercialization of wood pulp and derivatives. Co. divides its activities into the following two business lines: Forest Division: Co. manages timberlands in South America and the Iberian Peninsula. Co. is involved in trading of wood, and supplies solid wood products including: plywood, sawn timber, parquet flooring and glued-edge paneling. Co. is involved in forest and environmental consulting. Pulp Division and Energy Production: Co. is engaged in the production of Eucalyptus globulus-based TCF and ECF paper pulp. Co. is also involved in the generation of electricity through biomass power producing plants.
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.
Tecnicas Reunidas is a general contractor company based in Spain. Co. engages in the engineering, design, and construction of industrial facilities for refining and petrochemical, oil and gas, power, and infrastructure and industries sectors worldwide. Co. constructs nuclear plants, conventional thermal plants, and renewable energy and cogeneration facilities for power sector; refineries and facilities for petrochemicals; water treatment, desalination, waste management, air, land, and marine transport facilities; and liquefaction, and storage facilities, as well as oil and gas fields and pipelines. Co. also provides engineering, management and operating services for industrial plants.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.