IBERIAN DAILY 10 JUNE (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: AENA, CELLNEX, CHANGES IBEX, FERROVIAL, REPSOL, SANTANDER.ECB following the script
The ECB meeting set the pace, with losses on European markets being accentuated, although the IBEX’s better performance stood out thanks to its weight in financials and especially to domestic banks’ exposure to the short end of the debt curve. In the Euro STOXX, all the sectors closed in the red, with the worst performers being Basic Materials and Real Estate, whereas Insurance and Travel & Leisure closed almost flat with the smallest losses. On the macro side, in the ECB meeting, C. Lagarde announced a +25bps rate hike in the upcoming July meeting, leaving the door open to increases of up to 50bps in September and December if inflation does not fall as expected. Additionally, she confirmed the end of the APP sovereign debt purchase programme, although if there were to be fragmentation support from current or new instruments would return. Lastly, the ECB cut 2022 growth to 2.8% vs. 3.7% previously and in 2023 to 2.8% from the previous 2.1%, whereas it raised inflation in 2022 to 6.8% vs. 5.1% previously and in 2023 to 3.5% vs. 2.1%. On the geopolitical side, the President of Algeria, A. Tebune, immediately suspended the cooperation treaty with Spain due to the latter’s support of Morocco’s control over the Western Sahara. In Mexico, May’s inflation remained at 7.7%, whereas in Brazil it fell slightly more than expected, although still quite high (11.7%). In the US, weekly jobless claims rose more than expected. In China, May’s inflation was unchanged vs. last month (below expectations), and May’s production prices slowed, as expected. Separately, the market sentiment towards regulatory risks has improved after the Govt. approved 60 e-gaming licences.
What we expect for today
The European stock markets would see a bearish opening on fears that the US inflation data will accelerate the Fed’s policy. Currently, S&P futures are up +0.2% (the S&P 500 ended down -1.9% vs. the European closing bell). Volatility in the US rose (VIX 26.09). Asian markets are mixed (China’s CSI 300 +0.3% and Japan’s Nikkei -1.6%).
Today in Spain we will learn May’s final inflation and in the US May’s inflation.
COMPANY NEWS
CHANGES IBEX 35. Acciona Energía and Sacyr are included and Almirall and CIE Automotive are removed.
At yesterday’s closing bell the IBEX 35’s Technical Advisory Committee decided to include Acciona Energía (with a coefficient of 20%) and Sacyr (coefficient of 100%) on the IBEX 35, replacing Almirall and CIE Automotive. As regards weight changes, the Rovi’s coefficient will go from 60% to 80%, Caixabank’s from 100% to 80% and that of Siemens Gamesa from 60% to 40%. The changes will be made at the closing bell on 17 June and will be effective starting on 20 June.
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.
Banco Santander is a holding company, providing a range of financial products. Co.'s products and services include: retail banking business that covers all customer banking businesses; wholesale banking business; as well as asset management and insurance business. Co.'s principal operations are in Spain, the U.K., Portugal, Germany, Italy and Latin America. As of Dec 31 2014, Co.'s total assets amounted to Euro1,266,296,000,000 and total customer deposits amounted to Euro647,627,000,000.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
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.
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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