EUR 100.00 For Business Accounts Only

IBERIAN DAILY 01 JULY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AMPER, CAF.

The S&P ended June at record highs
European stock markets kicked off the week with a negative performance, except for the IBEX. In the STOXX 600, the day’s winners were Retail and Travel & Leisure, whereas Chemicals and Autos posted the biggest losses. On the macro side, in Germany, June’s preliminary inflation fell more than expected to 2.0%, while May’s retail sales rose less than expected. In the euro zone, May’s M3 rose slightly less than expected, while corporate and consumer lending shows signs of slowing. In the US, June’s Chicago PMI once again deteriorated unexpectedly, while the prices paid heading rose to a high since May’22. On another note, the approval of the budget law at the Senate is getting complicated. In Japan, the 2Q’25 Tankan manufacturing index recovered more than expected whereas the non-manufacturing index fell unexpectedly. In China, June’s Caixin manufacturing PMI rose more than expected in June. In international trade, the EU would accept the 10% universal tariffs but it seeks to cut them for semiconductors, pharmaceutical, aircraft and alcohol products. On another note, D. Trump could announce up to 10 trade agreements by the 4th of July but Japan would not be one of them.
What we expect for today
European stock markets would open flat with a slightly bullish slant, which would turn into losses throughout the session. Currently, S&P futures are down -0.2% (the S&P 500 ended flat vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.1% and Japan’s Nikkei -1.0%).
Today in the euro zone we will learn June’s preliminary inflation and the final manufacturing PMI index, in Germany June’s number of unemployed and in the US June’s manufacturing ISM, construction spending and JOLTS job openings (both for May).



COMPANY NEWS

AMPER. To carry out capital increase to grow in Defence. OVERWEIGHT.
The company has announced it will carry out a capital increase from 03-16 July for up to € 77.2 M (30% of current market cap) to grow in Defence (31% of total sales) through acquisitions, and in order to continue improving its financial structure (3x NFD/EBITDA’24). AMP will issue up to 594 million new ordinary shares (3 new shares for every 8 old ones) at € 0.13/sh. (-19% vs. yesterday’s closing price). The company would have commitments to subscribe for up to 30% of the capital increase. Positive and expected news. The CEO already stated in March that he expected to invest between € 100-200 M in acquisitions in the Defence business, an activity where we believe the company could find strong growth based on European governments’ plans to increase spending.