IBERIAN DAILY 17 JANUARY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ARCELOR MITTAL, BBVA, IAG, IBERDROLA, MELIÁ HOTELS.MARKETS YESTERDAY AND TODAY
The IBEX remains above 8,800
Despite the start of the results campaign in the US, the markets paid close attention to inflationary pressures and interest rates. Drops were once again widespread in Europe, with the IBEX ending its streak of 3 straight sessions in the green after the more hawkish messages from several Fed members. Despite this, the index was one of the few in Europe closing the week out with gains (along with the UK and Portugal), with a modest rise of +0.5%. Meanwhile, in the Euro STOXX, the best-performing sectors over the week were Basic Materials and Energy vs. the worse performance by Consumer Goods and Industrials. On the macro side, in Spain December’s final inflation was cut to 6.5% YoY. Separately, the General Council of the Judiciary rejected the draft of the report on the Housing Law, considering it oversteps regional competences. In the US, retail sales and industrial output for December fell more than expected, as did January’s University of Michigan consumer confidence. In US business results, Wells Fargo, Citigroup, JP Morgan and First Republic beat expectations, BlackRock was in line. In China, the 4Q’21 GDP rise moderated less than expected, coming in at 8.1% YoY, with robust growth in December’s industrial output (9.5% YoY) and retail sales (12.5%). On another note, the PBoC raised liquidity in medium-term loan facilities and cut the interest rate by 10bps to 2.1% although the market continues to foresee additional cuts in the reserve ratio and in the reference rate (LPR).
What we expect for today
European stock markets would trade flat with technology groups recovering some ground following the good performance seen at the end of Friday’s session in the US. Currently, S&P futures are down -0.12% (the S&P 500 ended +0.36% higher vs. its level at the European closing bell). Volatility in the US dropped (VIX 19.19). Asian markets are climbing (China’s CSI 300 +0.76% and Japan’s Nikkei +0.74%).
Today the Eurogroup will meet. In Brazil we will learn November’s economic activity index. In debt auctions: Netherlands (€ 2 Bn in 4M and 6M t-bills), Germany (€ 3 Bn in 12M t-bills) and France (€ 5.4 Bn in 3M, 6M and 12M t-bills).
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
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.
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.
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