IBERIAN DAILY 28 AUGUST (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: SANTANDER, TALGO.
A transition session
It was a typical late-summer session, with slight gains on stock markets and little macroeconomic references. In the STOXX 600, Household and Travel&Leisure led gains, whereas Consumer Goods (Luxury) and Real Estate posted the biggest drops. On the macro side, in Germany, the final 2Q’24 GDP confirmed the -0.1% QoQ, whereas September’s GfK consumer confidence dropped unexpectedly. From the ECB, K. Knot (Netherlands) admitted that interest rates will continue to be cut further if inflation continues to moderate although he warned that September’s cut is not clear. In France, E. Macron does not manage to identify the PM candidate to please the New Popular Front In the US, home prices slowed down -0.1% MoM unexpectedly in June, whereas August’s consumer confidence climbed much more than expected, returning to March’24 levels. Regional leading indicators (Fed Richmond, Texas and Dallas) showed mixed signs. In Japan, the vice-governor Himino confirmed the monetary adjustment trend if inflation remains unchanged, as expected, but he was highly cautious about market instability.
What we expect for today
Stock markets would open with slight gains, awaiting NVIDIA’s results. Currently, S&P futures are unchanged (the S&P 500 ended flat vs. the European closing bell). Asian markets are sliding (China’s CSI -0.84% and Japan’s Nikkei -0.05%).
Today in the euro zone we will learn July’s M3. In US business results, NVIDIA, Salesforce and NetApp will release their earnings.
COMPANY NEWS
TALGO, UNDERWEIGHT
Yesterday, the Foreign Investment Board presented at the Cabinet meeting a report rejecting the incorporation of Magyar V. into TLGO’s capital, outlining domestic security reasons. After the presentation, the Finance Ministry released a press communiqué stating that the government agreed not to authorise foreign investments in TLGO. Note that in late April Magyar V. sent the Spanish market regulator its prospectus for the friendly and voluntary TOB on 100% of TLGO’s shares at € 5/sh. in cash (+16% vs. the previous day’s closing price) that was supported by Pegaso T. (main shareholder in TLGO with a 40% stake), as well as by TLGO’s Board of Directors. On another note, the Spanish Association of Minority Shareholders of Listed Companies (Aemec) has warned it will initiate legal actions against the government due to its veto to the TOB. Negative news although partially priced in, as the stock was trading at a -15% discount to the price offered. TLGO share price slid -8.7% at yesterday’s session.