IBERIAN DAILY 12 DECEMBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: BANKIA, MELIÃ, REPSOL, SANTANDER, TELEFÓNICA,MARKETS YESTERDAY AND TODAY
Awaiting new drivers after the Fed’s decision
Global indices saw gains of around +0.5% in a session without relevant drivers but marked by J. Powell's speech. The Ibex 35 stood out in Spain thanks to the good market reaction to Inditex results (+5%). Almost all sectors in the Euro STOXX saw gains, with Utilities and Automobiles being the best performers while Real Estate and Energy ended with drops. On the macroeconomic level, in the US, November's inflation unexpectedly rose more than expected while the core data remained stable. For the 1Q'20, the wage dynamics and consumption should maintain the core data above the general one (2.1% and 2.3%, respectively in November). At the Fed’s interest rate meeting for the first time in several months it unanimously decided to keep interest rates unchanged, suggesting a period without modifications. On another note, the economic forecasts remained unchanged, the US will grow +2.2% this year to fall to +1.9% in 2021. As for the trade war with China, J Powell outlined that easing uncertainties would be positive. In Brazil, the Selic rate meeting ended as expected with a new cut of 50bps to 4.5%. On another note, S&P raised Brazil’s outlook (BB-) from stable to positive in view of the progress of the fiscal adjustment measures adopted by J. Bolsonaro.
What we expect for today
Markets would open with sight gains, underpinned by the Fed’s decision (that was unanimous in the current monetary policy to maintain the economic expansion). Currently, S&P futures are up +0.15% (the S&P 500 closed largely unchanged vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 14.99%). Asian markets are climbing (Japan +0.14% and Japan +1.35%).
Today we will learn in Germany, November’s final inflation data and in the Euro zone, the industrial output. Also, the ECB will hold its interest rate meeting. The UK will hold a general election. Additionally we will learn in the US, November’s production prices and weekly jobless claims, and in Brazil, the economic activity index. In ratings, Fitch will revise Spain’s rating (A-, stable).
COMPANY NEWS
CHANGES IBEX. The Technical Advisory Committee will hold its ordinary meeting today where we do not expect changes.
The IBEX 35 Technical Advisory Committee will hold its second ordinary meeting at today’s closing bell (the meetings are held in early June and December). The press stresses Sacyr, Almirall and Gestamp as possible candidates to replace Ence, although we do not expect any changes, as the latter shows a higher trading volume than the rest of companies outlined.
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.
Bankia is a financial institution based in Spain. Co. is primarily engaged in operations in the banking sector. Co.'s business operations are structured into seven areas: Retail Banking, Business Banking, Private Banking, Asset Management and Bancassurance, Capital Markets and Holdings. Co. offers financial products and services to various customer segments, such as individuals, small and medium enterprises, large corporations, as well as public and private institutions. As of Dec 31 2014, Co. had total assets and total customer deposits of Euro233,648,603,000 and Euro106,806,698,000 respectively.
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®.
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.
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.
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