IBERIAN DAILY 13 JANUARY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ANTI-TOB PROTECTION, IBERDROLA, SANTANDER.MARKETS YESTERDAY AND TODAY
Signs the pandemic is being reeled in
The break in debt curves sat well with European stock markets, which rose on Powell’s speech that inflation will be held in check by a still-accommodative policy. Also helping was the rapid drop in Omicron cases in London, the epicentre of the pandemic in the UK. With all this in mind, in the Euro STOXX the best-performing sectors were Basic Materials and Energy (after another rally in crude oil prices), although growth sectors reacted, with the increases in the Tech sector standing out. By contrast, Pharma and Food ended with the biggest losses. On the macro side, in the euro zone November’s industrial output fell unexpectedly after being cut sharply the previous month. In the US, December’s general inflation rose in line with expectations, reaching a high since 1982, with the general figure at 7.0% and the core figure at 5.5% (above expectations). In this regard, L. Mester defended an agile Fed that reduces the balance sheet as quickly as possible, whereas Daly (from the San Francisco Fed) spoke in favour of starting to hike in March’22 and Harker (Philadelphia Fed, not voting) and Bullard, in the same vein, would back more than 3 hikes in 2022 (in line with the market) and a more quickly balance sheet reduction than in 2018. The Fed’s Beige Book warned of a solid increase in prices and a negative impact on activity stemming from additional problems on the labour market due to Omicron variant infections.
What we expect for today
European stock markets would see slight drops despite the higher stability of the debt market. Currently, S&P futures are down -0.13% (the S&P 500 ended practically unchanged vs. its level at the European closing bell). Volatility in the US dropped (VIX 17.62). Asian markets are sliding (China’s CSI 300 -1.4% and Japan’s Nikkei -1%).
Today in the US we will learn weekly jobless claims and December’s production prices. In debt auctions: Italy (€ 7 Bn in bonds due 2024 and 2029).
COMPANY NEWS
ANTI-TOB PROTECTION SPAIN.
The CNMV yesterday communicated that the normalization of the control regime for foreign investments on Spanish listed companies would be positive to incentive foreign investments. Note that at the end of 2021, the government extended the TOB protection for strategic companies through December’22. The measures are put in place to stop foreign investors from being able to take control of Spanish companies in strategic sectors (energy infrastructure, transport, water, healthcare, communications, data treatment or storage, aerospace, defence, electoral or financial) and ban new stakes from these investors equal to or above 10% of share capital in listed companies (€ 500 M limit for non-listed groups) without the Government’s express authorisation.
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.
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.
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