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IBERIAN DAILY 16 FEBRUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BBVA, ROVI, UNICAJA.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’21 results to be released over the coming days in Spain.

The market welcomes the partial withdrawal of Russian troops
It was a positive session for European and US stock markets (with growth outperforming value) following the withdrawal of some Russian troops from the Ukrainian border, which leaves the door open to a negotiated solution according to US sources. German chancellor O. Scholz’s trip to Moscow, where he pledged to guarantee the gas transit through Ukraine, also helped. Thus, the Euro STOXX ended with gains of around +2%, led by Consumer Goods and Industrials, whereas Energy (the only sector ending in negative territory) and Media were the worst relative performers. On the macro side, in Germany, February’s ZEW climbed slightly less than expected although it suggests a slight increase in IFO in February. In Spain, January’s final inflation was raised slightly to 6.1% YoY. In the US, February’s Manufacturing Empire index rose much less than expected while January’s production prices rose above expectations. In China, inflation and production prices slowed more than expected in January. In US business results, Zoetis, Marriott, Ecolab, and IQVIA came in better than expected and Leidos worse.
What we expect for today
European stock markets would see a slightly bullish opening awaiting news from the NATO Defence Ministers meeting. Currently, S&P futures are down -0.2% (the S&P 500 was +0.1% higher vs. the European closing bell). Volatility in the US fell (VIX 25.70). Asian markets are rising (China’s CSI 300 +0.17% and Japan’s Nikkei +2.2%).
Today in the euro zone we will learn December’s industrial output, in the UK January’s inflation, in the US the Fed minutes, December’s business inventories, retail sales and January’s industrial output. In US business results, Cycso, Marathon Oil, Pioneer and NVIDIA, among others, will release their earnings. In debt auctions: Portugal (€ 1.25 Bn in 3 &12M T-bills) and Germany (€ 4 Bn in bonds due 2032).

COMPANY NEWS

4Q’21 Results previews.
Of the stocks releasing their earnings over the coming days, on the positive side we stress Rovi (23/02), where we expect strong momentum in the fill-finish duties on Moderna’s vaccine (boosting sales and the different business margins). If our forecasts are met, the 4Q’21 results would beat the consensus estimates significantly, showing a strong cash performance, which we believe would be well received by the markets.