IBERIAN DAILY 25 NOVEMBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: CAF, ELECTRICITY SECTOR, FERROVIAL, MEDIASET ESPAÑA, RED ELÉCTRICA.MARKETS YESTERDAY AND TODAY
Awaiting news on the trade agreement
Despite last week’s gains in Europe, indices await news on the possible trade agreement between the US and China. Within the Euro STOXX, the best relative performers were Basic Resources and Banks, whereas Real Estate and Utilities were the worst-performing sectors in relative terms. On the macro side, in Germany, the final reading of the 3Q’19 GDP YoY increased above expectations (+1.0% vs. +0.5%) and the previous data (+0.3%). In the Euro zone, the manufacturing PMI came in above expectations in November (thanks to France and Germany), whereas the services PMI fell unexpectedly, dragging down the composite index and suggesting low 4Q’19 growth. In the United Kingdom, the manufacturing and PMI came in below expectations, whereas the services PMI was in line. In the US, the University of Michigan’s consumer confidence for November (final) came in above expectations (96.8 vs. 95.7 expected). In China, the Govt. pledged to toughen penalties for breaking intellectual property rights (on demands from the US). Separately, in Hong Kong the pro-democracy opposition party has won a majority in the district elections.
What we expect for today
Stock markets would open with gains of up to +0.5%, boosted by the cyclical sectors that are more sensitive to the increasing chances of a trade deal being struck according to the press. Currently, S&P futures are up +0.25% (the S&P 500 was flat vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 12.34%). The Asian markets that are open are rising (Hong Kong +1.61% and Japan +0.78%).
Today, we will learn: in Germany, November’s IFO; in the US, the Chicago Fed index for October; in Mexico, the 3Q’19 GDP and the IGAE index for September. In US business results, Hewlett Packard and PVH, among others, will release their earnings. In debt auctions, Germany (€ 2 Bn in 3M T-bills) and France (€ 4.58 Bn in 3M, 6M and 12M T-bills).
Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.
Gestevision Telecinco is a television network company based in Spain. Co. heads a group of dependent companies, which form the Telecinco Group. Through its subsidiaries, Co. is engaged in the management and commercial exploitation of a television network. Co.'s television network acquires, produces, and distributes audiovisual content. Co. also sells the network advertising airtime, carried out by its subsidiary. In addition, Co. is involved in the sale of other advertising products; production of news programs; the production and sale of audiovisual property rights; and teleshopping.
Red Electrica is engaged in the transmission of electrical energy, the operation of the system and the management of the transmission network in the Spanish electricity system. In addition, through its subsidiaries, Co. is engaged in the acquisition, holding and management of foreign securities, co-ordination of international exchanges, provision of telecommunications services for third parties, provision of consultancy, engineering and construction services outside the Spanish electricity system, securing of funds, carrying out of financial transactions and provision of financial services.
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