IBERIAN DAILY 28 JANUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CAIXABANK, ELECTRICITY SECTOR, GRUPO CATALANA OCCIDENTE, IBERDROLA, TELEFÓNICA, TOURISM SECTOR, VISCOFAN.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.
MARKETS YESTERDAY AND TODAY
The rally continues despite the Fed
European stock markets managed to face the Fed’s more aggressive message and erased the initial losses, ending with gains close to +0.4% with the peripheral segment outperforming core markets. Thus, within the Euro STOXX, almost all sectors ended with gains, led by Utilities and Household vs. the drops of Basic Resources and Technology. In Spain, the 4Q’21 unemployment rate provided a positive surprise, as it fell to +13.3%, the lowest level since the beginning of the financial crisis. In the US, the 4Q’21 GDP grew more than expected thanks to the strong stock pile-up and the demand for services, ending the year at +5.7% YoY, the highest rise since 1984. Weekly jobless claims fell in line with expectations whereas durable goods orders and December’s pending home sales dropped more than expected. In Japan, core inflation contracted more than expected in January. On the geopolitical front, Russia has left the door open to dialogue (although it does not accept the conditions offered by the US-EU), whereas Europe has announced financial and technological restrictions against Russia in the event of an invasion of Ukraine. In US business results, McDonalds came in below, and Apple, Visa and Mastercard above, among others.
What we expect for today
The European stock markets would post gains lower than +0.5%. Currently, S&P futures are up +0.6% (the S&P 500 ended -1.77% lower vs. the European closing bell). Volatility in the US fell (VIX 30.49). Asian markets are trading with mixed results (China’s CSI 300 -0.4% and Japan’s Nikkei +2.1%).
Today in the euro zone we will learn January’s economic climate index, in Spain and Germany the 4Q’21 GDP, in the US December’s personal outlays and in Brazil November’s unemployment rate. In debt auctions: Italy (€ 8.5 Bn in bonds due 2026, 2032 and floating bonds due 2029). In US business results: Colgate, Caterpillar and Chevron, among others will release their earnings.
COMPANY NEWS
CAIXABANK. 4Q’21 Results above expectations. We cut Net Profit’22-23 by -33% and roll over our model to 2022. We reiterate BUY.
The 4Q’21 Results showed +4% growth in Core Revenues (NII + fee + insurance + bancassurance investees revenues) thanks to fee revenues, which grew by around +11% vs. 4Q’20 and vs. the flat performance expected, recurring costs in line with expectations (growing by +1% due to inflation vs. 2020 pro forma) and a very good CoR of 27bps (
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
Grupo Catalana Occidente is an insurance group based in Spain. Co. is engaged in insurance and reinsurance activities, including commercial, life, disability, and automobile insurance. Co. is also engaged in the sale of annuities and pension funds. Co.'s operations are organized along two businesses: Traditional business (insurance) and Credit Insurance business. Co.'s main markets are located in Spain, Germany, United Kingdom, France and the Netherlands. Co. maintains a presence in more than 40 countries.
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.
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.
Viscofan is the parent company of the Viscofan Group. Co. is divided into two major operational subgroups. The companies comprising the Naturin GmbH subgroup are engaged in the manufacture and distribution of artificial casings (small and big diameter collagen and plastics) for the meat industry. Through its wholly-owned subsidiary IAN, S.A., Co. also manufactures and distributes canned vegetables (asparagus, olives and tomato).
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