IBERIAN DAILY 23 JUNE (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACCIONA ENERGÍA, CELLNEX, FERROVIAL, OHLA, SACYR, UNICAJA.Central Banks speed up rate rises
Stock markets saw new drops after several Central Banks continued to raise rates to halt inflation. In the Euro STOXX, defensive sectors such as Food and Household were the best performers whereas Energy (due to the drop in oil prices), Banks and Automobiles posted the biggest drops. On the macro side, in the UK, the BoE raised rates more than expected (+50bps to 5.0%), after confirming that inflation will moderate at a lower pace than initially expected (2 members out of 9 in total were against rises), leaving the door open to more rises if necessary. In this regard, Switzerland’s National Bank, as expected, raised the benchmark rate by +25bps to 1.75% to tackle inflation, whereas Norway’s Central Bank raised rates another +50bps to 3.75%, suggesting an additional rise in August. In the US, weekly jobless claims remained at the previous level (worse), May’s Chicago Fed index returned to negative territory (worse) and existing home sales climbed above expectations in May. From the Fed, J. Powell repeated his speech, stressing the need to tackle inflation. In Mexico, the Central Bank, as expected, kept the benchmark interest rate unchanged at 11.25%. In Turkey, the Central Bank raised interest rates by +650bps to 15% although below expectations, with the Turkish lira depreciating in the session (-4.2%). In Japan, May’s inflation moderated in line with expectation although the core data less than expected, remaining above the BoJ target for 14 months, whereas June’s services and manufacturing PMI fell, with the manufacturing data below 50.
What we expect for today
European stock markets would open with drops of -0.5%, with cyclical sectors dragged down by expectations that banks will have to continue raising rates and damaging growth to halt inflation. Currently, S&P futures are down -0.46% (the S&P 500 ended up +0.22% vs. the European closing bell). Volatility in the US dropped (VIX 12.90). Asian stock markets are sliding (China’s CSI 300 is closed, Japan’s Nikkei -1.72%).
Today in the UK we will learn May’s retail sales, in Spain, the final 1Q’23 GDP and in the euro zone June’s preliminary manufacturing and services PMI.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
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.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
Sacyr is the parent company of a group engaged in the acquisition, development and construction of urban properties for their subsequent rental or resale. Co. primarily leases and sells office buildings and complexes, housing units, and shopping centers. Co. is also engaged in the operation of urban car parking facilities. Co. offers services related to the real estate industry such as technical assistance in energy savings, inventory management, architectural design, telecommunications management, property maintenance, as well as gardening and landscaping. Co. also provides consulting services in the real estate fund management sector.
Unicaja Banco SA is a Spain-based financial institution (the Bank) engaged in the banking sector. The Bank offers services to individual and business customers. Its products and services range includes current and savings accounts, debit and credit cards, consumer and commercial loans, real estate credit, securities brokerage, funds management, leasing, factoring, pension plans, life and non-life insurance, international trade financing, money transfer, as well as treasury, among others. The Bank operates a number of branches in Spain and Morocco. The Bank is controlled by Fundacion Bancaria Unicaja.
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