EUR 100.00 For Business Accounts Only

IBERIAN DAILY 28 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, CAF, CELLNEX, NATURGY, REPSOL.

The financial sector rallies
The European stock markets recovered yesterday following the agreement whereby First Citizens Bancshares will take over Silicon Valley Bank’s deposits and loans. On another note, the chairman of the European Banking Authority, J. M. Campa, once again pointed out that risks in the financial system remain very high after the latest interest rate hike. Within the Euro STOXX, the best-performing sectors were Autos, Retail and Banks (Deutsche Bank rallied +6.3% on the day), whereas only Basic Resources ended in the red and Technology posted the smallest gains. On the macro side, in Germany, March’s IFO climbed above expectations, especially after the ZEW index contracted. Taken together, both indices hint at growth in 1Q’23 above the stagnation expected by the consensus. Separately, the transport strike was well attended and supports the wage increases demanded by the unions (of between 10.5% and 12%). In the Euro zone, the M3 supply slowed down much more than expected to 2.9% in February, although loans to households and non-financial businesses slowed as expected. On another note, S&P cut its GDP forecast’24 to 1.0% (vs. 1.4% previously), warning about the possibility of a slight slowdown.
What we expect for today
Currently, S&P futures are up +0.10% (the S&P 500 ended +0.1% higher vs. the European closing bell). Volatility in the US fell (VIX 20.60). Asian markets are falling (China’s CSI 300 -0.1% and Japan’s Nikkei -0.05%).
Today we will learn in the US March’s Richmond manufacturing index, March’s Conference Board consumer confidence, February’s trade balance and January’s home prices. In debt auctions: Germany (€ 5.5 Bn in bonds due 2025).


COMPANY NEWS

CELLNEX. Anne Bouverot to replace Bertrand Kan as chairman. BUY

The company announced at yesterday’s closing bell that the current independent director Anne Bouverot will take over as non-executive chairwoman to replace Bertrand Kan, who in any case will maintain his status as an independent director. Anne Bouverot has been a director of CLNX since May 2018 and has management experience in companies and institutions related to the telecommunications sector (Orange and GSMA among others). The new chairwoman has stated that the board is fully committed to the new phase of organic growth balance sheet strengthening, a key priority being to find a replacement for the outgoing CEO. Note that last Thursday, TCI (~3% of CLNX’s capital directly and ~6% through derivatives) issued a letter to CLNX’s Board (which was made public) in which it requested the current chairman of the Company (Bertrand Kan) resign, as well as 2 independent Board members, proposing the incorporation of one of the fund directors onto the Board. The reasons given revolved around what they considered to be poor management of the replacement of Tobías Martínez. This change in the board meets one of TCI’s requests in its letter. It remains to be seen whether in the next few days new changes in management will be announced along the lines of TCI’s requests or if this change will speed up the replacement of the company’s CEO without additional changes in the board. We do not rule out a positive share price reaction today if the market interprets that the arrival of the new CEO is now closer.