IBERIAN DAILY 12 JUNE (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: BANKING SECTOR, CELLNEX, CHANGES IBEX ENDESA, FCC, MASMOVIL, RED ELÉCTRICA, SACYR.MARKETS YESTERDAY AND TODAY
Profit taking after the Fed
Sharp falls in European markets >-4% dragged down by the Fed’s dovish stance and fears about a second round of contagion mainly in the US following the recent rallies. In the Euro STOXX, all sectors ended in negative territory, with Consumer Goods and Pharma being the best performers vs. Automobiles and Banks that saw the biggest losses. On the macroeconomic level, in Italy, April’s industrial output fell more than expected to -42.5% YoY. In the US, May’s production prices slowed down less than expected to -0.8% YoY while the rise in weekly jobless claims moderated again, in line with expectations. On another note, some states such as Florida and Arizona are seeing an outbreak of cases and hospitalisations although their governors have already warned they do not consider a new lockdown as this is economically not viable while Hasset, White House’s advisor, outlined that July would be a good month to announce a new aid package. In Japan, April’s final industrial output was slightly cut to -15.9% YoY. In China, M2 remained at the previously 11.1% growth YoY and new loans moderated in line with expectations although with lending remaining at 13.2% growth.
What we expect for today
Stock markets would open with a slight rally although with doubts still in the cyclical sectors hardest hit by a possible outbreak, such as tourism and financials. Currently, S&P futures are up +1.05% (the S&P 500 closed -2.82% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 40.79%). Asian markets are sliding (Japan -1.16% and Hong Kong -1.30%).
Today, in the euro zone we will learn April’s industrial output, in the UK GDP and April’s industrial output, in Spain May’s final inflation and in the US May’s import prices and June’s University of Michigan consumer confidence.
COMPANY NEWS
CHANGES IBEX. Mediaset replaced with Almirall.
Yesterday, the IBEX 35 Technical Advisory Committee decided to rremove Mediaset from the index, and to replace it with Almirall (with an 80% weighting) as from 22 June (adjusted at the end of 2019). We did not expect any changes, but if any, we believed that Mediaset would be substituted with Sacyr.
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.
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
Fomento de Construcciones y Contratas is the parent company of a group engaged in sanitation services, cleaning, maintaining, purification and distribution of water, construction of highways, hydraulic works, marine works, air and rail transport infrastructure, urban developments, housing, non-residential buildings, office buildings, toll highways, parking garages, marinas and water treatment plants. Co. is also engaged in the manufacture and sale of cement and cement infrastructures, such as precast concrete elements; and in the financial markets, and real estate development, leasing and tourism.
Masmovil Ibercom SA, formerly World Wide Web Ibercom SA, is a Spain-based company primarily engaged in the telecommunication sector. The Company focuses on the sale and distribution services for Internet, Data Center and Telecommunications. The Company's product and services portfolio comprises Internet access through Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL) technologies, Internet domains and Domains Management and Registration Service through IberDNS application, Web hosting, virtual servers, dedicated servers, telephony services and routers. The Company also offers collocation services through two Internet Data Centers located in Madrid and San Sebastian. It operates through subsidiaries, such as Embou Nuevas Tecnologias SL and Ebesis Sistemas SL, among others. The Company owns a number of brand names, such as Pepephone, Yoigo and Llamaya.
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.
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.
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