IBERIAN DAILY 11 AUGUST (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: DIA, IAG, MÃSMÓVIL.MARKETS YESTERDAY AND TODAY
Stock markets rally following Trump’s executive orders to extend economic relief
Stock markets posted gains, fuelled by the executive orders signed by D. Trump last weekend to ensure the continuity of economic relief for vulnerable citizens, and waiting for Congress to reach an agreement on a new fiscal stimulus package. Within the Euro STOXX, peripheral indices (especially the Ibex) led gains thanks to Banks, whereas Technology posted big losses, still dragged down by the China-US confrontation over TikTok and WeChat. On the macro side, in the Euro zone, August’s Sentix investor confidence index recovered more than expected. Early this morning in China, June’s M2 money supply remained unchanged vs. last month. In US business results, Marriott released worse results than expected.
What we expect for today
The European stock markets would open with gains slightly below +1%. Currently, S&P futures are up +0.3% (the S&P 500 ended +0.2% higher vs. its price at the closing bell in Europe, standing less than 1% below February’s historical highs). Volatility in the US dropped slightly again (VIX 22.1%). Asian markets are rising (Hong Kong +2.5%, Japan +1.9%).
Today we will learn in the UK the ILO unemployment rate for June, in Germany August’s ZEW index, in the US July’s production prices, and in Mexico June’s industrial output. In debt auctions, Spain will issue 6M and 12M T-bills.
COMPANY NEWS
DIA, SELL
Letterone (74.82% DIA) made an offer yesterday to acquire up to € 450 M of DIA’s debt,that is 75% of the company’s listed debt. This debt is made up of two issuances totalling € 300 M, maturing in April’21 and April’23, respectively. The offer, which will remain valid until 4 September, aims at € 255 M of each issuance and would be subject to the acceptance of at least € 150 M in each, which means a debt haircut of ~4.5-9% in the first issuance and of ~40-70% in the second. Both offers, which also include a premium if subscribed before the 21 August, stand above the respective share prices. Positive news, as if the offer is successful it will make the refinancing of debt easier. We recall that the pandemic thwarted the company’s plans to renegotiate its debt, which is the reason why Moody’s downgraded its rating in April.
Distribuidora Internacional De Alimentacion is a supermarket and convenience store group based in Spain. Co. is engaged in the retail trade of food through cut-price self-service supermarkets and franchise establishments. Co. is engaged in the operation of stores located in Spain, France, Portugal, Turkey, Argentina, Brazil and China.
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
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.
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