Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 17 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: EBRO FOODS, EUSKALTEL, FERROVIAL, LIBERBANK, MEDIASET ESPAÑA, UNICAJA.


MARKETS YESTERDAY AND TODAY

The Fed expects a more constructive macro situation
The poor opening in the US erased part of the gains European indices had accumulated after the release of better December PMI data than expected. In the US, the poor retail sales data for November (the worst in 6 months) showed that the effects of Covid-19 continue to hamstring economic recovery. Thus, in the Euro STOXX most of the sectors once again closed in positive numbers, with Insurance and Pharma leading the gains, whereas Banks and Retail were the worst relative performers. Separately, the Fed meeting brought no changes, maintaining rates and collateral for the purchase programme unchanged, changing its amount (it will remain in place until full employment is reached), whereas it did improve the macro outlook and expects a -2.4% drop in GDP this year vs. -3.7% forecast in September, also improving its outlook for 2021 and 2022 by +0.2% (to 4.2% and 3.2%, respectively).
What we expect for today
Awaiting in advances in the negotiation of a fiscal package, we expect a flat opening for European stock markets. Currently, S&P futures are up +0.3% (the S&P 500 closed practically flat vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 22.50). Asian markets are rising (CSI 300 +1%, Japan +0.2%).
Today in the euro zone we will learn November’s final inflation data, in the UK the BoE will meet, in the US Philadelphia Fed, housing starts, November’s building permits and weekly jobless claims and in Mexico the Central Bank will meet.
Underlyings
Ebro Foods SA

Ebro Puleva is a food manufacturing group based in Spain. Co. is engaged in the manufacture and marketing, export and import of sugar, rice, dairy products, and products destined for agriculture development and human and animal consumption. Co.'s brand names include: Panzani®, Ronzoni®, American Beauty®, Skinner®, Lancia®, Catelli®, Healthy Harvest®, etc. in pastas and sauces, Mahatma®, Sucess®, Carolina®, Lustucru®, Taureau Aile®, Oryza®, Bosto®, Reis-Fit®, Riceland®, Danrice®, Risella®, Brillante®, Nomen®, La Cigala® and La Fallera® in the rice sector, Puleva®, Ram® and El Castillo® in the dairy sector, and Azucarera® and Sucran® in the sugar sector.

Euskaltel SA

Euskaltel SA is a Spain-based company engaged in the provision of integrated telecommunication services. The Company's activities are divided into three segments: Residential, Business, as well as Wholesale and Other. The Residential segment provides fixed and mobile telecommunication services, broadband and wireless Internet, as well as digital television (TV) as a single service and in packages. The Business division primarily offers fixed and mobile telephony, as well as Internet access for enterprises. The Wholesale and Other area serves wholesale customers and is responsible for the delivery of communication services, such as infrastructure leasing, information technology (IT) outsourcing, as well as sell of installation material and electronics. The Company operates in the Basque Country, Spain.

Ferrovial S.A.

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.

Mediaset Espana Comunicacion SA

Gestevision Telecinco is a television network company based in Spain. Co. heads a group of dependent companies, which form the Telecinco Group. Through its subsidiaries, Co. is engaged in the management and commercial exploitation of a television network. Co.'s television network acquires, produces, and distributes audiovisual content. Co. also sells the network advertising airtime, carried out by its subsidiary. In addition, Co. is involved in the sale of other advertising products; production of news programs; the production and sale of audiovisual property rights; and teleshopping.

Unicaja Banco S.A.

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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Sabadell

Analysts
Research Department

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