Report
Research Department
EUR 120.15 For Business Accounts Only

IBERIAN DAILY 07 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS, IBERDROLA, SANTANDER, TALGO.

The Israel-Iran war intensifies and joins the results season
The fear of escalating tensions in the Middle East led to drops on the main European stock markets that were not fully reversed despite the good macroeconomic data released in the US and a sharp rise in oil prices. Within the STOXX 600 sectors, Energy stood out as the best performer, followed by Basic Materials, whereas Autos, Luxury and Travel & Leisure (dragged down by the geopolitical risk) ended with the biggest drops. On the macro side, in the US non-farm job creation rose much more than expected, with the unemployment rate falling unexpectedly, whereas salary gains sped up much more than expected. In the UK, the BoE chief economist, H. Pill, warned about a more cautious rate cut pattern over the coming months vs. the optimism showed by the governor A. Bailey.
What we expect for today
Stock markets would open with gains of up to +0.5%. Currently, S&P futures are down -0.10% (the S&P 500 ended +0.44% higher vs. the European closing bell). Asian markets are climbing (China’s CSI closed, Japan’s Nikkei +2.30%).
Today in the euro zone we will learn October’s Sentix index and August’s retail sales and in Germany August’s industrial output.
Underlyings
Enagas SA

Enagas is a gas transportation company based in Spain. Co. is engaged in the technical distribution and storage of gas through pipelines as well as the provision of regasification services. Co. and subsidiaries are engaged in the ownership, administration, storage, pipeline transportation, distribution flow, and sale of natural gas. As a transport company, Co. also provides gas and manages the gas infrastructures.

Iberdrola SA

Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.

Talgo SA

Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.

Provider
Sabadell
Sabadell

Analysts
Research Department

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