EUR 100.00 For Business Accounts Only

IBERIAN DAILY 15 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: COLONIAL, ENAGÁS, VISCOFAN.

All eyes on the trade front again
European stock markets fell, dragged down by the trade war. Meanwhile, BoFA’s investors survey suggested underweighting of liquidity at highs from Dec’24 and the most bullish investor sentiment since Feb’25 although the bubble in AI shares is seen as the main risk for the first time. In the STOXX 600 Telecoms and Insurance were the best performers whereas cyclical sectors such as Basic Resources and Autos saw the biggest drops once more. On the macro side, in the UK August’s unemployment rate climbed one tenth unexpectedly whereas wage gains continued to rise. In Germany, September’s final inflation confirmed the 2.4% level whereas October’s ZEW index recovered less than expected with the deterioration of the current situation subindex. In France, the PM S. Lecornu suspended the pension reform until the next presidential elections in 2027 to guarantee his government. In the US, September’s SMES confidence index dropped slightly more than expected. Meanwhile, D. Trump threatened Spain with new tariffs if the country fails to meet the 5.0% target of GDP in Defence. From the Fed, J. Powell was in favour of more rate cuts in view of the deterioration of the job market. In Japan, August’s industrial output slowed down -1.5% MoM. In China, September’s annual inflation was disappointing after deteriorating further to negative territory. Lastly, the IMF raised global growth for 2025 to 3.2% (vs. 3.0% previously), keeping its 2026 forecast unchanged at 3.1%, now foreseeing 1.2% in the euro zone in 2025 (vs. 1.0% in July) and 1.1% in 2026 (vs. 1.2% prev.), raising its US estimates one tenth to 2.0% and 2.1%, respectively. In US 3Q’25 Results BlackRock and JP Morgan were in line whereas Goldman Sachs and Citigroup beat expectations.
What we expect for today
European stock markets would open with gains of more than +1.0%, with the Technology sector leading the way. Currently, S&P futures are up +0.5% (the S&P 500 ended -0.2% lower vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +0.4% and Japan’s Nikkei +1.9%).
Today in Spain we will learn September’s final inflation, in the euro zone August’s industrial output and in the US the Fed Beige book. In US business results Morgan Stanley, Bank of America and Abbott Laboratories, among others, will release their earnings.


COMPANY NEWS

VISCOFAN. Hunterbrook Media accuses VIS of alleged safety infractions in Danville factory. OVERWEIGHT
Yesterday VIS fell around -13% (after sliding as much as -18%) following a report by Hunterbrook Media (a portal combining investigative journalism with investment activities and even though based on its internal policy Hunterbrook Capital’s investments shall never determine the information released by Hunterbrook Media, possible conflicts of interest have generated controversy in the past) regarding alleged safety infractions with chemical products used in the Danville factory (US). VIS has categorically denied all accusations in two statements released yesterday and this morning. We believe that yesterday’s correction (200% VIS’s FCF’25 whereas its North American business accounts for 31% of total sales) represents an opportunity as long as there is no certitude of the material errors.