Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FCC, IBERDROLA, MEDIASET ESPAÑA, METROVACESA.

In recovery mode
European stock markets once again rose after the Fed minutes were well received (mortgage rates in the US saw the largest single-day fall in the past 2 years) and in view of the better forecast on consumer goods stocks (Macy’s, Ralph Lauren and Nordstrom although GAP cut its guidance). With all this in mind, in the Euro STOXX all the sectors rose, led by Retail and Consumer Goods, whereas Utilities and Food were the worst relative performers. On the macro side, in the US the second reading of the 1Q’22 GDP was worse than the preliminary data due to a bigger drop in the inventories heading. By contrast, weekly jobless claims fell more than expected, while pending home sales fell more than expected in April. In China, industrial earnings dropped by -8.6% YoY in April vs. 12.2% in March. In Japan, Tokyo’s inflation remained at 2.4% YoY in May vs. 2.5% expected. On the geopolitical front, the US and Europe oppose Putin’s plan of enabling the return of circulation of food and fertilizers from Ukraine if the sanctions to Russia are lifted.
What we expect for today
European stock markets would see a flat performance, awaiting the US consumption and deflator data. Currently, S&P futures are down -0.1% (the S&P 500 ended +0.2% higher vs. the European closing bell). Volatility in the US fell (VIX 27.50). Asian markets are climbing (China’s CSI 300 +0.8% and Japan’s Nikkei +0.7%).
Today in Spain we will learn April’s retail sales, in the euro zone April’s M3 and in the US preliminary wholesale inventories and personal income for April.
Underlyings
Fomento de Construcciones y Contratas S.A.

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.

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.

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.

Metrovacesa SA

Metrovacesa SA, formerly Metrovacesa Suelo y Promocion SA, is a Spain-based real estate developer. The Company specializes in construction and sale of sustainable housing, both single-family and multi-family residential properties. Its activities also include promotion, urbanization and parceling of real estate in general, as well as real estate management for own benefit or on behalf of third parties. Its asset portfolio includes more than 6 million square meters of building land across Spain, as well as already developed properties in cities, such as Malaga, Almeria, Cordoba, Barcelona and Madrid, among others.

Provider
Sabadell
Sabadell

Analysts
Research Department

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