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IBERIAN DAILY 26 JANUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FLUIDRA, OHL, RESULTS HIGHLIGHTS.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’20 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

Vaccine delays drag down stock markets
It was a session of sharp drops on European markets with all eyes on the recent increases after the rise in Covid-19 cases and the delays announced in vaccine deliveries from Pfizer and AstraZeneca. Against a backdrop of falling interest rates, the IBEX was the index posting the biggest losses (-1.9%), with cyclical/value stocks (and especially those linked to tourism) the most affected. Thus, in the Euro STOXX, all the sectors except Household Goods and Telecoms closed in negative numbers, with Banks and Autos the worst relative performers. On the macro side, in Germany January’s IFO fell more than expected. In Italy, PM Conte offered resignation and will seek to form a new coalition government. In the US, the Chicago Fed index for December rose more than expected and, according to the Govt., the fiscal stimulus measures might come in mid March 2021. In US business results, Kimberly-Clark beat expectations and Bank of Hawaii released worse earnings than expected.
What we expect for today
European indices would open flat, with a slightly bearish slant, where the IBEX will try not to stray from its support level of 8,000, and in Italy the financial sector will have to price in the news of Conte’s exit (who will try to form a new Govt.). Currently, S&P futures are down -0.56% (the S&P 500 closed +0.53% higher vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 23.19%). Asian markets are falling (CSI 300 -1.75%, Japan -0.9%).
Today in the UK we will learn November’s ILO unemployment rate and in the US Richmond manufacturing index. In debt auctions: Holland (€ 3 Bn in bonds due 2025) and Italy (€ 4 Bn in bonds CTZ 2022 and linked to inflation due 2026).


COMPANY NEWS

4Q’20 Results highlights and rest of previews.
Among the companies releasing their earnings next week, on the positive side, we stress Santander (03/02), where we expect a positive reaction thanks to the favourable underlying bias in costs (with the restructuring announced in Europe) and the fact that the CoR will remain at around 130bps, which would allow the bank to meet its € 5 Bn target of Operating Net Profit’20.