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IBERIAN DAILY 22 JANUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: MEDIASET ESPAÑA, OHL, PRISA, PROSEGUR, 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

ECB slows the market
The gains made over most of the day on European stock markets were erased as interest rates were raised and after Lagarde’s speech. Within the Euro STOXX, the best-performing sectors were the same as the last few days, with Technology, Basic Materials and Autos leading the way, whereas Real Estate and Energy fell the most. On the macro side, in the euro zone the ECB meeting brought no surprises, with Lagarde taking a very cautious stance and leaving the door open to monetary policy measures being adjusted if necessary. Separately, January’s consumer confidence fell slightly more than expected. In the US, weekly jobless claims fell unexpectedly and December’s housing starts and building permits rallied more than expected, as did January’s Philadelphia Fed index. In Japan, December’s inflation fell more than expected, as did January’s services and manufacturing PMIs. In US business results, Travelers, M&T Bank and Intel beat expectations, Baker Hughes and Union Pacific were in line.
What we expect for today
Stock exchanges would open with drops close to -0.5% amid announcements of new mobility restrictions in Europe. Currently, S&P futures are down -0.30% (the S&P 500 closed practically flat vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 21.32%). Asian markets are falling (CSI 300 -0.15%, Japan -0.3%).
Today we will learn in the Euro zone and the United Kingdom the Services and Manufacturing PMIs (both for January), and in the US December’s second-hand home sales data. In US business results, Huntington and Kansas City, among others, will release their earnings.


COMPANY NEWS

PRISA. Accelerated bookbuild of 7.89% held by HSBC with hardly any discount. SELL.
HSBC has made an accelerated bookbuild in which it has sold 55.89 million shares (7.89% of the capital) at a price of € 0.93/sh. (-0.9% discount to yesterday’s closing price) in a deal that was announced at yesterday’s closing bell and was forecast to place a minimum 5%. Positive news, as the placement was larger than expected and the discount was very low. HSBC will continue to hold a 1.21% stake. We keep a cautious stance on the stock due to its high debt level (even after the refinancing and sale of Santillana España, >6.5x 3Q’20 NFD/EBITDA) and until we have more visibility on the business plans. As for the possibility that VIV raises this stake, this option cannot be ruled out given the company’s track record of opportunistic acquisitions where it later raises its position (Lagardere, Mediaset, Telecom Italia, Ubisoft), although this has not always meant an ambition of control, which we see as less likely.