IBERIAN DAILY 17 NOVEMBER + 3Q’21 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ELECTRICITY SECTOR, IBERDROLA, NATURGY, ROVI.MARKETS YESTERDAY AND TODAY
At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 3Q’21 results to be released over the coming days in Spain.
IBEX the odd one out in Europe
European stock markets ended with gains of more than +0.5% thanks to some easing of geopolitical risks following the summit between Joe Biden and Xi Jinping and the strong macro data releases in the US. By contrast, the IBEX fell due to the drops in the financial sector, after European debt curves tightened. In the Euro STOXX, the best-performing sectors were Retail and Consumer Goods, whereas Household Goods and Travel & Leisure ended as the worst performers. On the macro side, in the UK the ILO unemployment rate for September fell more than expected due to the solid job creation. In the US, retail sales and industrial output for October rose more than expected and the NAHB real estate confidence index for November once again rose, beating forecasts. From the Fed, J. Bullard made hawkish comments justifying a tougher policy and speeding up tapering due to the high inflation. Additionally, J. Yellen warned that the Treasury will run out of cash by mid Dec’21, as it will have to meet the cost of the new infrastructure plan. In Brazil, September’s economic activity index deteriorated slightly, very much in line with expectations. In Japan, exports fell for the first time since Feb’21 due to lower demand levels in Asia. In US business results, Home Depot beat expectations and Walmart was in line.
What we expect for today
European markets would open with mixed results, with the financial sector boosted by rising interest rates. Currently, S&P futures are down -0.04% (the S&P 500 was up +0.14% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 16.36). Asian markets are falling (China’s CSI 300 -0.1% and Japan’s Nikkei -0.4%).
Today in the UK and euro zone we will learn October’s inflation and in the US building permits and housing starts for October. In debt auctions: Germany (€ 1 Bn in bonds due 2022) and Portugal (€ 1.25 Bn in 6M and 12M t-bills). In US business results, Cisco and Nvidia, among others, will release their earnings.
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.
Laboratorios Farmaceuticos Rovi is engaged in the sale of its own pharmaceutical products and the distribution of other products for which it holds licenses granted by other laboratories for specific periods, in accordance with the terms and conditions contained in the agreements entered into with said laboratories.
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