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IBERIAN DAILY 26 JANUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: TOURISM SECTOR.

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’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

The US drags down Europe
The poor opening in the US (where all indices closed in the red, especially the NASDAQ) and the IMF’s cut to its global growth forecast were added to the tensions in Ukraine to deflate the European stock market rallies, which closed with gains of around +0.5%, with the Ibex 35 standing out. Thus, within the Euro STOXX, Banks and Energy were the best relative performers vs. the drops in Technology and Financial Services. The IMF worsened its global forecasts after the emergence of Omicron, cutting its growth forecast’22 (4.4% vs. the previous 4.9%) and reduced growth expected for the US (+4.0% vs. 5.2% previously), the Euro zone (+3.9% vs. 4.3% previously) and Spain (+5.8% vs. 6.4% previously). In Germany, January’s IFO climbed more than expected thanks mainly to the expectations component. In Italy, the second vote to elect the president of the republic ended with no agreement and the centre-right parties have proposed Marcello Pera, Letizia Moratti and Carlo Nordio. In the US, January’s consumer confidence slowed less than expected. Separately, the FT warned about the results of a US Chamber of Commerce survey suggesting an extremely low chip inventory level for manufacturers. In Mexico, November’s IGAE index climbed more than expected. In US business results, Microsoft, Invesco, American Express and 3M beat expectations, General Electric, Johnson & Johnson and Verizon came in below.
What we expect for today
The European stock markets would open with gains of +0.5% as the US and Europe fail to agree on possible sanctions against Russia in case of an invasion. Currently, S&P futures are up +0.28% (the S&P 500 ended +1.06% higher vs. the European closing bell). Volatility in the US rose (VIX 31.16). Asian markets are trading with mixed results (China’s CSI 300 +0.63% and Japan’s Nikkei -0.4%).
Today in the US the Fed will hold its meeting. Also we will learn December’s new home sales. In debt auctions: Italy (€ 5.75 Bn in bonds due 2023 and I/L bonds due 2026 and 2041) and Germany (€ 4 Bn in bonds due 2032). In US business results: Boeing, AT&T, Abbot Laboratories, Intel and Tesla, among others will release their earnings.

COMPANY NEWS

4Q’21 Results highlights and rest of previews
Of the stocks releasing their earnings over the next few days on the positive side we highlight Santander (02 Feb), where we expect a good performance in 4Q’21 and the confirmation of its Operating Net Profit’21 guidance of €~8.4 Bn, which would back a DPS’21 of € 0.20/sh. (50% cash +50% buyback; 6.5% yield). Operating trends continue to be solid and the CET1 ratio would stand above 12%. All this should back a good share price performance.