EUR 100.00 For Business Accounts Only

IBERIAN DAILY 29 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: LIBERBANK, OHL, UNICAJA.


MARKETS YESTERDAY AND TODAY

Stock markets welcome the approval of the fiscal plan in the US
European stock markets opened with gains, which remained unchanged during the session following the decision made over the weekend by D. Trump’s to sign the fiscal plan previously approved by the US Congress and Senate. The EU plans to close an investment agreement with China, which would lift the latter’s restrictions in sectors such as renewables. Thus, in the Euro STOXX, Industrials and Utilities stood out on the positive side vs. the slight drops of Banks. On the macroeconomic level, we only learned November’s retail sales in Spain, which dropped slightly more than expected.
What we expect for today
European stock markets would open with moderate gains. Currently, S&P futures are up +0.4% (the S&P 500 closed practically unchanged vs. its price at the closing bell in Europe). Volatility in the US remained stable (VIX 21.70). Asian markets are mixed (China -0.4%, Japan +2.7%).
No relevant macroeconomic data will be released today.


COMPANY NEWS

LIBERBANK / UNICAJA, BOTH BUY
According to the press, UNI’s and LBK’s Boards of Directors will approve today the merger agreement between both companies. Indications suggest that the necessary AGM to approve the deal will be held at the end of January, and both companies could start to operate as one single group as of mid June (after receiving the different authorisations needed). In line with the expectations outlined thus far, the merger would be based on an exchange ratio of 59.5% UNI and 40.5% LBK. Positive news, which would confirm the agreement reached on corporate governance mentioned yesterday, which was the main burden for the merger. UNI share price yesterday climbed +2.55% and LBK +3.67% (vs. +0.54% IBEX).