IBERIAN DAILY 03 JULY (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: MÃSMÓVIL, MELIà HOTELS, RED ELÉCTRICA, TELEFÓNICA.MARKETS YESTERDAY AND TODAY
A vaccine for Covid-19 and the US job data fuel stock markets
The possibility that the Covid-19 vaccine developed in Oxford moves forward ahead of expectations and the surprise in the US job data fuelled stock markets (Euro STOXX 50 +2,8%), however, gains came to a halt at the end of the session due to the performance of the number of Covid-19 cases in the US. Thus, in the Euro STOXX, Banks (with the ECB more prone to mergers) and Automobiles led gains vs. Media and Telecommunications that were the worst performers. On the macroeconomic level, in Spain, June’s registered unemployment rose unexpectedly and the Social Security affiliation dropped by more than 160,000 persons. On the political front, P. Sánchez announced a new line of guarantees worth € 40 Bn, earmarked to finance the digital and ecological economy. He also hinted at a rise in the top brackets of the income tax. In the euro zone, May’s unemployment rate rose but less than expected. In the US, June’s job market data came in better than expected. Thus, job creation came in above the consensus (4.8 M), and the previous data was raised. Wage gains remained at high levels (5.0% y/y vs. 6.6%), while the unemployment rate fell more than expected to 11.1%. In Brazil, May’s industrial output climbed in line with expectations.
What we expect for today
Following yesterday’s gains, European indices would open flat in a session of few macro references and with the US stock market closed. Currently, S&P futures are down -0.18% (the S&P 500 closed -0.44% lower vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 27.68%). Asian markets are climbing (Japan +0.20% and Hong Kong +0.72%).
Today in the euro zone we will learn June’s final services PMI, and the US market will be closed today for the independence day holiday.
Masmovil Ibercom SA, formerly World Wide Web Ibercom SA, is a Spain-based company primarily engaged in the telecommunication sector. The Company focuses on the sale and distribution services for Internet, Data Center and Telecommunications. The Company's product and services portfolio comprises Internet access through Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL) technologies, Internet domains and Domains Management and Registration Service through IberDNS application, Web hosting, virtual servers, dedicated servers, telephony services and routers. The Company also offers collocation services through two Internet Data Centers located in Madrid and San Sebastian. It operates through subsidiaries, such as Embou Nuevas Tecnologias SL and Ebesis Sistemas SL, among others. The Company owns a number of brand names, such as Pepephone, Yoigo and Llamaya.
Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.
Red Electrica is engaged in the transmission of electrical energy, the operation of the system and the management of the transmission network in the Spanish electricity system. In addition, through its subsidiaries, Co. is engaged in the acquisition, holding and management of foreign securities, co-ordination of international exchanges, provision of telecommunications services for third parties, provision of consultancy, engineering and construction services outside the Spanish electricity system, securing of funds, carrying out of financial transactions and provision of financial services.
Telefonica is engaged in the provision of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. Co.'s fixed business includes: traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-aplications services, and wholesale services for telecommunication operators. Co. also provides a range of mobile and related services and products to consumer and business customers, including mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and, trunking and paging.
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