EUROPEAN EQUITY OPEN: Lower start ahead of flash PMIs, Italian elections; geopolitics and potentially hawkish FOMC cited

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  OPEN: European stocks open lower, following weak APAC lead; Ukraine geopolitics, potentially hawkish FOMC on Weds being cited. Ahead, flash PMIs and Italy election on the radar for Monday; IBM will reports earnings after US close (we'll also get AAPL and MSFT this week); FOMC on Weds (GS warns of hawkish Fed in 2022 where it could hike at every meeting).


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  INDICES: At 08:05GMT, Euro Stoxx 50 -0.8%, FTSE 100 -0.1%, DAX 40 -0.6%, CAC 40 -0.5%, FTSE MIB -0.6%, IBEX 35 -0.4%, SMI -0.5%.


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  SECTORS: Telecoms higher, supported by VOD LN news; cyclical Materials and Construction laggards, as is the growth proxy Tech sector. 


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  NOTABLE MOVERS: Unilever (ULVR LN) +4.8% (few news developments), Vodafone (VOD LN) +3.4% (approached Three on takeover in Dec), Renault (RNO FP) +3.1% (to announce boost in EV investment), Telecom Italia (TIT IM) +2.7% (perhaps sympathy with VOD), Siemens Gamesa (SGRE SM) +1.1% (upgraded at Deutsche), Orange (ORA FP) +0.7% (Boulben withdraws candidacy), Barratt Development (BDEV LN) -2.7% (Jefferies downgrade), Phillips (PHIA NA) -2.2% (earnings).

INDUSTRIALS:

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  Unilever (ULVR LN) - Activist Trian builds stake, WSJ reports. Some 'angry' investors warning UL against trying any further big acquisitions after failed GSK consumer unit bid, The Times reports. Elsewhere, Telegraph says it faces an uphill battle to sell Ben & Jerry's, as its 'left-wing political activism' could pose problems for any prospective buyer.


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  Renault (RNO FP) - reportedly plan to announce with Nissan (7201 JT), Mitsubishi (7211 JT) an EV development investment of EUR 20bln over 5yrs.


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  Rolls-Royce (RR/ LN) - Launched a competition between regions in England and Wales to be the location of the main factory to build a planned fleet of small nuclear reactors, FT said. Separately, its electric plane wins title of world's fastest EV, flying at 345mph, Telegraph reported.


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  Lufthansa (LHA GY) - In discussions to purchase a 40% stake in ITA Airways, according to Reuters.


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  Volkswagen (VOW3 GY) - Reportedly fired senior employee after highlighting cyber risks at its payments arm, which is soon to be majority-owned by JPMorgan (JPM), FT reports.


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  Daimler (DAI GY) initiated with buy at HSBC.


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  Siemens Gamesa (SGRE SM) upgraded to buy from hold at Deutsche Bank.

FINANCIALS:

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  Aviva (AV/ LN) - Cevian increased stake to 6.0% from 5.0%; previously, Cevian said it wants Aviva to return GBP 5bln excess capital to shareholders and reduce costs further.


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  Commerzbank (CBK GY) - To make EUR 436mln mBank unit provision in its Q4 earnings; will still post FY profit.


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  Bridgepoint Group (BPT LN) - to sell Element Materials to Temasek for around USD 7bln.


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  Hannover Re (HNR GY) downgraded to neutral from outperform at Credit Suisse.

CONSUMER CYCLICAL:

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  Gambling Names - Some UK lawmakers criticised gambling regulator for trying to reduce addiction and urging ministers to take it into special measures, Guardian said.


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  Housing names - Jefferies downgrades Barrat Development (BDEV LN to hold from buy, Bellway (BWY LN) downgraded to hold from buy, Berkeley (BKG LN) downgraded to hold from buy.

HEALTH CARE:

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  Phillips (PHIA NA) - Q4 rev EUR 4.9bln (exp. EUR 4.9bln), net income was short (EUR 151mln vs exp. EUR 590mln). Comp sales -10% in Q4, expects to start 2022 with soft comps; expects recovery in H2. Maintained dividend.


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  GlaxoSmithKline (GSK LN) - Increasing output at a second plant to help meet demand for sotrovimab, WSJ reports.


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  Ipsen (IPN FP) - Canada approves Sohonos (palovarotene capsules) as the first approved treatment for fibrodysplasia ossificans progressiva.


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  UCB (UCB BB) - Japan authorises BIMZELX for the treatment of plaque psoriasis.

COMMUNICATIONS:

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  Orange (ORA FP) - Boulben withdraws candidacy CEO, BBG reports, Heydemann now the primary contender.


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  Informa (INF LN) - Preparing to launch an auction process to sell Citeline, its clinical trial data provider, Reuters reports; could fetch GBP 1.2bln.

ENERGY:

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  BP (BP/ LN) - Union criticised proposals where staff at US refineries would be required to wait up to 120 days between the expiration of a contract and the possible start of a strike, Reuters reported.


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  Siemens Energy (ENR GY) downgraded to hold from buy at HSBC.

TECH:

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  Siltronic (WAF GY) - GlobalWafers still warm on takeover of Siltronic; if not, will invest in US instead. Germany needs to approve deal by end-Jan.


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  Sage (SGE LN) upgraded to buy at Redburn.

UTILITIES:

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  EDF (EDF FP) downgraded to market perform at Bernstein.

DAY AHEAD 24/JAN: 

• 08:15GMT/03:15EST: France Markit Composite, Manufacturing, Services PMIs (JAN, Flash)


• 08:30GMT/03:30EST: Germany Markit Composite, Manufacturing, Services PMIs (JAN, Flash)


• 09:00GMT/04:00EST: EZ Markit Composite, Manufacturing, Services PMIs (JAN, Flash)


• 09:30GMT/04:30EST: UK Markit Composite, Manufacturing, Services PMIs (JAN, Flash)


• 11:00GMT/06:00EST: Bundesbank Monthly Report


• 12:00GMT/07:00EST: Mexico Mid-month Inflation (JAN)


• 13:30GMT/08:30EST: Canada Manufacturing Sales (DEC)


• 13:30GMT/08:30EST: US Chicago Fed (DEC)


• 14:45GMT/09:45EST: US Markit Composite, Manufacturing, Services PMIs (JAN, Flash)


• 16:30GMT/11:30EST: US 3-Month, 6-Month Bill Auctions


• 18:00GMT/13:00EST: US 2-Year Note Auction


• 21:10GMT/16:10EST: IBM (IBM) Earnings (preview)

24 Jan 2022 - 08:08- Fixed IncomeData- Source: Newsquawk