Newsquawk Daily European Equity Opening News

1st August 2024

ASIA

APAC stocks traded mixed as participants digested the latest key developments including strong tech earnings, Fed Chair Powell's dovish press conference and disappointing Chinese Caixin Manufacturing PMI data. ASX 200 was led higher by strength in the rate-sensitive sectors amid a softer yield environment. Nikkei 225 suffered heavy losses and briefly dipped beneath the 38,000 level alongside a firmer currency after the recent BoJ rate hike and as participants also digested earnings releases, while Toyota shares were heavily pressured after Japan's Transport Ministry announced that misconduct was discovered in an additional 7 Toyota models. Hang Seng and Shanghai Comp. were subdued after disappointing Caixin Manufacturing PMI which unexpectedly slipped into contraction territory for the first time in 9 months.

EUROPEAN CLOSES

CLOSES: DAX: +0.48% at 18,500, FTSE 100: +1.13% at 8,368, CAC 40: +0.76% at 7,531, Euro Stoxx 50: +0.70% at 4,875, AEX: +1.39% at 921, IBEX 35: -1.23% at 11,065, FTSE MIB: -0.43% at 33,764, SMI: +0.31% at 12,320, PSI: +1.04% at 6,708.

SECTORS: IT 3.17%, Energy 1.79%, Materials 1.29%, Industrials 1.15%, Healthcare 0.76%, Consumer Stpl 0.70%, Utilities 0.26%, Financials 0.06%, Telecoms 0.02%, Consumer Disc 0.00%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

BMW (BMW GY) - Q2 (EUR): Revenue 36.9bln (exp. 37.4bln), EBT 3.8bln (exp. 3.8bln), automotive EBIT margin 8.4% (exp. 8.7%). Confirms FY24 guidance, worldwide deliveries to grow slightly. In China, expect the situation to begin to stabilise in Q3. (Newswires) 2.1% weighting in the DAX 40

Daimler Truck (DTG GY) - Q2 (EUR): Revenue 13.3bln (exp. 13.27bln), EPS 0.93 (prev. 1.11). Q1 incoming orders 92.5k, -5% Y/Y; H1 incoming orders 198.37k, -10% Y/Y; truck orders fall on weakening demand in Europe and Asia. FY Outlook Updated (downgraded): unit sales of 460-480k (prev. guided 490-510k), EBIT to be significantly below Y/Y, Revenue 53-55bln (pre. Guided 55-57bln). (Newswires)

Merck (MRK GY) - Q2 (EUR): Net Income 605mln (exp. 827mln), provision of a mid-double-digit mln EUR amount for the termination of Xevinapant had a negative impact. FY outlook: Revenue 20.7-22.1bln (exp. 21.3bln), EBITDA 5.8b-6.4bln (exp. 5.89bln); lifts guidance for the healthcare and electronics sectors. (Newswires)

MTU Aero (MTX GY) - H1 (EUR): Revenue 3.4bln, adj. EBIT 470mln (exp. 441mln), adj. Net 342mln (exp. 321mln). (Newswires)

Volkswagen (VOW3 GY) - Q2 (EUR): Revenue 83.339bln (exp. 83.185bln), Operating Margin 6.6% (exp. 6.3%), Operating Profit 5.46blln (exp. 5.28bln), automotive cash flow 2.9bln (prev. 0.2bln Y/Y). FY24 guidance confirmed. CFO: will have to make considerable effort on the cost side in H2 and beyond to attain targets. (Newswires) 1.8% weighting in the DAX 40

OTHER GERMAN COMPANIES

Kloeckner & Co. (KCO GY) - H1 (EUR): Sales 3.5bln, adj. EBITDA 83mln (prev. 130mln). Now expects a slight increase in sales for 2024 Y/Y, due to the steel price correction YTD. (Newswires)

BROKER MOVES

CAC

Veolia (VIE FP) - H1 (EUR): Revenue 22.1bln (exp. 22.1bln), EBITDA 3.26bln (exp. 3.25bln), Net 731mln (exp. 703mln). FY24 guidance confirmed. (Newswires)

OTHER FRENCH COMPANIES

Arkema (AKE FP) - Q2 (EUR): Sales 2.54bln (exp. 2.43bln), EBITDA 451mln (exp. 430mln), EBITDA margin 17.8% (exp. 17.5%), adj. EPS 2.87 (exp. 2.64). FY guidance confirmed; now expects EBITDA at 1.53-1.63bln (prev. guided 1.5-1.7bln). (Newswires)

Atos (ATO FP) - H1 (EUR): Revenue 4.96bln (exp. 4.96bln), Operating Margin 2.3% (prev. 3.8%), OMDA 373mln (prev. 487mln), FCF -1.9bln (prev. -0.9bln). CEO: “The opening of an accelerated safeguard proceedings by the Commercial Court is an important step in Atos’ financial restructuring process. We now have an agreement with our financial creditors that provides ample liquidity”. (Atos)

Valneva (VLA FP) - Co. and LimmaTech have entered into a strategic partnership and exclusive licensing agreement for the development, manufacturing and commercialization of Shigella4V (S4V), a tetravalent bioconjugate vaccine candidate against shigellosis.(Valneva)

SES (SES FP) - H1 (EUR): Revenue 978mln (exp. 975mln), adj. EBITDA 525mln (exp. 511mln), Net 111mln (exp. 106mln). FY Guidance: Revenue outlook maintained, adj. EBITDA tracking to the upper-half of the range. (Newswires)

BROKER MOVES

PAN EUROPE

AB InBev (ABI BB) - Q2 (USD): Revenue 15.3bln (exp. 15.38bln), adj. EBIT 3.9bln (exp. 3.9bln). FY24 Outlook: expect EBITDA in-line with the medium-term outlook of 4-8%. (Newswires)

ArcelorMittal (MT NA) - Q2 (USD): Sales 16.25bln (exp. 16.48bln), Net Income 504mln (exp. 650mln), Operating Income 1.05bln, EBITDA 1.8bln (exp. 1.79bln). Outlook: believe current market conditions are unsustainable, China’s excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports. Remain optimistic that restocking will occur when real demand begins a recovery.Steel prices in Europe and the US are below marginal cost. CEO: pipeline of strategic projects are starting to come online. (Newswires)

ING (ING NA) - Q2 (EUR): Net Income 1.78bln (exp. 1.61bln), CET1 14% (exp. 14.5%), Revenue 5.7bln (exp. 5.59bln), PBT 2.57bln (exp. 2.3bln), NII 3.8bln (exp. 3.8bln). Fees on track to reach 4bln target this year. Structural NII drivers continue to support guidance for the upper-end of the range. (Newswires)

Mediobanca (MB IM) - Q4 (EUR): Revenue 978mln (exp. 931mln), Net 327mln (exp. 301mln), NII 492mln (exp. 493mln), Fees 279mln (exp. 249mln). Proposes a new buyback of EUR 385mln. Propose an annual dividend of 1.07/shr (exp. 1.05/shr). (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.6% at 5,522, NDX +3% at 19,362, DJIA +0.2% at 40, 843, RUT +0.5% at 2,254

SECTORS: Health -0.39%, Real Estate -0.29%, Consumer Staples -0.20%, Financials -0.19%, Energy +0.42%, Materials +1.05%, Industrials +1.13%, Utilities +1.25%, Communication Services +1.29%, Consumer Discretionary +1.79%, Technology +3.95%.

Arm Holdings (ARM) - Arm's shares tumbled by over 10% in extending trading after soft profit guidance for the next quarter. Q1 adj. EPS 0.40 (exp. 0.34), Q1 revenue USD 939mln (exp. 903mln). Q1 royalty revenue USD 467mln (exp. 483mln); Q1 license and other revenue USD 472mln (exp. 420mln). Sees Q2 adj. EPS between USD 0.23-0.27 (exp. 0.27), and sees Q2 sales between USD 780mln-830mln (exp. 806.2mln); still sees FY adj. EPS between 1.45-1.65 (exp. 1.56), and still sees FY revenue between USD 3.80bln-4.10bln (exp. 4bln). -10.5% in after-hours trade.

eBay Inc (EBAY) - eBay topped quarterly estimates on steady demand; shares were a touch higher afterhours. Q2 adj. EPS 1.18 (exp. 1.13), Q2 revenue USD 2.60bln (exp. 2.53bln). Q2 active buyers 132mln (exp 131.8mln), Q2 gross merchandise volume USD 18.42bln (exp. 18.09bln). For Q3, sees EPS between 1.15-1.20 (exp. 1.13). U/C in after-hours trade

Qualcomm (QCOM) - Shares rallied afterhours on top- and bottom-line beats, while guidance was also positive, but shares slipped during its conference call as CEO flags impact from US revoking a export license for China firm Huawei. Q2 adj. EPS 2.33 (exp. 2.25), Q2 revenue USD 9.39bln (exp. 9.22bln); Q2 QCT revenue USD 8.07bln (exp. 7.88bln), Q2 QTL revenue USD 1.27bln (exp. 1.31bln). Sees Q4 adj. EPS between USD 2.45-2.65 (exp. 2.45), and Q4 revenue between USD 9.5-10.3bln (exp. 9.7bln); Q4 QTL sales are expected between USD 1.35-1.55bln (exp. 1.35bln), and Q4 QCT sales are seen between USD 8.1-8.7bln (exp. 8.35bln). On AI, exec said it was excited about the opportunities ahead as AI enters smartphones; "we don’t have any heroic assumptions in our model, but we actually like the direction this is going that could create an interesting upside if we have an AI-driven upgrade cycle." However, shares turned negative after that there would be a revenue impacts from the US revoking one of its export licenses for sanctioned Chinese telecom firm Huawei; "this change will impact our revenues in both the current quarter and Q1 of 2025," but didn't detail the exact impact. -1.3% in after-hours trade

Meta Platforms (META) - Shares gained over 7% in extended trading after top- and bottom-line beats, and better-than-expected guidance. Q2 EPS 5.60 (exp. 4.73), Q2 revenue USD 39.07bln (exp. 38.31bln). Advertising sales USD 38.33 (37.57bln), ad impressions +10% (exp. +13%), average price per ad +10% (exp. +5.96%); Reality Labs revenue USD 353mln (exp. 376.9mln), and it said it expects reality labs operating losses to increase meaningfully Y/Y; Reality Labs operating loss was USD 4.49bln (exp. loss of 4.53bln) in the quarter. Family of Apps revenue USD 38.7bln (exp. 37.76bln); Family of Apps operating income USD 19.34bln (exp. 18.69bln). On cost controls, CapEx was 8.1bln (exp. 9.4bln). On AI, it said it continues to see good traction with Ray Ban Meta AI glasses, and Meta AI is on track to be the most used AI assistant in the world by the end of the year. For Q3, it sees revenue between USD 38.5-41bln (exp. 39.33bln); FY24 capex is seen between USD37-40bln (prev. saw 35-40bln), and expects FY25 CapEx will be significantly higher; FY24 expenses seen between USD 96-99bln (unch). +7.1% in after-hours trade

01 Aug 2024 - 06:59- Fixed IncomeExclusive- Source: Newsquawk