Newsquawk Daily European Equity Opening News - 10th December 2024

10th December 2024

ASIA

APAC stocks were mostly firmer following a negative Wall Street lead, but with APAC players reacting to China easing its overall monetary policy stance. ASX 200 was the regional laggard and failed to benefit from a net dovish RBA, with the index dragged by a poor performance in Tech. Nikkei 225 eked mild gains amid the recent JPY weakness, but with gains capped as the currency claws back some losses in APAC trade. Hang Seng and Shanghai Comp were the regional outperformers after Politburo said China's fiscal policy is to be more proactive next year, and monetary policy is to be moderately loose (prev. prudent), marking the first shift in the stance of monetary policy since 2011. Although bourses were off the best levels ahead of the Chinese Central Economic Work Conference.

EUROPEAN CLOSES

CLOSES: DAX: -0.15% at 20,354, FTSE 100: +0.52% at 8,352, CAC 40: +0.72% at 7,480, Euro Stoxx 50: +0.15% at 4,985, AEX: +0.34% at 895, IBEX 35: -0.50% at 12,012, FTSE MIB: -0.55% at 34,560, SMI: -0.09% at 11,764, PSI: +0.29% at 6,355.

SECTORS: Energy 2.38%, Materials 1.25%, Consumer Disc 1.18%, Consumer Stpl 0.20%, Financials 0.09%, IT 0.08%, Healthcare 0.06%, Utilities -0.29%, Industrials -0.44%, Telecoms -0.86%

FTSE 100

BP (BP/ LN) - Co. forms offshore wind JV as CEO reduces its focus on renewables. (Newswires)

GSK (GSK LN) - Blenrep shows significant overall survival (OS) benefit, reducing risk of death by 42% in multiple Myeloma at or after first relapse. Although median OS was not reached in either arm of Blenrep study, the projected month for BVD is 84 months vs 51 months for DVD. (Newswires)

Shell (SHEL LN) - Issues alert for industrial incident onsite at Corunna, Sarina site. (Newswires)

Standard Chartered (STAN LN) - Nominated P.D Singh to be next India and South Asia CEO, according to Reuters citing sources. (Reuters)

Prudential (PRU LN) - Co. is said to consider selling a stake in Singapore-based Eastspring for around USD 3bln, according to Bloomberg citing sources. One of the options includes selling a 30% stake in Eastspring, and then to form a partnership to help diversify in areas such as private credit. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

BT (BT/ LN) downgraded to Equalweight from Overweight at Barclays

DAX

Allianz (ALV GY) - Amends dividend policy; will return on average a minimum of 15% of net income. Solvency II operating capital generation of 24-25 percentage points in 2027. Cumulative net cash remittance of more than EUR 27bln in 2025-27. Allianz raised its medium-term profit target, aiming for a +7-9% annual earnings growth over the next three years (vs prev. target of +5-7%). CEO said it was also committed to increasing profit payouts to investors. (Newswires)

Deutsche Telekom (DTE GY) - T-Mobile (TMUS) CEO says Q4 is "back end loaded" and investors should be cautious as there is a lot risk in the back half, via UBS conference; Device upgrade rate is "pretty low". Only have 60% of co.'s mid band spectrum deployed on 5G. Have some ongoing appetite in the fibre market. (Newswires)

SAP (SAP GY) - Oracle (ORCL) shares fell 7.8% after hours amid earnings miss and disappointing forecasts. SAP shares -1.9% in pre-market trade

Volkswagen (VOW3 GY) - IG Metall Union noted that the fourth round of negotiations between unions and Volkswagen has ended. Volkswagen's chief negotiator said after this round it's clear they are still far from a solution; discussions will continue on December 16th. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Boeing (BA) reportedly restarted 737 Max production last week, about a month after the end of the strike, according to Reuters sources. (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - To provide operations and maintenance services for Metrolink in Southern California. (Newswires)

Exclusive Networks (EXN FP) - Successful syndication and finalisation of the group's refinancing. Term loan to Everest Subbidco divided into tranches of max principal amounts of EUR 607mln and USD 267mln. (Newswires)

BROKER MOVES

PAN EUROPE

Aalberts (AALB NA) - On track and committed to realise 2026 objectives. To start divestment programme of EUR 400-500mln. Plans acquisitions to boost rev. by EUR 0.8-1bln. To include share buybacks in capital allocation. (Newswires)

Anima (ANIM IM) - Caltagirone held a 5.3% stake in Anima as of Nov. 29 (prev. 3.9%). (Newswires)

Banco BPM (BAMI IM) - Credit Agricole (ACA FP) will consider buying further shares in Banco BPM in the next six months in addition to shares from derivatives contracts, via filing cited by Reuters. (Newswires)

Citi Europe Focus List - Adds: NatWest (NWG LN), E.On (EOAN GY), ArcelorMittal (MT NA), 3I (III LN). (Newswires)

Chip names - Huawei suppliers to face further US limits under defence bill; firms with Huawei ties risk exclusion from Pentagon contracts, according to Bloomberg. (Newswires)

China-exposed Stocks - Chinese Trade Balance USD (Nov) 97.44B vs. Exp. 95.0B (Prev. 95.72B); Chinese Imports YY (Nov) -3.9% vs. Exp. 0.3% (Prev. -2.3%); Chinese Exports YY (Nov) 6.7% vs. Exp. 8.5% (Prev. 12.7%). Separately, China's Politburo conducts study session, according to Xinhua. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Italy PM Meloni and Chair Person of Stellantis end dispute to save Italy auto jobs, according to Bloomberg. (Newswires)

BROKER MOVES

Telecom Italia (TIT IM) upgraded to Overweight from Equalweight at Barclays

SMI

Roche (ROG SW) - New and updated data for Genentech’s fixed-duration Columvi and Lunsumio presented at ASH 2024 reinforce their potential to improve outcomes for people with lymphoma. Long-term data confirm fixed-duration Columvi and Lunsumio achieve durable remissions beyond the end of treatment, with real-world data suggesting reduced treatment-related travel burden due to less frequent dosing. First presentation of Lunsumio given subcutaneously showed non-inferiority to intravenous treatment with a consistent safety profile, potentially providing an additional outpatient option with a shorter administration time. Positive results for Genentech’s two bispecific antibodies validate the company's efforts to provide multiple treatment options that suit the diverse needs of lymphoma patients and healthcare providers. (businesswire)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Co. is to invest an additional BRL 500mln to expand a factory in Brazil, via statement. (Newswires)

SBB (SBBB SS) - Receives additional letter expressing intention to accelerate from bondholders re. Eurobonds issued under its EMTN programme. Corbin funds claim holdings amount to approx. EUR 25mln across both series of bonds. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.61% at 6,053, NDX -0.84% at 21,441, DJIA -0.54% at 44,402, RUT -0.67% at 2,393

SECTORS: Financials -1.4%, Communication Services -1.31%, Utilities -1.3%, Industrials -0.94%, Consumer Staples -0.5%, Technology -0.45%, Consumer Discretionary -0.33%, Energy -0.2%, Materials -0.15%, Real Estate +0.09%, Health +0.22%.

Boeing (BA) - Co. reportedly restarted 737 Max production last week, about a month after the end of the strike, according to Reuters sources. (Newswires)

Disney (DIS) - CFO says they need to continue to focus on eliminating costs, via UBS Global Media Conference. (Newswires)

Eli Lilly (LLY) - Eli Lilly announced a USD 15bln share repurchase programme after its prior USD 5bln facility was completed in Q4 2024; board also announced a +15% increase in its quarterly dividend; declares Q1 dividend of USD 1.50/shr. Separately, it said that its Phase 3 BRUIN CLL-321 trial demonstrated pirtobrutinib's superiority in progression-free survival for chronic lymphocytic leukemia patients, reducing relapse risk by 46%; findings will be presented at the American Society of Hematology Annual Meeting.

Oracle (ORCL) - Shares fell in 7.8% afterhours trading following a profit and revenue miss, and disappointing guidance. Q2 adj. EPS 1.47 (exp. 1.48), revenue USD 14.1bln (exp. 14.12bln); Q2 cloud revenue +24% Y/Y at USD 5.9bln, cloud infrastructure revenue +52% Y/Y at 2.4bln (exp. +51%), Q2 RPO USD 97bln (exp. 87bln). Cites extraordinary AI demand, with GPU consumption up 336%. Signed agreement with Meta for AI infrastructure. Sees Q3 EPS between 1.50-1.54 (exp. 1.57), sees Q3 revenue growth between +9-11%, sees cloud revenue growth between +25-27%. Guides FY25 revenue in the double-digits, cloud revenue projected at USD 25bln.

10 Dec 2024 - 06:38- Exclusive- Source: Newsquawk