Newsquawk Daily European Equity Opening News - 10th May 2024

10th May 2024

ASIA

APAC stocks mostly tracked the gains in the US where a rise in initial jobless claims spurred a dovish reaction. ASX 200 was led by energy, telecoms and financials but with gains capped amid mixed consumer stocks. Nikkei 225 rallied at the open but then slipped from intraday highs with participants reflecting on Household Spending data, US-China and tensions and amid a busy day of earnings releases for Japan. Hang Seng & Shanghai Comp traded mixed with Hong Kong stocks surging on reports China is considering a proposal to exempt individual investors from paying dividend taxes on Hong Kong stocks bought via the Stock Connect, while the mainland faded its initial gains with the US reportedly set to impose tariffs on China EVs and key sectors after a review which could be announced as soon as next week.

Autos - US is set to impose tariffs on China's EVs and key sectors after review, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: DAX: +1.07% at 18,685.35, FTSE 100: +0.32% at 8,380.63, CAC 40: +0.69% at 8,187.65, Euro Stoxx 50: +0.32% at 5,054.25, IBEX 35: -0.95% at 11,047.11, FTSE MIB: +0.56% at 34,343.00

SECTORS: Energy 0.82%, Utilities 0.70%, Industrials 0.61%, Consumer Stpl 0.45%, IT 0.45%, Materials 0.42%, Telecoms 0.31%, Healthcare 0.04%, Consumer Disc -0.17%, Financials -0.50%

FTSE 100

Anglo American's (AAL LN) - South Africa investors are open to an improved BHP (BHP AT) bid, according to FT. Anglo American’s key South African shareholders are open to a takeover offer from BHP, despite government concerns that the miner’s GBP 30bln-plus proposal is bad for Africa’s most industrialised economy. The investors, which collectively hold more than 15% of Anglo American said BHP would need to sweeten its offer but they were not opposed in principle to an acquisition by the Australian group. (FT)

BP (BP/ LN) - Is keen to buy Tesla (TSLA) supercharging sites for US expansion and has pledged USD 1bln to be spent by 2030 for the network expansion, according to Bloomberg. Says aggressively looking to acquire real estate to scale EV charging network, which is a heightened focus after the recent Tesla announcement. (Bloomberg)

Barclays (BARC LN) - Diana Schueneman will step down as a board member effective 31st May 2024. (Newswires)

OTHER UK COMPANIES

Foxtons (FOX LN) – Sky’s Kleinman’s understanding via sources is that in the last three months Leaders Romans Group made an informal approach to the Co., sources close to Foxtons say a merger was not discussed in any detail. (City AM) Foxtons has been supported in the last few sessions following commentary from investors around a sale.

BROKER MOVES

DAX

Siemens Healthineers (SHL GY) - Announced a GBP 250mln Oxford facility and the UK's first major production site for new MRI cooling tech. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Symrise (SYM1 GY) downgraded to Hold from Buy at Berenberg

CAC

Renault (RNO FP) - Moody's affirms Renault's Baa1 rating; changes outlook to Positive prompted by improvement in credit metrics. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Hermes (RMS FP) initiated with Buy at Jefferies

PAN EUROPE

EDP (EDP PL) - Q1 (EUR): Net Profit 354mln (prev. 303mln Y/Y), EBITDA 1.34bln (exp. 1.34bln, prev. 1.42bln). Reiterates 2024 guidance. Sees 2026 EBITDA around 5-5.1bln. (Newswires)

Enel SpA (ENEL IT) - Q1 2024 (EUR): Net 1.93bln (exp. 1.77bln), Revenue 19.43bln (exp. 23.66bln). "2024-2026 targets confirmed with upside potential to shareholder remuneration in line with CMD guidance". CFO says cost reduction plans are going better than expected with EUR 300mln in savings already achieved. Elsewhere, closed sale of generation assets in Peru; enterprise value around USD 2.1bln. (Newswires)

Ferragamo (SFER IM) - CEO says they do not expect a deterioration in terms of gross margin. (Newswires)

Leonardo (LDO IM) - Co. announces the disposal of its underwater business; deal for a total enterprise value of EUR 415mln. (Newswires)

Pirelli (PIRC IM) - Q1 FY24 (EUR): Net 100.4mln (exp. 110mln), Adj. EBIT 263mln (exp. 257mln), Revenue 1.70bln (exp. 1.68bln). Reaffirms guidance. GUIDANCE: Reaffirms FY24 adj. EBIT margin view of 15.0-15.5% (exp. 15.3%), FY24 Revenue view 6.6-6.8bln (exp. 6.71bln). (Newswires)

Mediobanca (MB IM) - Q3 (EUR): NII 495.9mln (Co. consensus 495mln), Net Profit 334.9mln (Co. consensus 300mln), Revenue 897.6mln (Co. consensus 880mln). (Newswires)

Melia Hotels (MEL SM) - Q1 (EUR): Net Income 5.5mln (prev. 2.8mln Y/Y), EBITDA 97.9mln (exp. 77.9mln Y/Y). Sees another positive year with continued improvement in occupancy and prices in all regions. (Newswires)

BROKER MOVES

Bpost (BPOST BB) upgraded to Hold from Underperform at Jefferies

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Skanska (SKABB SS) - Signs awards for data centre in USA for SEK 1.6bln. (Newswires)

BROKER MOVES

Castellum (CAST SS) downgraded to Underweight from Overweight at Barclays

US

CLOSES: SPX +0.51% at 5,214, NDX +0.16% at 18,113, DJI +0.85% at 39,388, RUT +0.90% at 2,074.

SECTORS: Real Estate +2.31%, Utilities +1.52%, Energy +1.36%, Materials +1.08%, Industrials +0.92%, Health +0.79%, Consumer Staples +0.76%, Financials +0.69%, Consumer Discretionary +0.69%, Communication Services +0.38%, Technology -0.25%.

Apple (AAPL) - To use its own chips in cloud to power AI features in 2024, according to Bloomberg. (Bloomberg)

T-Mobile US (TMUS) and Verizon (VZ) - Are in discussions to carve up U.S. Cellular (USM), one of the country's last major regional wireless carriers, in separate transactions that would give both buyers access to valuable airwaves, according to WSJ. (WSJ)

10 May 2024 - 06:47- EquitiesResearch Sheet- Source: Newsquawk