Newsquawk Daily European Equity Opening News - 10th September 2024

ASIA

APAC stocks mostly took impetus from the gains on Wall St where the major indices rebounded amid light newsflow ahead of looming key events, although Chinese markets lagged amid mixed Chinese trade data. ASX 200 was led higher by strength in financials and utilities but with gains capped after weak consumer and business surveys. Nikkei 225 edged higher albeit with trade contained in the absence of any major pertinent catalysts. Hang Seng and Shanghai Comp were mixed as the former was indecisive with Alibaba the biggest gainer after its Stock Connect inclusion, while WuXi AppTec was at the other end of the spectrum after the US House passed the Biosecure Act which would prohibit the US government from contracting with certain biotech firms. Conversely, the mainland lagged behind regional peers amid mixed Chinese trade data and after protectionist measures by the US House which also voted to pass the Countering CCP Drones Act that would bar new drones by DJI from operating in the US.

Nomura (8604 JT) - Markets head says bank will make a renewed push into prime broking and risk management improved since Archegos collapse, while markets unit sees 15%-20% revenue growth this year. (Newswires)

Samsung Electronics (005930 KS) - Workers in India plant near Chennai put up tents and posters demanding higher wages, while the union leader said output at the plant in South India plant will be impacted for second day. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.71% at 18,431, FTSE 100: +1.09% at 8,271, CAC 40: +0.99% at 7,425, Euro Stoxx 50: +0.87% at 4,779, AEX: +1.03% at 888, IBEX 35: +0.89% at 11,273, FTSE MIB: +0.90% at 33,590, SMI: +0.46% at 11,963, PSI: +0.83% at 6,775

SECTORS: Industrials 1.26%, Financials 1.26%, Materials 1.21%, Energy 0.96%, Utilities 0.79%, Consumer Stpl 0.75%, Telecoms 0.47%, Healthcare 0.36%, IT 0.32%, Consumer Disc 0.30%

FTSE 100

AstraZeneca (AZN LN) - Datopotamab deruxtecan showed median overall survival of 14.6 months in patients with advanced nonsquamous non-small cell lung cancer in tropion-lung01 phase III trials. (Newswires)

Anglo American (AAL LN) - Co. hired financial advisors to sell Nickel assets in Brazil. (Newswires)

BP (BP/ LN) - Is not expecting major impacts from Tropical Storm Francine to its offshore facilities in the Gulf of Mexico. (Newswires)

Shell (SHEL LN) - Is shutting oil production at the Perdido offshore platform in the US Gulf of Mexico citing downstream impacts. (Newswires)

UK Steel Names - The Government is warning of a "grim" September, according to the BBC citing experts; up to 6000 jobs are set to be cut across steel and oil refining industries. (BBC)

OTHER UK COMPANIES

BROKER MOVES

Asos (ASC LN) downgraded to Underweight from Equal Weight at Barclays

DAX

Siemens (SIE GY) - Siemens Mobility will establish America's first high-speed rail production facility in New York; the site represents a USD 60mln investment. Production is expected to begin in 2026. (Newswires)

OTHER GERMAN COMPANIES

Encavis (ECV GY) - Co. successfully closed a project financing in the amount of approx. EUR 61mln for its German Solar Park in Borrentin; plant is expected to end Sept 2024. (Newswires)

BROKER MOVES

Hapag Lloyd (HLAG GY) resumed with Underweight at JP Morgan

Heidelberg Materials (HEI GY) downgraded to Hold from Buy at HSBC

CAC

French stocks - French Finance Minister Le Maire says "we" can and must meet the 2024 deficit target of 5.1% of GDP; tax revenue may be weaker than expected. Tax revenue may be weaker than expected. (Newswires)

OTHER FRENCH COMPANIES

JCDecaux (DEC FP) - Co. wins TFL bus shelter advertising concession for 8 years. (Newswires)

BROKER MOVES

PAN EUROPE

China-exposed stocks - China August YTD CNY-denominated exports rose 6.9% Y/Y and Imports rose 4.7%, while Trade Balance is at a surplus of CNY 4.32tln, while August YTD dollar-denominated exports rose 4.6% Y/Y, Imports rose 2.5% Y/Y and Trade Balance is at surplus of 608.5bln. (Newswires)

Enel (ENEL IM) - Co. to exit Vietnam, where it initially planned to install 6 GW of renewables capacity, via Reuters citing sources. (Reuters)

Mining / Uranium - Kazatomprom's Chief says the Ukraine/Russia war is making it harder for the world's largest uranium producer to keep supplying the West, according to the FT. (FT)

BROKER MOVES

SMI

UBS (UBSG SW) - Co. has discussed options like stake purchases and JVs to tackle the competitive Indian market, according to Bloomberg citing sources. (Bloomberg)

OTHER SWISS COMPANIES

BROKER MOVES

Kuehne und Nagel International (KNIN SW) resumed with Underweight at JP Morgan

SCANDINAVIA

EQT (EQT SS) - To acquire GeBBS Healthcare Solutions for over USD 850mln, via Reuters citing sources. (Reuters)

Equinor (EQNR NO) - Says at APPEC that oil market sentiment is very bearish at the moment. (Newswires)

BROKER MOVES

Maersk (MAERSKB DC) resumed with Underweight at JP Morgan

US

CLOSES: SPX +1.16% at 5,471, NDX +1.3% at 18,661, DJIA +1.2% at 40,830, RUT +1.13% at 2,115.

SECTORS: Communication Services +0.04%, Health +0.74%, Energy +0.77%, Consumer Staples +0.82%, Utilities +0.98%, Materials +0.99%, Real Estate +1.15%, Financials +1.40%, Technology +1.42%, Industrials +1.56%, Consumer Discretionary +1.63%.

Boeing (BA) - Puts off supplier 737 MAX milestone by 6 months in which its supplier schedule calls for 737 output to reach 42 a month in March 2025 vs September 2024, according to sources cited by Reuters. (Reuters)

Goldman Sachs (GS) - CEO says they continue to narrows its consumer focus; trading business trending down close to 10% in Q3. Investment banking continues to improve.USD 400mln pre-tax impact from consumer unit. US economy is in reasonable shape. Investment banking activity has improved, strategic activity is meaningfully better. Equity capital markets activity is up, but IPO market is below what we had hoped for. We're running a large capital buffer now than what we would normally run. Will continue to grow dividend.Competition for talent continues to be very, very robust. A soft landing is the most likely scenario. (Newswires)

Oracle Corp (ORCL) - Shares surged 8.9% afterhours following top- and bottom-line beats, driven by its cloud expansion. Q1 adj. EPS 1.39 (exp. 1.32), Q1 adj. Revenue USD 13.31bln (exp. 13.23bln). Q1 cloud services and license support revenue USD 10.52bln (exp. 10.51bln), Q1 cloud license and on-premise license revenue USD 870mln (exp. 731mln), Q1 hardware revenue USD 655mln (exp. 690.3mln), Q1 services revenue USD 1.26bln (exp. 1.35bln), Q1 cloud infrastructure revenue (IaaS) USD 2.2bln (exp. 2.2bln). Q1 RPO +53% to USD 99bln. Oracle and AWS (AMZN) launched Oracle Database@AWS, enabling seamless integration of Oracle databases with AWS services, including AI and machine learning tools. Oracle and Google (GOOG) Cloud announced the availability of Oracle Database@Google Cloud, enabling customers to run Oracle database services in Google Cloud datacentres across the US and Europe. IBM (IBM) announced plans to acquire Oracle services provider Accelalpha, enhancing its expertise in Oracle Cloud Applications, with the acquisition expected to close in Q4 2024; terms were not disclosed. Exec said strong Q1 highlights the success of its database services and the rapid expansion of Oracle Cloud Infrastructure to meet rising demand. The company's non-GPU infrastructure business is also growing significantly faster than its competitors. Exec emphasised the need for everything to shift to its autonomous database, citing cost savings, security advantages, and elasticity; it said the autonomous database offers higher margins, similar to SaaS, and reduces security risks associated with human labour. Exec also highlighted faster networks and cloud cost savings of around 50%. Sees Q2 EPS between 1.45-1.49 (exp. 1.47), and sees Q2 revenue growth of +7-9%, and Q2 cloud revenue +23-25%. Reiterates FY25 revenue growth outlook of up double digits, and expects FY25 cloud infrastructure revenue growing faster Y/Y; FY25 capex will be double what it was in FY25. (Newswires)

Under Armour (UAA) - Shares fell 1.1% in afterhours trading following an update on its restructuring. It now estimates between USD 140-160mln in pre-tax charges (prev. saw 70-90mln), due to exiting a distribution facility. FY25 adj. EPS guidance is now seen between 0.19-0.22 (exp. 0.23).

10 Sep 2024 - 06:50- Research Sheet- Source: Newsquawk