Newsquawk Daily European Equity Opening News - 11th December 2023

11th December 2023

ASIA

Asia-Pac stocks traded mixed as the region digested recent data releases including stronger-than-expected jobs data from the US and worsening deflation in China, while this week’s upcoming risk events including US CPI data and a deluge of central bank updates added to the cautious mood. ASX 200 (+0.1%) just about kept afloat with price action rangebound as outperformance in the energy sector atoned for the lacklustre mood in metal miners and tech. Nikkei 225 (+1.3%) was the biggest gainer following a pushback on recent BoJ speculation in which a source report on Friday noted recent comments by BoJ Governor Ueda were taken out of context and there was no intention by Ueda to signal "anything about the timing of a policy change". Hang Seng (-1.4%) and Shanghai Comp. (-0.1%) were pressured amid weakness in tech and property, while the data over the weekend showed a larger-than-expected decline in China’s consumer inflation and factory gate prices which suggests weak demand in the world’s second-largest economy.

Asia EVs - France's new EV subsidy rules will grade vehicles based on emissions throughout production and transport. Cars below the threshold won't receive subsidies, Nikkei reports. Favouring local production, French-made EVs may benefit, while most Asian-made ones are likely ineligible due to longer transport distances and energy sources.

EUROPEAN CLOSES

CLOSES: FTSE 100 +0.54% at 7,554.47, IBEX 35 +0.76% at 10,223.40, CAC 40 +1.32% at 7,526.55, AEX +0.71% at 781.85, PSI +0.58% at 6,567.11, FTSE 250 +0.45% at 18,701.99, DAX +0.78% at 16,759.22, FTSE MIB +0.94% at 30,403.90, SMI +0.95% at 11,071.77, Euro Stoxx 50 +1.08% at 4,522.25.

SECTORS: Energy 1.69%, Consumer Disc 1.60%, IT 1.11%, Financials 0.91%, Industrials 0.90%, Healthcare 0.66%, Consumer Stpl 0.55%, Utilities 0.27%, Telecoms -0.01%, Materials -0.35%

FTSE 100

Anglo American (AAL LN) - FTSE 100 miner Anglo American faces potential takeover or merger interest after a GBP 30bln valuation drop under CEO Duncan Wanblad, The Times reports citing analysts. Shares plunged by 20% due to a lowered copper production outlook, compounded by challenges in Chile, Peru, and various commodity price declines.

Flutter Entertainment (FLTR ID) - FanDuel reportedly lobbied for rethink on a proposed ban on the use of certain words on their gambling platform within New York, via Guardian citing documents. (Guardian)

Ocado (OCDO LN) - CEO Gibson said the new warehouse in Luton will double with number of robots with arms to 44 in the near future. In other news, Ocado attempts to ease tensions with Marks & Spencer's (MKS LN), by adding more products online. In previous comments, M&S CEO said he "was not happy" with the performance of the JV. (FT/The Telegraph)

Housing Names - UK Rightmove House Price Index MM (Dec) -1.9% (Prev. -1.7%); YY -1.1% (Prev. -1.3%); Asking prices are likely to drop another 1% in 2024, with affordability still stretched, according to Rightmove. Elsewhere, Rents on new tenancies are up 10.2% across the UK, with the estimated value north of GBP 85bln, according to The Times citing data from Hamptons. (Rightmove/The Times)

Unilever (ULVR LN) - New CEO Schumacher is under pressure from top investor Nick Train, who says the Co. is at risk of a break-up, amid years of slow growth. (The Telegraph)

OTHER UK COMPANIES

Daily Mail & General Trust (DMGT LN) - Daily Mail intends to put a small selection of MailOnline articles behind a paywall for UK readers, via FT citing sources. (FT)

BROKER MOVES

Anglo American (AAL LN) downgraded to Market Perform from Outperform at BMO Capital Markets

Haleon (HLN LN) upgraded to Buy from Hold at Jefferies

Reckitt (RKT LN) downgraded to Underperform from Hold at Jefferies

National Grid (NG/ LN) upgraded to Buy from Neutral at UBS

Pennon Group (PNN LN) initiated with Buy at UBS

SSE (SSE LN) downgraded to Neutral from Buy at UBS

Unilever (ULVR LN) downgraded to Underperform from Buy at Jefferies

United Utilities (UU/ LN) initiated with Neutral at UBS

DAX

Commerzbank (CBK GY) - ECB determines SREP P2R capital requirement for Commerzbank for 2024. (Newswires)

OTHER GERMAN COMPANIES

Uniper (UN01 GY) - Shareholders have approved the capital reduction, which is a key condition for the government exiting its stake. (Newswires) +11% in pre-market trade.

BROKER MOVES

Encavis (ECV GY) downgraded to Underweight from Equal Weight at Morgan Stanley

E.ON (EOAN GY) upgraded to Buy from Neutral at UBS

Henkel (HEN3 GY) upgraded to Buy from Hold at Jefferies

CAC

LVMH (MC FP) - Announces it has concluded a strategic transaction to sell a majority position in Cruise Line Holdings Co. (Newswires)

Saint Gobain (SGO FP) - Co. is looking for additional acquisitions outside Europe, according to CEO Bazin, who said there were still positions to acquire in the US, Asia and EM. (FT)

OTHER FRENCH COMPANIES

Casino (CO FP) – Aware that GPA has initiated prelim. work efforts towards a potential primary equity offering as part of its plan to optimise the capital structure. In the scenario of completion, Co. would keep a non-controlling stake in GPA which has convened an EGM for January 11th to, among other points, consider an increase in authorised capital of up to 800mln shares. (Newswires)

Vivendi (VIV FP) - Looking to secure as much as EUR 300mln for See Tickets, via FT citing sources; which add that Anszhutz Entertainment and CTS Eventim are among to bidders thus far. (FT)

BROKER MOVES

Pernod Ricard (RI FP) downgraded to Reduce from Hold at HSBC

PAN EUROPE

Heathrow Airport - Saudi Arabia could acquire effective control of the airport after the PIF purchased Ferrovial’s (FER SM) 25% stake earlier in the year and recent reports indicate that other investors are considering selling their positions, via Guardian citing a report. (Guardian)

Stellantis (STLAM IM/ STLAP FP) warns of up to 1,225 job cuts at the Toledo Jeep plant as soon as 5th February 2024. (Newswires)

BROKER MOVES

Endesa (ELE SM) downgraded to Underweight from Equal Weight at Morgan Stanley

Verbund (VER AV) initiated with Sell at UBS

SMI

Roche (ROG SW) - Presents positive results from phase III Inavo120 study evaluating inavolisib with ibrance and fulvestrant; data from study will be submitted to authorities to bring inavolisib to patients as soon as possible. In other news, New data for Roche’s Columvi and Lunsumio presented at ASH 2023 support continued benefit for people with lymphoma. Also, Inavolisib Plus Palbociclib and Fulvestrant Improves PFS in PIK3CA-Mutated HR+ Breast Cancer. Other news, Roche's Kadcyla is the first targeted therapy to show significant overall survival benefit in people with HER2-positive early-stage breast cancer with residual invasive disease after neoadjuvant treatment. (Newswires/Roche)

Novartis (NOVN SW) - Investigational iptacopan Phase III study demonstrates clinically meaningful and statistically significant proteinuria reduction in patients with C3 glomerulopathy (C3G). Phase III APPEAR-C3G study met its primary endpoint, demonstrating superiority of iptacopan vs. placebo in proteinuria reduction at six-month analysis; the safety profile of iptacopan was consistent with previously reported data. (Novartis)

OTHER SWISS COMPANIES

BROKER MOVES

Lonza (LONN SW) downgraded to Underperform from Outperform at RBC

Nestle (NESN SW) downgraded to Underperform from Hold at Jefferies

SCANDINAVIA

Getinge (GETIB SS) - Recalls CARDIOHELP Emergency Drive due to an Impaired or Inability to Turn the Drive. (FDA)

Nokia (NOKIA FH) - Nokia and BT Group (BT/ LN) sign an agreement to drive new 5G monetisation opportunities through telco APIs. (Newswires)

BROKER MOVES

Carlsberg (CARLB DC) upgraded to Buy from Hold at HSBC

Fortum (FORTUM FH) downgraded to Neutral from Buy at UBS

Orsted (ORSTED DC) upgraded to Equal Weight from Underweight at Barclays

US

CLOSES: SPX +0.41% at 4,604, NDX +0.39% at 16,085, DJI +0.36% at 36,248, RUT +0.67% at 1,881.

SECTORS: Energy +1.12%, Technology +0.9%, Financials +0.5%, Consumer Discretionary +0.43%, Materials +0.33%, Industrials +0.33%, Health +0.18%, Communication Services -0.16%, Utilities -0.22%, Real Estate -0.23%, Consumer Staples -0.65%.

Advertising, Amazon (AMZN), X (Private) - X is working to lure smaller advertisers as Elon Musk keeps alienating big brands, WSJ reports. The social-media platform has held preliminary talks with Amazon (AMZN) to sell ads through the e-commerce giant’s ad-buying software, the report adds.

Boeing (BA) - Is to promote Stephanie Pope to COO which makes her the likely successor to CEO Calhoun, according to WSJ. (WSJ)

Chip Names - New York joins IBM (IBM) and Micron (MU) in USD 10bln chip research complex, according to WSJ. (WSJ)

Nasdaq 100 (NDX) - Its annual reconstitution of the Nasdaq-100 Index, effective before the market opens on December 18th, will see the additions of CDW Corporation (CDW), Coca-Cola Europacific Partners (CCEP), DoorDash (DASH), MongoDB (MDB), Roper Technologies (ROP), Splunk (SPLK). As a result of the reconstitution, the following six companies will be removed: Align Technology (ALGN), eBay (EBAY), Enphase Energy (ENPH), JD.com (JD), Lucid Group (LCID), Zoom Video Communications (ZM).

11 Dec 2023 - 06:53- Data- Source: Newsquawk