Newsquawk Daily European Equity Opening News - 11th June 2024

11th June 2024

ASIA

APAC stocks traded with a negative bias after the choppy performance stateside where the S&P 500 and Nasdaq notched fresh record closes but the gains were capped ahead of the mid-week key events. ASX 200 declined amid broad weakness across sectors and as miners led the descent. Nikkei 225 bucked the trend as it benefitted from recent currency weakness. Hang Seng and Shanghai Comp. were pressured amid ongoing property sector concerns after a Hong Kong court issued a wind-up order to Chinese property developer Dexin China.

Dexin China (2019 HK) - The Hong Kong court gave a wind-up order to Chinese property developer Dexin China. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.37% at 18,488, CAC 40: -1.35% at 7,894, PSI: -0.11% at 6,729, FTSE 100: -0.20% at 8,228, IBEX 35: -0.42% at 11,357, FTSE MIB: -0.34% at 34,542, SMI: -1.03% at 12,128, Euro Stoxx 50: -0.71% at 5,015.

SECTORS: Energy 1.19%, Materials 0.25%, IT 0.01%, Healthcare -0.02%, Telecoms -0.20%, Industrials -0.25%, Utilities -0.26%, Consumer Disc -0.63%, Financials -0.76%, Consumer Stpl -1.00%

FTSE 100

GSK (GSK) - Did not settle Ms Kasza's claim and has not paid anything in exchange for voluntary dismissal. Welcomes plaintiff's voluntary dismissal of next Zantac case (Kaza), which was planned to start trial in Illinois state court on June 10th. The scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer. (Newswires) Separately, GSK is expected to begin the formal process to appeal the Delaware state court ruling last week that experts could testify on behalf of 70,000 plaintiffs in the Zantac case, according to The Times. (Times)

Rio Tinto (RIO LN) – Agreed to acquire Mitsubishi’s (8058 JT) 11.65% interest in Boyne Smelters for an undisclosed price; expected to be finalised in H2’24. (Newswires)

UK Election - UK PM Sunak pledged to 'keep cutting people's taxes' as part of the Tory election manifesto, according to The Standard. It was also reported that the Conservative Party unveiled a 100% capital gains tax break for landlords who sell properties to their tenants, according to The Telegraph. (Telegraph) Sky News writes that the Conservative manifesto will reiterate its pledge to introduce the "triple lock plus" for pensions and promise not to increase any major taxes. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

DAX

Heidelberg Materials (HEI GY) – Calix Unit and Heidelberg have formed a JV, for the Leilac-2 demonstration plant at Heidelberg Materials in Germany. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

French Stocks - France's National Rally party and lawmaker Marion Marechal are in talks about potentially joining forces to oppose President Macron in the upcoming elections, according to Bloomberg. (Bloomberg)

Dassault Systemes (DSY FP) – Valeo (FR FP) partnered with Co. to optimise the deployment of new tech for safer and more sustainable mobility. (Newswires)

Societe Generale (GLE FP) – Co. is struggling to agree on a deal to sell its custody unit, according to Reuters citing sources. The sources add that the price of the unit far exceeds the bidder's valuations. (Reuters)

Technip Energies (TE FP) – Signs licensing of improved Oxo Alcohol Technology with Mitsubishi (8058 JT). (Newswires)

Vinci (DG FP) – Qatar Holdings LLC steps down from Co’s Board of Directors, effective 10th June 2024. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) – Co. has decided to proceed with OnePoint’s proposal. Proposal from OnePoint includes following parameters of EUR 2.9bln of existing debt to be converted into equity. Proposal also includes EUR 1.5bln of new money debt. (Newswires)

Ipsen (IPN FP) - Ipsen’s Iqirvo received U.S. FDA accelerated approval as a first-in-class PPAR treatment for primary biliary cholangitis. (Newswires)

BROKER MOVES

PAN EUROPE

Autos – UAW President Fain is under investigation by an independent federal monitor, amid allegations of retaliation against other union leaders, via Reuters citing a court filing. (Newswires)

Caixabank (CABK SM) – Has transferred its entire stake of 2.546% in Telefonica (TEF SM). It is estimated that these transactions will result in a total increase in the last reported CET1 ratio of 5bps, with no impact on profit/loss. (Newswires)

Cellnex (CLNX SM) –Announced secondary accelerated book building; offer size up to 18.62mln shares; offer price EUR 32.91-33.25. (Newswires)

Postal Names - FedEx (FDX) raised the quarterly dividend by 10% to USD 1.37/shr. (Newswires)

Maersk (MAERSK DC) / Hapag Lloyd (HLAG GY) - Due to the Red Sea crisis, shipping costs from Shanghai to Europe are at an 18-month high, according to Sky News citing data. (Sky News)

Naturgy (NTGY SM) - Abu Dhabi's Taqa has decided to withdraw from negotiations to launch a joint takeover bid with Spain's Criteria for Naturgy, according to El Mundo. (El Mundo)

BROKER MOVES

Banco BPM (BAMI IM) downgraded to Equal Weight from Overweight at Morgan Stanley

UCB (UCB BB) upgraded to Neutral from Underweight at JP Morgan

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Nokia (NOKIA FH) - Foxconn/ Hon Hai (2317 TT) is to produce 5G equipment for Nokia at its Vietnam factory. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.26% at 5,361, NDX +0.39% at 19,075, DJI +0.218% at 38,868, RUT +0.25% at 2,032.

SECTORS: Utilities +1.28%, Materials -0.11%, Real Estate +0.45%, Communication Services +0.61%, Consumer Staples -0.22%, Energy +0.71%, Consumer Discretionary +0.51%, Industrials +0.29%, Health +0.3%, Technology +0.29%, Financials -0.39%.

Apple (AAPL) - Apple WWDC Summary: Announces Vision OS2, expands Apple Vision Pro to eight new countries, announces Apple Tap to Pay; confirms deal with OpenAI, integrating ChatGPT. Apple is to integrate other AI models such as Google (GOOG) Gemini in the future. Elon Musk said if Apple integrates OpenAI at the OS level, then Apple devices will be banned at his companies. (Newswires)

Eli Lilly (LLY) - The US FDA Advisory panel unanimously voted in favour that available data shows Eli Lilly's Donanemab is effective for treating Alzheimer's disease in patients with mild cognitive impairment and mild dementia

Tesla (TSLA) - Co. must face the California DMV's false autopilot marketing case, according to Bloomberg. (Bloomberg)

11 Jun 2024 - 06:54- Research Sheet- Source: Newsquawk