Newsquawk Daily European Equity Opening News - 11th October 2024

ASIA

APAC stocks traded mixed following the choppy price action stateside where markets reflected on disappointing data and hawkish-leaning comments from Fed's Bostic, while regional participants await the Chinese Ministry of Finance's press briefing. ASX 200 price action was lacklustre with the index contained by weakness in real estate, utilities and financials. Nikkei 225 eked marginal gains with index heavyweight Fast Retailing leading the advances post-earnings, while Seven & I was at the other end of the spectrum after it cut its guidance and announced a restructuring plan to fend off a takeover. KOSPI sits with marginal gains following the BoK's 25bps rate cut which Governor Rhee framed as a hawkish cut. Shanghai Comp was pressured in the absence of Hong Kong participants and stock connect flows, while participants await tomorrow's Ministry of Finance press conference and whether China will unveil a large fiscal stimulus.

Acer (2353 TT) - Co. Q3 (TWD) Revenue 72.58bln (exp. 72.74bln). (Newswires)

TSMC (2330 TT) - Co. Q3 (TWD) sales rose 39% Y/Y to 759.7bln (exp. 748bln). (Taipei Times)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.24% at 4,949, DAX -0.23% at 19,145, CAC 40 -0.24% at 7,516, FTSE 100 -0.07% at 8,218, SMI -0.27% at 12,067, FTSE MIB +0.43% at 33,901, IBEX 35 -0.72% at 11,589, AEX -0.48% at 908.

SECTORS: Energy 0.71%, Healthcare 0.34%, Financials 0.28%, Telecoms 0.24%, Materials -0.06%, Consumer Stpl -0.06%, Consumer Disc -0.33%, Utilities -0.50%, IT -0.82%, Industrials -1.01%

FTSE 100

Sainsbury's (SBRY LN) - Qatar's QIA is planning to sell a USD 400mln stake sale in the Co; price guidance of GBP 2.80/shr. (Newswires)

OTHER UK COMPANIES

Fevertree Drinks (FEVR LN), Jet2 (JET2 LN), Mothercare (MTC LN) and YouGov - Are among 140 companies which have written to the chancellor to say that uncertainty over the future of a crucial tax relief is damaging investor confidence, according to Sky News. (Sky News)

THG (THG LN) - Ingenuity to be demerged into an independent private entity; board approved equity valuation up to GBP 100mln. (Newswires)

BROKER MOVES

Vistry (VTY LN) downgraded to Neutral from Overweight at JPMorgan

DAX

Bayer (BAYN GY) - Must pay USD 78mln in the latest trial over Roundup cancer claims. (Newswires)

OTHER GERMAN COMPANIES

Qiagen (QIA GY) - Co. expands automated liquid biopsy portfolio to enhance oncology, prenatal care and organ transplant applications. (Qiagen)

Zalando (ZAL GY) - Increases outlook for FY24 after strong Q3'24. Expect GMV to grow to EUR 15.1-15.4bln. Expects Adj. EBIT of EUR 440-480mln. (Newswires) Shares +1.8% in pre-market trade

BROKER MOVES

Siemens Energy (ENR GY) upgraded to Neutral from Underweight at JPMorgan

Salzgitter (SZG GY) downgraded to Underweight from Neutral at JPMorgan

CAC

Airbus (AIR FP) - Co. faces pressure over supplies from Spirit Aero amid the ongoing supply issues, according to Reuters citing sources. Parts availability for A350 fuselage selection is seen at risk. (Reuters)

French Stocks - French Budget: To cut spending and raise taxes to hit 5% deficit in 2025; Budget bill to raise EUR 2bln from temporary tax increase on wealthy households, and is to raise EUR 8bln with surtax on 440 largest firms. To issue EUR 300bln of medium and long-term bonds in 2025, net of buybacks vs 285bln in 2024. Borrowing requirement to fall to EUR 306.7bln in 2025, after EUR 319.4bln in 2024.T-bills outstanding to be decreased by EUR 1.5bln in 2025 after hiking by 35.3bln in 2024. Government jobs to fall by 2,200, mainly through fewer teachers. Debt servicing costs seen at EUR 54.4bln in 2025 after EUR 45.8bln in 2024. Cuts foreign aid, subsides supporting job creation and incentives for home insulation and EVs. Will reduce support for EV purchases by a third in 2025. To raise tax on airplane tickets and use of private jets. (Of note for Air France (AF FP). (Newswires)

Sanofi (SAN FP) - CD&R reportedly nearing EUR 15bln deal for co's consumer health unit, via Reuters citing sources. Elsewhere, Denali-Sanofi scraps mid-stage study for multiple sclerosis drug, as it failed to meet the main and secondary study goals. (Reuters / Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Aedifica (AED BB) - Completes 5 projects in Q3'24 and announces 2 new projects in Finland, total investment approx. EUR 61.5mlm. (Newswires)

Banca Sabadell (SAB SM) - Co's TSB has been fined USD 14.24mln for failing to ensure customers in debt were treated fairly, according to the FT. (FT)

Ibedrola (IBE SM) - Co. to invest GBP 12bln in Britain over the next four years. (Newswires)

TomTom (TOM2 NA) - Q3 (EUR): Revenue 141mln (exp. 134mln, prev. 144mln Y/Y), Net Loss 4.4mln (Co. consensus -3mln). Maintains FY guidance for group rev. and expects location tech rev. to land around the lower boundary of our guidance. Reiterates FCF guidance for FY. (Newswires)

BROKER MOVES

ArcelorMittal (MT NA) downgraded to Neutral from Overweight at JPMorgan

SMI

Flughafen Zuerich (FHZN SW) - Sept. traffic: 2.94mln passengers handled through Zurich airport, +4.6% Y/Y. (Newswires)

Roche (ROG SW) - FDA Approves Genentech’s Itovebi, a Targeted Treatment for Advanced Hormone Receptor-Positive, HER2-Negative Breast Cancer With a PIK3CA Mutation. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Novo Holdings to acquire a majority stake in Stingray Marine Solutions. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.21% at 5,780, NDX -0.13% at 20,242, DJIA -0.14% at 42,512, RUT -0.55% at 2,188.

SECTORS: Energy +0.79%, Materials +0.21%, Technology +0.08%, Consumer Discretionary -0.26%, Utilities -0.31%, Financials -0.32%, Health Care -0.35%, Industrials -0.54%, Consumer Staples -0.54%, Communication Services -0.61%, Real Estate -0.89%.

AMD (AMD) - Announces new Turin EPYC data center CPUs; new chip has as many as 192 processor cores. Latest server CPU chips built on Zen 5 architecture that offers about 37% speed gain for advanced AI data crunching. Turin will perform better than even new Intel (INTC) chips. Sees AI accelerator market of USD 500bln in 2028 (prev. USD 45bln in 2023, +60% CAGR from 2023). Accelerator demand exceeding expectations. Launches instinct Mi325x AI accelerator. New version of AI chip called MI325X shipping from partners in Q1 2025. Plans to make next-gen Mi350 series AI chips available in H2 '25.

Tesla (TSLA) - CEO Musk arrived in a Robotaxi at the event where he unveiled the Robotaxi called Cybercab and driverless Model Y, while he also unveiled a Robovan which has can carry 20 people. (Newswires)

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