Newsquawk Daily European Equity Opening News - 11th September 2024

ASIA

APAC stocks traded cautiously after the two-way price action stateside and as participants await US CPI data. ASX 200 trickled lower as weakness in tech and financials overshadowed the gains in commodity-related stocks. Nikkei 225 was pressured amid currency strength and after BoJ's Nakagawa kept the door open for further hikes. Hang Seng and Shanghai Comp conformed to the downbeat mood with the former dragged beneath the 17,000 level amid heavy losses in energy stocks, while there was very little to spur a turnaround.

Mitsui & Co (8031 JT) - Decided to double its buyback plan to JPY 400bln from JPY 200bln. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.89% at 18,279, FTSE 100: -0.78% at 8,206, CAC 40: -0.24% at 7,408, Euro Stoxx 50: -0.70% at 4,745, AEX: -0.73% at 882, IBEX 35: -0.61% at 11,204, FTSE MIB: -1.12% at 33,213, SMI: -0.09% at 11,970, PSI: -1.01% at 6,706.

SECTORS: Industrials -0.03%, Utilities -0.04%, Consumer Stpl -0.10%, Materials -0.23%, IT -0.25%, Telecoms -0.45%, Healthcare -0.63%, Financials -0.95%, Consumer Disc -1.32%, Energy -1.79%

FTSE 100

Anglo American (AAL LN) - Co. has launched the first stage of its platinum divestment with a 5% share sale of Anglo American Platinum, in the run-up to a full demerger of the unit. (FT)

Antofagasta (ANTO LN) - JP Morgan places Co. on its Negative Catalyst watch. (Newswires)

BP (BP/ LN) - Says is evacuating learning and maintenance facilities in Louisiana, ahead of Storm Francine. Elsewhere, Transocean (RIG) announced a 365-day contract with BP for the Deepwater Atlas in the US Gulf of Mexico, starting in Q2 2028. The contract includes a 365-day extension option and will add approximately USD 232mln to Transocean’s backlog, excluding mobilisation fees, with no additional services provided. (Newswires)

Gambling Names - UK Labour ministers are reportedly under pressure to overturn a decision not to impose stricter regulations on gambling advertising. (Guardian)

Rightmove (RMV LN) - Murdoch’s REA is reportedly starting takeover talks with Rightmove (RMV LN), according to Bloomberg citing sources; REA's initial proposal is in the low-700p/share range. Bloomberg reports that the proposed GBP 5.6bln takeover was rejected by Rightmove. (Newswires/Bloomberg)

Shell (SHEL LN) - Plans to run Norco Louisiana refinery at full capacity during storm, Reuters reports. Due to the downstream impacts of tropical storm Francine, they have shut production at their Perdido, Auger, and Enchilada/salsa assets. For the whale asset, which is not scheduled to begin operations until later this year, they have safely paused drilling operations. Currently no other impacts on the production across the Gulf of Mexico. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Rotork (ROR LN) upgraded to Overweight from Neutral at JP Morgan

DAX

Commerzbank (CBK GY) - Bloomberg reports that UniCredit (UCG IM) has bought the 4.49% stake that the German Government has sold in Commerzbank, making the bank a major investor; UniCredit is said to own  9% of Commerzbank after the latest purchase, according to Bloomberg. UniCredit is paying approx. EUR 13.20/shr vs last close 12.60/shr. Elsewhere, the CEO is not to seek an extension of his contract; he will fulfil his contract until December 2025, but will not extend it thereafter. German Finance Minister starts selling around 53mln shares in Commerzbank. Following a successful placement, Financial Market Stabilisation Fund (FMS) holding will decrease from approx. 16.5% to 12.0%. Offering price EUR 12.48/shr to market. (Newswires/Bloomberg) Shares +4.4% in pre-market trade

Covestro (COV1 GY) - UAE's ADNOC is expected to make a formal offer of EUR 14.4bln for Covestro, according to FT. (FT) Shares +3% in pre-market trade.

Volkswagen (VOW3 GY) - Co. told workers on Tuesday it is ending a three-decade job security pact at its German plant. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Kion (KGX GY) upgraded to Overweight from Neutral at JP Morgan

CAC

Engie (ENGI FP) and TotalEnergies (TTE FP) - French electricity producers are reportedly bracing for a potential surge in taxes as concerns grow that a new admin will revive a recent proposal to tax large power plants, according to Reuters citing sources. (Reuters)

Safran (SAF FP) - The CEO says the aerospace supply chain will remain under pressure in 2025. (Newswires)

Sanofi (SAN FP) / Regeneron (REGN) - Dupixent met the primary and all key secondary endpoints evaluating its investigational use in adults with moderate-to-severe disease. In the trial, five times more Dupixent patients achieved sustained disease remission compared to those on placebo.

OTHER FRENCH COMPANIES

Ipsen (IPN FP) - An employee at the Co. is to plead guilty to US insider trading, via Reuters citing sources. (Reuters)

Sodexo (SW FP) - JP Morgan places stock on its Negative Catalyst watch. (Newswires)

Saint Gobain (SGO FP) - Enters into exclusive negotiations to divest Pam buildings, its sanitary and rainwater drainage business. (Newswires)

BROKER MOVES

Legrand (LR FP) upgraded to Overweight from Neutral at JP Morgan

PAN EUROPE

ACS (ACS SM) - Abertis to improve mobility in Santiago de Chile with the construction of two tunnels; the project amount to around EUR 370mln. (Newswires)

ASML (ASML NA) - Needs license to service some DUV equipment in China, via Dutch government; requirement extends to DUV tools added to the control list last week. (Newswires)

Inditex (ITX SM) - H1 (EUR): EBIT 3.54bln (exp. 3.48bln), Net Sales 18.07bln (exp. 18bln), Net Income 2.8bln (exp. 2.77bln). FY24: At current exchange rates, expects -a 3% currency impact on sales in 2024. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Sandoz (SDZ SW) downgraded to Hold from Buy at Berenberg

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Cos experimental obesity pill has mild-to-moderate side effects, according to Reuters citing an early trial; the drug, Amycretin showed 13.1% weight loss in Phase 1 trial. (Newswires)

Norsk Hydro (NHY NO) - Initated share buyback program. (Newswires)

BROKER MOVES

Epiroc (EPIA SS) raised to Neutral from Underweight at JP Morgan

US

CLOSES: SPX +0.45% at 5,496, NDX +0.90% at 18,829, DJIA -0.23% at 40,737, RUT -0.83% at 2,097

SECTORS: Energy -1.92%, Financials -0.98%, Consumer Staples flat, Materials +0.07%, Communication Services +0.10%, Industrials +0.18%, Utilities +0.44%, Health +0.45%, Technology +1.23%, Consumer Discretionary +1.39%, Real Estate +1.77%.

Goldman Sachs (GS) - Is reportedly close to finalising a deal to transfer its General Motors (GM) credit card business to Barclays (BARC LN), according to Reuters citing sources. (Reuters)

UnitedHealth (UNH) - Says it will remove AbbVie's (ABBV) Humira from some US drug reimbursement lists next year. (Newswires)

11 Sep 2024 - 06:50- Exclusive- Source: Newsquawk