Newsquawk Daily European Equity Opening News - 12th February 2024

12th February 2024

ASIA

APAC stocks were subdued amid quiet weekend newsflow and mass closures in the region as markets in China, Hong Kong, Taiwan, Japan, South Korea, Singapore, Malaysia & Vietnam were all shut for holiday. ASX 200 declined amid underperformance in healthcare and the commodity-related sectors, with the former the worst-hit amid losses in CSL after top-line results from the phase 3 trial of its cardiovascular drug failed to meet the primary efficacy endpoint. Nifty 50 was pressured with some of the worst-performing stocks in the index suffering post-earnings.

EUROPEAN CLOSES

CLOSES: DAX: -0.24% at 16,922.56, FTSE 100: -0.30% at 7,572.58, CAC 40: -0.24% at 7,647.52, Euro Stoxx 50: +0.09% at 4,715.05, IBEX 35: -0.09% at 9,896.60, FTSE MIB: +0.28% at 31,150.33, SMI: -0.44% at 11,090.30.

SECTORS: IT 1.50%, Healthcare 0.78%, Consumer Disc 0.72%, Energy 0.39%, Financials -0.24%, Telecoms -0.25%, Industrials -0.26%, Materials -0.86%, Utilities -0.98%, Consumer Stpl -2.14%

FTSE 100

BP (BP/ LN) - Activist investor Bluebell Capital warned that BP’s wind and solar energy plans risk a destruction of shareholder value. Bluebell said the Co. should recognise its mistakes and stop further investments in wind projects. (Times)

Severn Trent (SVT LN)/Utilities - UK Environment Secretary Barclays said executives at water firms could potentially lose bonuses in the future if their firm causes environmental damage. Ofwat is consulting on bonus restrictions later in 2023. (BBC)

UK Capital Markets - IWG’s (IWG LN) boss said the Co. will keep considering a US listing with the UK economy looking “very sluggish from the outside”. (CityAM) Meanwhile, Tui (TUI LN) shareholders are preparing to vote on the company’s plans to delist from the LSE at an AGM on Tuesday. Co. said in December it was considering a delisting. (CityAM)

UK Housing Sector - UK Housing Secretary Gove is on Tuesday poised to announce an overhaul of planning rules which will make it easier for developers to convert commercial buildings into flats, whilst also forcing councils to build more houses if targets are not met, according to The Times. (Times)

OTHER UK COMPANIES

Tritax Big Box (BBOX LN) - Co. is in advanced talks to merge with its rival Commercial Property REIT, regarding a potential merger worth GBP 6bln. An "indicative proposal" has been made for an all-share merger, though no terms disclosed yet, according to The Times. (The Times)

BROKER MOVES

Deliveroo (ROO LN) initiated with Buy at Deutsche Bank

Lloyds (LLOY LN) upgraded to Market Perform from Underperform at Keefe Bruyette

NatWest (NWG LN) downgraded to Underperform from Market Perform at Keefe Bruyette

Standard Chartered (STAN LN) upgraded to Market Perform from Underperform at Keefe Bruyette

DAX

Porsche (P911 GY) - Co. looking to build its Cellforce Gigafactory (battery plant) in North America, due to high subsidies within the region, via Faz. (Faz)

SAP (SAP GY) - Co. proposes Mr Ala-Pietila as the successor to Chairman Dr. Hasso Plattner; effective May 15th. (Newswires)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - FY23 (EUR): Revenue 6.5bln (exp. 6.13bln, prev. guided 5.6-6.1bln), EBITDA 2mln (prev. -244mln Y/Y), EBITDA margin "breakeven". (Newswires)

BROKER MOVES

CAC

Publicis (PUB FP) - Will repurchase 2mln shares, c. 0.8% of its share capital as of Dec 31st, 2023. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

AB InBev (ABI BB), TKO Group Holdings (TKO) - Former President Trump’s pro-Anheuser-Busch post on Truth Social came after UFC boss Dana White urged him to back the company, CNBC reports citing a source. Anheuser-Busch last year suffered a major backlash over its Bud Light marketing promotion with a transgender influencer. UFC President Dana White reached out directly to former President Donald Trump to encourage positive commentary about Anheuser-Busch, a person familiar with the situation told CNBC. TKO Group Holdings's UFC in October announced a partnership with Anheuser-Busch to make Bud Light the official beer partner of the mixed martial arts company." (CNBC)

Tod’s (TOD IM) - Crown Bidco, on behalf of L Catterton, is to launch a tender offer for EUR 43/shr which would give them a 36% stake in the Co., the Della Valle family would retain control with a 54% holding, LVMH (MC FP) is set to retain its 10% stake. The deal would see Tod’s delisted. (Newswires) L Catterton is a partnership which includes LVMH (MC FP); reminder, Della Valle announced its intention to delist Tod’s in 2022. Tod’s closed at EUR 36.36/shr.

BROKER MOVES

SMI

Roche (ROG SW) - Launches three new Factor Xa inhibitor coagulation tests to meet a growing patient need. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Targets up to USD 7bln in annual investment by 2030, helped by increased income from its Ozempic and Wegovy drugs, via the FT. At first, the Co. will invest USD 5bln for the next five years, before then increasing its investments to USD 7bln by 2030. (FT)

BROKER MOVES

Aker ASA (AKER NO) downgraded to Hold from Buy at Berenberg

Carlsberg (CARLB DC) upgraded to Neutral from Sell at UBS

Rockwool (ROCKB DC) upgraded to Buy from Hold at HSBC

US

CLOSES: SPX +0.57% at 5,027, NDX +1.01% at 17,962, DJI -0.14% at 38,672, RUT +1.53% at 2,010.

SECTORS: Technology +1.5%, Consumer Discretionary +0.99%, Communication Services +0.74%, Utilities +0.42%, Financials +0.32%, Real Estate +0.28%, Materials +0.26%, Industrials +0.12%, Health -0.06%, Consumer Staples -0.85%, Energy -1.56%.

Cisco (CSCO) - To cut thousands of jobs as part of a restructuring plan; still deciding on the number from its 84k workforce, according to Reuters sources. (Reuters)

12 Feb 2024 - 06:46- Research Sheet- Source: Newsquawk