Newsquawk Daily European Equity Opening News - 12th November 2024

ASIA

APAC stocks were ultimately mixed and failed to sustain the momentum from Wall St where the major indices climbed to fresh record highs in a continuation of the Trump Trade and in quiet conditions due to Veterans Day. ASX 200 was restrained by weakness in mining and resources after underlying commodity prices were hit by dollar strength. Nikkei 225 gave up its early gains and more despite initial tailwinds from JPY weakness and chip-related support. Hang Seng and Shanghai Comp weakened with notable underperformance in the Hong Kong benchmark amid weakness in tech and auto names owing to the current tariff-related concerns, while the mainland was also pressured after recent new loans and financing data underwhelmed but with the downside cushioned after the PBoC recently pledged measures and with China reportedly planning to cut homebuying taxes to boost the property sector.

Baidu (9888 HK) - Co. unveiled new applications for its AI technology including a text-to-image generator and a tool that enables users to develop software applications without coding expertise, according to Reuters. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +1.22% at 19,451, FTSE 100 +0.65% at 8,125, CAC 40 +1.20% at 7,427, Euro Stoxx 50 +1.07% at 4,854, AEX +0.47% at 878, IBEX 35 +0.89% at 11,597, FTSE MIB +1.56% at 34,344, SMI +1.01% at 11,917.

SECTORS: Industrials 1.61%, Financials 1.57%, Healthcare 1.40%, Utilities 1.18%, IT 0.82%, Telecoms 0.62%, Consumer Disc 0.55%, Materials 0.49%, Consumer Stpl 0.30%, Energy 0.22% 

FTSE 100

Direct Line (DLG LN) - CEO, speaking to the FT post-earnings, says the bulk of the announced savings will come from job reductions, reductions which will not be specific to one part of the Co.; adds, that they are in the early stages of a significant turnaround. (FT)

UK Smoking names - Sky News reports that a "game changer" pill, which aims to help individuals to stop smoking will be offered by the NHS. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

Antofagasta (ANTO LN) upgraded to Equal weight from Underweight at Barclays

Big Yellow Group (BYG LN) downgraded to Hold from Buy at Jefferies

Direct Line (DLG LN) downgraded to Hold from Buy at Jefferies

GSK (GSK LN) downgraded to Hold from Buy at Jefferies

Land Securities (LAND LN) upgraded to Hold from Underperform at Jefferies

DAX

Bayer (BAYN GY) - Q3 (EUR): Sales 9.968bln (exp. 10.113bln), adj. EBITDA 1.25bln (exp. 1.31bln). 2024 outlook confirmed for sales, EPS and FCF. FY Guidance: adj. EBITDA 10.4-10.7bln (exp. 10.35bln, prev. guided 10.7-11.3bln); "in view of the weaker-than-anticipated development of the agricultural market". Reduced market dynamics in the agricultural business, lower growth expected for consumer health and pharma. at the high-end of guidance. CFO: “Overall, we expect a muted outlook on top and bottom line next year with likely declining earnings. We plan to accelerate our cost and efficiency measures to partly compensate and remain laser focused on cash conversion”. (Bayer)

Brenntag (BNR GY) – Q3 (EUR): Net Income 120mln (prev. 177.6mln Y/Y), Op. EBITDA 281.1mln (prev. 302.7mln Y/Y), Revenue 4.07bln (prev. 4.09bln Y/Y). Affirms outlook. (Newswires)

Infineon (IFX GY) - Q4 (EUR): Adj. Revenue 3.92bln (exp. 3.98bln), Adj. EPS 0.49 (exp. 0.51). Sees Q1 2025 Revenue around 3.2bln (exp. 3.77bln); "Revenue is expected to slightly decline compared with previous year". OTHER METRICS: Dividend maintained at EUR 0.35/shr. Adj. gross margin 40.2% (prev. 45.5% Y/Y). (Infineon)

Lufthansa (LHA GY) - The Italian government and Lufthansa reached a deal on the airliner’s sale of its stake in ITA Airways, according to an announcement. The deal will need to be cleared by the European Commission, according to Reuters. (Newswires)

Siemens Energy (ENR GY) – Co’s wind business secures wind turbine order worth more than USD 1.3bln from Iberdrola’s (IBE SM) Scottish Power. (Newswires)

Merck (MRK GY) - Pimicotinib Significantly Improved Outcomes for Patients with TGCT in Phase III Trial. Statistically significant and clinically meaningful improvements also seen in all key secondary endpoints, including pain and stiffness. (Merck)

OTHER GERMAN COMPANIES

BayWa (BYW6 GY) – BaFin says it has concrete indications that BayWa has violated accounting regulations. (Newswires)

KWS (KWS GY) – Q1 (EUR): EBITDA -10mln; confirms guidance. (Newswires)

BROKER MOVES

BMW (BMW GY) upgraded to Overweight from Equal weight at Morgan Stanley

CAC

Airbus (AIR FP) – China Head said certification for A330NEO in China is going “smoothly”. (Newswires)

Alstom (ALO FP) – Delivered the first trainset for Taipei Wanda Line. (Newswires)

OTHER FRENCH COMPANIES

Bureau Veritas (BVI FP) - Acquires Versatec Energy; no terms disclosed. (Newswires)

BROKER MOVES

PAN EUROPE

A2A (A2A IM) – 9M (EUR): Revenue 9.10bln (prev. 10.95bln Y/Y, EBITDA 1.80bln (prev. 1.35bln Y/Y). Sees FY24 EBITDA 2.28-2.32bln. (Newswires)

Defence Stocks - Brussels is to reportedly free up billions of euros for defence from EU budget and policy shift will allow the bloc’s capitals to redirect ‘cohesion funds’ amid Ukraine conflict and Trump victory, via FT. (FT)

Iveco (IVG IM) – Co. signs prelim deal with Leonardo (LDO IM) to supply functional parts for future contracts within Leonardo and Rheinmetall (RHM GY). (Newswires)

MedioBanca (MB IM) – Q1 (EUR): Net Income 330mln (exp. 304mln), Revenue 865mln (exp. 871mln). To launch a EUR 385mln buyback for 37.5mln shares. (Newswires)

Trump-trade - Decision Desk HQ projects Republicans have won enough seats to remain in control of the House. (Decision Desk HQ)

Wienerberger (WIE AV) – Q3 (EUR): Adj. EBITDA 602mln (prev. 665mln Y/Y), Revenue 3.39bln (perv. 3.29bln Y/Y). (Newswires)

Viscofan (VIS SM) – To pay optional gross dividend of EUR 1.40/shr. Payment of interim dividend on Dec 19. (Newswires)

BROKER MOVES

SMI

Temenos (TEMN SW) – Targets FY24-28 ARR over USD 1.2bln, FCF USD 420mln and Adj. EBIT 500mln until 2028. (Newswires)

OTHER SWISS COMPANIES

PSP Swiss Property (PSPN SW) – 9M (CHF): Net Income 170.3mln (prev. 210.8mln Y/Y), Rental Income 262mln (prev. 247.6mln Y/Y). Affirms guidance. (Newswires)

Lonza (LONN SW) – To expand Bioconjugation in VISP with two additional sites; will create approx. 200 new jobs. (Newswires)

BROKER MOVES

SCANDINAVIA

FLSmidth (FLS DC) - Q3 (DKK): Revenue 5.05bln (exp. 4.98bln), Adj. EBITA 636mln (exp. 528.5mln). In Q3 continued to see a stable and healthy mining service market and a relatively softer mining products market. Revises 2024 outlook: EBITA margin 9.5% (prev. guided 8.5-9.5%), Adj. EBITA margin of around 13% (prev. guided 12.5-13%). (Newswires)

Saab (SAABB SS) – CEO said firm has made a proposal to Colombia for the purchase of Gripen fighter jets. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.1% at 6,001, NDX -0.05% at 21,107, DJIA +0.69% at 44,293, RUT +1.47%

SECTORS: Consumer Discretionary +1.76%, Financials +1.42%, Industrials +0.80%, Communication Services +0.45%, Energy +0.42%, Utilities +0.30%, Materials -0.51%, Consumer Staples -0.53%, Health -0.59%, Real Estate -0.80%, Technology -0.89%.

12 Nov 2024 - 06:50- Research Sheet- Source: Newsquawk