Newsquawk Daily European Equity Opening News - 12th September 2024

ASIA

APAC stocks gained as the region took impetus from the post-CPI tech-led rebound stateside. ASX 200 advanced with strength in the tech and the energy sectors making up for the slack in mining stocks. Nikkei 225 outperformed on the back of recent currency weakness and softer Japanese PPI data. Hang Seng and Shanghai Comp were mixed as the former benefitted from the broad risk-on mood and with tech stocks inspired by their global peers, while the mainland lagged behind regional counterparts in the absence of any major pertinent drivers and amid protectionist policies with China said to have asked its carmakers to keep key EV technology at home.

EUROPEAN CLOSES

CLOSES: DAX: +0.34% at 18,328, FTSE 100: -0.15% at 8,194, CAC 40: -0.14% at 7,397, Euro Stoxx 50: +0.33% at 4,763, AEX: +0.30% at 885, IBEX 35: +0.67% at 11,279, FTSE MIB: -0.12% at 33,174, SMI: -0.28% at 11,932, PSI: +1.10% at 6,780.

SECTORS: IT 1.85%, Telecoms 0.40%, Consumer Disc 0.21%, Financials 0.01%, Utilities -0.04%, Energy -0.06%, Materials -0.07%, Industrials -0.20%, Healthcare -0.23%, Consumer Stpl -0.55%

FTSE 100

Ex-Dividends - Endeavour Mining (EDV LN), Intertek (ITRK LN), M&G (MNG) will trade without entitlement to their latest dividend payout. (Newswires)

GSK (GSK LN) - Statement on Zantac litigation and reaches confidential settlement in prostate cancer use; GSK does not admit any liability in this settlement. Dixon's case will be dismissed. (Newswires)

NatWest (NWG LN) - Jonathan Peberdy appointed as CEO and exec. director of NatWest Markets, a subsidiary of NatWest group. (Newswires)

Rio Tinto (RIO LN) - A Native American group has asked the US Supreme Court to block Rio Tinto's and BHP's (BHP AT) plans to access Arizona land to build a large copper mine. (Newswires)

Standard Chartered (STAN LN) - Co. said it has agreed to first corporate loans for carbon credit developers after British Airways committed to buy more than 4k tons of technological carbon credits. (Newswires)

Shell (SHEL LN) - Production at Perdido, Auger and Enchilada assets is still shut. No other impacts across the Gulf of Mexico. (Newswires)

UK Housing- UK RICS Housing Survey (Aug) 1.0 vs. Exp. -14.0 (Prev. -19.0, Rev. -18); "Affordability remains an issue in the sales market even with somewhat cheaper finance now available but the picture appears even more acute in the lettings market where the amount of rental stock continues to diminish." (RICS)

OTHER UK COMPANIES

BROKER MOVES

DAX

Bayer (BAYN GY) - Jury finds in favour of Bayer's Monsanto in Roundup product liability trial. (Newswires)

Commerzbank (CBK GY) - Management seeks to remain independent and fend off a potential takeover by UniCredit, according to Reuters citing sources. Commerzbank taps Goldman Sachs to advise on its options amid Unicredit move, according to Reuters sources Elsewhere, it prepares defence plan ahead of UniCredit talks, according to Bloomberg. (Reuters/Bloomberg)

OTHER GERMAN COMPANIES

BROKER MOVES

Commerzbank (CBK GY) upgraded to Overweight from Neutral at JP Morgan

CAC

Alstom (ALO FP) - To upgrade the automated people mover system at Harry Reid International Airport in Las Vegas; the project is valued at USD 84mln. (Newswires)

Sanofi (SAN FP) - Sanofi, RadioMedix, and Orano Med announce licensing agreement on next-generation radioligand medicine for rare cancers. Under the terms of the agreement, RadioMedix and Orano Med will receive an upfront payment of EUR 100mln and up to EUR 220mln in sales milestones and be eligible for tiered royalties. This agreement is subject to standard regulatory approvals required for transactions of this nature. (Sanofi)

OTHER FRENCH COMPANIES

Ubisoft (UBI FP) / Video Game Makers - Some video game makers face an EU consumer complaint, alleging they mislead gamers, especially children, into overspending. The European Consumer Organisation claims companies exploit children's vulnerability using in-game currencies, and urged regulators to enforce real-world rules on virtual gaming transactions. The complaint involves seven major gaming companies. Companies mentioned include Epic Games, Electronic Arts (EA), Roblox (RBLX), Microsoft's (MSFT) Activision Blizzard, Tencent (TCEHY) owned Supercell.

BROKER MOVES

PAN EUROPE

Autos - China asks its carmakers to keep key EV technology at home, according to Bloomberg. (Bloomberg)

Stellantis (STLAM IM/STLAP FP) - Tells US dealer's August sales rose 21% M/M in August and dealer inventory was reduced for two consecutive months by approximately 10% in total. Elsewhere, the dealer council criticises CEO Tavares in an open letter, saying brands have been degraded and that it seeks an increase in auto production. (Newswires)

Talgo (TLGO SM) - Spain vetoed the Hungarian bid for the Co. amid "Ukraine concerns", via the FT. (FT)

BROKER MOVES

ABN Amro (ABN NA) upgraded to Neutral from Overweight at JP Morgan

Banco BPM (BAMI IM) upgraded to Neutral from Underweight at JP Morgan

SMI

Baloise (BALN SW) - H1 (CHF): Business volume 2.71bln (prev. 4.08bln Y/Y), Profit 219.8mln (prev. 239.6mln Y/Y). Launches its refocusing strategy, raises the payout rate and aims for a return on equity of between 12 per cent and 15 per cent. Next spring, will look into launching an initial share buyback programme. New financial targets consist of strong cash remittance of more than CHF 2 billion in the period 2024-2027. (Newswires)

Roche (ROG SW) - Co. said on Wednesday the promising results of an early-stage trial of its experimental weight-loss pill that bolstered its shares in July were based on just six patients, underscoring the uncertainty of the development project. Said the once-daily pill CT-996 resulted in a placebo-adjusted average weight loss of 6.1% within four weeks in obese patients without diabetes in a Phase I trial. Presentation slides published on Wednesday showed that while the trial involved 25 participants overall - six of which were given an ineffective placebo for comparison - the result summary was taken from the best-performing of the three other subgroups on the experimental treatment. The second-best-performing subgroup, which had seven volunteers, reached an average placebo-adjusted weight loss of 4.6%, the data showed. Co. reiterated that larger trials in the second of three development stages would start next year.

Partners (PGHN SW) - BlackRock (BLK) and Partners Group establish a partnership to transform retail wealth access to private markets. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zuerich (FHZN SW) - In August 2.09mln passengers passed through the Zurich Airport, +6% Y/Y. (Newswires)

BROKER MOVES

SCANDINAVIA

Boliden (BOL SS) - Update expansion project Odda and capital expenditure guidance 2025: Boliden has carried out investments in the Odda zinc smelter. Several of these investments are now largely completed, however, delays have occurred in the roasting facility in particular. The delay means an increase in the cost of the project of EUR 100mln. Boliden's total capital expenditures for 2024 are still estimated at SEK 15.5bln and for 2025 Boliden's capital expenditures are estimated at SEK 13.5bln. This means that the ramp-up towards the new production level will start at the end of the first quarter of 2025. (Boliden)

DSV (DSV DC) - Reportedly in advanced talks to buy EUR 14bln Deutsche Bahn unit, according to Bloomberg sources; noted to reach deal for DB Schenker as soon as this week. Would still need Deutsche Bahn supervisory board approval. (Newswires)

BROKER MOVES

Equinor (EQNR NO) upgraded to Hold from Sell at Berenberg

US

CLOSES: SPX +1.07% at 5,554, NDX +2.17% at 19,237, DJIA +0.31% at 40,862, RUT +0.31% at 2,104.

SECTORS: Energy -0.93%, Consumer Staples -0.88%, Financials -0.39%, Health -0.25%, Real Estate -0.23%, Industrials +0.21%, Materials +0.27%, Utilities +0.34%, Communication Services +1.03%, Consumer Discretionary +1.32%, Technology +3.25%.

Alimentation Couche-Tard (ATD TO) - Says it is to discuss a higher price for Seven & I Holdings (3382 JT). (Newswires)

Nvidia (NVDA) - US government is considering allowing Nvidia (NVDA) to export advanced chips to Saudi Arabia, according to Semafor citing sources. (Semafor)

Open AI - OpenAI is in talks to raise USD 6.5bln from investors at a valuation of USD 150bln, Bloomberg reports. (Bloomberg)

T-Mobile US (TMUS) - Director Raul Claure sold 275K shares between September 9-11th for a total USD 54mln. (Newswires)

12 Sep 2024 - 06:55- Research Sheet- Source: Newsquawk