Newsquawk Daily European Equity Opening News - 13th February 2024

13th February 2024

ASIA

APAC stocks traded mixed albeit with a positive bias as several markets reopened from the extended weekend. ASX 200 was choppy as gains in mining, utilities and financials were offset by weakness in healthcare, telecoms and tech, while data showed an improvement in Westpac Consumer Sentiment but NAB Business Confidence and Conditions were mixed. Nikkei 225 outperformed and extended to its highest levels since February 1990 as the earnings deluge resumed.

EUROPEAN CLOSES

CLOSES: DAX: +0.65% at 17,037.35, FTSE 100: +0.01% at 7,573.69, CAC 40: +0.55% at 7,689.80, Euro Stoxx 50: +0.61% at 4,744.45, IBEX 35: +0.89% at 9,984.70, FTSE MIB: +0.97% at 31,456.73, SMI: +0.79% at 11,179.30.

SECTORS: Materials 1.18%, Financials 1.10%, Telecoms 0.82%, Consumer Disc 0.80%, Utilities 0.77%, Consumer Stpl 0.68%, Energy 0.48%, Industrials 0.23%, IT -0.01%, Healthcare -0.35%

FTSE 100

UK Economy - BoE Governor Bailey says wouldn't put too much weight on whether the UK enters a technical recession; starting to see signs of an upturn. Any UK recession will be shallow. Putting more emphasis on the forward-looking data. (Newswires)

Insurance Names - BoE plans to stress test insurers on exposure to reinsurance firms, according to FT. (FT)

Rolls-Royce (RR/ LN) / Nuclear - MPs have warned that the Government's initial plans to deliver SMRs "lack clarity" and will be unlikely to meet its clean energy goals by 2035, via The Guardian. (The Guardian)

OTHER UK COMPANIES

Aston Martin Lagonda (AML LN) – A Co. executive said the Co. is in talks with bankers to tackle around USD 1.4bln in near-term liabilities. Discussions are to focus on a USD 1.1bln bond maturing November 2025 with a 10.5% coupon, amounting to payments of around USD 120mln per annum. (Bloomberg)

Metro Bank (MTRO LN) – Co. is behind on its target to deliver branches and will fall short on jobs. Co. had previously pledged to take on 300 staff across 15 new high street sites by next year in return for a GBP 70mln grant. (Times)

BROKER MOVES

DAX

Rheinmetall (RHM GY) – German Chancellor Scholz visited a Rheinmetall site on Monday, after which he spoke out in favour of closer arms cooperation between Germany and Poland in remarks alongside Polish PM Tusk. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - Traffic Figures (Jan): 4.1mln passengers travelled through the Airport, +11.1% vs same month in the prior year. Cargo volume increased significantly this month at 154,296 tons, +8.8% for Jan last year. (Newswires)

Siltronic (WAF GY) - Says H1 24 expected to be on the level of H2 23; forecasts a significant decline in EBIT for 2024 due to double the depreciation and amortization amid weakness in demand, primarily as a result of elevated customer inventories and postponements of delivery volumes. Reduces dividend for the past financial year to EUR 1.20/shr. Ramp costs for the new 300mm fab in Singapore will EBITDA margin by up to 3% points vs the prior year. (Newswires)

Tui (TUI GY) - Q1 (EUR): Revenue 4.3bln (exp. 4.06bln), EBIT 6mln (exp. -12mln), Load Factor 87%, 3.5mln passengers travelled +6% Y/Y. Winter 2023/24 and summer 2024 bookings +8% Y/Y, average prices have also increased. (Newswires)

Thyssenkrupp Nucera (NCH2 GY) - Q1 (EUR): Sales 208mln (exp. 223mln), Rev 208.3mln (prev. 154.8mln Y/Y), Operating -0.9mln (prev. 11mln). Confirms FY23/24 guidance. (Newswires)

BROKER MOVES

CAC

Michelin (ML FP) - FY 2023 (EUR): Net 1.98bln (exp. 1.99bln), Revenue 28.34bln (exp. 28.5bln), Segment EBITDA 3.6bln (exp. 3.4bln). Guides FY24 Segment Op Income view greater than 3.5bln; FY24 FCF view greater than 1.5bln. Will organise a capital markets day at the end of May. Red Sea logistical problems weighed on 4% of the group's finished product flows, mainly natural rubber. Red Sea problems will have a reasonably marginal financial impact in terms of additional costs on 2024 results, for Q1 or H1. Will initiate a share buyback worth up to EUR 1bln over the 2024-2026 period. (Newswires)

STMicroelectronics (STM FP) - Partner with Mobile Physics to create an Envirometer for accurate air-quality monitoring on smartphones. (Newswires)

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - S&P cuts rating one notch to B (prev. B+); outlook stable. (Newswires)

BROKER MOVES

PAN EUROPE

Arcadis (ARCAD NA) - Secures multiple contracts with the Nevada Department of Transportation in the US, no terms disclosed. (Newswires)

Randstad (RAND NA) - Q4 (EUR): Revenue 6.18bln (exp. 6.24bln), Net 163mln (exp. 169mln, prev. 294mln Y/Y). Jan's organic revenue growth is in line with Q4'23 trends. Guides Q1 gross margin modestly lower with Q4'23 trends. Q1'24 op. expenses are expected to be marginally higher. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Says it is increasing production of electric drive modules to support growth in its electrification portfolio. Growing its electrified propulsion manufacturing footprint with EDM production in Tremery-Metz, France, Kokomo, Indiana, USA and Szentgotthard, Hungary; along with electrified dual-clutch transmissions (eDCTs) at Mirafiori complex, Italy. The addition of the Szentgotthard plant in Hungary with a EUR 103mln investment supports the ongoing transformation of manufacturing sites to achieve core electrification objectives of the Dare Forward 2030 strategic plan. (Newswires)

Solvay (SOLB BB) - Completes coal phase-out at is US Green River soda ash plant. (Newswires)

BROKER MOVES

KBC (KBC BB) upgraded to Hold from Sell at Center for Financial Research & Analysis

SMI

Roche (ROG SW) - Entered into a collaborative agreement with PathAI to expand digital pathology capabilities for Co. diagnostics. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Orsted (ORSTED DC) - CEO Nipper says he takes full responsibility for the recent poor performance, but says they are taking action to ensure the situation improves, whilst the feedback on the new strategy has been generally positive. Regarding floating wind, believes it will advance “slower than anticipated” amid elevated costs and tech challenges. (FT)

Wihlborgs Fastigheter (WIHL SS) - Q4 (SEK): EBIT 2.76bln (exp. 2.56bln, prev. 2.33bln Y/Y), Rental Revenue 3.88bln (prev. 3.33bln Y/Y). (Newswires)

BROKER MOVES

Avanza (AZA SS) upgraded to Neutral from Sell at Citi

Balder (BALDB SS) upgraded to Buy from Hold at Pareto

Elisa (ELISA FH) upgraded to Buy from Hold at HSBC

Lundbeck (LUN DC) upgraded to Buy from Hold at Deutsche Bank

US

CLOSES: SPX -0.1% at 5,022, NDX -0.44% at 17,883, DJI +0.32% at 38,797, RUT +1.75% at 2,045

SECTORS: Utilities +1.14%, Energy +1.05%, Materials +0.73%, Consumer Staples +0.63%, Financials +0.42%, Industrials +0.12%, Health +0.1%, Communication Services -0.18%, Consumer Discretionary -0.28%, Real Estate -0.37%, Technology -0.77%.

Goodyear Tire & Rubber (GT) – Q4 (USD): Revenue 5.12bln (exp. 5.4bln). EPS 0.47 (exp. 0.36). Segment operating income 383mln (exp. 345mln) - driven by strong results in the Americas and Asia Pacific. Raw material costs fell while management has been taking steps to lower operating expenses. (Newswires) Shares fell 2.3% after-market

JetBlue (JBLU) - Carl Icahn reports a 9.91% stake in JetBlue Airways (JBLU) as of February 1st, according to SEC filing. (SEC)

Tesla (TSLA) - Raises prices of Model Y RWD, Long Range and Performance vehicles in Germany. (Newswires)

ZoomInfo (ZI) - Jumped 24.5% afterhours - while earnings and guidance were generally in line with expectations, it announced a new AI-pwered product. Q4 adj. EPS 0.26 (exp. 0.25), Q4 revenue USD 316.4mln (exp. 310.6mln). Announced 'ZoomInfo Copilot', a GenAI-powered solution which delivers AI powered recommendations. Sees Q1 adj. EPS between 0.23-0.24 (exp. 0.23), and sees Q1 revenue between USD 307-310mln (exp. 308.7mln). For the FY24, seesadj. EPS between 0.99-1.01 (exp. 0.99), and sees FY24 revenue between 1.26-1.28bln (exp. 1.27bln).

13 Feb 2024 - 06:47- EquitiesData- Source: Newsquawk