Newsquawk Daily European Equity Opening News - 13th March 2024

13th March 2024

ASIA

APAC stocks traded mixed as early momentum from the tech-led gains on Wall St was offset by Chinese developer default concerns and as participants digested Japanese wage hike announcements. ASX 200 was led higher by consumer stocks after China's MOFCOM released an interim proposal to remove tariffs on Australian wine although the advances in the index were limited by losses in the mining sector as iron ore prices continued to tumble. Nikkei 225 swung between gains and losses with initial strength reversed amid firm wage hike announcements.Hang Seng and Shanghai Comp. were varied and price action was contained within relatively narrow ranges with the Hong Kong benchmark kept afloat by strength in auto names and tech, while the mainland was pressured amid developer default fears and with the US House set to vote later on the TikTok crackdown bill.

Country Garden Holdings (2007 HK) - Onshore bondholders says have not received coupon payment due on Tuesday, according to The Paper. (The Paper)

Japanese Wages - Toyota, Nissan, Panasonic, Hitachi & Nippon Steel were among the companies that have responded to Japanese unions' wage hike demands in full.

EUROPEAN CLOSES

CLOSES: DAX: +1.15% at 17,960.45, FTSE 100: +1.04% at 7,749.26, CAC 40: +0.84% at 8,087.48, Euro Stoxx 50: +1.03% at 4,981.55, IBEX 35: +0.49% at 10,376.50, FTSE MIB: +1.33% at 33,757.00, SMI: +0.69% at 11,765.80.

SECTORS: Consumer Disc 1.70%, Financials 1.60%, IT 1.40%, Industrials 1.23%, Materials 1.04%, Energy 0.89%, Healthcare 0.60%, Consumer Stpl 0.59%, Telecoms -0.22%, Utilities -1.34%                         

FTSE 100

BAE Systems (BA/ LN) - BAE was awarded a USD 318mln contract for continuing system technical services for M109 Family of Vehicles.

Barclays (BARC LN) - Hedge Fund Qube Research & Technologies has reportedly built a short position worth almost GBP 200mln against the bank, which equates to 0.73% of Barclays’ issued share capital, according to The Times. The article notes that this is the biggest short position disclosed against the bank. (Times)

Homebuilders - UK PM Sunak has been urged to scrap EU rules blocking housebuilding, according to The Telegraph. (The Telegraph)

UK Inflation - Citi/YouGov Poll (Feb.): UK 1yr ahead inflation expectations fall to 3.6% (prev. 3.9% M/M), 5-10yr expectations fall to 3.5% (prev. 3.6%). (Citi/YouGov)

OTHER UK COMPANIES

BROKER MOVES

AstraZeneca (AZN LN) downgraded to Neutral from Outperform at Oddo

GSK (GSK LN) reiterated with Outperform at Oddo

Glencore (GLEN LN) upgraded to Buy from Hold at Deutsche Bank

Harbour Energy (HBR LN) upgraded to Buy from Hold at Berenberg

Intercontinental Hotels Group (IHG LN) downgraded to Underperform from Market Perform at Bernstein

JD Sports (JD/ LN) initiated with Hold at Panmure Gordon

DAX

Adidas (ADS GY) - Q4 (EUR): Op. -377mln (exp. -373mln), Revenue 4.81bln (exp. 4.81bln). Gross margin 47.5%, -0.2% Y/Y, Op. margin 1.3% (prev. 3% Y/Y), Inventories 4.5bln (prev. 6bln Y/Y). Should see growth in Q1; expect the underlying business excluding Yeezy sales, to grow at a double-digit rate in H2. Expect currency-neutral sales in NA to decline at a mid-single-digit rate this year. Board proposes a dividend of EUR 0.70/shr (unch. Y/Y). Affirms FY24 currency-neutral sales. Says lack of Yeezy revenue weighed on Q4 sales, which fell 8% in Euro terms. Regional: NA sales -21%, China +37%, EMEA -7%, LATAM +1%. (Newswires)

Bayer (BAYN GY) - Brazilian court orders the Co. to pay BRL 10bln in soybean royalties. (Reuters)

Rheinmetall (RHM GY) - Announces EUR 208mln order for artillery ammunition from Spain. (Newswires)

Volkswagen (VOW3 GY) - FY (EUR): EPS 31.98 (exp. 30.51), Operating 22.6bln (exp. 22.04bln), Brand Group Sales 69.9bln, +13%. CFO says they are to focus on ramping up new vehicles, reducing costs and utilising synergies in 2024. Expects an increase in income orders due to new models, incl. EVs. (Volkswagen) Index Weightings: DAX 40 (1.9%), Euro Stoxx 50 (0.7%), Stoxx 600 (0.2%)

Zalando (ZAL GY) - FY23 (EUR): adj. EBIT 350mln (exp. 324mln), Revenue 10.1bln (exp. 10.2bln). Guides initial FY24 adj. EBIT 380-450mln, Revenue +0-5%. Initiated a stock buyback program of 6mln shares for up to EUR 100mln. (Newswires)

OTHER GERMAN COMPANIES

E.ON (EOAN GY) – Final FY23 (EUR): adj. EBITDA 9.37bln (exp. 9.0bln). Revenue 93.7bln (exp. 110.26bln). adj. Net 517mln (prev. 1.83bln Y/Y). Co. expects 2024 adj. Net profit between 2.8-3.0bln (vs. 3.1bln in 2023), and adj. EBITDA between 8.8-9.0bln (vs. 9.4bln in 2023) in 2023. Increased dividend of 0.53/shr proposed for 2023 (exp. 0.53/shr). Co. increases its planned investments across Europe to EUR 42bln (from EUR 33bln) for the years 2024-2028, focusing on energy networks and energy infrastructure solutions. (E.ON IR)

Fraport (FRA GY) - Feb passenger traffic 3.9mln, +12.9% Y/Y. (Newswires)

ThyssenKrupp Nucera (NCH2 GY) - To partner with Fraunhofer IKTS in SOEC technology. (Newswires)

BROKER MOVES

CAC

BNP Paribas (BNP FP) - Guides initial FY24 Net Income "greater than 2023 distributable net". Targets FY24-26 shareholder returns EUR 20bln. Affirms FY25/26 guidance. (Newswires)

Publicis (PUB FP) - Acquires Spinnaker SCA to expand supply chain expertise, no terms disclosed. (Newswires)

OTHER FRENCH COMPANIES

Rubis (RUI FP) – Enters into exclusive negotiations with I Squared Capital for the sale of its 55% stake in the JV Rubis Terminal (Newswires)

BROKER MOVES

Sanofi (SAN FP) reiterated with Outperform at Oddo

PAN EUROPE

Flughafen Wien (FLU AV) – Feb passenger traffic 2.38mln, +18.3% Y/Y. (Newswires)

Inditex (ITX SM) - FY (EUR): Sales 35.9bln (exp. 35.9bln), Net 5.38bln (exp. 5.37bln), Gross 20.7bln (prev. 18.5bln). Proposes a dividend of 1.54/shr, +28% (exp. 1.51/shr). Q4: Net 1.28bln (exp. 1.27bln), Sales 10.34bln (exp. 10.35bln). Sees a strong commitment to profitable growth. (Newswires)

Saipem (SPM IM) - Q4 (EUR): Net +110mln (prev. -71mln Y/Y), Revenue 3.51bln (exp. 2.99bln, prev. 2.94bln Y/Y), adj. EBITDA 286mln (exp. 266mln, prev. 150mln Y/Y). FY23: Net +179mln (prev. -209mln Y/Y), Revenue 11.9bln (exp. 11.3bln). (Newswires)

Solvay (SOLB BB) - Q4 (EUR): Underlying Net 34mln (prev. 190mln Y/Y), Adj. EBITDA 238mln (exp. 250mln, prev. 335mln Y/Y), Revenue 1.13bln (exp. 1.06bln, prev. 1.36bln Y/Y). Affirms FY24-29 guidance. (Newswires)

Tod's (TOD IM) - FY23 (EUR): Net 50mln (exp. 52mln, prev. 23.1mln Y/Y), Revenue 1.13bln (exp. 1.17bln, prev. 1.01bln). EBIT 94.7mln (exp. 98mln, prev. 58.2mln Y/Y.). Says sales trends in February were positive in all regions, except China. (Newswires)

Vallourec (VK FP), ArcelorMittal (MT NA), Apollo (APO) - Apollo to sell 65.2mln shares in Vallourec to ArcelorMittal at EUR 14.64/shr, representing a 28.4% stake and totalling EUR 955mln. This marks Apollo's exit from the investment, and is expected to close in H2. (Newswires)

BROKER MOVES

Aalberts (AALB NA) initiated with Outperform at BNP Paribas

Ferrari (RACE IM) downgraded to Hold from Buy at Center for Financial Research & Analysis

SMI

Geberit (GEBN SW) - FY23 (CHF): Net 617mln (exp. 630mln, prev. 706mln Y/Y), EBITDA 920.9mln (exp. 929.5mln), Revenue 3.08bln (exp. 3.08bln, prev. 3.39bln Y/Y). (Newswires)

Swiss Re (SREN SW) - Proposes increased dividend of USD 6.80/shr, supported by strong capital position. Proposes to re-elect Vaucleroy as a member of the board. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zurich (FHZN SW) - Feb. total passengers 2.02mln, +16% Y/Y. (Newswires)

Sandoz (SDZ SW) - Q4 (USD): Revenue 2.54bln (prev. 2.30bln Y/Y). Guides initial FY24 Revenue mid-single digit growth, Core EBITDA margin 20%. (Newswires)

BROKER MOVES

Belimo (BEAN SW) initiated with Neutral at BNP Paribas

Novartis (NOVN SW) downgraded to Neutral from Outperform at Oddo

Roche (ROG SW) reiterated with Underperform at Oddo

SCANDINAVIA

BROKER MOVES

Novo Nordisk (NOVOB DC) downgraded to Neutral from Outperform at Oddo

Nibe Industrier (NIBEB SS) initiated with Underperform with BNP Paribas

US

CLOSES: Technology +2.54%, Communication Services +1.17%, Consumer Discretionary +0.99%, Consumer Staples +0.63%, Health +0.48%, Industrials +0.45%, Financials +0.44%, Materials -0.06%, Energy -0.16%, Real Estate -0.37%, Utilities -0.99%.

SECTORS: SPX +1.12% at 5,175, NDX +1.49% at 18,219, DJIA +0.61% at 39,005, RUT -0.02% at 2,065.

Microsoft (MSFT) - Announces quarterly dividend of USD 0.75/shr payable on June 13th to shareholders on record on May 16th, while the ex-dividend date is on May 15th. (Newswires)

13 Mar 2024 - 06:56- Exclusive- Source: Newsquawk