Newsquawk Daily European Equity Opening News - 13th November 2024

ASIA

APAC stocks were mostly subdued following the negative lead from the US amid higher yields and cautiousness ahead of US CPI data, while the region also digested a slew of earnings releases. ASX 200 was dragged lower by underperformance in the mining-related stocks and with the top-weighted financial industry also pressured in the aftermath of CBA's earnings which posted a flat Y/Y cash profit of AUD 2.5bln for Q1. Nikkei 225 retreated following the hotter-than-expected PPI data, while losses were initially stemmed by recent currency weakness and with Sharp and Tokyo Electron among the best performers post-earnings, although selling eventually worsened. Hang Seng and Shanghai Comp were mixed amid light catalysts and as participants await Chinese tech earnings, while US President-elect Trump's first picks for his administration included China hawks such as Waltz, Rubio and Lighthizer, although he also named China-friendly Elon Musk to lead the department of government efficiency with Vivek Ramaswamy.

Commonwealth Bank of Australia (CBA AT) - Co. Q1FY25 (AUD) cash NPAT was flat Y/Y at 2.5bln, NII rose 3.5% Y/Y. (Newswires)

Nintendo (7974 JT) - Saudi sovereign fund cuts stake in Nintendo to 6.29% from 7.54%. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -2.06% at 19,048, FTSE 100 -1.22% at 8,026, CAC 40 -2.69% at 7,227, Euro Stoxx 50 -2.24% at 4,745, AEX -1.49% at 865, IBEX 35 -1.85% at 11,383, FTSE MIB -2.15% at 33,607, SMI -1.66% at 11,705.

SECTORS: IT -0.01%, Consumer Stpl -1.12%, Utilities -1.73%, Healthcare -1.81%, Energy -1.94%, Financials -2.11%, Telecoms -2.49%, Consumer Disc -2.54%, Industrials -2.66%, Materials -3.03%

FTSE 100

Aviva (AV/ LN) – Announced dividend of GBP 4.375/shr. (Newswires)

Just Eat Takeaway (JET LN) – Confirmed to sell Grubhub to Wonder for EV of USD 650mln. (Newswires)

Flutter (FLTR LN) - Q3 2024 (USD): Adj. EPS 0.43 (exp. 0.68), Revenue 3.25bln (exp. 3.03bln), Adj. EBITDA 450mln (exp. 359.1mln); guides first tranche of USD 5bln share buyback to start November 14th. FY Guidance: US revenue 6.05-6.25bln (prev. guided 6.05-6.35bln, exp. 6.17bln). Adj. EBITDA, ex US 1.77-1.87bln (prev. guided 1.69-1.85bln). US adj. EBITDA 670-750mln (prev. guided 680-800mln, exp. 718.8mln). Revenue ex-US 8.1-8.3bln (prev. guided 7.85-8.15bln). (Newswires)

GSK (GSK LN) - Ojjaara (momelotinib) approved in Canada for the treatment of myelofibrosis in adults who have moderate to severe anemia. (GSK)

Vodafone (VOD LN) - Co. and AMD (AMD) are reportedly working together to develop next generation mobile base stations. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - Q3 (EUR): Net Income 2.61bln (exp. 2.35bln), Operating Profit 3.94bln (exp. 3.84bln). 2024 operating profit seen in the upper-half of target range of 13.8-15.8bln. (Newswires)

RWE (RWE GY) – 9M (EUR): Adj. EBITDA 3.97bln (prev. 5.71bln Y/Y), EPS 6.95 (prev. 5.11 Y/Y). Sees FY: Adj. Net Income 1.90-2.40bln (exp. 2.07bln), Adj. EBIT 3.2bln-3.8bln (exp. 3.3bln), Adj. EBITDA 5.20-5.80bln (exp. 5.35bln). To buy back up to EUR 1.5bln shares. Says risks of offshore wind projects have increased after the US election. (Newswires) Shares +3.3% in pre-market trade

Siemens Energy (ENR GY) - Co. raises mid-term targets for FY28; FY25 guidance and FY24 results are in line with expectations. Targeting high single-digit to low double-digit comparable revenue growth until FY28. Targeting a profit margin of 10-12% in FY28. Sees profit margin before special items between 3-5% in FY25. Expects FY25 comp. revenue growth between 8-10%. Quarterly orders +42.3% to EUR 15bln, revenue +16.6% to EUR 9.7bln, Profit before special items -83mln due to expected loss at Siemens Gamesa (prev. -487mln Y/Y). Will not propose a dividend for FY24. (Newswires) Shares +9.6% in pre-market trade

Volkswagen (VOW3 GY) - Rivian (RIVN) and Volkswagen group entered transaction agreement to create new JV, Rivian and VW Group Technology. Volkswagen plans to invest up to USD 5.8bln in Co and JV by 2027. JV to aim to use existing Rivian electrical architecture and software technology stack, enabling launch of Rivian’s r2 in H1 2026. JV will operate as an independent company. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) – Oct Passengers +2.5% Y/Y to 16.9mln. (Newswires)

Tag Immobilien (TEG GY) – Plans to resume dividend payments. To propose dividend payment for 2024; exp. Of EUR 0.40/shr based on 40% FFO. (Newswires)

BROKER MOVES

Evonik (EVK GY) downgraded to Underperform from Hold at Jefferies

K+S (SDF GY) downgraded to Underperform from Hold at Jefferies Shares -2.4% in pre-market trade

Symrise (SYM1 GY) downgraded to Hold from Buy at Jefferies

CAC

Air France (AF FP) – Co. said it should be able to operate all of its flights on Nov 14 despite pilots calling for strikes on the day. (Newswires)

Airbus (AIR FP) - Co. reportedly close to an agreement (as early as today) with Spirit Aerosystems (SPR) on fresh funding and revised payment terms, according to Reuters citing sources. (Reuters)

French Stocks - Bank of France sees flat Q4 economic performance after 0.4% growth in Q3 as growth moderates in the wake of the Olympic games. Separately, French lawmakers reject amended budget bill and Senate review next, according to Bloomberg. (Bloomberg)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) – Won in consortium a construction contract for the Realex project in Belgium. (Newswires)

Sodexo (SW FP) – To acquire CRH Catering; exp. to close H1’25. (Newswires)

Vinci (DG FP) – Won contract to design a build a new waste to energy plant in Correze. (Newswires)

BROKER MOVES

Air Liquide (AI FP) upgraded to Buy from Underperform at Jefferies

PAN EUROPE

ACS (ACS SM) – 9m (EUR): Sales 29.7bln, +5% Y/Y. (Newswires)

ABN AMRO (ABN NA) - Q3 (EUR): Net Income 690mln (exp. 567mln), Operating Income 2.25bln (exp. 2.2bln), NII 1.64bln (exp. 1.62bln). Continue to expect FY costs of around 5.3bln. (Newswires)

BBVA (BBVA SM)/Sabadell (SAB SM) - BBVA's takeover bid for Sabadell to require a more in-depth or phase 2 review from Spain's competition body, according to La Vanguardia. BBVA said it will continue to work “constructively” with Spanish competition body to finalise as soon as possible an agreement on remedies and approval of the deal. (Newswires)

Cognac names - France and China have resumed dialogue on the Cognac issue, according to the Cognac association, while it added that China's decision to change the deposit on Cognac to a less complex guarantee is a positive step. (Newswires)

IMCD (IMCD NA) – To raise approx. EUR 300mln through share offering; capital raise to be primary accelerated bookbuilding offering. (Newswires)

Prosus (PRX NA) – Gain of USD 2bln on total investment in Swiggy. (Newswires)

BROKER MOVES

SMI

Alcon (ALC SW) – Q3 (USD): Revenue 2.43bln (exp. 2.46bln), Adj. EPS 0.81 (exp. 0.74). FY24: Expects net sales in range of 9.8-9.9bln (exp. 9.93bln). (Newswires)

UBS (UBSG SW) - US sanctions agency OFAC conducts an inquiry into Russian clients took over with Credit Suisse, according to Reuters sources. (Reuters)

OTHER SWISS COMPANIES

Software One (SWON SW) – Q3 (CHF): Adj. EBITDA 39.2mln (prev. 47.9mln Y/Y), Revenue 236.7mln (prev. 233.4mln Y/Y). Affirms guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.29% at 5,984; NDX -0.17% at 21,071, DJI -0.86% at 43,911, RUT -1.77% at 2,392.

SECTORS: Materials -1.57%, Health -1.34%, Real Estate -1.29%, Utilities -1.13%, Consumer Discretionary -1.10%, Industrials -0.87%, Energy -0.46%, Financials -0.32%, Consumer Staples +0.09%, Technology +0.45%, Communication Services +0.51%.

Apple (AAPL) - Co. is to launch an AI powered smart home device as early as March, poised to compete with Amazon (AMZN) and Google (GOOGL) in smart home, via Bloomberg. Apple device is to tap into cameras, doorbells and run Apple apps. Apple device to feature Facetime, Siri and Apple Intelligence. (Newswires)

Occidental Petroleum Corp (OXY) - Q3 2024 (USD): Adj. EPS 1.00 (exp. 0.74), Revenue 7.15bln (exp. 7.23bln). Q3 total average global output 1,412 MBOED (exp. 1,392 MBOED). Sees Q4 total production 1,430-1,470 MBOED (exp. 1,445 MBOED). (Newswires)

Spotify Technology (SPOT) - Q3 2024 (EUR): EPS 1.45 (exp. 1.72), Revenue 3.99bln (exp. 4.02bln). MAUs 640mln (exp. 640.8mln). Total premium subscribers rose 12% to 252mln. Sees Q4 rev. EUR 4.1bln (exp. 4.26bln). Sees Q4 oper. income EUR 481mln (exp. 445.7mln). Sees Q4 MAUs 665mln (exp. 664mln). Sees Q4 total premium subscribers 260mln. (Newswires)

NVIDIA (NVDA) - Co. and SoftBank (9984 JT) reportedly accelerate Japan's journey to global AI powerhouse with Nvidia CEO stating the companies have piloted the world's first combined AI and 5G telecom network. (Newswires)

13 Nov 2024 - 06:48- Research Sheet- Source: Newsquawk