Newsquawk Daily European Equity Opening News - 14th June 2024

14th June 2024

ASIA

APAC stocks were mostly subdued after the mixed performance stateside where soft data took centre stage, while participants turned their attention to the BoJ policy announcement. ASX 200 was dragged lower by underperformance in tech and commodity-related sectors. Nikkei 225 recovered early losses and was underpinned after the BoJ policy decision in which the central bank maintained short-term rates at 0.0%-0.1% and kept bond purchases in accordance with its decision in March, while it announced to trim bond buying but will decide on a specific reduction plan for the next 1-2 years at the next policy meeting. Hang Seng and Shanghai Comp. were pressured with the former back below the 18,000 level amid tech and auto weakness, while the mainland is also lacklustre amid Western sanction threats on Chinese entities for supplying Russia's war machine.

EUROPEAN CLOSES

CLOSES: DAX: -1.97% at 18,264, CAC 40: -1.99% at 7,708, PSI: -1.44% at 6,566, FTSE 100: -0.63% at 8,164, IBEX 35: -1.59% at 11, 066, FTSE MIB: -2.18% at 33,610, SMI: -0.65% at 12,089, Euro Stoxx 50: -1.94% at 4,937.

SECTORS: Consumer Stpl 0.08%, Healthcare -0.35%, Telecoms -0.36%, Utilities -0.59%, Materials -1.14%, Consumer Disc -1.22%, Energy -1.41%, IT -1.70%, Industrials -1.85%, Financials -2.04%

FTSE 100

BP (BP/ LN) - Whiting refinery (435k bpd) plans a major turnaround in the coming months, via Reuters citing sources (Reuters)

Shell (SHEL LN) - Singapore is offering refiners and petrochemical companies rebates of up to 76% for its planned carbon tax for 2024 and 2025, according to Reuters citing sources. Shell (SHEL LN), Exxon (XOM), and Chevron (CVX) all operate within the region.

OTHER UK COMPANIES

Bellway (BWY LN) - Board of the Co. confirmed that on 7th May 2024, it made its latest non-binding all-share offer to the board of Crest Nicholson (CRST LN), though it was subsequently rejected. Bellway's Board believed a combination would deliver significant operation synergies. Based on the closing share price of the co. on 13 June, a possible offer represented an implied value of 252p/shr. Bellway said that whilst Crest Nicholson rejected the offer, there was a "compelling strategic and financial rationale" for combining the two companies. (Newswires) Crest Nicholson last closed at 212.8/shr

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

thyssenkrupp (TKA GY) - Carlyle (CG) and KfW are in joint talks to purchase most of thyssenkrupp's submarine unit, according to Reuters citing sources. The sources add that a deal could be reached by early autumn. (Reuters) Prior reports gave the submarine/Marine Systems unit a value of EUR 1.2-1.6bln.

BROKER MOVES

CAC

Accor (AC FP) - And LVMH (MC FP) join forces to take the Orient Express to new horizons. (Newswires)

BNP Paribas (BNP FP) - And BPCE announced plans to form a strategic partnership for payments sector. (Newswires)

TotalEnergies (TTE FP) - Simpor Hibiscus entered a conditional share purchase agreement with TotalEnergies for a deal worth around USD 259.4mln; purchase of TotalEnergies EP Brunei. (Newswires)

Ubisoft (UBI FP) - Launched a new employee shareholding operation. (Newswires)

OTHER FRENCH COMPANIES

Worldline (WLN FP) - Approval of all resolutions; AGM votes to maintain separation of functions of Chairman of BoD and CEO. (Newswires)

BROKER MOVES

PAN EUROPE

Autos - Germany is said to be trying to prevent or soften EU tariffs on Chinese EVs, according to Bloomberg. (Bloomberg) This stance by Germany is not new as they have been trying to dissuade the rest of the bloc from imposing tariffs on Chinese EVs.

Stellantis (STLAM IM/STLAP FP) - CFO expects buybacks to be part of the future; synergies from the Stellantis merger now amount to EUR 8.4bln a year. Co. wants to reduce fixed costs below 30%. (Newswires) Comments were made just ahead of the European cash close.

BROKER MOVES

SMI

Logitech (LOGN SW) - Co. has named Meeta Sunderwala as interim CFO. (Newswires)

Zurich Insurance (ZURN SW) - Launches share buyback program; launches its prev. announced share buyback program of up to CHF 1.1bln. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - May Sales 1.1bln, +1.1% Y/Y or -2.7% in comparable terms. Sales in grocery trade increased by 3.1%. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.23% at 5,434, NDX +0.57% at 19,577, DJI -0.17% at 38,647, RUT -0.88% at 2,039.

SECTORS: Communication Services -0.98%, Energy -0.89%, Industrials -0.64%, Consumer Discretionary -0.2%, Financials -0.2%, Materials flat, Consumer Staples flat, Health flat, Utilities +0.23%, Real Estate +0.49%, Technology +1.36%.

Adobe Inc (ADBE) - Q2 2024 (USD): Adj. EPS 4.48 (exp. 4.39), Revenue 5.31bln (exp. 5.29bln). Sees Q3 Adj. EPS USD 4.50-4.55 (exp. 4.48). Sees Q3 rev. USD 5.33bln-5.38bln (exp. 5.40bln). Raised FY Adj. EPS guidance to USD 18.00-18.20 from USD 17.60-18.00 (exp. 18.02). Adjusts FY rev. guidance to USD 21.40bln-21.50bln from USD 21.30bln-21.50bln (exp. 21.46bln). Shares +14% after-hours.

Tesla (TSLA) - Shareholders vote for the proposal to ratify CEO Elon Musk’s USD 56bln pay package and for the re-domestication of Tesla to Texas from Delaware. CEO Musk says there is a lot of work to do to lower costs for Cybertrucks and Co. will start producing the Cybertruck non-foundation series sometime next quarter. (Newswires)

14 Jun 2024 - 06:49- EquitiesResearch Sheet- Source: Newsquawk