Newsquawk Daily European Equity Opening News - 14th March 2024

14th March 2024

ASIA

APAC stocks were mixed after the indecisive performance stateside amid light catalysts and tech weakness, with participants lacking conviction ahead of next week's central bank bonanza. ASX 200 was subdued as losses in financials and tech overshadowed the gains in the commodity-related sectors. Nikkei 225 traded indecisively after a slew of BoJ-related source reports suggesting a policy shift next week. Hang Seng and Shanghai Comp. were somewhat varied with the Hong Kong benchmark pressured amid tech-related headwinds after the US House approved the bill which threatens to ban TikTok, while the mainland was indecisive with downside initially cushioned after China issued plans to promote trading in consumer goods and equipment upgrades.

Foxconn (2317 TT) - Sees 2024 revenue to increase significantly Y/Y; sees Q1 revenue to slightly decline Y/Y, sees Q1 revenue for smart consumer electronics to slightly decline Y/Y. Sees revenue for cloud and networking products to be flat Y/Y. Sees revenue for Q1 revenue for computing products to be flat Y/Y. Q4 (TWD) Net profit 53.14bln (prev. 43.1bln Q/Q). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.14% at 17,987.00, FTSE 100: +0.31% at 7,772.17, CAC 40: +0.62% at 8,137.58, Euro Stoxx 50: +0.35% at 5,000.55, IBEX 35: +1.65% at 10,560.50, FTSE MIB: +0.39% at 33,885.43, SMI: +0.17% at 11,782.40

SECTORS: Energy 1.44%, Utilities 0.86%, Materials 0.83%, Consumer Stpl 0.62%, Consumer Disc 0.57%, Industrials 0.20%, Financials 0.08%, Telecoms -0.46%, Healthcare -0.55%, IT -0.98%

FTSE 100

BT (BT/A LN) - CityFibre, UK's biggest independent rival to BT's Openreach arm, is reportedly to acquire Lit Fibre for around GBP 80mln. The deal will accelerate its national full-fibre rollout by close to 300k premises, sources said. (Sky News)

Ex-Dividends - NatWest (NWG LN), Segro (SGRO LN), Anglo American (AAL LN), Haleon (HLN LN), Entain (ENT LN) will trade without entitlement to their latest dividend payout. (Newswires)

Entain (ENT LN) - Considers possible sale of its overseas gambling brands, via the FT. Sources add that the Co. has hired advisers to sell the units to allow Entain to focus on revitalising operations in its core markets. (FT)

UK RICS - UK RICS Housing Survey (Feb) -10.0 vs. Exp. -11.0 (Prev. -18.0). "The near-term outlook is still somewhat cautious reflecting, in part, the suspicion that the recent easing in mortgage rates is likely to stall on the back of ongoing uncertainty about the timing and speed of interest rate reductions," the report said. (RICS)

OTHER UK COMPANIES

BROKER MOVES

DAX

RWE (RWE GY) - FY23 (EUR): Adj. EBIT 6.35bln (exp. 6.05bln, prev. 4.57bln Y/Y), Revenue 28.6bln (exp. 38.4bln), Div/shr 1.10 (exp. 1.00, prev. 1.00). Confirms FY24 outlook. (Newswires)

Rheinmetall (RHM GY) - FY23 (EUR): Operating profit 918mln (exp. 925mln), Revenue 7.18bln (exp. 7.47bln), Op. margin 14-15% (exp. 14.4%), Op. margin 12.8% (exp. 12.4%), Backlog 38.3bln, +44% Y/Y. Div/shr 5.70 (exp. 5.10). Guides initial FY24 Revenue 10.0bln (exp. 9.59bln). (Newswires) 

Lanxess (LXS GY) - FY23 (EUR): Net 443mln (prev. 250mln Y/Y), Adj. EBITDA 512mln (exp. 513mln, prev. 930mln Y/Y), Revenue 6.71bln (exp. 6.85bln). Guides Q1 to see "no improvement Q/Q", Guides initial FY24 adj. EBITDA "moderately higher Y/Y". Dividend proposal of EUR 0.10/shr. (Newswires)

Volkswagen (VOW3 GY) - Considers a partnership with other automakers to produce cheaper EVs in a bid to compete with China. CEO says they are to decide later in the year how to produce an EV for under EUR 25k. (FT)

OTHER GERMAN COMPANIES

Hapag-Lloyd (HLAG GY) – FY23 (USD): Revenue 19.4bln (exp. 19.5bln). EBITDA 4.83bln (exp. 4.89bln). Proposes EUR 9.25/shr. Co. the market environment will remain challenging and “therefore expect to see an overall decrease in earnings in 2024.” (Hapag-Lloyd IR)

K+S (SDF GY) - FY23 (EUR): EBITDA 712mln (exp. 692mln), Revenue 3.87bln (exp. 3.86bln). Div/shr 0.70 (exp. 0.76). Guides initial FY24 EBITDA 500-650mln. (Newswires) Shares +2.9% in pre-market trade.

MorphoSys (MOR GY) - Q4 (EUR): Operating Net -81.4mln (exp. -81mln), Revenue 59mln (exp. 61mln). (Newswires)

BROKER MOVES

Carl Zeiss Meditec (AFX GY) initiated with Outperform at RBC

CAC

BNP Paribas (BNP FP) - To sell a 6% stake in a Polish unit at PLN 100/shr, according to reports; details light. (Newswires)

OTHER FRENCH COMPANIES

BioMerieux (BIM FP) - FY23 (EUR): Net 358mln (prev. 452mln Y/Y), Adj. Op. 610mln (exp. 612mln), Revenue 3.68bln (exp. 3.67bln), Div/shr 0.85/shr (exp. 0.76/shr). Guides initial FY24 Revenue +6-8%, Adj. Op. grow at least 10% YY. (Newswires)

BROKER MOVES

PAN EUROPE

AB InBev (ABI BB) - Altria said to sell 35mln shares in AB InBev equivalent to USD 2.2bln in AB stock at a price of USD 60.75-62.75. A subsidiary of the Co. Budweiser Brewing Company (1876 HK) fell 4.5% in APAC trade.

Eni (ENI IM) - FY23 (EUR): Revenue 94.82bln (exp. 92.96bln, prev. 133.69bln Y/Y), Net Profit 4.77bln. (Newswires)

Ferrovial (FER SM) - Agrees to acquire 24% of IRB infrastructure trust for EUR 740mln. (Newswires)

Grifols (GRF SM) - S&P cuts rating to B; CreditWatch negative. (Newswires)

SNAM (SRG IM) – FY23 (EUR): Adj. Net 1.17bln (exp. 1.14bln), Adj. EBITDA 2.42bln (exp. 2.42bln), Revenue 3.88bln (exp. 3.89bln), Div/shr 0.28 (prev. 0.28). Affirms FY24 guidance. (Newswires)

Tech Stocks - Apple (AAPL) supplier Foxconn (2317 TT) sees 2024 revenue to increase significantly Y/Y; sees Q1 revenue to slightly decline Y/Y; sees Q1 revenue for smart consumer electronics to slightly decline Y/Y. Co. guides Q1 revenue for cloud and networking products to be flat Y/Y and sees revenue for Q1 for computing products to be flat Y/Y. (Newswires)

BROKER MOVES

Poste Italiane (PST IM) upgraded to Buy from Hold at Deutsche Bank

Stellantis (STLAM IM/STLAP FP) downgraded to Neutral from Buy at Nomura

SMI

Swiss Life (SLHN SW) - FY23 (CHF): Net 1.11bln (prev. 1.03bln Y/Y), GWP 19.8bln (prev. 19.6bln Y/Y), Dividend 33/shr (prev. 30/shr Y/Y), ROE 13.7% (target range 10-12%), Targets FY24 ROE 10-12%. (Newswires)

Nestle (NESN SW) - A shareholder group has, before April’s AGM, filed a resolution calling for the firm to set an internationally recognised target to cut the proportion of sales made from unhealthy items. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

Alcon (ALC SW) initiated with Sector Perform at RBC

Logitech (LOGN SW) initiated with Buy at Berenberg

SCANDINAVIA

Equinor (EQNR NO) - Announces extension of drilling services on fixed installations on the Norwegian continental shelf provides jobs for 2k people per year and has an estimated value of NOK 18.4bln. (Newswires)

Kesko (KESKOB FH) - Sales in February +4.2% M/M, or decreased 0.8% in comparable terms. (Newswires)

BROKER MOVES

EQT (EQT SS) upgraded to Neutral from Sell at Citi

US

CLOSES: SPX -0.19% at 5,165, NDX -0.83% at 18,068, DJI +0.1% at 39,043, RUT +0.3% at 2,072

SECTORS: Energy +1.52%, Materials +0.91%, Utilities +0.66%, Financials +0.57%, Industrials +0.24%, Communication Services +0.16%, Consumer Staples +0.13%, Consumer Discretionary -0.11%, Health -0.41%, Real Estate -0.6%, Technology -1.08%.

ADM (ADM) - US DoJ reportedly probing accounting practices on ADM's (ADM) ethanol trading desk and is examining whether co. improperly accounted for hedges in its ethanol trading unit, according to Reuters citing sources. (Reuters)

Fisker Inc (FSR) Is considering a bankruptcy filing, according to WSJ sources. (WSJ) Shares -10% after-hours

MicroStrategy Incorporated (MSTR) - The crypto investor announced its intention to offer USD 500mln of convertible senior notes due 2031, with an additional option for purchasers to buy up to USD 75mln more. MSTR intended to use the proceeds to purchase additional bitcoin and for general corporate purposes. (Newswires)

NIO (NIO) - CEO says Co. has 2.4k battery swapping stations, 21.7k public charging stations and completed 40mln battery swaps. (Newswires)

Under Armour (UAA) - Kevin Plank will assume the roles of President and CEO from April 1st, succeeding Stephanie Linnartz. Mohamed El-Erian will become the non-executive Chair of the Board. Plank, founder of Under Armour, transitions from the Executive Chair role, while Linnartz will remain to advise until April 30th. (Newswires)

14 Mar 2024 - 06:56- EnergyResearch Sheet- Source: Newsquawk