Newsquawk Daily European Equity Opening News - 14th November 2024

ASIA

APAC stocks were mostly subdued following the indecisive lead from Wall Street where stock markets were choppy after in-line CPI data and continued 'Trump trade' flows, while there was a lack of fresh major catalysts to drive price action. ASX 200 gained as strength in Tech and Financials picked up the slack from the weakness in the commodity-related sectors but with the upside capped by disappointing jobs data. Nikkei 225 wiped out all of its initial gains and returned to beneath the 39,000 level despite a weaker currency. Hang Seng and Shanghai Comp remained pressured despite the lack of fresh catalysts and ahead of tomorrow's activity data with weakness seen in property stocks, while tech names are mixed ahead of key earnings, although Tencent was an early outperformer in Hong Kong after its quarterly results beat estimates on the bottom line.

Foxconn (2354 TT) - Expects Q4 and 2024 revenues to grow significantly. Q4 Outlook Y/Y: Smart consumer electronics revenue to be flattish. Cloud and networking products revenue to see strong growth. Computing products revenue to slightly decline. 2024 Outlook Y/Y: Smart consumer electronics revenue to slightly decline (prev. guided flattish). Cloud and networking products revenue to see strong growth. Computing products revenue to grow significantly (prev. guided flattish). Components & other product revenue to grow strongly. 2025 Outlook. Geopols, FX & AI among factors to watch. AI servers to account for 50% of server revenue. AI server shipments to increase quarter-by-quarter. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.30% at 18,977, FTSE 100: +0.06% at 8,030, CAC 40: -0.14% at 7,217, Euro Stoxx 50: -0.10% at 4,740, AEX: -0.26% at 863, IBEX 35: -0.05% at 11,377, FTSE MIB: +0.30% at 33,708, SMI: -0.20% at 11,689, PSI: -0.60% at 6,295.

SECTORS: Energy 0.30%, Healthcare 0.23%, Consumer Disc 0.08%, Industrials 0.05%, Financials 0.05%, Utilities 0.04%, Materials -0.10%, Consumer Stpl -0.16%, Telecoms -0.19%, IT -0.93%

FTSE 100

Barclays (BARC LN) - To keep 20% stake in merchant payments arm amid Brookfield talks, Sky News reports. (Sky News)

Ex-Dividends - Pershing Square Holdings (PSH LN), Bunzl (BNZL LN), GSK (GSK LN), Shell (SHEL LN), and Sainsbury (SBRY LN) will trade without entitlement to their latest dividend payout. (dividenddata)

Rentokil (RTO LN) – Trian Fund dissolves its share stake in the Co. (Newswires)

Shell (SHEL LN) - Aims to sell majority stake in carbon offsets business, Bloomberg reports. (Bloomberg)

UK RICS - UK RICS Housing Survey (Oct) 16.0 vs. Exp. 11.0 (Prev. 11.0)

OTHER UK COMPANIES

Boohoo (BOO LN) – H1 (GBP): Revenue 619.8mln (prev. 729mln Y/Y), Gross Profit 314.4mln (prev. 389mln Y/Y). Continues to review options for its non-core assets. Board believes that the Co. is fundamentally undervalued. Proposed fundraise to raise up to GBP 39.3mln. (Newswires)

BROKER MOVES

DAX

Bayer (BAYN GY) - DE Shaw takes USD 1bln short on Bayer, via regulatory filing. (Newswires)

Deutsche Telekom (DTE GY) – Q3 (EUR): Adj. Net 3bln (Exp. 2.4bln), Adj. EBITDAaL 11.1bln (exp. 11bln), Adj. Revenue 28.5bln (exp. 28.4bln). Affirms guidance. (Newswires)

Merck (MRK GY) – Q3 (EUR): Adj. EPS 2.30 (exp. 2.27), Adj. EBITDA 1.62bln (exp. 1.56bln). Cuts FY Revenue to lower half of 20.7-22.1bln. (Newswires)

Siemens (SIE GY) – Revenue 20.8bln (exp. 20.77bln), Order 22.9bln (exp. 21.35bln). Proposes FY dividend of EUR 5.20/shr (prev. 4.70/shr Y/Y). Expects moderate economic growth in FY25, citing geopolitics and trade conflicts alongside challenges in manufacturing. Expects FY25 comparable rev. growth of 3-7%. (Newswires)

OTHER GERMAN COMPANIES

E.On (EOAN GY) – 9M (EUR): Adj. Net 2.21bln (prev. 2.94bln Y/Y), Adj. EBIT 4.37bln (prev. 7.79bln Y/Y), Revenue 56.3bln (prev. 68.2bln Y/Y). Affirms guidance. (Newswires)

Hapag Lloyd (HLAG GY) – 9M (EUR): Revenue 15.28bln (prev. 15.31bln Y/Y), Net Income 1.83bln (prev. 3.42bln Y/Y), EBITDA 3.59bln (prev. 4.52bln Y/Y). (Newswires)

K+S (SDF GY) – Q3 (EUR): EBITDA 66mln (exp. 59mln), Revenue 866mln (exp. 822mln). Narrows FY EBITDA outlook 540mln (prev. guided 530-620mln). (Newswires)

BROKER MOVES

CAC

Alstom (ALO FP) – H1 (EUR): Sales 8.78bln (co. consensus 8.79bln), Adj. EBIT 515mln (co. consensus 506mln). Confirms outlook. (Newswires)

LVMH (MC FP) – Appoints Cecile Cabanis CFO of the Co. (Newswires)

Scor (SCR LN) – Q3 (EUR): Insurance Revenue 3.94bln (prev. 4.24bln Y/Y), Op. Loss -53mln (prev. +257mln Y/Y). Says Hurricane Milton estimated impact in Q4 in the range of EUR 50-100mln (“mid to high double digit”). (Newswires)

Talanx (TLX GY) – 9M (EUR): Net Income 1.6bln (prev. 1.3bln Y/Y), RoE 19.4% (prev. 18.4% Y/Y). Projects 2025 group net income to more than EUR 2.1bln. (Newswires)

Technip Energies (TE FP) – Co. and Shell Catalysts & Tech move towards an exclusive global alliance on carbon capture. (Newswires)

Thales (HO FP) – 2028 targets: EBIT margin 13-14%. (Newswires)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) - Q3 2024 (USD): Revenue 5.885bln, Construction revenue 842mln, -10.5% LFL, Energy systems revenue 1.763bln, +16.9% LFL; operating outlook for 2024 confirmed. (Newswires)

BROKER MOVES

PAN EUROPE

Airbus (AIR FP) / Leonardo (LDO IM) - ATR is stopping development of its short take-off and landing variant (STOL), the ATR 42-600S

ASML (ASML NA) - Keeps its 2030 sales outlook unchanged between EUR 44-60bln. "We expect our ability to scale EUV technology into the next decade and extend our versatile, holistic lithography portfolio. These developments are expected to help fuel global semiconductor sales to over USD 1tln by 2030. The annual semiconductor market growth rate is anticipated to be approximately 9% during the period 2025-2030. We expect to continue to return significant amounts of cash to shareholders through a combination of growing dividends and share buybacks." Co. is the largest weighted stock in the Euro stoxx 50 with a 9.26% weighting; the second largest weighted stock in the Stoxx 600 with a 2.63% weighting

BMPS (BMPS IM) - Banco BPM (BAMI IM) acquired a 5% stake in BMPS (BMPS IM), transaction impacts BMPS CET1 Ratio by -9bps. Del Vecchio Family Co. Delfin bought 3.5% stake in BMPS, via Reuters citing Financial Sources. Investment to positively impact BMPS EPS by +2.5%. Italy begins sale of around 7% stake in Monte Paschi (BMPS IM), according to Bloomberg. Reportedly called an extraordinary board meeting on Wednesday to discuss possible BMPS (BMPS IM) investment, via Reuters citing sources. (Bloomberg/Reuters/Newswires)

Saipem (SPM IM) – Awarded USD 1.9bmln in new offshore contracts from TotalEnergies (TTE FP). (Newswires)

Telecom Italia (TIT IM) - Q3 2024 (EUR): Group revenue 3.57bln (exp. 3.56bln), Group EBITDA after lease 943mln; confirms guidance. (Newswires)

OMV AG (OMV AV) - Successfully receives arbitral award in relation to its German gas supplies from Gazprom export. Taking steps to recover damages from Gazprom export based on this arbitral award of EUR 230mln plus interest and costs. Established extensive diversification measures will allow OMV to supply its customers in case of potential disruptions of Russian gas supply. Expected that there may be a deterioration of the contractual relationship under the Austrian supply contract of OGMT with Gazprom export. The potentially affected volume of gas for the Austrian virtual trading point is estimated at up to 7.4k MWH/hr. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Swiss Life (SLHN SW) – 9M (CHF): Fee Income 1.88bln (prev. 1.79bln Y/Y), GWP 15.9bln (prev. 15.9bln Y/Y). Affirms guidance. Hurricane Milton losses to impact Q4 results, seen at USD 300mln. (Newswires)

BROKER MOVES

SCANDINAVIA

Volvo Cars (VOLCARB SS) - Geely Auto (175 HK) unit Zeekr (ZK) is to take a 51% stake in sister brand Lynk & Co in a deal which will see current part owner Volvo Cars exit the venture and values Lynk & Co at about USD 2.5bln, according to a Reuters source

BROKER MOVES

US

CLOSES: SPX +0.02% at 5,985, NDX -0.16% at 21,036, DJIA +0.11% at 43,958, RUT -0.94% at 2,369

SECTORS: Communication Services -0.57%, Technology -0.31%, Health -0.3%, Utilities -0.24%, Financials +0.06%, Materials +0.2%, Industrials +0.21%, Consumer Staples +0.28%, Real Estate +0.73%, Energy +0.84%, Consumer Discretionary +1.14%.

Cisco Systems Inc (CSCO) - Q1 2025 (USD): Adj. EPS 0.91 (exp. 0.87), Revenue 13.80bln (exp. 13.77bln). Guides Q2 Adj. EPS USD 0.89-0.91 (exp. 0.87). Guides Q2 revenue USD 13.75bln-13.95bln (exp. 13.74bln). Raised FY Adj. EPS guidance to USD 3.60-3.66 from 3.52-3.58 (exp. 3.57). Raises FY revenue guidance to USD 55.3bln-56.3bln from 55bln-56.2bln (exp. 55.88bln). Shares -2.1% after-hours.

14 Nov 2024 - 06:58- Exclusive- Source: Newsquawk