Newsquawk Daily European Equity Opening News - 16th May 2024

16th May 2024

ASIA

APAC stocks took impetus from the gains on Wall St where the major indices rallied to fresh record highs after softer CPI data boosted Fed rate cut bets.ASX 200 was led by strength in the rate-sensitive sectors such as real estate and tech amid a drop in yields. Nikkei 225 gained but was off today's best levels as participants digested a firmer currency, steeper-than-expected contraction in Japanese GDP and mega bank earnings. Hang Seng and Shanghai Comp were positive with developers front-running the advances in Hong Kong on return from holiday as they reacted to the recent property support proposal, while the upside was capped in the mainland amid little fresh pertinent catalysts aside from Russian President Putin arrival in China where he seeks to deepen the strategic partnership with Chinese President Xi.

TSMC (2330 TT) says aware of an incident at an Arizona construction site whereby a waste disposal truck driver was transported to a local hospital, although there was no damage to facilities and no injuries reported by TSMC staff or construction workers

EUROPEAN CLOSES

CLOSES: DAX: +0.85% at 18,875.35, FTSE 100: +0.21% at 8,445.80, CAC 40: +0.17% at 8,239.99, Euro Stoxx 50: +0.41% at 5,101.15, IBEX 35: +1.10% at 11,362.80, FTSE MIB: +0.61% at 35,366.20, SMI: +1.02% at 11,904.06

SECTORS: Utilities 1.62%, Industrials 1.31%, IT 0.95%, Telecoms 0.78%, Healthcare 0.62%, Materials 0.44%, Financials 0.36%, Consumer Stpl 0.30%, Consumer Disc 0.06%, Energy -1.31%.

FTSE 100

Anglo American (AAL LN) - Issues a global hiring freeze after pledging to simplify the firm, via Reuters. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Telekom (DTE GY) - Q1 (EUR): Revenue 27.9bln (exp. 27.83bln), +0.4 Y/Y, adj. EBITDA 10.5bln (exp. 10.28bln), +2.6% Y/Y, adj. Net Profit 2.2bln, +14.2% Y/Y. (Newswires)

Volkswagen (VOW3 GY) - Says it will invest over CNY 2.3bln in introducing production of 3 SUV models in China's Tianjin region. (Newswires)

Siemens (SIE GY) - Q2 (EUR): Revenue 19.2bln (exp. 19.28bln), Orders 20.5bln (exp. 20.04bln). Reduces revenue outlook for digital industries, now expects sales decline of 4-8% (prev. guided growth of 0-3%). Raises outlook for smart infrastructure and now expects FY24 sales growth of 8-10% (prev. guided 7-10%). Says the destocking trend is likely to continue well into Q2. To sell Inomotics Motors and drivers business to KPS capital partners for EUR 3.5bln, the deal is expected to close in H1'25. (Newswires)

OTHER GERMAN COMPANIES

freenet (FREN GY) - Q1 (EUR): 638.9mln (prev. 637.9mln Y/Y), EBITDA 124.2mln (prev. 128.1mln Y/Y). Confirms FY24 outlook. (Newswires)

BROKER MOVES

CAC

Schneider Electric (SU FP) - Ruben Llanes appointed CEO of Digital Grid. (Newswires)

Ubisoft (UBI FP) - FY (EUR): adj. EPS of 1.79 (exp. 1.55), sales 2.3bln (exp. 2.17bln), adj. Op income 401.4mln (exp. 363.3mln). Bookings 2.32bln, +33.5% Y/Y. Outlook: Sees Sees Q1'25 net bookings around 275mln. On the Activision deal: In Q4 first streaming rights payment exceeds the initial investment of between 50-100mln. (Newswires)

OTHER FRENCH COMPANIES

Eurazeo (RF FP) - Q1 (EUR): AUM 34.8bln, +8% Y/Y. Confirms a positive fundraising outlook for 2024. Approved a EUR 2.42/shr dividend. (Newswires)

BROKER MOVES

PAN EUROPE

Aegon (AGN NA) - Q1 (EUR) Trading Update: Planned new EUR 200mln share buyback programme, expected to be completed by the end of 2024. Cash capital at holding EUR 2bln (Co. consensus 1.94bln). (Newswires)

Eni (ENI IM) - Italy's Treasury said it sold 2.8% of Eni, raising EUR 1.4bln; sold shares at 14.85. (Newswires)

KBC (KBA BB) - Q1 (EUR): Pretax profit 680mln (exp. 602mln), NII 1.36bln (exp. 1.35bln). Approved an interim dividend of EUR 0.7/shr. Affirms FY24 guidance. The dividend policy for 2024 remains unchanged. (Newswires)

Telecom Italia (TIT IM) - KKR (KKR) remedies on the Telecom Italia deal are expected next week, Reuters reports. KKR will likely offer remedies next week in an attempt to secure EU antitrust approval to buy Telecom Italia's fixed-line access network, sources say. (Newswires)

BROKER MOVES

SMI

Swiss Re (SREN SW) - Q1 (USD): Net income 1.1bln (exp. 871mln, prev. 643mln Y/Y), RoE 21.3% (prev. 19.1% Y/Y), Insurance Rev 11.7bln. Confirms 2024 outlook. Plans to withdraw from Iptiq business. Announced changes to the executive committee. Ivan Gonzalez appointed CEO of corporate solutions. (Newswires)

Zurich Insurance (ZURN SW) - Q1 GWP +9% Y/Y and +5% adj. for currency movements. Previously announced share buyback to start as planned. (Newswires)

UBS (UBSG SW) - Is revamping leadership of its asset management division, the latest changes as it continues to integrate Credit Suisse. CEO said do not have an implicit state guarantee. (Newswires)

OTHER SWISS COMPANIES

Avolta (AVOL SW) - Q1 (CHF): Turnover 2.78bln, +18%. Confirms FY24 outlook. (Newswires)

BROKER MOVES

SCANDINAVIA

Kesko (KESKO FH) - April sales +6.6% or by +2.8% in comparable terms. Grocery sales 510.4mln, +0.3%. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.17% at 5,308, NDX +1.49% at 18,597, DJI +0.88% at 39,908, RUT +1.14% at 2,109

SECTORS: Technology +2.29%, Real Estate +1.69%, Health +1.44%, Utilities +1.41%, Communication Services +0.91%, Financials +0.72%, Industrials +0.63%, Materials +0.16%, Energy +0.15%, Consumer Staples +0.02%, Consumer Discretionary -0.01%.

Berkshire Hathaway 13-F (Q1 24): New buy in Chubb (CB).

Cisco Systems (CSCO) - Shares rose 5% afterhours after the communications technology company reported its sharpest revenue fall in 15 years, though still topped analyst expectations on the top- and bottom line. Q3 adj. EPS 0.88 (exp. 0.82), Q3 revenue USD 12.70bln (exp. 12.53bln). Exec said customers were consuming the equipment shipped over the last few quarters in line with its expectations, and it was seeing a stabilisation of demand as a result. It added that the addition of Splunk will be a catalyst for further growth ahead. Sees Q4 adj. EPS between USD 0.84-0.86 (exp. 0.84), and sees Q4 revenue between USD 13.4bln-13.6bln (exp. 13.54bln). For the FY, revises its FY adj. EPS outlook to between USD 3.69-3.71 (exp. 3.64; prev. saw 3.68-3.74), and revises its FY revenue view to between USD 53.6bln-53.8bln (exp. 53.63bln; prev. saw 51.5bln-52.5bln).

Netflix (NFLX) reaches 40mln global MAUS on its ad-supported plan; is to launch an in-house advertising technology platform by the end of 2025, via Presentation.

16 May 2024 - 06:51- Research Sheet- Source: Newsquawk