Newsquawk Daily European Equity Opening News - 17th October 2024

ASIA

APAC stocks were mostly in the green following the rebound of equity markets stateside but with gains capped amid quiet macro catalysts and as China's property sector briefing failed to rally local developers. ASX 200 climbed to a fresh record high led by strength in real estate, industrials and financials, while strong jobs data added to the upbeat mood but further lowered the odds of a rate cut this year. Nikkei 225 underperformed following disappointing trade data including a surprise contraction in exports. Hang Seng and Shanghai Comp advanced at the open with the help of tech strength and consumer-related stocks, although the mainland index briefly wiped out all of its gains amid weakness in property stocks as the press briefing by several Chinese government agencies and the PBoC failed to inspire a turnaround in the sector.

BHP (BHP AT) - Q1 WAIO iron ore output rose 3% Y/Y to 71.6mln tons (exp. 70.7mln, prev. 69.4mln tons Y/Y), shipments 71.5mln tons (exp. 72.0mln tons), copper output 476.3k tons, Co. says it is on track to meet FY25 production guidance. (Newswires)

TSMC (2330 TW) - Q3 (TWD): Net 325.3bln (exp. 299.3bln), Gross Margin 57.8% (exp. 54.8%), Capex 6.4bln (prev. 6.36bln Q/Q), EPS 12.54 (exp. 11.41). Q3 revenue was supported by strong smartphone and AI-related demand. Shipments of 3-nanometer accounted for 20% of total wafer revenue; 5-nanometer accounted for 32%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 69% of total wafer revenue. (TSMC)

EUROPEAN CLOSES

CLOSES: DAX: -0.18% at 19,451, FTSE 100: +0.97% at 8,329, CAC 40: -0.40% at 7,492, Euro Stoxx 50: -0.77% at 4,909, AEX: -0.74% at 893, IBEX 35: +0.56% at 11,997, FTSE MIB: +0.24% at 34,660, SMI: -0.20% at 12,194, PSI: +0.78% at 6,750.

SECTORS: Utilities 0.86%, Telecoms 0.72%, Energy 0.34%, Industrials 0.10%, Financials -0.05%, Healthcare -0.06%, Consumer Stpl -0.36%, Materials -0.39%, Consumer Disc -0.68%, IT -1.83%

FTSE 100

Anglo American (AAL LN) - BHP (BHP AT) chief met with government officials in South Africa last week, sparking speculation it will resurrect its failed GBP 39bln bid for Anglo America. BHP was examining how to might make a renewed offer after the standstill period comes to an end on November 29th, according to bankers seeking advisory or financing roles. The cautioned however, that no decision has been made. (Newswires)

Ex-Dividends - Howden Joinery Group (HWDN LN), Persimmon (PSN LN), Spirax (SPX LN), Smiths (SMIN LN) will trade without entitlement to their latest dividend payout. (dividenddata)

OTHER UK COMPANIES

BROKER MOVES

Wood (WG/ LN) reinstated with Overweight at JPMorgan

DAX

Sartorius (SRT3 GY) - 9M (EUR): Order intake 2.23bln, +5.7% Y/Y. Results in line with exp. and confirms outlook for FY. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Says it is in the early stages of analysing the financial impact of defense/space job cuts, and will take provision once necessary conditions are fulfilled. Commercial headcount increase expected to be lower in Q3 than Q2, weighing less on profitability. (Newswires)

Pernod Ricard (RI FP) - Q1 (EUR): Sales 2.78bln (exp. 2.80bln). Sales in USA -10%, India +2%, China -26%. Confirmed medium target of aiming for upper end of +4 to +7% organic net sales growth. For FY25 confirms it sees FY organic net sales back to growth with continuing volume recovery and to sustain organic op. margin. (Newswires)

Publicis (PUB FP) - Q3 (EUR): Net Revenue 3.42bln (exp. 3.41bln). Ups FY24 organic growth guidance floor to +5.5% (prev. guided +5%). (Newswires)

Sanofi (SAN FP) - Co. and Orano join to develop next-gen Radioligand medicines. To invest EUR 300mln for a 16% stake in the new entity. (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) - Sept traffic 32.9mln passengers, +5.5% Y/Y. (Newswires)

Getlink (GET FP) - 9m (EUR): Revenue 1.28bln, -9% Y/Y, Eurotunnel revenue 359mln, +5% Y/Y. (Newswires)

Gecina (GFC FP) - Total gross rental income by Sept 30 EUR 518.4mln, +4.4% Y/Y. 2024 recurrent net income guidance upgraded; now expected to reach around EUR 6.40/shr. (Newswires)

BROKER MOVES

PAN EUROPE

Imcd (IMCD NA) - Acquries Blumos to accelerate its growth in Life Sciences; transaction exp. to close in Q4'24. (Newswires)

UniCredit (UCG IM) - Co. is seeking to have ECB's rulings to reduce its Russian business annulled, according to Reuters citing sources. Elsewhere, the Co. has signed with labour unions agreement to employ 500 people and 1000 voluntary redundancies. (Reuters/Newswires)

BROKER MOVES

SMI

ABB (ABBN SW) - Q3 (USD): Revenue 8.15bln (exp. 8.33bln), Net Income 947mln (exp. 981mln). In Q4, anticipates a low to mid-single-digit comparable rev. growth. Expected a positive book-to-bill comparable rev. growth to be below 5%. Expects operational EBITA margin to be slightly above 18%. (Newswires)

Novartis (NOVN SW) - Loses latest bid to block generic version of blockbuster heart drug Entresto. (Newswires)

Nestle (NESN SW) - 9m (CHF): Revenue 67.1bln (exp. 67.59bln), Organic Rev. 2% (exp. 2.5%); sees FY organic rev. +2%, (exp. +2.79%, prev. +3%). Makes changes to its organisation of its exec. board. CFO said Co. is seeing a more challenging retail environment in Europe. (Newswires)

OTHER SWISS COMPANIES

Schindler (SCHP SW) - Q3 (CHF): Net Profit 254mln (prev. 228mln Y/Y), Revenue 2.78bln (prev. 2.81bln Y/Y). On track to deliver guidance. (Newswires)

VAT (VACN SW) - Q3 (CHF): Orders 259mln, +58% Y/Y, Sales 209mln, +0% Y/Y. For Q4: Expects sales of CHF 270-300mln. (Newswires)

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) - Q3 (EUR): Total investments 6bln (prev. 2bln Y/Y). (Newswires)

Nordea Bank (NDA FH) - Q3 (EUR): NII 1.88bln (exp. 1.88bln), EPS 0.36 (exp. 0.34), CET 1 Capital Ratio 15.8% (exp 15.83%), Net Loan Losses 51mln (prev. 33mln Y/Y). Co. said during the quarter, customers increased their savings and investment activity. Financial target for 2025 unchanged. Cost growth for FY25 will be significantly lower than this year. Outlook for 2024: RoE above 16% (prev. guided above 15%. (Newswires)

Nokia (NOKIA FH) - Q3 (EUR) Sales 4.3bln (exp. 4.75bln), EBIT 246mln (exp. 424mln), adj. EPS 0.06 (exp. 0.07), adj. EBIT Margin 10.5%. (Newswires)

Skanska (SKAB SS) - Upgrades substation in Norway for SEK 360mln. (Newswires)

Tietoevry (TIETO FH) - Updates its FY guidance. Organic growth -2% (prev. guided 0-3%), and Adj. EBITDA 12.3-12.7% (prev. guided 12-13%). (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.47% at 5,842, NDX +0.07% at 20,174, DJIA +0.79% at 43,078, RUT +1.64% at 2,287

SECTORS: Communication Services -0.37%, Consumer Staples -0.21%, Health +0.28%, Consumer Discretionary +0.32%, Technology +0.36%, Energy +0.43%, Industrials +0.77%, Materials +0.83%, Real Estate +1.01%, Financials +1.22%, Utilities +2.03%.

Alcoa Inc (AA) - Q3 EPS 0.38 (exp. 0.29), Q3 revenue USD 2.904bln (exp. 2.92bln). Q3 aluminium shipments 638lmt (exp. 643k), aluminium production 559k mt (exp. 560k), alumina production 2.44mt (exp. 2.50mln). Alumina segment adj. EBITDA USD 367mln (exp. 392.6mln). Average realized third-party price per metric ton of alumina USD 485 (exp. 480.56). Still sees FY aluminium shipments between 2.5-2.6mln metric tons, and aluminium production between 2.2-2.3mln mt (exp. 2.24mln).

Expedia (EXPE), Uber Technologies (UBER) - Uber has explored a potential bid for travel company Expedia as part of its strategy to become a “super app,” combining ride-hailing with travel and other services, FT reports. Discussions are at an early stage, and no formal approach has been made. CEO Dara Khosrowshahi’s past role at Expedia complicates potential negotiations. (FT)

Steel Dynamics (STLD) - Q3 EPS 2.05 (exp. 1.97), Q3 revenue USD 4.34bln (exp. 4.17bln). Q3 steel shipments 3.2mln tonnes. Exec said underlying steel demand continued to be stable in Q3, but earnings declined sequentially, based on lower average realised steel pricing, primarily within the flat rolled operations as generally 80% of this business is contractually based and tied to lagging pricing indices. It added that steady steel demand, coupled with continued low customer inventory and stabilised scrap prices, resulted in stabilisation and improvement in flat rolled steel prices during the later part of Q3. Its long product steel operations realised a slight improvement in metal spread as scrap pricing declined more than average realised pricing.

17 Oct 2024 - 06:59- Research Sheet- Source: Newsquawk