Newsquawk Daily European Equity Opening News - 18th January 2024

18th January 2024

ASIA

APAC stocks traded mixed with the region mostly negative after the unwinding of central bank rate cut pricing. ASX 200 was dragged lower by the mining-related sectors with attention on BHP's lower quarterly iron ore output. Nikkei 225 swung between gains and losses after recent currency weakness and disappointing machinery orders. Hang Seng and Shanghai Comp were mixed as the Hong Kong benchmark composed itself following yesterday's near-4% collapse, while the mainland index slipped to its lowest level since 2020 after recent data and rate disappointment.

BHP (BHP AT) - Quarterly WAIO output 72.7mln tons (prev. 74.3mln tons Y/Y), copper output 437.4k tons (prev. 424.3k tons Y/Y). Metallurgical coal BMA production 5.7mln tons (prev. 7.0mln tons Y/Y). Energy coal NSWEC output 3.9mln tons (prev. 2.9mln tons Y/Y). Nickel output 19.6k tons (prev. 17.7k tons Y/Y). Operations are being actively optimised, and options are being evaluated to mitigate the impacts of the sharp fall in nickel prices at Nickel West. Maintains FY24 production guidance for all assets aside from BMA which has been lowered to between 23mln-25mln tons. (Newswires)

TSMC (2330 TT / TSM) - Q4 (TWD) net fell 19% Y/Y 238.7bln (exp. 226.4bln); FY Capex USD 30.45bln (exp. USD 31.86bln). In the fourth quarter, shipments of 3-nanometer accounted for 15% of total wafer revenue; 5-nanometer accounted for 35%; 7-nanometer accounted for 17%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 67% of total wafer revenue. Guidance: Sees Q1 revenue between USD 18-18.8bln (exp. 18.26bln); Sees Q1 operating margin between 40-42% (vs 41.6% in Q4), sees Gross Margin between 52-54% (vs Q4 53%), For FY expects utilisation rate to rise. (Newswires)

Smartphone vendors - Vendors in China increase 2024 shipment targets with Transsion, Huawei and Honor mentioned, according to DigiTimes. (DigiTimes)

EUROPEAN CLOSES

CLOSES: DAX -0.84% at 16,431.69, FTSE 100: -1.48% at 7,446.29, CAC 40: -1.07% at 7,318.69, Euro Stoxx 50: -1.00% at 4,401.85, IBEX 35: -1.26% at 9,867.80, FTSE MIB -0.79% at 30,098.86, SMI -0.73% at 11,148.10.

SECTORS: IT -0.46%, Telecoms -0.47%, Healthcare -0.59%, Financials -0.71%, Consumer Stpl -0.90%, Industrials -1.08%, Utilities -1.74%, Energy -1.81%, Materials -1.83%, Consumer Disc -1.96%

FTSE 100

Ex-Dividends - Compass Group (CPG LN), Diploma (DPM LN), B&M European (BME LN) will trade without entitlement to their latest dividend payout. (Newswires)

Rio Tinto (RIO LN) - The Serbian President said the Government may rethink the Rio Tinto lithium project. (Newswires)

UK Housing RICS Survey - UK RICS Housing Survey (Dec) -30.0 vs. Exp. -34.0 (Prev. -43.0, Rev. -41). (RICS)

OTHER UK COMPANIES

BROKER MOVES

BAE Systems (BA/ LN) downgraded to Underperform from Neutral at BNP Paribas

DAX

Bayer (BAYN GY) - To change operating model and see significant staff cuts; aims to sustainably improve performance with a new organization. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Evotec (EVT GY) upgraded Outperform from Sector Perform at RBC Shares seen +3.5% in pre-market trade

MTU Aero Engines (MTX GY) upgraded to Outperform from Neutral at BNP Paribas

TeamViewer (TMV GY) downgraded to Underperform from Neutral at BNP Paribas

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Rexel (RXL FP) downgraded to Neutral from Outperform at Oddo

Thales (HO FP) downgraded to Neutral from Outperform at BNP Paribas

PAN EUROPE

ArcelorMittal (MT NA) - The Italian government is preparing to put ArcelorMittal's Ilva factory under special administration after failing to come to an agreement with ArcelorMittal. An announcement is expected to be made as soon as Thursday 18th 2024, according to the FT. (FT)

argenx (ARGX BB) - Announces approval of VYDURA injection for subcutaneous use in Japan. (Newswires)

Banking Names - ECB's de Cos said he backs US proposals to impose more stringent requirements on banks than their US and EU counterparts and said countries should go beyond global regulations if required, according to FT. (FT)

Chip Names - TSMC (2330 TT / TSM): Q4 (TWD) net fell 19% Y/Y 238.7bln (exp. 226.4bln); FY Capex USD 30.45bln (exp. USD 31.86bln). Sees Q1 revenue between USD 18-18.8bln (exp. 18.26bln); Guidance: Sees Q1 operating margin between 40-42% (vs 41.6% in Q4), sees Gross Margin between 52-54% (vs 53% in Q4); says 2023 was a "challenging year". For 2024, Capex was seen between 28-32bln (vs 2023 30.45bln). Capex is beginning to level off. For this year's Capex, 70-80% will be advanced technologies. For FY expects the utilisation rate to rise.

Stellantis (STLAM IM/STLAP FP) - Goodyear (GT) is to name Stellantis executive Mark Stewart as its new CEO, according to Bloomberg. (Bloomberg)

Grifols (GRF SM) - ECB asks some lenders to detail exposure to Spanish drug maker Grifols and its related entities after the short seller report, according to Reuters sources. (Reuters)

Flughafen Wien (FLU AV) - Financial outlook for 2024 foresees gratifying record levels of revenue of about EUR 970mln and net profit of at least EUR 210mln. (Newswires)

Repsol (REP SM) -Says Q4 estimated refining margin indicator in Spain is USD 9/bbl (prev. USD 13.6/bbl in Q3); Q4 estimated production 595k BPD (prev. 596k BPD in Q3). (Newswires)

BROKER MOVES

Ahold Delhaize (AD NA) downgraded to Neutral from Buy at Janney

Campari (CPI IM) downgraded to Underperform from Sector Perform at RBC

Leonardo (LDO IM) downgraded to Underperform from Outperform at BNP Paribas

SMI

Richemont (CFR SW) - Q3 (EUR): Revenue 5.59bln (exp. 5.55bln), +8% Y/Y. Sales at constant FX +8% (exp. +6.91%). Co. notes of growth across almost all regions, primarily driven by Japan, Asia Pacific and the Americas. Channel performance led by retail, up 11% and 6% at constant and actual exchange rates, respectively, with increases across all business areas. Growth across most business areas with Jewellery Maisons continuing to generate the strongest performance (+12% and +6% at constant and actual exchange rates, respectively). All distribution channels recorded sales growth except for the online retail channel where sales decreased by 5%. Retail sales increased by 11%, with growth in all regions – with the exception of Europe - and notable strength in mainland China, Hong Kong and Macau combined as well as in the US. (Richemont/Bloomberg) Shares seen opening higher by 4.6%.

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) - FY23 (EUR): Adj. EBITDA 1.23bln (prev. 829mln Y/Y), Revenue 2.13bln (prev. 1.54bln Y/Y). (Newswires)

Maersk (MAERSK DC) - Says winter weather conditions and Red Sea contingencies are expected to affect operations across Europe and hub terminals. (Newswires)

BROKER MOVES

Rockwool (ROCKA DC) downgraded to Hold from Buy at DNB Markets

US

CLOSES: SPX -0.56% at 4,739, NDX -0.56% at 16,736, DJI -0.25% at 37,267, RUT -0.73% at 1,913.

SECTORS: Real Estate -1.87%, Utilities -1.52%, Consumer Discretionary -0.91%, Energy -0.84%, Materials -0.80%, Industrials -0.67%, Communication Services -0.63%, Technology -0.50%, Financials -0.28%, Health -0.24%, Consumer Staples -0.12%.

Apple (AAPL) - US DoJ prepares to file Apple (AAPL) antitrust case focused on software and hardware limits as soon as March, according to Bloomberg. DoJ hopes to file a suit in Q1 of the year, though that timing could slip. (Bloomberg)

18 Jan 2024 - 06:45- EnergyResearch Sheet- Source: Newsquawk