Newsquawk Daily European Equity Opening News - 18th March 2024

18th March 2024

ASIA

APAC stocks were somewhat mixed after quiet weekend newsflow and as participants brace for this week's busy slate of central bank announcements including tomorrow's crucial BoJ decision, while better-than-expected Chinese activity data had little lasting effect. ASX 200 traded cautiously with the index contained by underperformance in real estate and energy. Nikkei 225 outperformed despite weak Machinery Orders with many anticipating a policy shift at tomorrow's BoJ announcement, while momentum in the index was helped by currency weakness and softer yields. Hang Seng and Shanghai Comp. were both ultimately positive after the Hang Seng pared earlier losses with the help of tech strength but with gains capped by weakness in property, while the mainland was gradually underpinned following better-than-expected Chinese Industrial Production and Retail Sales data.

Chinese Economy - Chinese Industrial Output YY (Feb) 7.0% vs. Exp. 5.0% (Prev. 6.8%). Chinese Retail Sales YY (Feb) 5.5% vs. Exp. 5.2% (Prev. 7.4%). Chinese Unemployment Rate Urban Area (Feb) 5.3% (Prev. 5.1%). China’s strong factory output and investment growth at the start of the year raised doubts over how soon policymakers will step up support still needed to boost demand and reach an ambitious growth target, according to Bloomberg. (Bloomberg)

Sony (6758 JT) - Is said to halt production of PlayStation VR2 as unsold inventories piles up, according to Bloomberg. (Bloomberg)

TSMC (2330 TT) - Is looking at building advanced packaging capacity in Japan, according to sources cited by Reuters. (Reuters)

EUROPEAN CLOSES

CLOSES: DAX: -0.08% at 17,923.15, FTSE 100: -0.20% at 7,727.42, CAC 40: +0.04% at 8,164.35, Euro Stoxx 50: -0.10% at 4,988.95, IBEX 35: +1.02% at 10,597.90, FTSE MIB: +0.46% at 33,940.03, SMI: -0.48% at 11,664.80.

SECTORS: Telecoms 0.91%, Financials 0.71%, Utilities 0.31%, Industrials 0.26%, Materials 0.22%, Energy 0.01%, Consumer Disc -0.37%, Consumer Stpl -1.12%, Healthcare -1.45%, IT -2.10%

FTSE 100

BP (BP/ LN) - Activist investor Bluebell has claimed that almost all of BP’s top shareholders are unhappy with the Co’s green strategy, according to The Telegraph. Bluebell claims the strategy erodes shareholder value by investing in loss-making renewable energy projects while rivals are “getting ahead”. (Telegraph/CityAM)

FTSE 100 Reshuffle – easyJet (EZJ LN) will replace Endeavour Mining (EDV LN) in the FTSE 100 as of today. (CityAM)

GSK (GSK LN) - Positive RUBY phase 3 data show potential for Jemperli combinations in more patients with primary advanced or recurrent endometrial cancer. (Newswires)

Marks & Spencer (MKS LN) / HSBC (HSBA LN) - Cos are said to be close to announcing a new seven-year deal to allow Marks & Spencer to overhaul its banking arm as a financial services and loyalty "super app", according to Sky News. Sources add that a deal could be announced as soon as April, with Cos looking to conclude a deal before their existing contract expires. (Sky News)

Mining Names - BHP (BHP AT) said 30% of Australian nickel mines have shut and 30% more are under pressure on low prices, according to Reuters. (Reuters)

UK Rightmove - UK Rightmove House Price Index YY (Mar) 0.8% (Prev. 0.1%); Rightmove House Price Index MM (Mar) 1.5% (Prev. 0.9%); “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway"; “While mortgage affordability remains an issue, it certainly hasn’t dampened the appetite of London buyers and we’ve continued to see a high level of activity at all price thresholds". (Rightmove)

OTHER UK COMPANIES

Direct Line (DLG LN) - Ageas (AGS BB) CEO is reportedly flying to China to meet its largest shareholder Fosun (10% stake in Ageas) in a bid to gather support to raise its takeover offer for Direct Line. After offers were twice rejected, Ageas is said to be mulling another bid for Direct Line, according to CityAM. The article notes “Ageas is not proposing a shareholder vote on the deal but needs approval from investors to issue the new stock to fund a potential acquisition, meaning Fosun’s support could be crucial.” (CityAM)

ITV (ITV LN) – Co. began cutting jobs in its in-house advertising agency last month. The cuts come amid a sharp fall in advertising revenue, but sources suggested the job losses and the revenue fall are not linked. Sources added further redundancies could be made in the coming months. (Telegraph)

BROKER MOVES

Centrica (CNA LN) downgraded to Sector Perform from Outperform at RBC

Rentokil (RTO LN) upgraded to Outperform from Neutral at BNP Paribas

DAX

Hannover Re (HNR1 GY) - FY23 (EUR): Net 1.83bln (exp. 1.80bln, prev. 781mln Y/Y), EBIT 1.97bln (exp. 2.30bln, prev. 1.52bln Y/Y), Reinsurance Revenue 24.5bln (prev. 24bln Y/Y), Raises dividend to 7.20/shr (prev. 6.0/shr), ROE 19% (prev. 8.2% Y/Y). Affirms FY24 guidance. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

E.ON (EOAN GY) upgraded to Equal Weight from Underweight at Morgan Stanley

CAC

Airbus (AIR FP) – Korean Air is said to be close to purchasing around 20 A350s and some A321neo single-aisle planes, according to Bloomberg sources. An agreement could be announced as soon as this week, although the deal could still fall apart. (Bloomberg)

Kering (KER FP) – Co. and Saudi Arabia’s PIF are said to be eyeing a GBP 2bln stake in Selfridges, according to Telegraph citing sources. Sourced added that Signa’s stake in Selfridges, worth around GBP 2bln, was available for acquisition but the sale process could be complicated by legal proceedings against Signa in Austria. (Telegraph/CityAM)

Renault (RNO FP) - Renault Korea to spend KRW 118bln in Busan plant by 2028. (Newswires)

Vinci (DG FP) - Feb Airport traffic +14.4% Y/Y, Autoroutes -2.1% Y/Y. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Alstom (ALO FP) upgraded to Buy from Hold at Deutsche Bank

Covivo (COV FP) upgraded to Buy from Hold at HSBC

Gecina (GFC FP) downgraded to Hold from Buy at HSBC

PAN EUROPE

LPP (LPP PW) – Q4 (PLN) – Net 484mln (exp. 493mln), EBIT 643mln (exp. 667mln), Revenue 4.84bln. (Newswires)

BROKER MOVES

Aena (AENA SM) downgraded to Hold from Buy at Jefferies

Signify (LIGHT NA) upgraded to Overweight from Underweight at Barclays

SMI

Logitech (LOGN SW) - CFO Boynton to step down, effective mid-May; successor to be named at a later date. Affirms FY24 Op. USD 610-660mln, Revenue 4.20-4.25bln (exp. 4.24bln). (Newswires)

UBS Group (UBS) - UBS plans to pursue merger and acquisition opportunities in the United States in the coming years, focusing on expanding its wealth-management business, according to Reuters. The chairman highlighted the intention to grow through potential M&A activities within three or four years, particularly in wealth management. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.65% at 5,117, NDX -1.15% at 17,808, DJIA -0.49% at 38,714, RUT +0.40% at 2,039.

SECTORS: Technology -1.29%, Communication Services -1.18%, Consumer Discretionary -1.14%, Health -0.37%, Consumer Staples -0.11%, Real Estate -0.09%, Financials -0.05%, Industrials +0.08%, Materials +0.08%, Utilities +0.12%, Energy +0.23%.

Apple (AAPL) - Is in talks to let Google (GOOG) Gemini power iPhone AI features and is also in discussions with OpenAI regarding a deal, according to Bloomberg. (Bloomberg)

Meta (META) - Federal officials are investigating Co. over its role in selling illegal drugs, via WSJ. (WSJ)

Tesla (TSLA) - Plans to raise prices for Model Y in Europe and Middle East regions by about EUR 2k. (Newswires)

18 Mar 2024 - 06:49- EnergyResearch Sheet- Source: Newsquawk