Newsquawk Daily European Equity Opening News - 18th November 2024

ASIA

APAC stocks began the week with a mildly positive following last Friday's tech-led declines on Wall St which were triggered by hot US data and with quiet newsflow from over the weekend aside from Russian geopolitical-related headlines. ASX 200 was contained as losses in tech, healthcare and financials offset gains in utilities, commodities and consumer stocks. Nikkei 225 declined at the open after last Friday's currency strength and with a surprise contraction in Machinery Orders, although was off today's worst level with some mild support seen as the yen weakened following BoJ Governor Ueda's comments. Hang Seng and Shanghai Comp traded higher amid a focus on recent earnings releases and after the PBoC continued its liquidity efforts, while Chinese President Xi said that China is 'ready to work' with Trump during a meeting with US President Biden.

China stocks - Morgan Stanley moves China equity recommendation to slight underweight and trims return forecast

EUROPEAN CLOSES

CLOSES: DAX -0.23% at 19,220, FTSE 100 -0.09% at 8,064, CAC 40 -0.58% at 7,270, Euro Stoxx 50 -0.79% at 4,795, AEX -1.37% at 863, IBEX 35 +0.97% at 11,636, FTSE MIB -0.48% at 34,192, SMI -1.40% at 11,619.

SECTORS: Energy 0.74%, Financials 0.37%, Utilities 0.22%, Materials 0.02%, Consumer Disc -0.21%, Consumer Stpl -0.57%, Telecoms -0.81%, Industrials -0.90%, Healthcare -3.21%, IT -3.26%              

FTSE 100

Hargreaves Lansdown (HL/ LN) - More than 5000 Woodford investors sue Hargreaves Lansdown, who claim that the broker continued to recommend the Woodford equity fund even as it faced issues, via City AM. (City AM)

UK Housing - UK Rightmove House Price Index YY (Nov) 1.2% (Prev. 1.0%); Rightmove House Price Index MM (Nov) -1.4% (Prev. 0.3%); "The big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold." (Rightmove)

OTHER UK COMPANIES

Shein IPO - Shein is gearing up to launch its planned IPO in Q1 2025 subject to pending regulatory approvals and is preparing to hold an investor roadshow in the coming weeks, according to The Times. The Chinese fast-fashion retailer is planning a London IPO. (The Times)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

ThyssenKrupp (TKA GY) - Co's Division Head says the co. plans its Marine IPO within a year, via Bloomberg. (Bloomberg)

BROKER MOVES

CAC

Danone (BN FP), Lifeway Foods (LWAY) - Lifeway Foods confirmed receiving a USD 27.00/shr buyout proposal from Danone North America, which already owns a 23.3% stake. Lifeway's board previously rejected an initial USD 25.00/shr proposal, said it will evaluate the revised approach.

Kering (KER FP) - Kering may appoint Balenciaga CEO Cedric Charbit to lead its Yves Saint Laurent unit, succeeding Francesca Bellettini, who assumed broader responsibilities in 2023, according to Bloomberg. (Bloomberg)

Orange (ORA FP) - Appeals a EUR 312mln seizure by French prosecutors over old VAT rates applied by the Co. to offers between 2017-19. (Newswire)

OTHER FRENCH COMPANIES

Bouygues (EN FP) - Telecom completes acquisition of La Poste Telecom. (Newswires)

Getlink (GET FP) - Confirms FY25 EBITDA target. Works to restore cable on the electric interconnector between France and UK are progressing well; extension of suspension will have commercial impact of EUR 13mln. (Newswires)

Ipsen (IPN FP) - Bylvay (odevixibat) data shows sustained improvement in severe itch and serum bile acid levels in patients with PFIC and ALGS. Ipsen presents 3 late-breaking presentations and 8 abstracts across rare cholestatic liver disease portfolio at AASLD 2024. (Ipsen)

Vivendi (VIV FP) - Update on the spin-off project. Canal+ expects rev. growth for the FY to be broadly in line with the prior year. Potential finalisation of the pending multichoice control acquisition would significantly impact the financial profile of the group in the mid-term in Africa and overall. (Newswires)

BROKER MOVES

PAN EUROPE

Acciona Energia (ANA SM) - Agreement reached for sale of hydroelectric assets located in Spain to Endesa (ELE SM); deal for EUR 1bln and expected to close in H1'25. (Newswires)

Enel (ENEL IM) - Co. announced 2025-27 strategy with EUR 43bln investment over the period. Expects 2027 EBITDA to grow to EUR 24.1-24.5bln. Proposes dividend of EUR 0.46/shr. (Newswires)

Defence names - US President Biden’s administration lifted restrictions on Ukraine using US-made weapons to strike deep inside Russia, according to sources familiar with the decision cited by Reuters. NYT also reported that President Biden allowed Ukraine to strike Russia with long-range US missiles, while Ukrainian President Zelensky said missiles speak for themselves and such things are not announced regarding long-range strikes. (Reuters/NYT).

Leonardo (LDO IM) - Fitch revises Leonardo's outlook to Positive; affirmed at BBB-. Fitch believes Leonardo's profitability metrics will continue to improve and will benefit from positive demand trend in the defence industry. (Newswires)

Prosus (PRX NA) - Trading update (EUR): Core H1 headline EPS expected to increase by 84-93%. (Newswires)

UniCredit (UCG IM) - Goldman Sachs (GS) holds a 5.61% stake in UniCredit, of which 4.36% through derivatives and 1.02% of voting rights. (Newswires)

BROKER MOVES

Buzzi (BZU IM) downgraded to Hold from Buy at Berenberg

SMI

Roche (ROG SW) - Roche receives CE Mark for VENTANA FOLR1 (FOLR1-2.1) RxDx Assay as the first IHC-based companion diagnostic to identify ovarian cancer patients eligible for ELAHERE. The VENTANA FOLR1 (FOLR1-2.1) RxDx Assay detects the folate receptor 1 protein (FOLR1 or FRɑ), which is over-expressed in most ovarian cancers. (Roche)

OTHER SWISS COMPANIES

DKSH (DKSH SW) - Sets strategic priorities of growth, margin expansion and accelerated M&A at its capital markets day. (Newswires)

BROKER MOVES

SCANDINAVIA

Salmar (SALM NO) - Q3 (NOK): Revenue 6.15bln (exp. 6.31bln), Op. EBIT 1.04bln (exp. 998mln). (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.32% at 5,871, NDX -2.40% at 20,394, DJIA -0.70% at 43,445, RUT -1.42% at 2,304.

SECTORS: Technology -2.49%, Health -1.88%, Communication Services -1.85%, Consumer Discretionary -1.36%, Consumer Staples -0.83%, Materials -0.79%, Industrials -0.6%, Energy -0.34%, Real Estate +0.16%, Financials +0.53%, Utilities +1.47%.

AI Stocks - Positive mention in Barron's; the newspaper said AI's long-term potential remains strong despite rising costs, according to tech executives; the report highlighted Nvidia (NVDA), Oracle (ORCL), and Vertiv (VRT) as three promising AI-related stocks for investors seeking sustained growth in the sector.

CRH Plc (CRH) - CRH has acquired Dutra Materials in San Rafael, California, expanding its Americas Materials Solutions business; no terms were disclosed. The acquisition strengthens CRH's presence in northern California, enhancing its aggregate and asphalt production capabilities. (Newswires)

Nvidia (NVDA) - Nvidia is facing challenges with its Blackwell AI chip servers, specifically overheating issues when multiple units are connected in customised racks, The Information reports. The company has requested multiple design changes, raising concerns among customers about potential delays in availability.

T-Mobile US (TMUS) - T-Mobile was hacked as part of a Chinese cyber-espionage campaign targeting multiple telecom companies worldwide, WSJ reports. The breach, attributed to Chinese intelligence agents, aimed to spy on high-value targets' communications. T-Mobile said there was no evidence of customer data being compromised. (WSJ) Of note for Deutsche Telekom (DTE GY)

xAI, Nvidia (NVDA) - Elon Musk's AI company xAI is raising up to USD 6bln, at a USD 50bln valuation, to fund the purchase of 100k Nvidia chips for a new supercomputer in Memphis, CNBC reports. The funding includes USD 5bln from Middle Eastern sovereign funds and USD 1bln from other investors.

18 Nov 2024 - 06:50- Geopolitical- Source: Newsquawk