Newsquawk Daily European Equity Opening News - 20th May 2024

20th May 2024

ASIA

APAC stocks began the week on the front foot despite last Friday's indecisive performance on Wall St where the major indices traded sideways but remained near record levels, while there was also a lack of fresh macro developments over the weekend. ASX 200 was led by outperformance in miners after gold and copper prices climbed to fresh record levels. Nikkei 225 surged above the 39,000 level with the index unfazed by the mild uptick in yields and absence of fresh drivers. Hang Seng and Shanghai Comp conformed to the positive mood but with gains capped in the mainland amid lingering frictions after China sanctioned three US defence contractors for arms sales to Taiwan, while the PBoC provided no surprises with the benchmark LPRs kept unchanged.

EUROPEAN CLOSES

CLOSES: DAX: -0.17% at 18,707.28, FTSE 100: -0.22% at 8,420.26, CAC 40: -0.26% at 8,167.50, Euro Stoxx 50: -0.17% at 5,063.65, IBEX 35: +0.25% at 11,327.70, FTSE MIB: -0.03% at 35,398.82, SMI: +0.69% at 12,028.70.

SECTORS: Materials 0.49%, Financials 0.33%, Consumer Stpl 0.32%, Telecoms 0.28%, Energy 0.13%, Consumer Disc 0.00%, IT -0.31%, Healthcare -0.36%, Industrials -0.84%, Utilities -0.84%

FTSE 100

AstraZeneca (AZN LN) - Verdict was entered in favour of Puma Biotechnology against AstraZeneca; awarded plaintiffs USD 107.5mln in damages. Elsewhere, AstraZeneca is to set out mid-term growth plans on Tuesday 21st May. (The Telegraph/Newswires)

Anglo American (AAL LN) - BHP (BHP AU) has until Wednesday 22nd May to make a bid for Anglo American or withdraw from the deal; the Co. is considering whether to make an improved proposal, according to Bloomberg citing people close to the matter. (Bloomberg)

UK Housing - UK Rightmove House Price Index MM 0.8% (Prev. 1.1%); Rightmove said asking prices for UK homes hit a record high in the four weeks to mid-May although the pace of increase was the slowest YTD. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Bank (DBK GY) / Commerzbank (CBK GY) - A Russian court has ordered a seizure on assets, accounts and property owned by the banks, via Reuters. (Reuters)

Mercedes Benz (MBG GY) - Alabama plant voters 1451-1073 against unionisation, according to an early vote count. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

TotalEnergies (TTE FP) - Co. has struck first deal with Aliko Dangote on a refinery in Nigeria. (Newswires)

OTHER FRENCH COMPANIES

Scor (SCR FP) - Co. combined general meeting on 17 May 2024: Shareholders adopt all proposed regulations. (Newswires)

BROKER MOVES

PAN EUROPE

Cellnex (CLNX SM) - Extension of total return equity swap contract for EUR 150mln, with Global Financial Institution. (Newswires)

European utilities - A number of European power companies have scaled back their targets to develop renewable energy because of high costs/low electricity prices, according to the FT. (FT)

Ferrovial (FER SM) - Co. is thinking of selling 3 regional UK airports after a separate deal to sell its stake in Heathrow falters, via The Telegraph. A source close to AGS Airports will be sold in its entirety, allowing both Ferrovial and Macquarie to exit. (The Telegraph)

Mining names - Spot gold printed a record high of around USD 2,440/oz while copper futures extended on gains and benchmark LME prices hit a fresh all-time peak above USD 11,100/t.

Ryanair (RYA ID) - FY24 (EUR) Revenue 13.44bln (exp. 13.38bln), Adj. Profit After Tax 1.92bln (exp. 1.9bln), Rev. per passenger +15%, Op. costs +24%; Board approves EUR 700mln share buyback. Remains "a risk" that Boeing (BA) deliveries could slip further. Cautiously optimistic peak summer fares flat to modestly ahead Y/Y. FY25 forecasts: Traffic to grow to 198-200mln (prev. 183.7mln Y/Y). Does not provide profit guidance. Cost advantage continues to widen, even though we expect FY25 unit costs to rise modestly. CFO says: Summer demand is very strong. Among 20 airlines being investigated by the EU for potential greenwashing and have a number of weeks left to send in a submission. CEO says: Will receive modest compensation for Boeing delays. Expects FY26 Capex to fall to approx EUR 1bln from 2.3bln in the coming year. Says reasonable for shareholders to assume and expect the board will declare a dividend of EUR 480mln for FY25. Not quite sure if weaker pricing is due to consumer sentiment, recessionary feel around Europe. If we have to cut fares to fill to 94% laod factor in April, May and June then so be it. (Newswires)

BROKER MOVES

SMI - Whit Monday (Switzerland closed).

Baloise (BALN SW) - Activist investor Cevian has taken a stake in Baloise, worth around USD 243mln, via Reuters. (Reuters)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA - Whit Monday (Norway, Denmark closed).

EQT (EQT SS) - Co. is in discussions to buy Keywords Studious for GBP 2.2bln; it had already made four bids, all of which have been rejected, via the FT. (FT)

BROKER MOVES

US

SPX +0.12% at 5,303, NDX -0.06% at 18,546, DJIA +0.34% at 40,003, RUT -0.03% at 2,096.

Amgen (AMGN) - New data presented show the potential of Tezspire to help patients living with CPOD. Also of note for AstraZeneca

20 May 2024 - 06:53- EquitiesResearch Sheet- Source: Newsquawk