Newsquawk Daily European Equity Opening News - 22nd December 2023

22nd December 2023

ASIA

APAC stocks initially traded with a modest positive bias following the gains on Wall Street but with gains capped ahead of the US PCE and the Christmas break, whilst losses in Hong Kong tilted sentiment into the red after China announced online gaming restrictions. ASX 200 was flat in tight ranges above 7,500, whilst the breadth of the sectors was also narrow. Energy and IT were the relative outperformers. Nikkei 225 saw support from its Banking Sector, but Autos and Retail once again underperformed. Hang Seng and Shanghai Comp were choppy and initially held a mild positive bias, whilst Hang Seng was later hit hard after Chinese regulators issued drafts for online game management, with shares of Tencent and NetEase slumping on the announcement and extending losses on return from the lunch break, with Tencent -16% and NetEase -28% at one point.

Gaming Names - Chinese regulator issues drafts for online game management, according to Reuters; requires online games to set spending limits, ban daily login rewards. Requires online game approvals to be processed by regulators within 60 days. Bans live-streaming of heavy tipping within games. Bans online games from offering probability-based luck draw features to minors. Hang Seng slipped while Tencent (700 HK) shares slid over 7% and NetEase (9999 HK) posting losses of over 12%. (Newswires)

Samsung Electronics (005930 KS) - Other smartphone manufacturers are planning to increase production in 2024, according to Nikkei, "In a sign the industry is finally pulling out of its yearlong slump". (Newswires)

EUROPEAN CLOSES

CLOSES: CAC 40: -0.16% at 7,571.40, FTSE 100: -0.27% at 7,694.73, FTSE 250: -0.30% at 19,570.97, IBEX 35: +0.03% at 10,104.30, FTSE MIB: -0.29% at 30,274.26, Euro Stoxx 50: -0.22% at 4,523.85, DAX: -0.27% at 16,687.42, SMI: -0.17% at 11,125.90.

SECTORS: Healthcare 0.11%, Industrials -0.06%, Materials -0.16%, IT -0.18%, Telecoms -0.23%, Utilities -0.23%, Financials -0.27%, Consumer Stpl -0.31%, Energy -0.66%, Consumer Disc -0.73%

FTSE 100

Christmas half day - LSE:  Markets closing process commences from 12:30 London time. Standard settlement day.

Hikma (HIK LN) - Receives US FDA ANDA supplemental 43, 51 approval for METHADONE HYDROCHLORIDE. (Newswires)

HSBC (HSBA LN/ 5 HK) - Canada is to approve RBC's acquisition of HSBC's Canadian unit, according to Bloomberg. Following the sale of HSBC Canada to RBC, says they are committed to considering payment of a special dividend of USD 0.21/shr as a priority use of proceeds from this sale in the first half of 2024. (Newswires / Bloomberg)

Shell (SHEL LN) - Venezuela awards license to Shell, Trinidad and Tobago's NGC to develop Dragon offshore gas field, according to PDVSA. Is offering some staff redundancy packages and job shifts, according to Bloomberg. CEO Sawan says to reduce costs and extend job cuts; will offer some staff redundancy packages or new positions. (PDVSA / Bloomberg)

OTHER UK COMPANIES

CRH (CRH LN) - Oldcastle APG acquires Waupaca Northwoods Nampa facilities; no terms disclosed. (Newswires)

BROKER MOVES

DAX

Deutsche Bank (DBK GY) - Co. has reportedly discovered thousands of forgotten/unresolved complaints relating to Postbank, via FT citing sources. (FT)

OTHER GERMAN COMPANIES

Schaeffler (SHA GY) – CEO Rosenfeld says that unease and nervousness from Germany recently withdrawing climate-related funding is spreading to international customers. (FT)

BROKER MOVES

CAC

Orange (ORA FP) - US fund Ripplewood makes an offer to take over Orange Bank, via Le Figaro. (Le Figaro)

Pernod Ricard (RI FP) - Sells Czech Bitter Becherovka to Maspex Group; transaction expected to conclude by end of June, financials undisclosed. (Newswires)

TotalEnergies (TTE FP) - Has signed an agreement with Thailand's national oil and gas company PTTEP for sale of a 25.5% equity stake in Seagreen Offshore Wind Farm for a consideration of GBP 522mln. (Newswires)

Vinci (DG FP) - Seymour White wins EUR 86mln contract to modernise a dam near Brisbane and Australia. (Newswires)

OTHER FRENCH COMPANIES

Air France (AF FP) - Air France-KLM and Air France take note of the two judgements of the General Court of the European Union, which approved various French State aid measures during the Covid-19 crisis. (Newswires)

BROKER MOVES

PAN EUROPE

Adidas (ADS GY), Puma (PUM GY), JD Sports (JD/ LN) - Nike Inc (NKE) - Q2 2024 (USD): EPS 1.03 (exp. 0.85), Revenue 13.39bln (exp. 13.43bln). Says "We are seeing indications of more cautious consumer behaviour around the world in an uneven macro environment." (Newswires) Nike shares -11.7% after-hours. Adidas and Puma shares seen -3.6% and -2.7% respectively, in the pre-market.

Ackermans & van Haaren (ACKB BB) - Strengthens partnership with Convergent Finance; no terms disclosed, via XM. (XM)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Co. says seizures of counterfeit Ozempic injection 1mg took place in warehouses outside Cos authorised supply chain, via Reuters. (Reuters)

Skanska (SKAB SS) – Awarded SEK 1.9bln order to modernise a tunnel in the US. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.03% at 4,747, NDX +1.23% at 16,757, DJI +0.87% at 37,404, RUT +1.73% at 2,017.

SECTORS: Consumer Discretionary +1.44%, Health +1.2%, Communication Services +1.11%, Technology +1.08%, Industrials +1.06%, Materials +1.01%, Real Estate +0.92%, Financials +0.87%, Consumer Staples +0.69%, Energy +0.38%, Utilities +0.13%.

ANSYS (ANSS) - Is said to explore a sale amid takeover interest, according to Bloomberg sources. (Bloomberg)

Meta (META) - Italian tax case against Meta (META) is being reviewed by the EU Commission, via Reuters citing sources; Meta faces a potential EUR 800mln bill. (Newswires)

Nike Inc (NKE) - Q2 2024 (USD): EPS 1.03 (exp. 0.85), Revenue 13.39bln (exp. 13.43bln). Identifying opportunities to deliver up to USD 2bln in cumulative cost savings over next three years. Commentary: Looking ahead to a softer H2 revenue outlook. Taking steps to streamline organization, which is expected to result in pre-tax restructuring charges of USD 400-450mln. Restructuring to be substantially completed by end of FY 24. Revised guidance will be provided on the call. Executive says Nike Digital had its strongest Black Friday week ever; record number of consumers shopped in stores over Thanksgiving weekend, via conference call. Guides Q3 revenue slightly negative Y/Y; cuts FY24 revenue growth estimate to +1% (prev. mid-single digit growth), confirms gross margin increase of 140-160bps, via conference call; sees 400bps headwinds from supply chain disruptions. Executive says "In the periods in between key shopping days, saw softer performance, resulting in Q2 sales below expectations that we set 90 days ago". "We are seeing indications of more cautious consumer behaviour around the world in an uneven macro environment." Shares -11.7% after-hours (Newswires)

Tesla's (TSLA) - New mega factory project in Shanghai launched, according to Xinhua. (Xinhua)

US Steel (X) - US President Biden has called for investigations of Nippon Steel's (5401 JT) takeover bid for the Co., according to the FT. (FT)

22 Dec 2023 - 06:50- Research Sheet- Source: Newsquawk

NKE.USFranceChinaUnited StatesFTSE 100 IndexNetEase IncITMETANKENIKE IncSteel ManufacturingDAX 40 IndexEURORA.FPRI.FPDG.FPAF.FPADS.GYTSLA.USANSS.USSKAB.SSPUM.GY5401.JTX.USNOVOB.DC700.HKACKB.BB005930.KSHIK.LNCRH.LNDBK.GYUSDJD.LNLSEHIKFDAHSBASHELCRH PLCDeutsche Bank AGDBKGermanyORAPernod Ricard SARITTEOilVinci SADGAir France-KLMEuropean UnionADSUSD/SEKS&P 500 IndexNASDAQ 100 IndexStaples IncANSYS IncANSSItalyTSLAPresident9999.HKAsian SessionHighlightedResearch SheetEU SessionUnited KingdomTrinidad and TobagoAsiaCanadaHong KongVenezuelaEuropeGBPThailand

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