Newsquawk Daily European Equity Opening News - 22nd October 2024

ASIA

APAC stocks traded mixed with participants somewhat cautious following the mostly negative bias stateside amid a lack of major catalysts, ongoing geopolitical tensions in the Middle East and a higher yield environment. ASX 200 retreated from the open with Real Estate and Healthcare leading the broad downturn seen across sectors. Nikkei 225 was pressured following its recent failure to hold on to the 39,000 level despite a weaker currency. Hang Seng and Shanghai Comp shrugged off early weakness to trade in the green albeit with price action choppy as the attention turned to earnings updates, while the PBoC conducted its first swap operation involving securities brokerages, funds and insurance companies worth CNY 50bln on Monday.

EUROPEAN CLOSES

CLOSES: DAX: -1.02% at 19,456, FTSE 100: -0.48% at 8,318, CAC 40: -1.01% at 7,536, Euro Stoxx 50: -0.91% at 4,941, AEX: -0.56% at 898, IBEX 35: -0.71% at 11,841, FTSE MIB: -0.71% at 34,956, SMI: -0.59% at 12,254, PSI: -0.67% at 6,629.

SECTORS: Energy 0.73%, Healthcare -0.18%, Utilities -0.32%, Consumer Stpl -0.53%, Industrials -0.68%, Materials -0.71%, Financials -0.87%, IT -0.97%, Telecoms -1.00%, Consumer Disc -1.03%

FTSE 100

Barclays (BARC LN) – Sold all of its 5.1275% stake in BPMS (BPMS IM) as of Oct 14. (Newswires)

HSBC (HSBA LN) - Co. unveiled a broad restructuring aiming to cut costs by USD 2bln, according to Bloomberg. Co. will merge its global commercial and institutional banking operations and create new international Wealth and Premier Banking, along with Western and Eastern regional units. Co. announced it is simplifying its organisational structure into four businesses to accelerate delivery against its strategic priorities with the changes effective 1st January 2025. Under the plan, the executive committee will be reduced to 12 from 18. Co. said changes will reduce duplication of processes and decision-making. Co. appointed Pam Kaur as group CFO. (Bloomberg/Newswires)

UK Stocks - UK Shadow Chancellor Hunt warned Chancellor Reeves against hiking business taxes ahead of next week's Budget, according to FT. (FT)

OTHER UK COMPANIES

IDS (IDS LN) – Co. announced its subsidiary GLS is to acquire 20% of ACS for EUR 74mln. (Newswires)

BROKER MOVES

Boohoo (BOO LN) downgraded to Hold from Buy at HSBC

DAX

SAP (SAP GY) - Q3 2024 (EUR): adj. EPS 1.23 (exp. 1.20), Non-IFRS revenue 8.47bln (exp. 8.45bln). Non-IFRS cloud and software revenue 7.43bln (exp. 7.36bln). Non-IFRS cloud revenue 4.35bln (exp. 4.36bln). Non-IFRS software licenses revenue 280mln (exp. 239.7mln). Non-IFRS cloud revenue in constant currencies +27% (exp. +25.6%). Non-IFRS gross profit 6.24bln (exp. 6.24bln). Non-IFRS operating profit 2.24bln (exp. 2.06bln). Profit after tax 1.44bln (exp. 1.23bln). Non-IFRS EPS 1.23 (exp. 1.20). Free cash flow 1.25bln (exp. negative 677mln). FY GUIDANCE: Still sees non-IFRS cloud revenue 17.0-17.3bln (exp. 17.11bln). non-IFRS cloud/software revenue 29.5-29.8bln. OTHER GUIDANCE: Raised its 2024 outlook for cloud and software revenue, operating profit and free cash flow. COMMENTARY: Strong progress on business AI with SAP knowledge graph. (SAP/Newswires) SAP ADR (SAP) rose 3.5% after-market. INDEX WEIGHTINGS: DAX 40: 12.9% (largest), Euro Stoxx 50: 5.2% (third largest), Stoxx 600: 1.7%

OTHER GERMAN COMPANIES

Metro AG (B4B GY) - Q4 24 (EUR): Sales +1.7% to EUR 8.0bln; FY sales +1.6% to EUR 31bln (exp. 31.13bln); Adj EBITDA change expected at the lower end of the guidance range (-100mln to +50mln vs prior year). (Newswires)

Traton (8TRA GY) - Co. said Q3 2024 prelim operating result above expectations; maintains FY outlook. Operating Result +19% Y/Y to EUR 1.14bln, operating return on sale 9.6% (prev. 8.4% Y/Y). (Newswires)

BROKER MOVES

CAC

Eurofins Scientific (ERF FP) – 9M (EUR): Revenue 5.14bln, +6.7% Y/Y. FY outlook: Expects revenue “close to” EUR 7bln (prev. guided 7.075-7.175bln), Adj. EBITDA 1.525-1.575bln. On the Muddy Waters’ report: Says the forensic audit found no material misstatements in Eurofins’ cash statements. The audit did identify two expectations; EUR 1.2mln overstatement, considered immaterial. (Newswires)

TotalEnergies (TTE FP) – Singapore exec sees a new wave of LNG supply pushback to 2027 from 2025 due to project delays. (Newswires)

OTHER FRENCH COMPANIES

Wendel (MF FP) – Co. announced a transformational transaction of 75% of Monroe Capital. (Newswires)

BROKER MOVES

PAN EUROPE

Autos - European new car registrations: -6.1% Y/Y in September 2024 (vs -18.3% in August 2024); battery electric market share 13.1% (vs 14.4% in August 2024), according to ACEA. (ACEA)

Intesa Sanpaolo (ISP IM) – Standard Ethics said no changes exp. to Cos “EE” corporate standard ethics rating. Elsewhere, has completed a share buyback programme. (Newswires)

Randstad (RAND NA) – Q3 (EUR): Revenue 6.02bln (Co. consensus 6bln), Underlying EBITA 3.3% (Co. consensus 3.2%), Net Income 106mln (Co. consensus 103mln). In Q4’24 Randstad announced its intention to acquire Zorgwek. Expects to benefit from easier comparables into Q4. In Q4, expects gross margin to be underlying slightly higher sequentially. (Newswires)

BROKER MOVES

SMI

Logitech (LOGN SW) – Q2 (USD): Sales 1.12bln (exp. 1.1bln), Adj. EPS 1.2 (exp. 0.99). FY Outlook: Adj. Op. Income 720-750mln (prev. guided 700-730mln, Sales 4.39-4.47bln (prev. guided 4.34-4.43bln). (Newswires)

Lonza (LONN SW) – Extends collaboration with major pharmaceutical partners for integrated commercial supply of antibody-drug conjugates. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Boliden (BOL SS) - Q3 (SEK): Revenue 22.193bln (exp. 21.913bln); EBIT 3.165bln (exp. 2.325bln); Co. notes of no planned maintenance shutdowns in smelters during Q4. Co. says demand for zinc, copper, and by-metals will develop positively when sectors such as construction start to come back. Metal prices for the most part pricked up towards the end of Q4. (Newswires)

DNB (DNB NO) – Q3 (NOK): NII 16.12bln (Co. consensus 15.89bln), Net Proft 12.16bln (Co. consensus 10.55bln). RoE 16.4% (exp. 16.4%), CET1 Ratio 19% (exp. 19%). (Newswires)

Gjensidige Forsikring (GJF NO) - Q3 (NOK): Pretax Profit 2.21bln (Co. consensus 1.95bln), Combined Ratio 83.9% (Co. consensus 82.7%). (Newswires)

Maersk (MAERSKB DC) - Q3 24 (USD): EBIT 3.3bln (exp. 2.0bln), EBITDA 4.8bln (exp. 3.63bln); FY24 underlying EBITDA view of 11.0-11.5bln (prev. 9-11bln, exp. 10.2bln), FY24 EBIT view of 5.2-5.7bln (prev. 3-5bln, exp. 4.4bln, prev. 3-5bln). Sees FY global container trade +6% (prev. saw +4-6%). Sees FY24 free cash flow of at least USD 3bln (prev. at least 2bln). (Maersk IR)

Saab (SAABB SS) - Q3 (SEK): Revenue 13.6bln (exp. 13.5bln), EBIT 1.19bln (exp. 1.14bln). Affirms FY outlook. (Newswires)

Tomra (TOM NO) – Q3 (EUR): Adj. EBITA 44mln (exp. 34mln, prev. 38mln Y/Y), Revenue 326mln (exp. 317mln, +6% Y/Y). (Newswires)

Tele2 (TEL2B SS) – Q3 (SEK): Revenue 7.4bln (exp. 7.4bln), Adj. EBITDA 2.8bln (exp. 2.84bln). (Newswires)

Tecan (TECN SW) – Reaffirmed its mid-term financial outlook at its capital markets day. (Newswires)

Var Energi (VAR NO) – Q3 Trading Update: FY unit production cost guidance reduced to less than USD 13/boe. FY production guidance range is narrowed to 280-290kboepd. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.18% at 5,854, NDX +0.18% at 20,361, DJIA -0.80% at 42,932, RUT -1.60% at 2,240

SECTORS: Real Estate -2.08%, Health -1.19%, Financials -0.88%, Consumer Staples -0.81%, Materials -0.80%, Consumer Discretionary -0.64%, Utilities -0.36%, Industrials -0.35%, Energy -0.21%, Communication Services -0.07%, Technology +0.93%.

22 Oct 2024 - 06:55- Fixed IncomeResearch Sheet- Source: Newsquawk