Newsquawk Daily European Equity Opening News

23rd October 2023

ASIA

APAC stocks traded with losses across the board following the downside seen on Wall Street on Friday, with participants citing mixed earnings and geopolitical angst. ASX 200 fell at the open with the losses led by the Metals and mining sector as the sector caught up to the price action across base metals. Nikkei 225 was also weaker with the downside led by the Energy and Material names, while the index managed to stay afloat above 31k. Hang Seng was closed due to a public holiday while Shanghai Comp conformed to regional losses. In Taiwan, Apple-supplier Foxconn tumbled over 3% after Global Times sources suggested Chinese mainland tax and natural resource authorities have conducted inspections on key enterprises of Foxconn.

Daiichi Sankyo (4568 JT) - Updated results from a subgroup analysis of a first-in-human phase 1 trial showed that raludotatug deruxtecan (R-DXd) continues to demonstrate promising clinical activity in patients with heavily pretreated platinum-resistant advanced ovarian cancer. (Daiichi Sankyo)

Foxconn (2317 TT) - Chinese mainland tax and natural resource authorities have conducted inspections on key enterprises of Foxconn in some cities in accordance with the law., according to Global Times "Experts said that while Taiwan-funded enterprises share the benefits of growth and achieve significant development in the mainland, they should also bear corresponding social responsibilities and play an active role in promoting the peaceful development of cross-Straits ties" (Global Times)

Hyundai Motor (005380 KS) - Co. and PIF sign a JV to establish a new auto manufacturing plant in Saudi Arabia with total investments exceeding USD 500mln. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -1.64% at 14,798.47, FTSE 100 -1.30% at 7,402.14, CAC 40 -1.52% at 6,816.22, Euro Stoxx 50 -1.57% at 4,026.25, IBEX 35 -1.29% at 9,029.10, FTSE MIB -1.40% at 27,357.00, SMI -0.95% at 10,348.60, PSI -1.18% at 6,039.46.

SECTORS: Healthcare -0.30%, Consumer Stpl -0.55%, Utilities -0.65%, Energy -1.22%, Telecoms -1.23%, Consumer Disc -1.48%, Industrials -1.75%, Financials -2.06%, Materials -2.38%, IT -2.45%

FTSE 100

AstraZeneca (AZN LN) - Tagrisso plus chemotherapy reduced the risk of disease progression in the brain by 42% in patients with EGFR-mutated advanced lung cancer and brain metastases at baseline. Separately, Imfinzi plus Lynparza reduced the risk of disease progression or death by 45% vs. chemotherapy in advanced or recurrent endometrial cancer. Elsewhere, Datopotamab deruxtecan plus Imfinzi demonstrated robust and durable tumour responses in 1st-line treatment of patients with metastatic triple-negative breast cancer in BEGONIA Phase Ib/II trial. (AstraZeneca)

Vodafone (VOD LN) - CEO says they will be moving ahead with the Three merger, and intend to close the deal before end-2024. (Daily Mail)

WPP (WPP LN) - A senior executive at GroupM, owned by WPP, alongside two former employees have been detained in China over alleged bribery, via FT citing sources and the Shanghai Public Security Bureau’s Economic Crime Investigation Department statement. (FT)

OTHER UK COMPANIES

Darktrace (DARK LN) - A senior salesman at the Co. has allegedly assisted a hockey players association official in the arrangement of a deal to move funds to an associate. (ThisisMoney)

BROKER MOVES

IHG (IHG LN) downgraded to Reduce from Hold at Kepler Cheuvreux

Rightmove (RMV LN) upgraded to Buy from Hold at Panmure Gordon

DAX

Volkswagen (VOW3 GY) - Q3 sales revenue +12% to EUR 78.8bln (exp. 76.1bln), operating result of EUR 4.9bln, operating return on sales 6.2%. Maintains view deliveries to customers will stand between 9-9.5mln and sees group sales 10-15% higher than prior year figure. Still sees a strong Y/Y increase in net cash flow of automotive division. Net liquidity in automotive division still expected around EUR 35-40bln. (Newswires)

OTHER GERMAN COMPANIES

Atoss Software (AOF GY) - 9-month (EUR): Revenue 110mln (prev. 82mln), EBIT 37mln (prev. 22mln). (Newswires) +3.2% in pre-market trade

Hannover Rueck (HNR GY) - Co. expects a further improvement in prices and conditions for property and casualty reinsurance within Germany, due to sustained elevated inflation and claims expenditure. (Newswires)

BROKER MOVES

CAC

Bouygues (EN FP) - Altice's Drahi has reportedly approached Bouygues and Free regarding a potential merger with Altice's SFR unit, via La Tribune citing their information; the article adds that neither Bouygues or Free have shown interest thus far. (La Tribune)

Eurofins Scientific (ERF FP) - Launches the second buy-back programme of own shares, from 25th October 2023 until 24th October 2024. (Newswires)

Sanofi (SAN FP) - Co. is working with AstraZeneca (AZN LN), responsible for manufacturing Beyfortus, to identify further solutions to meet exceptional demand; unprecedented level of demand has outpaced estimates projected. (Newswires)

TotalEnergies (TTE FP) - Co. is working with Corio and rise to develop 3+GW wind project offshore New York and New Jersey.

OTHER FRENCH COMPANIES

Dassault Aviation (AM FP) - Saudi Arabia is reportedly considering purchasing 54 Rafale fighter jets. (La Tribune)

Ipsen (IPN FP) - EMA Committee for Orphan Medicinal Products (COMP) confirmed its negative opinion recommending not to maintain the orphan designation for Bylvay® (odevixibat) in Alagille syndrome (ALGS). In order to maintain Bylvay’s orphan designation in the approved treatment of progressive familial intrahepatic cholestasis (PFIC), Ipsen is planning to resubmit to the EMA under a new brand name for the treatment of ALGS by the end of 2023. (Ipsen)

BROKER MOVES

PAN EUROPE

Phillips (PHIA NA) - Q3 (EUR): Operating Income 224mln (exp. 164mln), adj. EBITA 457mln (exp. 389mln), adj. EBITA Margin 12.7% (exp. 8.8%). Raises FY23 guidance: FCF at upper-end of 0.7-0.9bln target range, lifts comparable sales growth to 6-7% and adj. EBITA margin to 10-11%. Elsewhere, Co. has recalled V60 and V60+ ventilators due to PM CBAs not meeting standards. (Newswires)

Stellantis (STLAM IM/STALP FP) - Co. says progress has been made in narrowing the gaps on significant issues with UAW. The UAW President, in a broader statement, said automakers still clearly have room to move and there has been "serious movement at Stellantis & GM". Adding, that Stellantis improved its wage offer to 23%. Warns of more walkouts at the Detroit Three Truck and SUV plants in the scenario that progress stalls. (Newswires)

BROKER MOVES

Nexi (NEXI IM) downgraded to Hold from Buy at Deutsche Bank

Poste Italiane (PST IM) downgraded to Equalweight from Overweight at Barclays

Terna (TRN IM) downgraded to Reduce from Hold at Kepler Cheuvreux

SMI

Roche (ROG SW) - Roche enters into a definitive agreement to acquire Telavant including rights to novel TL1A directed antibody (RVT-3101) for the treatment of inflammatory bowel disease from Roivant; a USD 7.1bln upfront purchase price and a near-term milestone payment of USD 150mln. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Adevinta (ADE NO) - Permira and Blackstone backed consortium is reportedly reconsidering its interest in the Co., amid a deterioration in the market outlook since their bid was first reported in September, via Bloomberg citing sources. (Newswires)

BROKER MOVES

Boliden (BOL SS) upgraded to Hold from Sell at Carnegie Securities

US

CLOSES: SPX -1.26% at 4,224, NDX -1.50% at 14,561, DJI -0.86% at 33,127, RUT -1.29% at 1,681

SECTORS: Energy -1.74%, Technology -1.69%, Consumer Discretionary -1.66%, Financials -1.55%, Materials -1.29%, Communication Services -1.15%, Utilities -1.05%, Industrials -1.03%, Real Estate -0.54%, Health -0.4%, Consumer Staples -0.38%.

23 Oct 2023 - 06:50- Research Sheet- Source: Newsquawk