Newsquawk Daily European Equity Opening News - 23rd February 2024

23rd February 2024

ASIA

APAC stocks mostly benefitted amid tailwinds from the tech-led surge in the US on the NVIDIA wave as its shares surged over 16% and its market cap increased by a record USD 277bln. ASX 200 finished higher with gains led by outperformance in tech, consumer stocks and financials. KOSPI kept afloat with South Korea to execute a record KRW 398tln budget in H1 to prop up domestic demand. Hang Seng and Shanghai Comp. were mixed with the tech sector facing headwinds from ongoing trade-related frictions, while the mainland was indecisive as participants digested the PBoC's liquidity injection, CSRC's denial of regulatory measures, and the latest Home Price data which showed a steeper Y/Y fall in property prices.

EUROPEAN CLOSES

CLOSES: DAX: +1.47% at 17,370.45, FTSE 100: +0.29% at 7,684.49, CAC 40: +1.27% at 7,911.60, Euro Stoxx 50: +1.69% at 4,855.85, IBEX 35: +0.31% at 10,138.90, FTSE MIB: +1.06% at 32,356.26, SMI: -0.36% at 11,387.90.

SECTORS: IT 3.67%, Consumer Disc 1.63%, Industrials 1.11%, Healthcare 1.00%, Financials 0.96%, Energy 0.37%, Telecoms 0.21%, Materials -0.02%, Utilities -0.82%, Consumer Stpl -1.26%

FTSE 100

BP (BP/ LN) - US SEC charges BP manager's husband with insider trading over TravelCenters deal. (Newswires)

Delivery Food Names – Delivery riders are to strike again on Friday 23rd February 2024. A walkout earlier in the month saw order volumes fall by around 30%, according to Sky News citing Rodea data. (Sky News)

Standard Chartered (2888 HK / STAN LN) - FY23 (USD): Adj. Pretax 5.7bln (exp. 5.89bln, prev. 4.76bln Y/Y), Adj Op Revenue 17.4bln (exp. 18.6bln, prev. 16.3bln Y/Y). Announces USD 1bln share repurchase. Guides initial FY24-26 op. income growth at the top of the range +5-7%. Underlying profit before tax rose 27% Y/Y to 5.7bln, NII rose 23% Y/Y to 9.6bln, Q4 adj. pretax 1.08bln (exp. 989.6mln), Co. announces USD 1bln buyback. (Newswires) Index Weightings: FTSE 100 (0.8%). Shares +2.5% in Hong Kong trade

Gambling Names – The amount that can staked on an online slot machine will be capped at GBP 5 / GBP 2 for young adults, as the UK Government aims to tighten regulation within the industry.

GfK - UK GfK Consumer Confidence (Feb) -21.0 vs. Exp. -18.0 (Prev. -19.0). (GfK)

OTHER UK COMPANIES

Frasers Group (FRAS LN) – Co. is suing Morgan Stanley (MS) for around USD 1bln, after Mike Ashley claimed he was a victim of “abuse” at the bank, via The Guadian. (The Guadian)

BROKER MOVES

DAX

Allianz (ALV GY) - Q4 (EUR): Adj. EPS 6.00 (exp. 5.69, prev. 4.99 Y/Y), Operating profit 3.77bln Y/Y (prev. 3.96bln Y/Y). Guides initial FY24 Op. 13.8-15.8bln. Proposes to increase FY dividend to EUR 13.80 (exp. 12.08, prev. 11.40), announces buyback programme of up to EUR 1bln, to be conducted between March 2024 and year-end. Regular dividend payout ratio increased to 60% (prev. 50%). This new dividend policy shall already apply to the dividend for fiscal year 2023 (Newswires) Index Weightings: DAX (7.9% - third largest), Euro Stoxx 50 (3.0%), Stoxx 600 (1.0%) Shares +2.2% in pre-market trade

BASF (BAS GY) - Q4 (EUR): Revenue 15.9bln (exp. 16.2bln). Adj. EBIT 292mln (exp. 398mln). Sees 2024 operating profit between EUR 13.8-15.8bln (exp. 15.48bln). Guides FY24 EBITDA 8-8.6bln, FCF 0.1-0.6bln. Proposes dividend of EUR 3.40/shr for FY23. Targeting cost-saving plans of up to EUR 1bln by the end of 2026. (Newswires) Index Weightings: DAX 40 (3.6%), Euro Stoxx 50 (1.4%), Stoxx 600 (0.4%)

Deutsche Telekom (DTE GY) - Q4 (EUR): Adj. Net 1.83bln (exp. 1.63bln), Adj. EBITDA 10.06bln (exp. 10.1bln), Revenue 29.4bln (exp. 28.5bln). Guides initial FY24 EPS > 1.75 (exp. 1.84), Adj. EBITDA 42.9bln. (Newswires) Index Weightings: DAX 40 (6.2%), Euro Stoxx 50 (2.3%), Stoxx 600 (0.8%)

Volkswagen (VOW3 GY) - US lawmakers urged the Co. to halt operations in Xinjiang after vehicles with Chinese components were held at US customs. (Newswires)

OTHER GERMAN COMPANIES

Deutsche Lufthansa (LHA GY) - To reduce size of co. exec board to five members (prev. 6); CFO to step down from 7th May 2024. (Newswires)

BROKER MOVES

Mercedes Benz (MBG GY) upgraded to Overweight from Equal Weight at Barclays

CAC

LVMH (MC FP) – Begins a collaboration with Super Connect Studios as it aims to bolster the promotion of the group’s brands, via the FT. (FT)

Safran (SAF FP) - Signs a maintenance agreement with Malaysia Airlines Berhad. (Newswires)

Sanofi (SAN FP) - Dupixent sBLA accepted for FDA Priority Review for treatment of COPD with type 2 inflammation. Priority Review was granted based on positive results from two Phase 3 trials. If approved, Dupixent would be the only biologic therapy for COPD and the first new treatment approach for the disease in more than a decade. Regulatory submissions are also under review in China and Europe. (Sanofi)

OTHER FRENCH COMPANIES

Alten (ATE FP) - FY23 (EUR): Op. 382.8mln (prev. 592.9mln Y/Y), Revenue 4.1bln (prev. 3.8bln Y/Y). (Newswires)

BROKER MOVES

PAN EUROPE

Cofinimmo (COFIT BB) - FY23 (EUR): Net -55mln (prev. +483mln Y/Y), Op. 277.7mln (exp. 283.1mln). (Newswires)

Ferrari (RACE IM) - Proposes to raise dividend 35% to EUR 2.443/shr; expected ex-date April 22nd, payment date May 3. (Newswires)

Mining names – Elliot Management is setting up a Co. to invest at least USD 1bln to buy mining assets globally as it seeks to take advantage of the undervalued sector, via the FT. (FT)

Proximus (PROX BB) - Q4 (EUR): Net 90mln (exp. 84mln, prev. 81mln Y/Y), Adj. EBITDA 441mln (exp. 421mln, prev. 419mln Y/Y), Revenue 1.53bln (exp. 1.53bln, prev. 1.56bln Y/Y). Guides initial FY23 Capex 1.2bln. (Newswires)

BROKER MOVES

Aena (AENA SM) upgraded to Buy from Neutral at Citi

Tenaris (TEN IM) upgraded to Outperform from Neutral at Intermonte

Repsol (REP SM) upgraded to Overweight from Neutral at JP Morgan

SMI

ABB (ABBN SW) - Appoints Morten Wierod as CEO to replace Bjorn Rosengrad, effective Aug 1st 2024. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Nokia (NOKIA FH) - Co. and Indian Institute of Science form a partnership to research how 6G can meet India's needs. (Newswires)

Volvo Cars (VOLCARB SS) - Proposes a distribution of 62.7% of its Polestar shareholding to its shareholders; transfer approx. SEK 9.5bln to Volvo Car shareholders. (Newswires)

BROKER MOVES

DNB (DNB NO) upgraded to Market Perform from Underperform at Keefe Bruyette

SEB (SEBA SS) downgraded to Underperform from Market Perform at Keefe Bruyette

US

CLOSES: SPX +2.11% at 5,087, NDX +3.01% at 18,005, DJI +1.18% at 39,069, RUT +0.96% at 2,014.

SECTORS: Technology surged by +4.35%, Consumer Discretionary increased by +2.19%, Communication Services rose by +1.61%, Financials gained +1.33%, Industrials went up by +1.21%, Health improved by +1.21%, Materials grew by +0.96%, Consumer Staples saw a modest rise of +0.37%, Real Estate edged up by +0.24%, Energy slightly increased by +0.12%, while Utilities experienced a decline of -0.77%.

Booking Holdings Inc (BKNG) - Q4 2023 (USD): Adj. EPS 32.00 (exp. 29.62), Revenue 4.78bln (exp. 4.71bln). Gross bookings 31.7bln (exp. 31.3bln). Room nights sold 231mln (exp. 231.46mln). Room nights sold +9.2% Rental car days sold 15mln (exp. 16.47mln). Rental car days sold +10.7%. Airline tickets sold 9mln (exp. 8.06mln). Airline tickets sold +45.8%.

Intuit Inc (INTU) - Q4 2023 (USD): Adj. EPS 2.63 (exp. 2.30), Revenue 3.39bln (exp. 3.39bln). Q3 EPS view 9.31-9.38 (exp. 9.70), FY Revenue view affirmed at 15.89-16.11bln (exp. 16.05bln). (Newswires)

McDonald's (MCD) - Expects to continue to have a negative impact on systemwide sales and revenue as long as the Middle East war continues. (Newswires)

Tesla (TSLA) - Raises price on Model 3 Long Range in the US by USD 250 to USD 47,740. (Newswires)

Vale (VALE) - Q4 (USD) net 2.42bln (exp. 4.15bln), Adj. EBITDA 6.33bln (exp. 6.32bln), rev. 13.05bln (exp. 13.15bln). (Newswires)

23 Feb 2024 - 06:55- Research Sheet- Source: Newsquawk