Newsquawk Daily European Equity Opening News - 23rd September 2024
ASIA
APAC stocks were mostly positive albeit with gains capped amid a lack of fresh macro drivers and as weekend newsflow was dominated by geopolitical-related headlines, while Japanese participants were away for the Autumnal Equinox holiday. ASX 200 was led lower by the consumer-related sectors and with sentiment also not helped by a deterioration in the latest flash PMIs. Hang Seng and Shanghai Comp gained after the PBoC cut the 14-day reverse repo rate ahead of next week's National Day holiday although this was not much of a surprise given that it was the first such operation since the PBoC's short-term funding rate cuts in July, while automakers were mixed after reports the Biden administration is to propose barring Chinese software and hardware in connected vehicles.
EUROPEAN CLOSES
CLOSES: DAX: -1.43% at 18,731, FTSE 100: -1.19% at 8,230, CAC 40: -1.51% at 7,500, Euro Stoxx 50: -1.43% at 4,873, AEX: -1.20% at 898, IBEX 35: -0.21% at 11,753, FTSE MIB: -0.83% at 33,762, SMI: -1.09% at 11,933, PSI: -0.06% at 6,716.
SECTORS: Utilities 0.68%, Telecoms -0.29%, Financials -0.44%, Energy -1.20%, Industrials -1.32%, Consumer Stpl -1.62%, Materials -1.92%, Healthcare -1.94%, Consumer Disc -2.52%, IT -2.80%
FTSE 100
AstraZeneca (AZN LN) - FluMist approved for self-administration in the US. (AstraZeneca)
Rightmove (RMV LN) - Initial reports suggested REA Group (REA AT) upped its offer for Rightmove to nearly GBP 5.9bln although it was rejected, while it was later reported that it further improved the offer to GBP 7.70/shr which values Rightmove at around GBP 6.1bln. (The Australian/Newswires/FT)
Rio Tinto (RIO LN) - Co. chairman Barton said more mines are needed to cope with increasing demand for energy-transition metals such as copper, and added that M&A will not fill the supply gap. (Bloomberg)
Rolls-Royce (RR/ LN) - Co. is said to be moving closer to two deals to build its mini nuclear power plants in Sweden and in the Netherlands following the successful deal with Czech Republic announced last week, whilst delays in the UK were reported. (CityAM)
Shell (SHEL LN) – Co. said it would shut production at its Stone and Appomattox facilities in the Gulf of Mexico as a precautionary measure in response to a tropical disturbance. (Newswires)
OTHER UK COMPANIES
UK Banking names – Bank of London will cut nearly 15% of its workforce as part of its wider restructuring, via the FT. (FT)
BROKER MOVES
DAX
Commerzbank (CBK GY) - Germany plans to hold Commerzbank beyond the 90-day lockup that was previously announced, according to Reuters citing sources. German Finance Ministry source said the German government put a smaller Commerzbank package up for sale to see if there were any strategic buyers, via Reuters. It now has a chance to assess and react to the situation. In other news, Co. warns UniCredit (UCG IM) that a merger is a threat to German businesses, via the FT. Execs at the German bank suggest a tie-up could limit the amount of lending to small and medium-sized Mittelstand companies. (Reuters / FT) Shares -3.3% in pre-market trade
Continental (CON GY) - CEO said preparations to spin off Co's car parts business are on track, and he is confident the move will go ahead as planned. (Bloomberg)
Mercedes-Benz (MBG GY) - CEO calls for an easing of emissions rules and backs plans to boost European competitiveness. CEO said emissions targets could cost the industry billions of EUR in fines. (Handelsblatt)
Volkswagen (VOW3 GY) - Volkswagen has begun the process of reducing several hundred corporate jobs in China over the next three years as part of a global effort to cut overhead by 20%, Bloomberg reported. The layoffs come amid declining sales in China and the shift toward EVs. (Bloomberg)
OTHER GERMAN COMPANIES
BROKER MOVES
CAC
Eutelsat (ETL FP) - CEO Bereke says, in the scenario that they do not come to an agreement on Europe’s planned satellite communication network, that they will have to look into commercial/industrial partnerships to fund the OneWeb constellation’s next gen. satellites. (FT)
Sanofi (SAN FP) - FDA approves isatuximab-irfc with bortezomib, lenalidomide, and dexamethasone for newly diagnosed multiple myeloma. (FDA)
OTHER FRENCH COMPANIES
Orange (ORA FP) – There is a restructuring plan at Viaccess-Orca which will result in around 35 job cuts. (Newswires)
Vivendi (VIV FP) – Some Vivendi-owned assets are currently in the process of being transferred to Canal+. (Newswires)
BROKER MOVES
PAN EUROPE
China-exposed Stocks - China lowered its 14-day reverse repo rate by 10bps. The 14-day reverse repo operation comes ahead of the National Day Golden Week Holiday beginning October 1st. It is the first 14-day Reverse Repo operation since February with the cut reflecting the 10bps reduction by the PBoC across shorter-term funding rates in July.
Copper/Gold Miners - Aguia Resources (AGR AT) secured Frankfurt listing with Co. shares listed on Frankfurt and Stuttgart Stock Exchanges in Europe. (Newswires)
Italian banks/insurers/energy names – Companies which have made extra profits over the past 12-24 months may be subject to a levy of 1-2% to help strained public finances, via Corriere della Sera. (Corriere della Sera)
Telecom Italia (TIT IM) – A consortium held by Italy’s Treasury is expected to finalise a bid for the Co’s Sparkle unit, according to La Repubblica. (La Repubblica)
Luxury Sector - Positive mention in Barron's; the newspaper noted that luxury stocks have struggled in 2024 due to decreased demand for high-end goods, but despite concerns about economic slowdowns, the newspaper suggests that select luxury stocks -- like Burberry (BRBY LN), LVMH (MC FP), Tapestry (TPR) and Richemont (CFR SW) -- look attractive. (Barron's)
Chip Names - Qualcomm (QCOM) reportedly approached Intel (INTC) about a takeover in recent days, via WSJ on Friday. A deal is far from certain, the sources cautioned. To get the deal done, Qualcomm could intend to sell assets or parts of Intel to other buyers. (WSJ)
Pharma Stocks - US FTC sues units of CVS (CVS), Cigna (CI), and UnitedHealth (UNH) for allegedly artificially inflating insulin prices; FTC case does not name insulin drugmakers Eli Lilly (LLY), Novo Nordisk (NOVOB DC), Sanofi (SAN FP), but reserves right to sue later. (Newswires)
Stellantis (STLAM IM/STLAP FP) – An Italian judge has seized money and assets worth around EUR 75mln, amid a tax fraud investigation; there are 5 people subject to the tax, one includes Stellantis Chairman Elkann. (Newswires)
UCB (UCB BB) - UCB announces U.S. FDA approvals for BIMZELX (bimekizumab-bkzx) for the treatment of psoriatic arthritis, non-radiographic axial spondyloarthritis and ankylosing spondylitis. (UCB)
BROKER MOVES
SMI
Roche (ROG SW) - WHO endorses dual-stain cytology (CINtec PLUS) testing in its cervical cancer prevention guidelines, advancing patient care and underlining Roche’s role in pioneering cervical cancer solutions. (Roche)
UBS (UBSG SW) – Swiss Regulator FINMA is investigating Credit Suisse’s handling of events that led to its demise in 2023, via Sonntags Zeitung. (Sonntags Zeitung)
OTHER SWISS COMPANIES
BROKER MOVES
SCANDINAVIA
Maersk (MAERSKB DC) - CEO Clerc said, on green technology, that European innovation is at a first-mover disadvantage due to China & the US offering subsidies to ensure there is no need to wait. Elsewhere, Co. has taken the decision to reinstate the Charleston call on Oceania service. (Newswires) (FT)
Novo Nordisk (NOVOB DC) - A price war has erupted in the weight-loss drug market, with Eli Lilly (LLY) and Novo Nordisk offering discounts to attract insurance coverage, WSJ reports; discounts could reduce prices by up to 50% on these USD 1,000+ monthly medications, the Journal said. Elsewhere, a US appeals court has revived a lawsuit by the healthcare and drug industry groups, which challenge the US law requiring pharmaceutical companies to negotiate drug prices with the government’s Medicare health insurance program. In other news, the Co. faces a US congressional grilling over the price of weight loss drugs, via the FT. (WSJ/Newswires/FT)
BROKER MOVES
Epiroc (EPAI SS) initiated with Buy at Jefferies
FLSmidth (FLS DC) initiated with Buy at Jefferies
Metso (METSO FH) initiated with Hold at Jefferies
US
CLOSES: SPX -0.19% at 5,703, NDX -0.24% at 19,791, DJIA +0.09% at 42,063, RUT -1.10% at 2,228
SECTORS: Industrials -0.69%, Materials -0.64%, Technology -0.50%, Health -0.34%, Energy -0.33%, Financials -0.29%, Real Estate -0.16%, Consumer Discretionary -0.01%, Consumer Staples +0.41%, Communication Services +0.45%, Utilities +2.69%.
Google (GOOG) - Google (GOOGL) reportedly faces an EU ultimatum in a fresh attack on search dominance, according to Bloomberg. (Bloomberg)
Intel (INTC), Qualcomm (QCOM), Apollo Global Management (APO) - Reports late Friday said Qualcomm had approached Intel in recent days regarding a potential takeover, although no formal offer has yet been made. If completed, it could become the largest tech acquisition ever, but Intel is said to be wary of antitrust issues and potential shareholder concerns. The deal would likely be presented to regulators as a strategy to bolster US competitiveness against Chinese firms, according to the FT. Separately, Bloomberg Sunday reported that Apollo has proposed a multibillion dollar investment in Intel, potentially up to USD 5bln, to support the chipmaker's turnaround efforts; Intel's management is considering the offer.
Intel (INTC) - Apollo (APO) is said to offer a multi-billion investment in Intel (INTC), according to Bloomberg. (Bloomberg)
Nvidia (NVDA) - "Speculation mounts over potential discontinuation of Nvidia's (NVDA) H20 chip as US export review approaches", according to Digitimes. (Digitimes)
23 Sep 2024 - 06:56- MetalsResearch Sheet- Source: Newsquawk
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