Newsquawk Daily European Equity Opening News - 24th July 2024

24th July 2024

ASIA

APAC stocks were mostly rangebound with a negative bias seen following the lacklustre handover from Wall Street after risk appetite was dampened by underwhelming earnings results. ASX 200 was indecisive and briefly clawed back early losses with sentiment clouded by mixed Flash PMI data. Nikkei 225 retreated at the open amid headwinds from a firmer currency, while PMI data was also varied. Hang Seng and Shanghai Comp. were subdued with early pressure from demand concerns after China's slowdown weighed on luxury spending which was evident in the 14% decline in LVMH sales in the region, while Chow Tai Fook Jewellery was among the worst hit in Hong Kong after its quarterly group retail sales fell 20% Y/Y. However, the mainland bourse managed to recover losses to return to relatively flat territory after rebounding from a brief dip beneath the 2,900 level.

Samsung Electronics (005930 KS) - Fourth-generation high bandwidth memory or HBM3 chips have been cleared by Nvidia (NVDA) for use in its processors for the first time, while Samsung has yet to meet Nvidia's standards for fifth-generation HBM3E chips

EUROPEAN CLOSES

CLOSES: DAX: +0.77% at 18,548, FTSE 100: -0.38% at 8,167, CAC 40: -0.31% at 7,599, Euro Stoxx 50: +0.40% at 4,917, AEX: -0.22% at 915, IBEX 35: +0.62% at 11,213, FTSE MIB: flat at 34,638, SMI: -0.14% at 12,284, PSI: flat at 6,854.

SECTORS: IT 2.14%, Utilities 0.42%, Industrials 0.31%, Financials 0.27%, Consumer Disc 0.16%, Healthcare 0.08%, Telecoms -0.31%, Consumer Stpl -0.33%, Materials -0.78%, Energy -1.31%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Bank (DBK GY) - Q2 (EUR): FIC Sales & Trading Revenue 2.10bln (exp. 2.15bln), Net 52mln (exp. 1.1bln), PBT 411mln. CEO said Co. is well on track towards meeting 2025 goals and distribution commitments. Corporate bank 2024 revenues exp. to be essentially flat. Revise FY guidance for provision for credit losses to be slightly above 30bps on avg. loans. (exp. 489mln). CFO says they won’t be seeking a second buyback this year. Shares -1.6% in pre-market trade

OTHER GERMAN COMPANIES

Nemetschek (NEM GY) - Q2 (EUR): Revenue 227.7mln (exp. 227.2mln), EBITDA 61.4mln (exp. 68.7mln). Boost FY outlook: Revenue growth +3%, EBITDA margin 30-31%. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Is exploring options to offer Rolls-Royce's (RR/ LN) latest engine technology on the successor to A320neo family of aircraft. Airbus' current narrow-body engine suppliers are RTX's Pratt & Whitney and CFM International. Elsewhere, continues to invest in the A220 and extends its partnership with the Government of Quebec; jointly investing USD 1.2bln in Airbus Canada Limited Partnership. (Newswires)

BNP Paribas (BNP FP) - Q2 (EUR): Revenue 12.27bln (exp. 11.93bln), Net 3.4bln (exp. 2.9bln), FICC revenue -7% Y/Y. Confirms FY trajectory.

LVMH (MC FP) - H1 2024 (EUR): Revenue 41.677bln (exp. 42.463bln), Net debt 12.16bln, Net Income 7.27bln, Profit from recurring operations 10.65bln. Q2: Revenue 20.98bln (exp. 21.58bln). Q2 fashion & leather organic sales +1% (exp. +1.95%). Q2 organic revenue +1% (exp. +2.89%). Q2 wines & spirits organic sales -5% (exp. -5.87%). Q2 Asia ex. Japan organic revenue -14% (exp. -5.6%). CEO says Chinese customers are purchasing goods notably in Japan, notes US demand for cognac is recovering. CFO says it faces easier comps in H2 but remains vigilant, and cites Japan's Yen weakness as a reason for attractiveness. Chinese customers are 'holding up quite well', US and European customers doing 'slightly better'. The Japan situation is exerting pressure on margins. Really seeing shopping shift to Japan amid weak Yen. Champagne volumes down double digits and Champagne faces severe demand issue. Louis Vuitton has been raising prices by 2-3% in recent weeks. Olympic games in France are disturbing the business. Want to buy back some shares but holding off amid political uncertainty in France. (Newswires) Index Weightings: CAC 40: 10.1% (largest), Euro Stoxx 50: 5.4% (Second largest), Stoxx 600: 1.8%

OTHER FRENCH COMPANIES

Remy Cointreau (RCO FP) - Q1 (EUR): Sales 217mln (exp. 220.3mln). FY outlook confirmed. (Newswires)

Nexans (NEX FP) - H1 (EUR): Sales 3.55bln (Co. consensus 3.41bln), adj. EBITDA 412mln (exp. 361mln). Lifts FY outlook: Adj. EBITDA between 750-800mln (prev. guided 670-730mln). (Newswires)

Soitec (SOI FP) - Q1 (EUR): Revenue 121mln (exp. 118mln). FY25 outlook confirmed. (Newswires)

BROKER MOVES

PAN EUROPE

ASM International (ASM NA) - Q2 2024 (EUR): Operational result 177.6mln (exp. 188mln), Gross margin 49.8% (exp. 50.4%), Orders 755.4mln (exp. 726mln), Revenue 706.1mln (exp. 683mln). Q3 revenue is projected to increase to 740-780mln (exp. 741.5mln). H2 '24 is expected to rise 15% vs. H1 '24. Strong growth in bookings benefitting from investments in DRAM HBM applications. Silicon Carbide EPI bookings were also at a relatively strong level in Q2. For 2024, a slight increase in WFE spending is expected, followed by a stronger increase in 2025. (Newswires)

Defence Names - US Presidential Candidate Trump's advisers floated a higher target for NATO defence spending, according to Bloomberg. (Bloomberg)

Elia (ELIA BB) - H1 (EUR): Net Income 218.8mln (exp. 217.8mln), EPS 2.47 (exp. 2.41). FY guidance revised upwards: adj. RoE 7-8%, Net Profit 355-395mln. (Newswires)

Santander (SAN SM) - Q2 (EUR) Net 3.21bln (exp. 3.13bln), Pretax Profit 4.93bln (exp. 4.69bln), Total Income 15.67bln (exp. 15.39bln). (Newswires)

UniCredit (UCG IM) - Q2 (EUR): Revenue 6.33bln (exp. 6.03bln), Net 2.68bln (exp. 2.36bln), Net Interest 3.57bln (exp. 3.51bln). Sees FY net revenue above 23bln (prev. guided 22.5bln). Improved 2024 guidance while retaining flexibility to further secure long term ambitions for 2025 and 2026. Investments in Vodeno and Aion Bank, will have minimal impact on CET1 of around 15bp which is expected in Q4. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

SGS (SGSN SW) - H1 (CHF): Sales 3.35bln, +1.6% Y/Y. FY24 outlook confirmed. (Newswires)

BROKER MOVES

SCANDINAVIA

Equinor (EQNR NO) - Q2 (USD): Net Income 1.87bln (exp. 2.06bln), Dividend 0.35/shr. To initiate third tranche of the share buyback programme of up to USD 1.6bln. Still sees 2024 production growth stable compared to 2023. Lower production from US due to turnarounds offshore and planned curtailments onshore to capture higher value when demand is higher. Sees renewable power generation to increase by around 70% compared to 2023 (prev. view to double vs 2023). Sees 2024 equity output to be reduced by 55 MBOE/day to due maintenance (earlier view around 60 MBOE/day). (Newswires)

Stora Enso (STERV FH) - Appointed a new CFO and new EVP packaging solutions division. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.2% at 5, 556, NDX -0.4% at 19,754, DJIA -0.1% at 40,358, RUT +1% at 2, 243

SECTORS: Energy -1.55%, Utilities -0.65%, Consumer Staples -0.32%, Communication Services -0.22%, Industrials -0.21%, Real Estate -0.17%, Technology -0.13%, Health flat, Consumer Discretionary flat, Financials flat, Materials +0.38%.

Alphabet Inc (GOOGL) - Q2 2024 (USD): EPS 1.89 (exp. 1.84), Revenue 84.742bln (exp. 84.18bln). Revenue breakdown: Google Advertising rev 64.6bln (exp. 64.4bln)Google Cloud Revenue 10.35bln (exp. 10.158bln). Google Search & Other Revenue 48.51bln (exp. 47.65bln). YouTube as revenue 8.66bln (exp. 8.95bln). Google Network Revenue 7.44bln (exp. 7.87bln). Google Subscriptions, Platforms and Devices Revenue 9.31bln (exp. 9.38bln). Google Services revenue 73.93bln (exp. 73.58bln). Other Bets revenue 365mln (exp. 389.6mln). Other metrics: Capital expenditure 13.19bln (exp. 12.23bln). Operating margin 32% (exp. 31.8%). CFO says headcount declined in Q2 from 2023 and will increase in Q3, Co. plans multi-year USD 5bln investment in Waymo self-driving car unit. CFO says continue to expect quarterly capex throughout the year to be roughly at or above Q1 capex of USD 12bln. CFO says headcount declined in Q2 from 2023 and will increase in Q3, Co. plans multi-year USD 5bln investment in Waymo self-driving car unit. (Newswires) Shares -2.1% after-hours

Tesla Inc (TSLA) - Q2 2024 (USD): Adj. EPS 0.52 (exp. 0.62), Revenue 25.5bln (exp. 24.77bln). Co. said focus remains on company-wide cost reduction. Plans for new vehicles remain on track for start of production in H1 2025. Energy storage business continues to grow rapidly, setting a record in Q2 with 9.4GWH of deployments. Saw a sequential rebound in deliveries in Q2 as overall consumer sentiment improved. After a sequential decline in production in Q2, Co. expects a sequential increase in production in Q3. 2024 vehicle growth rate may be notably lower than growth achieved in 2023. New vehicles approach will result in achieving less cost reduction than previously expected. Cybertruck production more than tripled sequentially, remains on track to achieve profitability by end of year in US. Significantly increased deliveries in several markets supplied by Gigafactory Shanghai in Q2 including South Korea. Quarterly revenue negatively impacted by decline in S3XY vehicle deliveries. CEO Musk launches a poll if Tesla should invest USD 5bln in xAI. (Newswires) Shares -7.7% after-hours

Texas Instruments Inc (TXN) - Q2 2024 (USD): EPS 1.22 (exp. 1.17), Revenue 3.82bln (exp. 3.82bln). Q3 EPS view 1.24-1.48 (exp. 1.38), revenue view 3.94-4.26bln (exp. 4.14bln). (Newswires) Shares +2.7% after-hours

Visa Inc (V) - Q3 2024 (USD): Adj. EPS 2.51 (exp. 2.43), Revenue 8.9bln (exp. 8.89bln). KEY METRICS: Payments volume at constant currency +7% (exp. +8.36%).Total cross-border volumes +14% (exp. +14%). Total Processed Transactions 59.3bln (exp. 59.45bln), +10% Y/Y. GUIDANCE: Q4 outlook on EPS growth in the high end of low-double-digits (exp. 2.61). Sees FY revenue outlook in the low double-digits (exp. 35.93bln). Sees Q4 Net revenue growth outlook in the low double digits (exp. 9.59bln). (Newswires) Shares -3.3% after-hours

24 Jul 2024 - 06:54- Research Sheet- Source: Newsquawk