Newsquawk Daily European Equity Opening News - 24th September 2024

ASIA

APAC stocks traded mostly higher following gains on Wall St. and China's various stimulus measures. ASX 200 was subdued amid the RBA rate decision where the central bank unsurprisingly opted for a hawkish hold. Nikkei 225 gapped above the 38,000 level as it played catch up on its return from the long weekend. Hang Seng and Shanghai Comp were boosted after the PBoC, NDRC and NRFA press briefing where PBoC Governor Pan announced a cut in the RRR by 50bps and the 7-day reverse repo rate by 20bps to 1.50%, while it will reduce the MLF rate and guide the LPR lower. Furthermore, support measures were also announced for the property industry and China will create new tools to support the stable development of the stock market, as well as allow funds and brokers to tap PBoC funds to buy stock.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.29% at 4,886, DAX +0.58% at 18,857, CAC 40 +0.10% at 7,519, FTSE 100 +0.36% at 8,263, SMI +0.26% at 11,965, FTSE MIB -0.24% at 33,790, IBEX 35 +0.38% at 11,836, PSI +0.31% at 6,765, AEX +0.66% at 904

SECTORS: Utilities 1.14%, Consumer Stpl 1.05%, Consumer Disc 0.90%, Materials 0.88%, Industrials 0.83%, Telecoms 0.80%, Energy 0.76%, IT 0.44%, Financials -0.07%, Healthcare -0.55%

FTSE 100

BP (BP/ LN) - Cuts oil and gas production at two US Gulf of Mexico platforms, curtailing output at two others ahead of the storm and is removing non-essential staff from five US Gulf of Mexico platforms ahead of the predicted hurricane. (Newswires)

Shell (SHEL LN) - Monitoring tropical disturbance 35 for potential impacts to its assets and operations in the Gulf of Mexico; has shut in production at its Stones asset and has curtailed production at Appomattox. Continues to evacuate non-essential personnel from assets in the Mars corridor. Currently, there are no other impacts on production across the Gulf of Mexico. (Newswires)

Unilever (ULVR LN) – The CEO is looking for a global plastics treaty that has some “binding rules”, according to Reuters. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Post (DHL GY) - Co. targets 50% revenue growth by 2030, DHL Group to align the legal structure with the management structure. The simplification includes establishing Post & Parcel Germany and eCommerce as standalone corporate entities comparable to all other entities. A large part of the 2030 targeted revenue growth should be achieved organically but will pursue takeovers. Legal restructuring is not a preparation to divest the letter postage business in Germany. (Newswires)

OTHER GERMAN COMPANIES

Qiagen (QIA GY) – Bode Tech would become an exclusive global commercial partner for Gedmatch Pro Genealogy database. (Newswires)

BROKER MOVES

CAC

Danone SA (BN FP), Lifeway Foods (LWAY) - Danone has offered USD 25/shr in cash to acquire the remaining shares of Lifeway Foods it does not already own. This offer, amid Lifeway's internal family disputes, represents a 59% premium. (Newswires)

TotalEnergies (TTE FP) – The CEO said that the Co. is in talks with Petrobras (PBR) for potential joint business abroad. (Newswires)

OTHER FRENCH COMPANIES

Peugeot (PEUG FP) – H1 (EUR): NAV/shr 226.7mln, -3.7% Y/Y. Appointed Jean-Charles Douin as CEO. (Newswires)

BROKER MOVES

PAN EUROPE

ASML (ASML NA) – The Netherlands Economy Minister, on a visit to the US, stressed the importance of China as a trading partner and must be allowed to “do business as freely as possible”. (Newswires)

Auto Stocks - The German Economy Minister says a big part of the auto market problem lies in demand from China, it does not seem that this problem will be solved soon. (Newswires)

China-exposed Stocks - PBoC announced a cut in the RRR by 50bps and the 7-day reverse repo rate by 20bps to 1.50%, while it will reduce the MLF rate and guide the LPR lower. Furthermore, support measures were also announced for the property industry and China will create new tools to support the stable development of the stock market, as well as allow funds and brokers to tap PBoC funds to buy stock. Chinese stocks heavily outperformed following the flurry of support measures.

Leonardo (LDO IM) – Acquisition of control in Gem Elettronica completed, from 30% to 65%. Investment of around EUR 16mln. In other news, BlackRock (BLK) secures Italian Government approval to hold a stake of more than 3% in Italy’s Leonardo. (Newswires)

Italian Telecoms – FiberCorp is planning to cut 1.3k jobs through a voluntary early retirement scheme, via Reuters citing sources. (Reuters)

Stellantis (STLAM IM/STLAP FP) board to meet early next month to review its US business; Chairman has no plans for immediate CEO change but has started a search for a successor to CEO Carlos Tavares, according to Bloomberg. On reports of CEO succession Co. later said it is a little over a year before the expiry of a 5 five-year contract and is normal for the board to look into the subject. (Newswires)

UCB (UCB BB) - And Biogen (BIIB) announce positive topline results from Phase 3 study of Dapirolizumab Pegol in Systemic Lupus Erythematosus and are Initiating Second Phase 3 Study in 2024. (Newswires)

BROKER MOVES

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

OMV (OMV AV) upgraded to Overweight from Neutral at JP Morgan

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Equinor (EQNR NO) – Co. has evacuated some staff as a precaution, although Platform Titan is not expected to be in the path of the storm. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.29% at 5,718, NDX +0.31% at 19,852, DJIA +0.15% at 42,125, RUT -0.34% at 2,220.

SECTORS: Energy +1.31%, Consumer Discretionary +1.3%, Real Estate +1.13%, Utilities +0.97%, Materials +0.87%, Industrials +0.66%, Consumer Staples +0.57%, Financials +0.1%, Technology -0.08%, Communication Services -0.15%, Health -0.25%.

Boeing (BA) - The IAM union representing Boeing workers has criticised the company's final pay offer of a 30% increase over four years, along with a bonus and improved retirement benefits, BBC reports. Workers went on strike after rejecting a 25% rise. The union claims the latest offer does not fully address priorities around retirement, wages and other issues, and was presented without negotiation, which Boeing denies.

Chevron's (CVX) - US antitrust regulator is set to greenlight Chevron's USD 53bln purchase of oil rival Hess (HES), according to sources cited by Reuters. (Reuters)

Snowflake (SNOW) - Announces proposed private placement of USD 2bln of convertible senior notes and expects to use net proceeds from offering to pay cost of capped call transactions. (Newswires)

Visa Inc. (V) - The DoJ plans to file an antitrust lawsuit against Visa, alleging the company illegally monopolised the US debit card market, Bloomberg reports. The lawsuit is expected soon, and will accuse Visa of engaging in various anticompetitive practices, with the case to be filed in federal court.

24 Sep 2024 - 06:51- Exclusive- Source: Newsquawk