Newsquawk Daily European Equity Opening News - 25th November 2024

ASIA

APAC stocks began the week mostly higher following last Friday's gains stateside and as markets reacted to news over the weekend that President-elect Trump picked hedge-fund manager Scott Bessent as Treasury Secretary which is seen as a nod to Wall Street and could potentially reduce the chances of severe tariffs with Bessent seen to have a gradual approach on tariffs. ASX 200 was led by outperformance in real estate and consumer-related sectors amid lower yields which saw financials lag.Nikkei 225 surged and briefly reclaimed the 39,000 level following the Japanese Cabinet's stimulus package approval and as equity markets saw a relief rally on the US Treasury Secretary nomination, although the Japanese benchmark moved off today's highs owing to yen strength. Hang Seng and Shanghai Comp were indecisive in a tight range with headwinds following the PBoC's CNY 550bln drain through its Medium-term Lending Facility operations and amid expectations of further US export restrictions on China, while automakers were supported by reports that the EU is said to be close to an agreement with China to abolish EV import tariffs.

EUROPEAN CLOSES

CLOSES: DAX: +0.83% at 19,306, FTSE 100: +1.38% at 8,262, CAC 40: +0.58% at 7,255, Euro Stoxx 50: +0.72% at 4,790, AEX: +1.58% at 880, IBEX 35: +0.39% at 11,657, FTSE MIB: +0.60% at 33,495, SMI: +1.14% at 11,724, PSI: +0.76% at 6,409.

SECTORS: Healthcare 2.59%, Utilities 1.83%, Telecoms 1.82%, Consumer Stpl 1.45%, Consumer Disc 1.32%, IT 1.32%, Industrials 1.11%, Materials 0.87%, Energy 0.33%, Financials -0.27%.

FTSE 100

Prudential (PRU LN) - To commence a share repurchase programme at GBP 0.05/shr for 2.8mln ordinary shares, will neutralise 2024 issuances for scrip dividend and employee share scheme. (Newswires)

Unilever (ULVR LN) - CEO confirms they are to slim down the food unit but will not be spinning it off, via FT. Intends to "prune" around GBP 1bln in food sales via key brand focus and has confirmed plans to IPO the ice-cream unit. (FT)

OTHER UK COMPANIES

ITV (ITV LN) - Attracting takeover interest after a period of share price weakness, with suitors like CVC Capital Partners and France's Groupe TF1 exploring potential offers, Sky News reports. ITV’s production arm, ITV Studios, could be sold separately, with speculated bids exceeding the current company value. ITV is also considering a demerger of its broadcasting and production units. Despite challenges, ITV's strategic shift towards digital and production is seen as positive for its long-term prospects, the report added. (Sky News)

BROKER MOVES

3I (III LN) upgraded to Overweight from Equalweight at Morgan Stanley

Liontrust (LIO LN) upgraded to Buy from Hold at Peel Hunt

DAX

Volkswagen (VOW3 GY) - Northvolt's interim Chair says its battery production needs to be fixed. (Bloomberg) Note, Volkswagen is the largest shareholder in Northvolt. 

OTHER GERMAN COMPANIES

RENK Group (R3NK GY) - Terminated the mandate of CEO Wiegand, Sagel has been appointed as the replacement. (Newswires)

BROKER MOVES

CAC

Atos (ATO FP) - Received a non-binding offer from the French state to acquire advanced computing activities for an enterprise value of EUR 500mln and up to EUR 625mln incl. earn-outs. Goal is to have a purchase agreement signed by May 31st. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Auto Names - EU Trade Committee Chair Lange says that they are close to an agreement with China to abolish the EV import tariffs, via NTV; adds, China could commit to offering EVs to the EU at a minimum price. (NTV)

Eni (ENI IM) - Launches the Hull of Nguya FLNG in China, which confirms the schedule of Congo's Phase 2 startup. (Newswires)

Italian Banks - Bank of Italy has identified UniCredit (UCG IM), Intesa Sanpaolo (ISP IM), Banco BPM (BAMI IM), Mediobanca (MB IM) and others as "other systemically important institutions" (O-SIIS); will have to maintain specific buffers from January 1st. (Newswires)

Pharma. Names - Barron's recommends purchasing stocks of anti-obesity drugmakers Amgen (AMGN), Eli Lilly (LLY) and Novo Nordisk (NOVOB DC) following recent declines around the appointment of RFK Jr to the DHHS. (Barron's)

UniCredit (UCG IM) - Co. has offered to purchase Banco BPM (BAMI IM) for EUR 10bln; offer represents a 0.5% premium to Friday's share price and a 14.6% premium to the November 6th price. (FT/Newswires) An offer which has weighed on Commerzbank (CBK GY), Co. is -2.2% in pre-market trade

BROKER MOVES

Caixabank (CABK SM) downgraded to Equalweight from Overweight at Morgan Stanley

ING (INGA NA) downgraded to Equalweight from Overweight at Morgan Stanley

Santander (SAN SM) upgraded to Overweight from Equalweight at Morgan Stanley

SMI

Novartis (NOVN SW) - Highlights new 96-week results from Phase III Scemblix ASC4FIRST trial at ASH and late-breaking analysis from Phase III Kisqali NATALEE trial at SABCS. (GlobeNewswire)

Roche (ROG SW) - Received FDA approval for the first companion diagnostic to identify patients with biliary track cancer eligible for HER2-targeted treatment with Ziihera. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Novo Holdings is reportedly to receive EU antitrust approval for the purchase of Catalent (CTLT), via Reuters citing sources. (Newswires)

BROKER MOVES

Equinor (EQNR NO) upgraded to Overweight from Equalweight at Barclays

Handelsbanken (SHBA ST) upgraded to Equalweight from Overweight at Morgan Stanley

Nordea (NDA FH) upgraded to Overweight from Equalweight at Morgan Stanley

Orsted (ORSTED DC) downgraded to Neutral from Buy at Goldman Sachs

US

CLOSES: SPX +0.35% at 5,969, NDX +0.17% at 20,776, DJIA +0.97% at 44,297, RUT +1.80% at 2,407

SECTORS: Communication Services -0.69%, Utilities -0.66%, Technology -0.22%, Health +0.08%, Energy +0.11%, Materials +0.55%, Real Estate +0.84%, Consumer Staples +1.02%, Financials +1.11%, Consumer Discretionary +1.18%, Industrials +1.36%.

Crypto - Commerce Secretary nominee and head of Cantor Fitzgerald Howard Lutnick is in talks with Tether Holdings to strengthen financial ties, including a potential USD 2bln Bitcoin (BTC) lending project, Bloomberg reports. Tether, known for its stablecoin, is a major client of Cantor's custody services.

25 Nov 2024 - 06:55- EquitiesResearch Sheet- Source: Newsquawk