Newsquawk Daily European Equity Opening News

26th August 2024

ASIA

APAC stocks kicked off the week mixed following the gains on Wall Street after Fed Chair Powell's dovish pivot, whilst the weekend was packed with geopolitics in which the heavy fires between Israel and Hezbollah resulted in no civilian casualties, but both sides expressed no appetite for further escalation. ASX 200 traded firm with the index underpinned by Real Estate, Tech, and Energy, although further upside was limited by the losses in Healthcare - the underperforming sector. Nikkei 225 was pressured by the recent JPY strength following the Fed Chair's dovish comments after the BoJ Governor's hawkish remarks on Friday, in which Powell's speech ultimately resulted in a weaker Dollar and lower US bond yields. Auto stocks fell with Yamaha Motors sliding after reports Yamaha Corp was to sell a 1.7% stake in Yamaha Motors. Hang Seng and Shanghai Comp. were mixed with Hong Kong bolstered by its Real Estate sector, whilst the mainland was subdued in a tight range after the PBoC conducted its delayed MLF with a maintained rate at 2.30%.

EUROPEAN CLOSES

CLOSES: DAX: +0.77% at 18,636, FTSE 100: +0.48% at 8,328, CAC 40: +0.70% at 7,577, Euro Stoxx 50: +0.46% at 4,908, AEX: +0.02% at 909, IBEX 35: +1.09% at 11,278, FTSE MIB: +1.02% at 33,650, SMI: +0.38% at 12,352, PSI: +0.80% at 6,698.

SECTORS: Utilities 1.05%, Financials 0.90%, Telecoms 0.88%, Energy 0.84%, Materials 0.73%, Industrials 0.61%, Consumer Disc 0.57%, Consumer Stpl 0.36%, Healthcare -0.08%, IT -0.93%

FTSE 100 - Closed for Bank Holiday

Melrose (MRO LN) - FT article titled "the great Melrose cashflow conundrum". The article focuses on a recent UBS note on the name, within which UBS set Melrose's price target at GBP 4.00/shr based on peer valuation metrics; on that, and concluding, the FT article says "...but it's a brave bet to say it can't go lower still". (FT) Melrose closed at GBP 4.80/shr on Friday

M&S (MKS LN) - Co. is considering opening a range of clothing-only boutiques, via Telegraph; to open one in Battersea Power Station before trailing potential further openings. (Telegraph)

Unilever (ULVR LN) - Co. is looking to dispose of brands Kate Somerville and REN, via Sky News citing sources; valuation of the units is unclear. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

DAX

Siemens Healthineers (SHL GY) - Co. has agreed to purchase part of a Novartis (NOVN SW) business which specialises in producing radioactive chemicals for cancer scans, to pay over EUR 200mln for it, via FT citing sources. (FT) Note, the deal has since been confirmed by the Cos

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Defence Names - Leading 15 defence contractors globally are expected to post FCF of USD 52bln in 2026, almost double the end-2021 figure, via FT citing Vertical Research Partners. (FT)

Pharma. Names - Novo Nordisk (NOVOB DC), Pfizer (PFE), GSK (GSK LN), Teva Pharmaceutical (TEVA) - With the US government negotiating Medicare drug prices starting in 2026, analysts expect Novo Nordisk's Ozempic and other drugs like Pfizer's Ibrance, GSK's Trelegy Ellipta, and Teva's Austedo to be included in the 2027 list, Reuters reports. (Newswires)

UCB (UCB BB) - To divest is mature neurology and allergy businesses within China, for an amount of USD 680mln. Transaction expected to close in Q4, does not impact FY guidance. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) - Nestle ousted CEO Mark Schneider due to the company's underperformance, including weak sales growth and delays in product development, sources cited by Reuters said. Schneider is to be replaced by company veteran Laurent Freixe in September, who plans to refocus on organic growth and improving sales and marketing. Reuters also added that analysts are uncertain that Nestle can achieve its 2024 and 2025 targets, and are concerned that the new CEO may reduce guidance as he focuses more on sales growth than margins. Elsewhere, Nestle's Chair said the company plans to keep its Health Science unit. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.15% at 5,635, NDX +1.17% at 19,721, DJIA +1.14% at 41,175, RUT +3.19% at 2,219

SECTORS: Real Estate +2.00%, Consumer Discretionary +1.70%, Technology +1.66%, Energy +1.48%, Materials +1.35%, Industrials +1.04%, Financials +0.91%, Health +0.52%, Communication Services +0.50%, Utilities +0.29%, Consumer Staples +0.23%.

Blackstone (BX), Carlyle (CG) - Several private equity firms, including Carlyle, Blackstone, and Permira, are eyeing a stake in Grant Thornton's UK business, which is valued between GBP 1.0-1.5bln, FT reports. New Mountain Capital may also bid to merge with its US operations. Formal offers are due by September. (FT)

26 Aug 2024 - 06:50- Fixed IncomeResearch Sheet- Source: Newsquawk