Newsquawk Daily European Equity Opening News - 26th April 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asia-Pac equity markets traded tentatively albeit with a positive tilt as the major bourses in the region and US equity futures lacked firm commitment heading into month-end, as well as this week’s key events including the BoJ and FOMC meetings, as well as US GDP and Chinese PMI data. ASX 200 (-0.1%) was rangebound as strength in mining names and the top-weighted financials sector helped offset the headwinds from a snap 3-day lockdown in Perth and neighbouring Peel region, while Nikkei 225 (+0.4%) shrugged off early jitters from the reinstatement of the state of emergency for four areas including Tokyo and following the ruling LDP’s failure to win in three by-elections which is seen as a blow to PM Suga ahead of the general election later this year. Hang Seng (+0.1%) and Shanghai Comp. (+0.2%) traded with mild gains as participants digested earnings and with China to begin a month-long campaign promoting consumption in May, with the advances led by outperformance in health care and strength in mining stocks as mainland commodity prices hit fresh record levels.

EUROPEAN CLOSES

CLOSES: EUROPEAN PRELIMINARY CASH EQUITY CLOSES: EURO STOXX 50 -0.07% AT 4,012; FTSE 100 -0.10% AT 6,931; DAX -0.22% AT 15,285; CAC 40 -0.15% AT 6,256; IBEX 35 -0.46% AT 8,615; FTSE MIB -0.12% AT 24,370; SMI -0.26% AT 11,197

SECTORS: IT +0.69%, Materials +0.62%, Industrials +0.17%, Financials +0.12%, Consumer Disc -0.08%, Telecoms -0.12%, Utilities -0.24%, Energy -0.67%, Consumer Stpl -0.89%, Healthcare -1.06%

FTSE 100

Ashtead (AHT LN) - CEO Horgan believes that a period of spending to upgrade transport infrastructure in the US, given the Biden-administration and stimulus, is 'when not if'. CEO anticipates an additional USD 100-160bln of spending in addition to the USD 475bln of spending on non-residential construction. However, there remains too much uncertainty to include this in their targets. (FT)

Carnival (CCL LN) - Non-executive Director Weisenburger recently sold USD 17.5mln of shares of the Co's NYSE listing at a price above USD 27/shr, reducing his holding by 46% after purchasing USD 10mln at USD 8/shr during the height of the pandemic. (FT)

Rolls Royce (RR/ LN) - Spanish politicians have demanded that no jobs be lost in Co's sale of its Spanish unit ITP Aero. (Times)

OTHER UK COMPANIES

Darktrace - Reportedly to announce it will undertake its upcoming IPO at a price range that would equate to a GBP 2.4-2.7bln valuation, a cut from the GBP 3.6bln that the Co. had recently been expected to seek according to sources. Due to repercussions of the Roofoods (ROO LN) IPO and their links to Mike Lynch. (Sky News)

Tate & Lyle (TATE LN) - Co. has started preparations for a break-up or spin-off of its primary products unit which generated over GBP 1.8bln in revenue last year. Analysts believe the unit could be valued north of GBP 1.2bln. (Telegraph)

BROKER MOVES

PENNON GROUP (PNN LN) DOWNGRADED TO HOLD FROM BUY AT HSBC

DAX

Volkswagen (VOW3 GY) - Executive said the group is preparing for worst Q2 production levels vs Q1 amid the global chip shortage. Separately, 15 executives have been charged in relation to the diesel scandal. (FT/DPA)

OTHER GERMAN COMPANIES

Porsche (PAH3 GY) - CEO said the group is to build a battery cell factory in Germany. (Newswires)

BROKER MOVES

CONTINENTAL (CON GY) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

DAIMLER (DAI GY) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

CAC

OTHER FRENCH COMPANIES

Eurazeo (RF FP) - Co. has signed an investment agreement worth EUR 410mln. (Newswires)

Icade (ICAD FP) - Q1 revenue EUR 392.5mln vs prev. EUR 271.9mln Y/Y. Co. has affirmed its FY21 guidance. Board has approved FY20 dividend of EUR 4.01/shr. (Newswires)

Lagardere (MMB FP) - Arnaurd Lagardere is reportedly nearing an agreement to remove the commandite governance system which allows him a veto on most matters in-spite of only having a 7% stake; removal of this will be for EUR 200-250mln, according to sources. (FT)

BROKER MOVES

BOUYGUES (EN FP) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

VINCI (DG FP) REITERATED WITH OVERWEIGHT AT JPMORGAN CHASE

PAN EUROPE

Leonardo (LDO IM) - Co. is to purchase a 25.1% stake in Hensoldt (HAG GY) for EUR 606mln, becoming the largest shareholder alongside KfW. CEO says this acquisition will be used to increase their presence in Germany. (FT)

Mediaset (MS IM) - An Italian court has overturned the 2018 Mediaset AGM resolution, according to reports. (Newswires)

NN Group (NN NA) - Co. is said to be reviewing options for NN Investment Partners, according to reports. (Newswires)

Philips (PHIA NA) - Q1 adj. EBITA EUR 362mln vs exp. EUR 326mln. Revenue EUR 3.8bln vs exp. EUR 3.7bln. Co. is to take provisions of EUR 250mln on its sleep and respiratory care products. (Newswires)

PostNL (POST NA) - Prelim. Q1 normalised EBIT EUR 130mln vs prev. EUR 15mln. Revenue EUR 960mn vs prev. EUR 701mln. Co. has raised its FY21 EBIT guidance to "above EUR 250mln" vs prev. view EUR 205-225mln. Co. also raises its FCF guidance to "above EUR 225mln" vs prev. view EUR 200-230mln. (Newswires)

Santander (SAN SM) - Co. and Peel Hunt have come to an agreement whereby Peel Hunt will utilise Santander's balance sheet to allow them to compete with big investment banks in IPO's etc. (FT)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Shareholders which control of as much as 15% of the Co. are reportedly attempting to remove Gottschling the board member in charge of risk oversight, following the Archegos and Greensill issues. (FT)

Nestle (NESN SW) - Co. is said to be in talks to acquire vitamin-maker Bountiful in a deal which could be valued in the mid-single-digit billion-Dollar region, according to sources. A deal could be announced as soon as this week. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

AMS (AMS SW) DOWNGRADED TO UNDERPERFORM FROM OUTPERFORM AT CREDIT SUISSE

SCANDINAVIA

BROKER MOVES

MAERSK (MAERSKB DC) UPGRADED TO HOLD FROM SELL AT HANDELSBANKEN

WARTSILA (WRT1V FH) REITERATED WITH UNDERWEIGHT AT JPMORGAN CHASE

YARA (YAR NO) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT EXANE BNP

US

CLOSES: SPX +1.08% at 4,180, NDX +1.30% at 13,941, DJIA +0.67% at 34,043, R2K +1.29% at 2,269

SECTORS: FINANCIALS +1.85%, MATERIALS +1.68%, TECHNOLOGY +1.44%, COMMUNICATION SVS +1.11%, INDUSTRIALS +1.07%, CONS DISC +1.03%, ENERGY +0.94%, HEALTH +0.64%, REAL ESTATE +0.58%, CONS STPL -0.16%, UTILITIES -0.17%

26 Apr 2021 - 06:50- Research Sheet- Source: Newsquawk