Newsquawk Daily European Equity Opening News - 26th July 2024

26th July 2024

ASIA

APAC stocks were mostly higher as risk sentiment in Asia improved with markets finding some composure following the recent sell-off and with some encouragement from stronger-than-expected US GDP data. ASX 200 was led higher by outperformance in the commodity, materials, real estate and energy-related sectors. Nikkei 225 was choppy and briefly rose above 38,000 following mostly softer-than-expected Tokyo CPI. Hang Seng and Shanghai Comp. were varied with the former rangebound as it strived to stay above the 17,000 level, while the mainland remained lacklustre amid lingering slowdown concerns despite another increased PBoC liquidity effort.

EUROPEAN CLOSES

CLOSES: DAX: -0.45% at 18,304, FTSE 100: +0.40% at 8,186, CAC 40: -1.15% at 7,427, Euro Stoxx 50: -1.05% at 4,811, AEX: -0.54% at 899, IBEX 35: -0.58% at 11,146, FTSE MIB: -2.03% at 33,771, SMI: -0.75% at 12,112, PSI: -2.61% at 6,719.

SECTORS: Healthcare 0.24%, Utilities 0.10%, Consumer Stpl -0.28%, Materials -0.34%, Energy -0.49%, Financials -0.63%, Industrials -1.03%, Consumer Disc -1.29%, Telecoms -1.41%, IT -2.67%

FTSE 100

AstraZeneca (AZN LN) - FDA Advisory committee reviewed Imfinzi for treatment of resectable non-small cell lung cancer based on Aegean Phase 3 trial results; FDA acknowledged Imfinzi met primary endpoints of event-free survival. (Newswires)

UK Stocks - UK Chancellor Reeves is expected to reveal a GBP 20bln hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget, according to The Guardian. (The Guardian)

OTHER UK COMPANIES

BROKER MOVES

DAX

BASF (BAS GY) - Q2 (EUR): adj. EBIT 969mln (exp. 1.03bln), Sales 16.1bln (prev. 17.3bln), adj. EBITDA 2.0bln (prev. 2.0bln). FY24 outlook confirmed.

Bayer (BAYN GY) - Monsanto is to pay USD 160mln to settle a lawsuit which was put forward by the city of Seattle. (Newswires)

Mercedes Benz (MBG GY) - Q2 (EUR): Revenue 36.7bln (exp. 37.5bln), EBIT 4.03bln (exp. 4.01bln). See FY Cars adj. ROS 10-11% (prev. guided 10-12%). FY24 guidance confirmed. Cars Revenue 27.1bln (exp. 27.45bln). Cars adj. EBIT 2.76bln (exp. 2.84bln). Cars adj. ROS 10.2% (prev. 13.5%). (Newswires)

OTHER GERMAN COMPANIES

Deutsche Boerse (DB1 GY) - Q2 2024 (EUR): adj. EPS 2.91, Revenue 1.45bln (exp. 1.45bln), Net income 498.6mln, EBITDA 848.1mln. (Newswires)

thyssenkrupp (TKA GY) - Expects sales to decline between 6-8% vs the prior year; expects FCF before M&A to be in the range of EUR 100mln for the FY. Main reason for adjusting outlook for FY 2023/24: Continued challenging market environment. The market isn't expected to stabilize in the short term. (Newswires)

Wacker Chemie (WCH GY) - Q2 (EUR): Revenue 1.47bln (exp. 1.50bln), EBIT 43mln (exp. 51.9mln). FY outlook: Revenue 6-6.5bln. Now expects EBITDA to be in the upper half of the projected range. (Newswires)

BROKER MOVES

CAC

Air Liquide (AI FP) - To invest EUR 100mln in a renewed partnership with Aurubis (NDA GY) for a more sustainable gas supply in Bulgaria and Germany. (Newswires)

Credit Agricole (ACA FP) - Immobilier and Nexity enter into exclusive negotiations given the acquisition of Nexity Property Management. (Newswires)

Capgemini (CAP FP) - H1 (EUR): Revenue 11.13bln (exp. 11.17bln), Op. Profit 1.14bln (prev. 1.15bln Y/Y). "The slope of recovery in the second half will be affected by the recent deterioration of the outlook in the automotive and aerospace sectors and the slower recovery in financial services. In this context, we now expect a low single-digit constant currency exit rate, and target a constant currency growth rate of -0.5% to -1.5% for the full year. Despite this, we confirm our operating margin and free cash flow targets for the full year, demonstrating the resilience of the Group". (Newswires)

EssilorLuxottica (EL FP) - Q2 2024 (EUR): Revenue 6.96bln (exp. 6.97bln), North America Revenue 3.10bln (exp. 3.12bln); H1: Revenue 13.29bln (exp. 13.32bln), Adj. operating profit 2.43bln (exp. 2.43bln). CEO says he has been informed of Meta's (META) intention to take a stake, and that they welcome everybody. (Newswires)

Hermes (RMS FP) - H1 2024 (EUR): Revenue 7.50bln (exp. 7.49bln, prev. 6.70bln Y/Y), Net income group share 2.37bln (prev. 2.23bln). Q2 sales at constant FX +13.3% (exp. +11.5%). Restated net cash position amounted to 10bln at end-June 2024 (prev. 11.2bln at end-Dec 2023). In the medium-term, confirms an ambitious goal for revenue growth at Constance exchange rates. Saw a bit less traffic with aspirational clients, higher volume products, and fashion accessories suffered a bit in recent weeks. Seeing no big interruption in recent trends. CEO says Chinese clientele are continuing to make purchases in China; business in Japan mostly with locals and a few tourists. (Newswires)

Saint Gobain (SGO FP) - H1 (EUR): Operating margin 11.7%, Sales -6% to 23.46bln, EBITDA -2.3% Y/Y to 3.65bln, FCF +12.2% at 2.46bln. Net income before non-controlling interests +14% Y/Y to EUR 1.70bln. (Newswires)

Vivendi (VIV FP) - H1 (EUR): Revenue 9.05bn (prev. 4.70bln). EBITA 619mln (prev. 444mln). adj. Net income 329mln (prev. 324mln). CEO is not aware of any approach from Iliad for Telecom Italia (TIT IM) stake. (Newswires)

Vinci (DG FP) - H1 2024 (EUR): Revenue 33.78bln (exp. 33.81bln), EPS 3.46, FCF 361mln, EBIT 3.87bln. (Newswires)

OTHER FRENCH COMPANIES

Euronext (ENX FP) – Q2 (EUR): Revenue 412mln, +12%; adj. EBITDA 256mln, +18%; adj. EBITDA margin 62.2% (prev. 58.7%). (Newswires)

Sodexo (SW FP) – Successfully concluded the EUR 1.75bln refinancing of a sustainability-linked syndicated revolving credit facility. (Newswires)

Spie (SPIE FP) - H1 (EUR): Revenues 4.70bln, +14.4% Y/Y, EBITA 265.5mln, +20.5% Y/Y. Improved FY24 outlook: EBITA margin reaching at least 7% of Revenue. (Newswires)

BROKER MOVES

Michelin (ML FP) upgraded to Hold from Underperform at Jefferies

PAN EUROPE

Amundi (AMUN FP) - Q2 (EUR): adj. Net Revenue 887mln (exp. 861mln), Op. Income 426mln, +8.5% Y/Y, AuM 2.15bln, +10% Y/Y. (Newswires)

Enel (ENEL IM) - H1 (EUR): EBITDA 12.862bln (prev. 9.676bln Y/Y), adj. EBITDA 11.681bln (prev. 10.739bln), adj. Net income 3.956bln (prev. 3.279bln), Revenue 38.731bln (prev. 47.095bln). CEO says everything is going well but it is not the moment to talk about an upward revision of guidance; co. is adjusting prices to return to a fair marginality on retail client business in Italy. Not concerned about fall in retail clients in Italy, churn rate is below market average. Nothing is on the table in terms of acquisitions. Starts buyback for up to 2.9mln shares. Disposal plan completed with EUR 5bln cashed in Q2'24. Around 50% of planned EUR 1bln cost cutting already achieved. (Newswires)

Eni (ENI IM) - Q2 (EUR): Adj. Net Profit 1.52bln (Co. exp. 1.42bln), Op. Profit 4.1bln (Co. exp. 2.68bln). Announced dividend of EUR 1/shr. adj. EBIT guidance is raised to around EUR 15bln. Adj. CFFO before working capital is exp. to be over EUR 14bln for FY. Says FY hydrocarbon production is expected towards top of anticipated 1.69-1.71mln BOEPD at forecast Brent price of USD 86/bbl. Petronas, Enilive and Euglena reached a final investment decision to construct a biorefinery in Malaysia. (Newswires)

Proximus (PROX NA) - Q2 (EUR): Revenue 1.6bln (exp. 1.6bln). FY24 outlook upgraded: Domestic revenue "growing up to "2%". (Newswires)

Signify (LIGHT NA) - Q2 (EUR): Sales 1.5bln (exp. 1.51bln). Maintains guidance, with Adj. EBITA margin at lower end of 10-10.5% range. Remains cautious on professional Europe and China for H2. (Newswires)

Snam (SRG IM) signs agreement for the acquisition of Edison Stoccaggio and the deal is worth around EUR 560mln; transaction to be finalised by Q1 '25. Operation needs authorisation under applicable antitrust and golden power regulations. (Newswires)

Umicore (UMI BB) - H1 (EUR): Revenue 1.8bln (exp. 1.87bln), Adj. EBITDA 393mln (exp. 398.5mln). Interim dividend of 0.25/shr. Confirms guidance. (Newswires)

Vopak (VPK NA) - H1 (EUR): EBITDA 599mln (prev. 596mln Y/Y). Raises FY24 guidance. EBITDA 1.15-1.8bln (prev. guided 1.14-1.18bln). (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Q2 (CHF): EBIT 1.67bln (exp. 1.63bln), Net Sales 7.22bln (exp. 7.32bln). On track to achieve FY24 guidance of above 3bln. Planned listing of Honlicm's NA business in the US is on track to be completed in H1'25. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) – To sell a stake in the fibre-to-the-home network Fiberklaar, for EUR 246mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.5% at 5,399, NDX -1.1% at 18,831, DJIA +0.2% 39,953, RUT +1.3% at 2,223

SECTORS: Communication Services -1.86%, Technology -1.14%, Utilities -0.88%, Health -0.57%, Real Estate -0.57%, Consumer Discretionary -0.42%, Consumer Staples flat, Materials +0.26%, Financials +0.28%, Industrials +0.76%, Energy +1.47%.

Vale (VALE) - Q2 (USD) net 2.77bln (exp. 1.7bln), rev. 9.92bln (exp. 9.96bln)

26 Jul 2024 - 06:53- Exclusive- Source: Newsquawk