Newsquawk Daily European Equity Opening News - 28th February 2024

28th February 2024

ASIA

APAC stocks traded cautiously and followed suit to the rangebound performance seen on Wall St where stocks largely ignored weak US data ahead of key events, while the region also digested a couple of data releases and the RBNZ policy announcement. ASX 200 was indecisive with tech strength offset by weakness in telecoms, consumer stocks and financials, while data showed softer-than-expected monthly CPI in January and a miss on Construction Work Done for Q4. Nikkei 225 lacked conviction but remained above the 39,000 level in the absence of any pertinent catalysts. Hang Seng and Shanghai Comp. were pressured amid initial developer-related concerns after a wind-up petition was filed against Country Garden, although the property sector in Hong Kong then recovered after the government announced the cancellation of all demand-side property tightening measures for residential.

Chinese Housing - The Hong Kong Government said they are to cancel all demand-side property tightening measures for residential, adding there is room to further adjust measures for the property market. Will waive stamp duties payable on transfer of REIT units. The city will stage more than 80 "mega-events" in the first half to boost tourism. To reduce profits tax payable by 100%, capped at HKD 3,000. To reduce salaries tax payable by 100%, capped at HKD 3,000. Separately, HKMA says maximum loan-to-value ratios will be adjusted to 70% for self-occupation residential properties valued at HKD 30mln or below. (Newswires)

LG Electronics (066570 KS) - Co. discussed a partnership with Meta (META), according to reports. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.76% at 17,556.49, FTSE 100: -0.02% at 7,683.02, CAC 40: +0.23% at 7,948.40, Euro Stoxx 50: +0.48% at 4,887.45, IBEX 35: -0.24% at 10,113.80, FTSE MIB: +0.46% at 32,706.44, SMI: -0.09% at 11,442.70.

SECTORS: IT 1.14%, Utilities 0.72%, Materials 0.55%, Consumer Disc 0.47%, Energy 0.35%, Financials 0.20%, Telecoms 0.10%, Healthcare -0.16%, Industrials -0.21%, Consumer Stpl -0.38%

FTSE 100

BP (BP/ LN) - Co. urged US regulators to refuse Venture Global LNG's request for an extension of time to build its Calcasieu pass plant and adds the plant is effectively commissioned and wants access to Venture Global's confidential docs it sent to FERC. (Newswires)

FTSE 100 Reshuffle - easyJet (EZJ LN) is poised to replace Endeavour Mining (EDV LN) in the FTSE 100, according to indicative results by FTSE Russell based on Tuesday’s close. (Times) Note, final changes will be announced after market close on Wednesday 28th February 2024.

Glencore (GLEN LN)/Shell (SHEL LN) - Glencore is evaluating a bid for Shell's Singapore refining and petrochemical assets, while CNOOC and Befar have dropped out of the bidding process. (Newswires)

Segro (SGRO LN) - Co. reportedly plans to raise roughly GBP 800mln gross via the sale of new shares. (Newswires)

Sage (SGE LN) – Signs strategic collaboration agreement with AWS to enable AI-powered solutions for small and mid-sized businesses. (Newswires)

UK Stocks - UK Chancellor Hunt struggles to find Budget goodies as he faces fiscal ‘headlock’, according to The FT; Deteriorating forecasts pose a challenge for UK chancellor as Tory MPs seek tax cuts to improve election prospects. Hunt will prioritise personal tax cuts on March 6th, but his allies say his room for manoeuvre is limited because of increasingly tight fiscal forecasts produced by the spending watchdog. Tory MPs still hope Hunt can spring a surprise by cutting national insurance rates by 2bp at a cost of about GBP 10bln, although Chancellor's aides have insisted this was 'impossible at the moment, let alone difficult.'(FT)

OTHER UK COMPANIES

Just Eat Takeaway (JET LN) - FY23 (GBP): Adj. EBITDA 323mln (exp. 271mln, prev. 19mln Y/Y), Revenue 5.17bln (exp. 5.25bln, prev. 5.56bln Y/Y). Guides initial FY24 Adj. EBITDA 450mln, FCF "positive". (Newswires)

BROKER MOVES

Direct Line (DLG LN) downgraded to Neutral from Buy at Citi

DAX

Lufthansa (LHA GY) - German union Verdi calls on Lufthansa group employees to strike from Feb. 28th to March 1st. (Newswires)

OTHER GERMAN COMPANIES

Lanxess (LXS GY) – Reports prelim FY23 Adj. EBITDA “in line with expectations”. Notes of a EUR 413mln impairment of goodwill and adjustment of at-equity book value of minority interest in Envalior. (Newswires)

Scout24 (G24 GY) - Q4 (EUR): EBITDA 79.4mln (prev. 66.5mln Y/Y), Revenue 132.5mln (prev. 115.2mln Y/Y). (Newswires)

Uniper (UN0 GY) - FY (EUR): Net 6.336bln (exp. 4.18bln). Expects lower earnings in 2024 due to declining commodity prices; adj. EBITDA seen significantly lower Y/Y at 1.5-2.5bln (exp. 2.18bln), adj. Net at 0.7-1.1bln (exp. 0.95bln). (Newswires) Note, the German state is currently the majority holder of Uniper with a 99% stake

BROKER MOVES

Mercedes Benz (MBG GY) upgraded to Buy from Hold at Jefferies

CAC

Airbus (AIR FP) - American (AAL) reportedly nears deal for about 100 narrowbody jets that tilts more towards Airbus than Boeing (BA); order likely to be finalized within weeks, but the deal is still being negotiated, according to Bloomberg. (Bloomberg)

Lagardère (MMB FP) - FY23 (EUR): Net 144mln (prev. 161mln), EBIT 520mln (exp. 492mln), Revenue 8.08bln (exp. 7.93bln). Received offer from LVMH (MC FP) to buy Paris Match Magazine. (Lagardère)

TotalEnergies (TTE FP) - Co. VP said China's LNG demand continues to grow but not at 2021 levels, Europe's LNG demand is expected to continue growing, while LNG prices are expected to remain volatile as new production won't be coming onstream in the short term. (Newswires)

OTHER FRENCH COMPANIES

Worldline (WLN FP) - FY23 (EUR): Revenue 4.61bln (exp. 4.61bln). Q4: Organic Rev +1.3% (exp. +2.1%), Guides initial FY24 Organic Revenue CAGR at least 3%, adj. EBITDA at least 1.17bln, FCF at least 230mln. (Newswires)

BROKER MOVES

PAN EUROPE

Aena (AENA SM) - FY (EUR): Sales 5.04bln (exp. 4.98bln), EBITDA 3.0bln (exp. 2.78bln), Net 1.6bln (exp. 1.44bln), Dividend 7.66/shr (exp. 7.62/shr). The strategic plan will be presented on 7th March. (Newswires)

ASM International (ASM NA) – Q4 (EUR): Normalised Net 100mln (exp. 137mln, prev. 142mln Y/Y), Normalised Op. 141mln (prev. 190mln Y/Y), Revenue 633mln (exp. 647mln, prev. 725mln Y/Y), Launches 150mln share buyback. Raises dividend to 2.75/shr (prev. 2.50/shr). Guides Q1 Revenue 600-640mln. DEMAND: "Bookings at EUR 678mln were slightly better than our expectation and were driven by GAA pilot- line orders and continued strength in China demand." OUTLOOK: "While the broader semiconductor market is expected to recover in 2024, the softer WFE market conditions we saw in the second half of 2023 are expected to continue into the first part of 2024...Looking at the expectations for WFE [wafer fab equipment] demand, memory and leading-edge logic/foundry demand is expected to gradually recover in the course of 2024." (ASM International/Newswires)

ArcelorMittal (MT NA) - Co. is to pause operations at four plants in Argentina for one month due to a recent sales slide. (Newswires)

Auto Names - Apple (AAPL) is cancelling efforts to build electric cars; to shift many car project workers to generative AI effort and some car employees to be cut, according to Bloomberg sources. There will be layoffs, but it’s unclear how many. (Bloomberg) Separately, Tesla (TSLA) CEO Musk said Tesla Roadster's "production design complete and unveil end of year, aiming to ship next year", via X, He added "There will never be another car like this, if you could even call it a car.". (X)

Endesa (ELE SM) - FY23 (EUR): Net 742mln (exp. 1.12bln, prev. 2.54bln Y/Y), EBITDA 3.78bln (exp. 4.14bln, prev. 5.57bln Y/Y), Revenue 25.5bln (exp. 24.27bln, prev. 32.9bln Y/Y). (Newswires)

Ferrovial (FER SM) - FY23 (EUR): Net profit 460mln (exp. 311mln). EBITDA 991mln (prev. 728mln). Revenue 8.51bln (exp. 8.34bln). Co. proposes a EUR 500mln share buyback programme. (Newswires)

Phillips (PHIA NA) - Names Charlotte Hanneman as new CFO, effective Oct 1st. (Newswires)

Snam Rete (SRG IM) – S&P affirms rating at BBB-, with outlook stable. (Newswires)

UCB (UCB BB) - FY23 (EUR): EPS 4.20 (exp. 3.75), Revenue 5.25bln (exp. 5.16bln, prev. 5.52bln Y/Y). Guides initial FY24 Core EPS 3.70-4.40, Revenue 5.5-5.7bln. (Newswires)

BROKER MOVES

Stellantis (STLAM IM/SLTAP FP) downgraded to Market Perform from Outperform at Bernstein

SMI

Holcim (HOLN SW) – FY23 (CHF): Net 3.06bln (exp. 3.1bln, prev. 3.31bln Y/Y), Recurring EBIT 4.76bln (exp. 4.86bln, prev. 4.75bln Y/Y), Revenue 27.0bln (exp. 27.6bln, prev. 29.2bln Y/Y). Announces new stock buyback of 1bln. (Newswires)

Swisscom (SCMN SW) – In negotiations with Vodafone (VOD LN) regarding the acquisition of 100% of Vodafone Italia for cash. Prelim. purchase price of EUR 8bln agreed, on a cash and debt-free basis. Swisscom intends to merge the unit with Fastweb. (Newswires) Follows Reuters sources reporting that Vodafone was in talks around being a minority partner in a potential Italian combination with Swisscom’s Fastweb.

OTHER SWISS COMPANIES

BROKER MOVES

Zurich (ZURN SW) upgraded to Buy from Hold at Berenberg

SCANDINAVIA

Nel (NEL NO) - Q4 (NOK): EBITDA -106mln (exp. -65mln, prev. -216mln Y/Y), Revenue 534mln (exp. 502mln, prev. 414mln Y/Y). Order intake 183mln, -81% Y/Y. Exploring a spin-off and separate listing of the Fueling division. (Newswires)

BROKER MOVES

SIG (SIGN SW) downgraded to Underperform from Neutral at BNP Paribas

US

CLOSES: SPX +0.17% at 5,078, NDX +0.21% at 17,971, DJIA -0.25% at 38,792, RUT +1.34% at 2,056.

SECTORS: Utilities +1.89%, Communication Services +1.03%, Materials +0.35%, Financials +0.27%, Consumer Discretionary +0.19%, Industrials +0.12%, Technology +0.06%, Real Estate +0.04%, Consumer Staples -0.02%, Health -0.27%, Energy -0.43%.

Apple (AAPL) - Apple is cancelling efforts to build electric cars; to shift many car project workers to generative AI effort and some car employees to be cut, according to Bloomberg sources. There will be layoffs, but it’s unclear how many. Separately, Co. met with the DoJ antitrust chief in a last-ditch effort to avoid an expected suit, according to Bloomberg. (Bloomberg)

eBay Inc (EBAY) - Q4 2023 (USD): Adj. EPS 1.07 (exp. 1.03), Revenue 2.56bln (exp. 2.51bln); authorised additional 2bln share repurchase programme and raises quarterly cash dividend 8% to 0.27/shr. (Newswires)Shares rose 3% after hours.

Microsoft (MSFT) - EU regulators are probing whether Microsoft is preventing its customers from buying security software that competes with Microsoft’s, according to The Information citing sources. It is the latest sign of growing scrutiny from policymakers, especially in the EU, of Microsoft’s fast-growing cloud business and its practice of bundling products. (The Information)

Tesla (TSLA) - CEO Musk said the Tesla Roadster "production design complete and unveil end of the year, aiming to ship next year", via X, He added "There will never be another car like this if you could even call it a car." (X)

UnitedHealth (UNH) - US antitrust probe examining ties between UnitedHealth insurer and healthcare units, according to WSJ. (WSJ)

Viking Therapeutics (VKTX) - Co. announced the proposed public offering of common stock of USD 350mln shares. (Newswires)

Warner Bros. Discovery (WBD) - Co. reportedly halts merger talks with Paramount (PARA), according to CNBC; Comcast (CMCSA) is not interested in acquiring PARA assets but would consider commercial partnerships, like bundling or merging Peacock and Paramount+. (Newswires)

28 Feb 2024 - 06:49- EnergyResearch Sheet- Source: Newsquawk