Newsquawk Daily European Equity Opening News - 29th August 2023

29th August 2023

ASIA

APAC stocks trade with an upward bias following the positive lead from Wall Street, with little in terms of fresh catalysts to dictate price action heading into month-end. ASX 200 is supported by its gold, mining, and materials sectors but with the gains modest intraday, with the upside hampered by the index’s IT and Healthcare sectors. Nikkei 225 is caged after opening higher, with the index supported by its machinery sector, while Toyota shares waned after reports it is to suspend operations at 12 plants amid system failures, with no timeline for recovery. Hang Seng and Shanghai Comp see another session in the green, with the gains in the former more pronounced as index heavyweights are again buoyed by the recent stock support measures. US and European equity futures see modest gains and tilt firmer with relatively broad-based gains seen across the contracts.

Toyota (7203 JT) - confirmed production has been halted at all 14 Japanese plants, and production will remain suspended for a second shift. (Newswires) Earlier reports cited the reason as system failures.

EUROPEAN CLOSES

CLOSES: DAX +1.03% at 15,793, CAC 40 +1.32% at 7,325, Euro Stoxx 50 +1.34% at 4,292, IBEX 35 +1.62% at 9,490, FTSE MIB +1.19% at 28,545, SMI +0.75% at 11,040.

SECTORS: IT 1.73%, Consumer Disc 1.27%, Industrials 1.24%, Financials 1.06%, Telecoms 0.80%, Materials 0.79%, Healthcare 0.66%, Energy 0.50%, Consumer Stpl 0.39%, Utilities 0.35%

FTSE 100

Airline Names - A since resolved technical issue at UK air traffic control on Monday has led thousands to face delays, with more than 500 flights cancelled. Airliners such as Ryanair (RYA ID), EasyJet (EZJ LN), Wizz Air (WIZZ LN), IAG (IAG LN) and others have all warned of delays or cancellations, according to BBC. The impact is to last for days as airliners rearrange flights following the mass cancellations/delays. (BBC/Independent)

BP (BP/ LN) - Co. needs rapid and "just" energy transition, to invest up to 50% of its capital in energy transition by end of the decade, according to Reuters. (Reuters) News from Monday's Bank Holiday

Fresnillo (FRES LN) - S&P cuts outlook to Negative from Stable; rating BBB. (Newswires)

Standard Chartered (STAN LN) - Announces sale of its global aviation finance leasing business to Avilease; initial cash consideration of USD 0.7bln, total USD 3.6bln; on completion of transaction will record an estimated gain of approx. USD 0.3bln. (Newswires) News from Monday's Bank Holiday

UK Retailers - UK BRC Shop Price Index YY (Aug) 6.9% (Prev. 7.6%), easing to its lowest level since October 2022. (BRC)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Adler Group (ADJ GY) - To launch a cash tender offer for its outstanding secured convertible notes and to issue new senior secured notes. (Newswires)

Adler Real Estate (ADL GY) - H1 (EUR): FFO 0.06 (prev. 0.42 YY), Net Rental Income 108mln (prev. 131mln YY). (Newswires)

Commerzbank (CBK GY) - A US judge dismissed most of Commerzbank's lawsuit against BNY Mellon regarding over USD 1bln losses from toxic mortgages purchased before the 2008 financial crisis. The judge rejected most claims against BNY Mellon and dismissed all negligence claims, except for 13 out of the 100 certificates and notes involved. (Newswires)

Evotec (EVT GY) - H1 (EUR): Adj. EBITDA 26.1mln (prev. 33.6mln YY), Revenue 383.8mln (prev. 336.9mln YY). (Newswires)

BROKER MOVES

Evonik Industries (EVK GY) upgraded to Add from Hold at Baader Helvea

CAC

Airbus (AIR FP) - NTSB said to investigate the crash of an Airbus helicopter in Florida, according to ABC. (ABC)

OTHER FRENCH COMPANIES

Technip Energies (TE FP) - Awarded a significant contract for a hydrogen production unit at BP's (BP/ LN) Kwinana Biorefinery. (Newswires)

Valneva (VLA FP) - Health Canada accepts Chikunguya's vaccine license application for review. (Newswires)

BROKER MOVES

PAN EUROPE

Energy Names - France and Germany are clashing over whether/how they should be able to subsidise energy costs for their industries. France reportedly wants to allow nations to subsidise for new nuclear plants/update existing ones to increase capacity, via Politico citing officials. Germany is concerned that industry would move to France for the subsidised power. (Politico)

NN Group (NN NA) - H1 (EUR): Net 600mln (prev. 2bln YY), Op 1.4bln (prev. 983mln YY). (Newswires)

Telecom Italia (TIT IM) - Italy is set to approve a decree on owning up to 20% of Telecom Italia's grid, according to Reuters citing sources. (Newswires)

BROKER MOVES

SMI

Gam Holdings (GAM SW) - Reaches an agreement with NewGAMe and Rock Investment SAS to extend immediate short-term financing of CHF 20mln to cover GAM's liquidity needs. Confirms Liontrust Asset Management's (LIO LN) tender offer has been declared unsuccessful. (Newswires)

Roche (ROG SW) - European Commission approves Evrysdi for babies under two months old with spinal muscular atrophy. (Newswires)

OTHER SWISS COMPANIES

Flughafen Zuerich (FHZN SW) - H1 (CHF): Net 138.1mln (prev. 55.4mln YY), EBITDA 323.8mln (prev. 238.2mln YY), Revenue 576.7mln (prev. 458.3mln YY). Raises FY23 passengers approx. 28mln (prev. 26mln). (Newswires)

BROKER MOVES

SCANDINAVIA

Elekta (EKTAB SS) - Elekta and the International Atomic Energy Agency (IAEA) partner to improve access to cancer care in underserved countries. Have signed a partnership agreement to jointly pursue common interests, including making advanced cancer treatment available to more patients. (Elekta)

BROKER MOVES

US

CLOSES: SPX +0.63% at 4,433, NDX +0.74% at 15,052, DJIA +0.62% at 34,559, RUT +0.83% at 1,869.

SECTORS: Communication Services +1.05%, Technology +0.81%, Industrials +0.79%, Real Estate +0.77%, Materials +0.74%, Energy +0.73%, Financials +0.59%, Consumer Staples +0.46%, Consumer Discretionary +0.37%, Health +0.23%, Utilities -0.04%.

US Regional Banks - US FDIC is set to propose heightened rules to ensure regional banks can be safely dissolved in times of stress. FDIC will vote on five separate proposals at a meeting, all aimed at ensuring banks with over USD 100bln in assets are prepared for their own potential failures, and can be dissolved smoothly and quickly. (Newswires)

29 Aug 2023 - 06:50- Research Sheet- Source: Newsquawk