Newsquawk Daily European Equity Opening News - 29th May 2024

29th May 2024

ASIA

APAC stocks traded mostly lower after the indecisive performance stateside amid the rising yield environment. ASX 200 was dragged lower amid a jump in yields and after disappointing data including firmer-than-expected monthly CPI for April and a surprise contraction in Construction Work Done during Q1. Nikkei 225 failed to sustain an early momentum and a brief foray above 39,000 with headwinds from rising yields. Hang Seng and Shanghai Comp were mixed with notable losses in tech and consumer stocks front-running the declines in Hong Kong, while the mainland bucked the trend after more Chinese cities announced property support measures and the PBoC also conducted a relatively substantial liquidity injection heading into month-end.

Paytm (PAYTM IS) - Co. says the news item that Adani is in talks to acquire a stake in the Co. is speculative and it is not engaged in any discussions in this regard. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.48% at 18,684.66, FTSE 100: -0.76% at 8,254.18, CAC 40: -0.92% at 8,057.80, Euro Stoxx 50: -0.61% at 5,028.15, IBEX 35: -0.44% at 11,276.00, FTSE MIB: -0.29% at 34,659.55, AEX: -0.42% at 912.23

SECTORS: IT 0.20%, Energy 0.05%, Financials -0.24%, Telecoms -0.32%, Utilities -0.66%, Industrials -0.72%, Materials -0.79%, Consumer Stpl -0.97%, Consumer Disc -0.99%, Healthcare -1.08%

FTSE 100

Anglo American (AAL LN) - As BHP's (BHP AT) deadline to make a binding offer for Anglo American nears, no new concessions emerging in talks, according to Reuters citing sources. BHP wants Anglo to divest some South African assets. Anglo said the proposed deal structure is too difficult to integrate. Bloomberg sources also suggest the two sides have struggled to find a resolution to an impasse. Sources added that at this point, there is no guarantee that Anglo American will request another extension to the UK regulatory deadline. (Reuters/Bloomberg) Reminder, the UK CMA deadline for BHP (BHP AT) to make a firm offer or walk away is currently set for 17:00 BST on Wednesday, 29th May.

FTSE 100 Indicative Review - Promotions: Darktrace (DARK LN) & Vistry Group (VTY LN). Demotions: Ocado Group (OCDO LN) & St James’s Place (STJ LN). (LSEG) Actual review will be as of the close on 4th June, announcement on 5th June.

IDS (IDS LN) - Czech billionaire Kretinsky is reportedly poised to make a firm offer for IDS today, according to Reuters citing sources; IDS reported set to recommend the offer but both parties have declined to comment. The new bid is said to be worth as much as GBP 5bln. (Newswires) Reminder, the UK CMA deadline for Kretinsky to make a firm offer or walk away is currently set for Wednesday, 29th May.

Marks & Spencer (MKS LN) – Andrew Fisher is to stand down from the board, effective July 2 2024. (Newswires)

Shell (SHEL LN) - Co. is reportedly said to be planning layoffs in its offshore wind business, according to Bloomberg. (Newswires)

OTHER UK COMPANIES

FTSE 250 Indicative Review - Promotions: Alpha Group International (ALPH LN), Brunner Investment Trust (BUT LN), Liontrust Asset Management (LIO LN), Ocado Group (OCDO LN), St James’s Place (STJ LN) & XPS Pensions Group (XPS LN). Demotions: Darktrace (DARK LN), Ferrexpo (FXPO LN), Mobico Group (MCG LN), NextEnergy Solar Fund (NESF LN), Octopus Renewables Infrastructure Trust (ORIT LN) & Vistry Group (VTY LN). (LSEG) Actual review will be as of the close on 4th June, announcement on 5th June.

BROKER MOVES

DAX

Siemens Energy (ENR GY) - Co. is reportedly considering cutting 4,100 jobs at its Gamesa wind unit, according to Bloomberg sources. (Bloomberg)

Volkswagen (VOW3 GY) - Announced world premiere for low-cost electric vehicle scheduled for 2027, will develop entry-level electric vehicles for the European market in the price range of EUR 20k, and the project will rely on a high degree of localisation in Europe. (Newswires)

OTHER GERMAN COMPANIES

Aroundtown (AT1 GY) – Q1 (EUR): Adj. EBITDA 247mln (exp. 246mln), Net Rental Income 293mln, -1% Y/Y. FY24 guidance confirmed. (Newswires)

BROKER MOVES

Delivery Hero (DHER GY) downgraded to Equal Weight from Overweight at Morgan Stanley

CAC

OTHER FRENCH COMPANIES

Bollore (BOL FP) – Blue Solutions, a unit of Bollore, is planning to build a EUR 2bln gigafactory in France, via Reuters. (Reuters)

Casino (CO FP) – Completion of sale of Casino’s entire stake in Greenyellow; net proceeds of EUR 46mln. (Newswires)

BROKER MOVES

Renault (RNO FP) upgraded to Buy from Neutral at Goldman Sachs

PAN EUROPE

Aena (AENA SM) – Appoints Ignacio Castejon Hernandez as CFO. (Newswires)

DSM-Firmenich (DSFIR NA) - The FDA has announced it has completed its comprehensive, multi-year review of Bovaer (3-NOP), a first-in-class methane-reducing feed ingredient, and determined the product meets safety and efficacy requirements for use in lactating dairy cattle. (DSM-Firmenich)

Prysmian (PRY IM) - Acquisition of Encore Wire (WIRE) receives antitrust clearance in the US; transaction remains subject to approval of Encore Wire's (WIRE) shareholders representing at least a majority of outstanding shares. (Newswires)

Stellantis (STLAM IM/STLAP FP) – Announced leadership changes. Luca Napolitano appointed Chief Sales. (Newswires)

BROKER MOVES

CD Projekt (CDR PW) downgraded to Underweight from Equal Weight at Morgan Stanley

SMI

Adevinta (ADE NO) – Q1 (EUR): Revenue 480mln (exp. 514mln), EBITDA 165mln, +14% Y/Y. (Newswires)

Roche (ROG SW) - FDA grants priority review to Genentech’s Inavolisib for Advanced Hormone Receptor-Positive, HER2-Negative breast cancer with a PIK3CA mutation. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

Swiss Re (SREN SW) upgraded to Buy from Hold at HSBC

SCANDINAVIA

Skanksa (SKAB SS) - Builds data centre in USA for USD 90mln. (Newswires)

Orsted (ORSTED DC) – New Jersey will receive USD 125mln from a legal settlement with Orsted over cancelled offshore wind projects. (Newswires)

BROKER MOVES

US

CLOSES: S&P 500 +0.0%, Dow Jones Industrial Average -0.6%, Nasdaq-100 +0.3%, Russell 2000 -0.2%.

SECTORS: Consumer Cyclical -0.1%, Consumer Staples -0.8%, Energy +1.1%, Financials -1.1%, Healthcare -1.3%, Industrials -1.3%, Materials -0.4%, Real Estate -0.6%, Technology +1.4%, Communications +0.5%, Utilities -0.1%.

29 May 2024 - 06:46- Research Sheet- Source: Newsquawk