Newsquawk Daily European Equity Opening News - 2nd April 2024

2nd April 2024

ASIA

APAC stocks were mixed with price action mostly rangebound after the weak performance on Wall St where hot ISM Manufacturing PMI data saw markets trim Fed rate cut bets. ASX 200 initially printed a fresh record high but then pared its gains as strength in the commodity-related industries was offset by losses in the consumer-related sectors, while RBA Minutes did little to spur price action. Nikkei 225 was choppy and failed to sustain a brief foray back above the 40,000 status. Hang Seng and Shanghai Comp. were mixed in which the Hong Kong benchmark outperformed as it played catch up on the return from the Easter holiday closures, while the mainland was indecisive after a tepid PBoC liquidity operation.

Samsung Electronics (005930 KS) - Co. is to increase SSD Prices by 25%, according to BusinessKorea. (BusinessKorea)

EUROPEAN CLOSES

• European markets were closed for Easter Monday.


• As a reminder the UK clocks have moved forward such that the London to New York time differential is back to five hours.

FTSE 100

BAE Systems (BA/ LN) - The US Army awarded the Co. a USD 745mln contract for the second phase of production for the armoured multi-purpose vehicle program. (Newswires)

BT (BT/ LN) - Co. is urging the UK Labour Party for a change in legislation to help speed up the rollout of high-speed broadband in flats, via the FT. (FT)

Flutter Entertainment (FLTR LN) - CEO Jackson said the potential switch to a US listing could unlock the customer base of FanDuel as shareholders, and hopes that GAAP reporting will enable new investors. (FT) The proposal to transition to New York from London for its primary listing will see a vote on the 1st of May.

HSBC (HSBA LN) - Announced the completion of the sale of HSBC Bank Canada to RBC, which will result in an estimated gain on sale of USD 4.9bln in Q1'24. Intends to announce a special dividend of USD 0.21/shr. (Newswires)

NatWest Group (NWG LN) - The government has reportedly suspended the competitive tender process with retail investment firms to manage the sale of a part of its remaining stake in NatWest to the general public, according to CityAM sources. The government reportedly wrote to bidders in the middle of March and said it was rethinking its strategy. "Ministers are understood to be considering other possible disposal methods to slash its stake in the firm, including accelerated bookbuilds, in which it would offer shares to the market with little marketing, or directed buybacks to allow NatWest to buy back more of its shares directly from the government." (CityAM)

Retail Names - UK BRC Shop Price Inflation (Mar) Y/Y 1.3% vs. Exp. 2.2% (prev. 2.5%); lowest level in more than two years.

Shell (SHEL LN) - Co. will attempt to repeal a landmark order to cut greenhouse gas emissions in a case at The Hague this week. Carbon Tracker research’s Carulli wrote that another loss for Shell would create “quite a turbulence on its share price” and act as a “wakeup call” for European energy names. (FT) This is in relation to a 2021 judgement which ordered the Co. to cut emissions by 45% relative to 2019 by 2030.

UK Energy Prices - Prices have fallen to their lowest level for two years, helped by the latest Ofgem price caps, according to the BBC. (BBC)

Unilever (ULVR LN) - The NYSE is reportedly trying to persuade Unilever to list its ice cream business in the US, with sources suggesting the exchange has formally made contact with Unilever's senior executives. (ThisIsMoney)

OTHER UK COMPANIES

Superdry (SRDY LN) - Co. noted on Thursday 28th that Julian Dunkerton does not intend to make an offer for the Co.; Co. remains in discussions with Julian Dunkerton in respect of alternative structures. Elsewhere, Giles David is joining the main operational board as interim CFO, effective 1st April. (Newswires)

BROKER MOVES

Convactec (CTEC LN) upgraded to Buy from Hold at HSBC

DAX

Rheinmetall (RHM GY) - The CEO said European nations need to abandon a preference for national champions and instead construct larger, specialised defence firms which can compete with US peers. (FT)

Volkswagen (VOW3 GY) - China's SAIC aims to cut thousands of jobs this year at its JVs with General Motors (GM), Volkswagen and its EV unit Rising Auto. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Alstom (ALO FP) - Co. has informed the UK government that it is to mothball the Derby facility due to HS2 delays. (Newswires)

Societe Generale (GLE FP) – Co. and AllianceBernstein announce the official launch of Bernstein, a JV creating a leading global cash equities research business. (Newswires)

Thales (HO FP) - Announces partnership with Saporo in Belgium. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - Will inform the market in due course regarding refinancing discussions which might potentially result in changes in capital structure; to provide an update before the market opens on April 9, 2024. (Newswires)

Euronext (ENX FP) - Co. to acquire Global Rate Set Systems to strengthen its index franchise, and is expected to complete Q2'24. Transaction will be fully financed with existing cash and will not impact Euronext's deleveraging path. (Newswires)

Ipsen (IPN FP) – Co. and Sutro Biopharma announce an exclusive licensing agreement for an ADC targeting solid tumours. Sutro Biopharma is eligible to receive up to USD 900mln in potential upfront development. (Newswires)

BROKER MOVES

PAN EUROPE

ASML (ASML NA) - Co. said it is not deciding whether it will stay in The Netherlands but where it will grow and it has a preference to have "significant" expansion in the country if conditions are right. Co. will continue to work with the Dutch government to finalise expansion plans. Elsewhere, Co. recommends that shareholders do not tender their shares following Tutanota's offer; Tutanota made an unsolicited "mini-tender" offer to purchase around 250k ASML shares. (Newswires)

CD Projekt (CDR PW) - FY23 (PLN): Net Profit 481mln (exp. 428mln), Revenue 1.23bln (exp. 1.17bln). (Newswires)

Ferrovial (FER SM) - UK's PCS Trade Union said more than 600 border force officers at Heathrow Airport are to take four days of strike action from April 11. (Newswires)

Stellantis (STLAM IM/STLAP FP) – The US Office of Defect Investigations has opened preliminary evaluations of a failure of the K1 snap rings in the 3500/4500/5500 trucks. (Newswires)

Tod's (TOD IM) - L Catterton disposed 8.031% of Tod's share capital to LC Vista. (Newswires)

Telecom Italia (TIT IM) – Activist investor fund Bluebell and minority shareholder Merlyn, have presented rival candidates for the renewal of the Co's board, according to Reuters citing a phone call. (Reuters)

BROKER MOVES

SMI

Lonza (LONN SW) – Co. appoints Wolfgang Wienand as new CEO. Albert M. Baehny will retire from Lonza following a transition period. (Newswires)

Swiss Life (SLHN SW) – Completes share buyback programme of 502.08k shares at average price of CHF 597.51/shr. (Newswires)

UBS (UBSG SW) – Announces launch of new share repurchase program of up to USD 2bln. In 2024, Co. expects to repurchase up to USD 1bln of shares. The ambition is for share repurchase to exceed the pre-acquisition level by 2026. (Newswires)

OTHER SWISS COMPANIES

Siegfried (SFZN SW) – Wolfgang Wienand is stepping down as CEO; board appointed CFO Reto as interim, effective 1st May. (Newswires)

SoftwareOne (SWON SW) – Three founding shareholders are looking to vote out the BoD to help pave the way for a potential takeover, via Reuters. (Reuters)

BROKER MOVES

SCANDINAVIA

SSAB (SSAB SS) - Co. is to invest USD 4.8bln in the building a of fossil-free mini-mill in Sweden. Yearly EBITDA improvement is estimated to be more than SEK 5bln/yr at current commodity forecasts. (Newswires)

Vestas Wind Systems (VWS DC) - Secures 88MW order in Sweden; 77MW order in South Korea; 554MW order in US. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.20% at 5,244, NDX +0.21% at 18,293, DJI -0.60% at 39,567, RUT -1.02% at 2,103.

SECTORS: Communication Services +1.45%, Energy +0.79%, Technology +0.23%, Materials -0.25%, Consumer Discretionary -0.61%, Financials -0.63%, Utilities -0.64%, Consumer Staples -0.77%, Industrials -0.79%, Health -0.88%, Real Estate -1.77%.

PVH Corp (PVH) - Q4 2023 (USD): Adj. EPS 3.72 (exp. 3.53), Revenue 2.49bln (exp. 2.42bln), authorises a USD 2bln increase to the stock repurchase program. Sees Q1 EPS approximately USD 2.15 (exp. 2.61). Sees Q1 rev. to decline approximately 11% Y/Y (exp. 3.7% decline). Sees FY EPS 10.75-11.00 (exp. 12.01). Sees FY rev. to decline 6%-7% (exp. 0.9% decline). (Newswires) Shares -22.5% after-hours.

02 Apr 2024 - 06:52- EquitiesExclusive- Source: Newsquawk