Newsquawk Daily European Equity Opening News - 2nd December 2024

ASIA

APAC stocks began the new trading month mostly higher as participants reflected on Chinese PMI data in which the official headline Manufacturing and Caixin Manufacturing PMIs both topped forecasts, while markets await a deluge of releases this week. ASX 200 eked mild gains with outperformance in tech making up for the slack in defensives and with data providing some encouragement. Nikkei 225 saw two-way price action but ultimately gained with the help of a weaker currency and encouraging Chinese data. Hang Seng and Shanghai Comp were varied with outperformance in the mainland following the latest Chinese PMI data including the official releases over the weekend which showed headline Manufacturing PMI topped forecasts but Non-Manufacturing PMI disappointed, while Caixin Manufacturing PMI surpassed the most optimistic analyst expectations and printed its highest since June.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.96%, CAC 40 +0.78%, IBEX 35 +0.26%, FTSE 100 +0.1%

SECTORS: IT 1.78%, Materials 0.92%, Consumer Disc 0.81%, Industrials 0.74%, Financials 0.58%, Healthcare 0.53%, Energy 0.42%, Telecoms 0.01%, Utilities -0.01%, Consumer Stpl -0.07%

FTSE 100

UK Business - UK Lloyds Business Barometer (Nov) 41 vs Exp. 40 (Prev. 44). (Newswires)

OTHER UK COMPANIES

Direct Line Insurance (DLG LN), Aviva PLC (AV/ LN) - Direct Line CEO Adam Winslow urged shareholders to support his turnaround plan amid Aviva’s GBP 3.3bln takeover bid. Winslow, a former Aviva executive, seeks time for his new leadership team to revitalise the insurer, The Times reports. (The Times)

Unilever (ULVR LN) – CEO said the Co. is looking to sell several food brands that have combined sales of around EUR 1bln, via FD. (FD)

BROKER MOVES

Wood (WG/ LN) upgraded to Equalweight from Underweight

DAX

Mercedes-Benz (MBG GY) - Is to use Momenta software in 4 car models in China, according to Reuters citing sources. (Reuters)

Volkswagen (VOW3 GY) – German union IG Metall said warning strikes began on Sunday 1st December at all plants. Adds that if necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen; it is up to the Co. how long and hard the conflict must be. Notes that measures have been taken to minimise the impact of warning strikes on customers. (Newswires)

OTHER GERMAN COMPANIES

BayWa (BWY6 GY) – Says second draft restructuring report confirms restructuring feasibility based on the specified transformation concept. (Newswires)

BROKER MOVES

CAC

French stocks - French far-right figurehead Marine Le Pen said on Sunday that the government effectively "put an end to discussions" on the country's 2025 budget, which increases the likelihood of a vote of no confidence in PM Barnier, according to France 24. (France 24)

OTHER FRENCH COMPANIES

Atos (ATO FP) – Atos EUR 233mln rights issue concluded. Issuance of approx. 63mln new shares at a subscription price of EUR 0.0036/shr. Elsewhere, completes the sale of Worldgrid to Alten for an EV of EUR 270mln, net debt to be reduced by EUR 0.2bln. (Newswires)

Carrefour (CA FP) - Renews and extends its revolving credit facility. (Newswires)

Eutelsat (ETL FP) - Exercises its put option and signs share purchase agreement with EQT (EQT SS) for the sale of a majority stake in a new entity that will hold its passive ground infrastructure assets. (Newswires)

Ipsos (ISOS FP) - Reportedly considers a binding offer to buy Kantar Media, according to Reuters citing sources. (Reuters)

BROKER MOVES

Air Liquide (AI FP) upgraded to Overweight from Neutral at JPMorgan

PAN EUROPE

China exposed stocks - Chinese Manufacturing PMI 50.3 vs Exp. 50.2 (Prev. 50.1); Non-Manufacturing PMI 50.0 vs Exp. 50.4 (Prev. 50.2); Composite PMI 50.8 (Prev. 50.8). (Newswires)

Banco BPM (BAMI IM) – Italy’s Treasury denies FT reports on decree to counter UniCredit’s (UCG IM) bid for Banco BPM. (Newswires)

Defence names - French President Emmanuel Macron is visiting Riyadh for a two-day state trip starting Monday. This visit marks his first to Saudi Arabia since the 2018 killing of journalist Jamal Khashoggi, with defense deals, including fighter jet discussions, and Middle East geopolitics high on the agenda. (BBG)

Ferrari NV (RACE) - Positive mention in Barron's; the newspaper said that although Ferrari's stock has dropped 13% since August, despite a strong 28% rise in 2024, its new USD 3.8mln F80 car could provide a substantial earnings boost, potentially driving a 30% rally in Ferrari shares, and said investors should not worry about the recent dip. (Barron's)

Galp (GALP PL) – Successfully drilled, cored and logged Mopane-1A appraisal Well in Pel83 which was spud on Oct 23. (Newswires)

Recordati (REC IM) – Completes acquisition of Enjaymo Global rights from Sanofi (SAN FP). Transaction expected to be immediately accretive at EBITDA level with margin above current rare diseases avg. of 2025. (Newswires)

Repsol (REP SM) – Ends buyback programme and reached max number of shares to be acquired. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Stellantis' Board accepted Carlos Tavares' resignation as CEO, effective immediately, following criticism over the company's 2024 profit warning and challenges such as slow sales and inventory issues, particularly in North America. A Special Committee is managing the search for a new permanent CEO, with the appointment expected by mid-2025. Until then, an Interim Executive Committee, chaired by John Elkann, will oversee operations. (Newswires)

Prosus (PRX NA) - H1 (EUR): Revenue 3bln (prev. 2.5bln Y/Y), Adj. EBITDA 111mln (prev. 57mln Y/Y). Basil Sgourdos retires as CFO. (Newswires)

Telecom Italia (TIT IM) – Co. says MEF and Retelit’s request to extend until 16 December the receipt of a binding offer on Sparkle has been accepted. (Newswires)

UCB (UCB BB) – Completed divestment of mature product business in China; does not impact co’s financial guidance in 2024. Adj. EBITDA margin for 2025 unchanged; expected at low end of range of low to mid-thirties in percent of revenue. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) – Co. signed an agreement to sell its Nigerian business for USD 1bln. Transaction expected to close in 2025 pending approvals. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Swatch (UHRN SW) downgraded to Underweight from Neutral at JPMorgan

SCANDINAVIA

Novo Nordisk (NOVOB DC) – FDA adds severe gastrointestinal warnings to Novo Nordisk’s Wegovy label. (Newswires)

Telia (TELIA SS) - Completes change program and implements decentralised country-led approach. Restructuring charges of around SEK 1.3bln in Q4'24 will not impact co's FY24 financial outlook statements. (Newswires)

BROKER MOVES

Pandora (PNDRA DC) upgraded to Overweight from Neutral at JPMorgan

US

CLOSES: SPX +0.56% AT 6,032, NDX +0.90% AT 20,930, DJI +0.42% AT 44,911.

SECTORS: Consumer Discretionary +1.11%, Technology +1.00%, Materials +0.49%, Industrials +0.43%, Consumer Staples +0.41%, Communication Services +0.34%, Energy +0.34%, Health +0.26%, Financials +0.02%, Utilities -0.05%, Real Estate -0.52%

02 Dec 2024 - 06:53- Research Sheet- Source: Newsquawk