Newsquawk Daily European Equity Opening News - 2nd October 2024

ASIA

APAC stocks traded mixed with some cautiousness seen amid heightened tensions in the Middle East after Iran conducted a missile attack on Israel. ASX 200 was rangebound as gains in the commodity-related industries offset the losses in the tech and consumer sectors. Nikkei 225 slumped at the open and retreated beneath the 38,000 level after the prior day's currency strength. Hang Seng resumed its China stimulus-spurred rally on return from the holiday with notable strength in tech and property.

EUROPEAN CLOSES

CLOSES: DAX: -0.65% at 19,200, FTSE 100: +0.48% at 8,277, CAC 40: -0.81% at 7,574, Euro Stoxx 50: -0.95% at 4,953, AEX: 0.00% at 910, IBEX 35: -1.72% at 11,674, FTSE MIB: -1.04% at 33,771, SMI: -0.77% at 12,075, PSI: -0.80% at 6,738.

SECTORS: Energy 1.67%, Healthcare 0.44%, Utilities 0.40%, Telecoms 0.21%, Consumer Stpl -0.11%, Industrials -0.33%, Materials -0.48%, IT -0.70%, Financials -1.37%, Consumer Disc -1.51%

FTSE 100

National Grid (NG/ LN) - Massachusetts Electric 2024 rate case order; approved 5-year plan with new rates effective 1 Oct 2024 and a revenue increase of USD 79.6mln. Elsewhere, Co. signs a power purchase agreement with Microsoft (MSFT). (Newswires)

OTHER UK COMPANIES

Saga (SAGA LN) - Co. is in talks with Ageas (AGS BB) re. a long-term partnership for its insurance division, according to Sky News. (Sky News)

BROKER MOVES

Computacenter (CCC LN) initiated with Hold at Berenberg

Softcat (SCT LN) initiated with Hold at Berenberg

DAX

Adidas (ADS GY) - Nike (NKE) shares fell 5.9% afterhours following a Q1 revenue miss, a disappointing sales view for the next quarter, and withdrawn FY25 guidance amid its CEO transition. Details in the US section

BMW (BMW GY) – BMW North America (Q3); US total sales 78,128 vehicles (prev. 83,949 Y/Y). (Newswires)

DHL (DHL GY) – UniFor bargaining begins for DHL Express Canada workers. (Newswires)

Fresenius (FRE GY) - Fresenius Kabi USA, LLC, issues correction for Ivenix Infusion System Large Volume Pump (LVP) Software due to multiple anomalies that may cause delay or under dosage of therapy. (Fresenius)

OTHER GERMAN COMPANIES

BROKER MOVES

Covestro (1COV GY) downgraded to Hold from Buy at Jefferies

CAC

EssilorLuxottica (EL FP) – Completed the acquisition of Supreme from VF Corp; deal valued at USD 1.5bln in cash. In other news, completed the acquisition of a majority stake in Heidelberg Engineering. (Newswires)

Renault (RNO FP) - Co. cut its stake in Nissan (7201 JT) to 33.92% from 38.92%, according to Japan FSA filing. (Newswires)

Sanofi (SAN FP) - Reportedly set to ask bidders to revise their offers for its consumer health unit, according to Bloomberg. (Bloomberg)

Unibail-Rodamco-Westfield (URW FP) – Moody’s affirms the Co’s Baa2 rating; outlook stable. (Newswires)

OTHER FRENCH COMPANIES

Eurazeo (RF FP) – Announces the sale of 22 hotels by Grape Hospitality. (Newswires)

Sopra Steria (SOP FP) – Co. launched a EUR 150mln share buyback programme; buyback period 2 Oct 2024 - 20 May 2025. (Newswires)

BROKER MOVES

Bureau Veritas (BVI FP) downgraded to Neutral from Overweight at JP Morgan

PAN EUROPE

Auto Names - Auto Industry Group warns protracted US ports strike "will be debilitating to the auto supply chain and set off economic and national security ripples across the country". Elsewhere, an FT analysis piece titled “European carmakers brace for a deeper and longer downturn”, references recent profit warnings from the likes of Stellantis (STLAM IM/STLAP FP) and Volkswagen (VOW3 GY). (FT / Newswires)

DSM Firmenich (DSFIR NA) – Completed the sale of the yeast extraction business to Lesaffre. (Newswires)

Pirelli (PIRC IM) / Brembo (BRE IM) – Brembo starts sale of its entire stake in Pirelli; Brembo currently owns around 5.58% stake in the Co. (Newswires)

Philips (PHIA NA) - FDA Says Philips Respironics Issues Mandatory Software Correction For Trilogy Evo, Ev300, EvoO2, Evo Universal. (Newswires)

UniCredit (UCG IM) – The CEO has called for “stronger and bigger banks” in Europe; and adds that Italy must lead the way to push for integration. Elsewhere, Moody’s affirmed UniCredit’s Baa1 deposit and senior unsecured debt ratings. (Newswires)

BROKER MOVES

SMI

Swiss Banks – Swiss regulator FINMA has called for the need for greater power to oversee banks. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Co. has mitigation plans in place to minimise or prevent any production disruption due to the potential seaport strikes, via CNBC. Plans to ship products to and from the US via airfreight. (CNBC)

BROKER MOVES

US

CLOSES: SPX -0.93% at 5,709, NDX -1.43% at 19,773, DJIA -0.41% at 42,157, RUT -1.48% at 2,197

SECTORS: Technology -2.66%, Real Estate -0.66%, Financials -0.55%, Consumer Discretionary -0.51%, Health -0.51%, Materials -0.32%, Consumer Staples -0.27%, Industrials -0.01%, Communication Services +0.40%, Utilities +0.81%, Energy +2.23%.

Oracle (ORCL) - Co. is to invest over USD 6.5bln in AI and cloud computing in Malaysia. (Newswires)

Nike Inc (NKE) - Q1 2025 (USD): EPS 0.70 (exp. 0.52), Revenue 11.59bln (exp. 11.65bln). Shares fell 5.9% afterhours following a Q1 revenue miss, a disappointing sales view for the next quarter, and withdrawn FY25 guidance amid its CEO transition. By region: North America sales USD 4.83bln (exp. 4.84bln), with EBIT of USD 1.22bln (exp. 1.11bln); EMEA sales USD 3.14bln (exp. 3.27bln), with EBIT of USD 792mln (exp. 768.4mln); Greater China sales USD 1.67bln (exp. 1.62bln), with EBIT of USD 502mln (exp. 449mln); Asia Pacific & Latin America sales USD 1.46bln (exp. 1.45bln), with EBIT of USD 402mln (exp. 365.7mln). Q1 direct-to-consumer sales -12% Y/Y (exp. -13.5% Y/Y), Q1 wholesale sales -7% (exp. -3.5%). Nike reported Q1 inventory levels USD 8.25bln (exp. 8.12bln), and cash and cash equivalents were USD 8.49bln (exp. 8.32bln). Nike withdrew its FY25 guidance and postponed an analyst meeting due to its CEO transition, and CFO said that a return to strong growth will take time; expects Q2 revenue to be down in the 8-10% Y/Y range (exp. -6.7%), and Q2 gross margins are seen down 150bps. Expects Q2 gross margins to be down 150bps. (Newswires)

02 Oct 2024 - 06:50- Research Sheet- Source: Newsquawk