Newsquawk Daily European Equity Opening News - 30th August 2024

ASIA

APAC stocks traded higher across the board despite a lack of fresh catalysts following a mixed lead from Wall Street, and ahead of US PCE and the US long weekend. ASX 200 remained in a narrow range (8,045.10-8,085.00) but was propped up by its Industrials, Energy, and Gold names. Nikkei 225 traded firmer following a choppy start after August Tokyo core CPI surprisingly ticked higher, whilst the Japanese unemployment rate surprisingly rose. Hang Seng and Shanghai Comp opened with modest gains and eventually soared despite a lack of newsflow, whilst Bloomberg suggested the CSI 300 rallied amid heavy volume. Sentiment in China could've also seen tailwinds from the PBoC yesterday suggesting it will step up counter-cyclical adjustments and will strengthen financial support to the real economy, whilst the mood was further lifted amid Bloomberg reports China reportedly mulls allowing refinancing on USD 5.4tln in mortgages.

Acer (2353 TW) - Plans to sharply increase shipments of computers equipped with AI features; will raise the share of copilot+ pcs among deliveries to 40% by Q3 25, via Nikkei

Chinese Stocks - China reportedly mulls allowing refinancing on USD 5.4tln in mortgages, according to Bloomberg. (Bloomberg)

EUROPEAN CLOSES

CLOSES: DAX: +0.64% at 18,903, FTSE 100: +0.43% at 8,380, CAC 40: +0.84% at 7,641, Euro Stoxx 50: +1.06% at 4,965, AEX: +1.43% at 924, IBEX 35: +0.23% at 11,359, FTSE MIB: +0.92% at 34,192, SMI: +0.61% at 12,424, PSI: -0.07% at 6,714

SECTORS: IT 2.44%, Consumer Disc 1.13%, Industrials 1.05%, Healthcare 0.95%, Materials 0.87%, Energy 0.78%, Consumer Stpl 0.65%, Financials 0.32%, Telecoms 0.30%, Utilities -0.15%

FTSE 100

Aviva (AV/ LN) - Co. conspired to dodge Indian compensation and tax rules; used vendors who generated fake invoices to pass on excess insurance commissions to its India agents-notice. (Newswires)

Shell (SHEL LN) - To sell the Sinco pipeline system and Colex terminal to Edgewater Midstream. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Thyssenkrupp (TKA GY) - Thyssenkrupp's Steel Europe Chairman has decided to leave the board and three other supervisory board members have also expressed a desire to leave. Every attempt to divest the Steel business ultimately arrived at a funding gap of EUR 1.5-2.5bln. (Newswires)

BROKER MOVES

Daimler Truck (DTG GY) upgraded to Buy from Hold at HSBC Shares +1.6% in pre-market trade

CAC

Remy Cointreau (RCO FP) - Says clarification related to announcements by the Chinese Ministry of Commerce regarding its anti-dumping investigation into imports of European brandy into China. This could imply an additional tariff in the same proportion on future exports to China. Final tariffs are to be announced at the end of the investigation and may differ from those just announced, or may not be applied. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Credit Agricole (ACA FP) upgraded to Buy from Hold at HSBC

Elis (ELIS FP) reinstated with Overweight at JP Morgan

Spie (SPIE FP) reinstated with Overweight at JP Morgan

PAN EUROPE

Beiersdorf (BEI GY) / (L'Oreal (OR FP) - Ulta Beauty (ULTA) shares slipped 7.2% following earnings and below-forecast guidance. Beiersdorf (BEI GY) shares -1.4% in pre-market trade

Grifols (GRF SM) - Brookfield is in talks with Sovereign Funds to join Grifols's bid, according to Bloomberg. (Bloomberg)

BROKER MOVES

SMI

Baloise (BALN SW) - Baloise Swiss Property Fund successfully carried out a capital increase of CHF 127mln. (Newswires)

OTHER SWISS COMPANIES

Cembra Money Bank (CMBN SW) - Will not exercise an option for an early redemption of an outstanding Tier 1 bond. (Newswires)

BROKER MOVES

SCANDINAVIA

Ambu (AMBUB DC) - Q3 (DKK): Adj. EBIT 178mln (exp. 178mln), Adj. EBIT margin 12.9% (exp. 12.9%). (Newswires)

Castellum (CAST SS) - Moody's changes Castellum's outlook to positive from stable. (Newswires)

Intrum (INTRUM SS) - Intrum achieves the required level of noteholder support to implement recapitalisation transactions. Has achieved over 66.7% noteholder support. The recapitalisation transaction may include consent solicitation and voluntary exchange, English scheme of arrangement, or a restructuring plan. (Newswires)

Nokia (NOKIA FH) - Nokia responded to market rumours about Samsung's interest in its mobile networks, stating it has nothing to announce and no insider project exists. Nokia remains committed to its Mobile Networks business, highlighting its strategic importance, recent progress, and focus on customer success and shareholder value. (Newswires)

BROKER MOVES

Volvo AB (VOLVB SS) upgraded to Buy from Hold at HSBC

US

CLOSES: SPX flat at 5,592, NDX -0.13% at 19,325, DJIA +0.59% at 41,335, RUT +0.66% at 2,203

SECTORS: Technology -0.74%, Consumer Staples -0.47%, Real Estate -0.40%, Communication Services -0.21%, Consumer Discretionary +0.20%, Health +0.21%, Utilities +0.55%, Materials +0.56%, Industrials +0.70%, Financials +0.85%, Energy +1.27%.

Apple (AAPL) - Reportedly in talks to join Open AI funding round, according to WSJ citing sources. (WSJ)

Autodesk (ADSK) - Shares rose 4.8% afterhours following a profit beat and raised guidance. Q2 EPS 2.15 (exp. 2.00), Q2 revenue USD 1.50bln (exp. 1.48bln). Exec said that macroeconomic, policy, geopolitical challenges, and the underlying momentum of the business, were all consistent with the last few quarters, and given its momentum in Q2, it is lifting guidance for FY billings, revenue, EPS, and free cash flow guidance ranges. Sees Q3 revenue between USD 1.56-1.57bln (exp. 1.54bln). Sees FY25 adj. EPS between 8.18-8.31 (exp. 8.12), and sees FY revenue between USD 6.08-6.13bln (exp. 6.05bln). Guides FY billings between USD 5.88-5.98bln, (exp. 5.52bln; prev. saw 5.81-5.96bln).

Dell Technologies (DELL) - Q2 2024 (USD): Adj.EPS 1.89 (exp. 1.71), Revenue 25.03bln (exp. 24.14bln). Revenue metrics: Infrastructure Solutions Group net 11.65bln (exp. 10.58bln). Servers and Networking 7.67bln (exp. 5.96bln). Storage 3.97bln (exp. 4.09bln). Total net 25.03bln (exp. 24.12bln). Client Solutions Group net 12.41bln (exp. 12.53bln). Commercial 10.56bln (exp. 10.65bln). Consumer 1.86bln (exp. 2.02bln). Other metrics: Adj operating income 2.03bln (exp. 1.85bln). Expects solid top-line growth in second half of the year, it took a USD 328mln charge in Q2 for workforce reductions; it is applying AI and beginning to realize benefits across its own business. Coming PC refresh cycle and longer-term impacts of AI will create tailwinds for the PC market. (Newswires) Shares rose 3.3% after market.

Intel (INTC) - Co. is said to mull splitting off foundry and scrapping factory projects; explores options with Goldman Sachs (GS) and Morgan Stanley (MS), according to Bloomberg sources. (Bloomberg)

Lululemon Athletica (LULU) - Lululemon lowered guidance, and missed sales estimates, but its shares were up 4.2% afterhours. Q2 EPS 3.15 (exp. 2.93), Q2 revenue USD 2.37bln (exp. 2.41bln). Comps sales +2% (exp. +4.5%), Americas comp sales -3%. Sees FY EPS between 13.95-14.15 (exp. 14.00; prev. saw 14.27-14.47), sees FY revenue between USD 10.375-10.475bln (exp. 10.62bln; prev. saw 10.7-10.8bln).

Marvell Technology (MRVL) - Shares rose 7.3% afterhours following top- and bottom-line beats. Q2 adj. EPS 0.30 (exp. 0.29), Q2 revenue USD 1.272bln (exp. 1.25bln). Adj. gross margin 61.9% (prev. 60.3% y/y, exp. 62%). Q2 data centre revenue +92% Y/Y to USD 880.9mln (exp. 890.3mln), consumer revenue -47% Y/Y to USD 88.9mln (exp. 82.5mln), carrier infrastructure revenue -72% Y/Y to 75.9mln (exp. 74.5mln), enterprise networking revenue -54% Y/Y to USD 151.0mln (exp. 157.8mln), automotive/industrial revenue -31% Y/Y to USD 76.2mln (exp. 78.1mln).

NXP Semiconductor (NXPI) - Announces quarterly dividend and additional share repurchase authorisation; approved additional USD 2bln in share repurchases. (Newswires)

Ulta Beauty Inc (ULTA) - Q2 2024 (USD): EPS 5.30 (exp. 5.47), Revenue 2.6bln (exp. 2.61bln). FY EPS view 22.6-23.5 (exp. 25.29), FY Revenue view 11-11.2bln (prev. 11.5-11.6bln; exp. 11.5bln). (Newswires) Shares fell 7.2% after market.

30 Aug 2024 - 06:48- Research Sheet- Source: Newsquawk