Newsquawk Daily European Equity Opening News - 30th January 2024

30th January 2024

ASIA

APAC stocks traded mixed as weakness in China offset the momentum from Wall St's record highs. ASX 200 finished positive albeit with upside capped after disappointing retail sales data and as financials lagged. Nikkei 225 was initially lifted after a surprise decline in Japan's unemployment but gradually pared most of its gains. Hang Seng and Shanghai Comp were pressured as the focus turned to earnings releases with underperformance in Hong Kong amid losses in property and tech, while the Hong Kong government also began the process of passing new national security laws.

Toyota (7203 JT) - Says thinks Toyota Industries (6201 JT), Hino (7205 JT) and Daihatsu delivered goods to customers that shouldn't have been sold due to certification irregularities and it will take time to recover trust from customers. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -0.12% at 16,941.71, FTSE 100 0.00% at 7,635.28, CAC 40 +0.09% at 7,640.81, Euro Stoxx 50 +0.06% at 4,638.25, IBEX 35 -0.47% at 9,890.30, FTSE MIB -0.48% at 30,233.61, SMI +0.38% at 11,433.60.

SECTORS: Energy 1.05%, Consumer Stpl 0.62%, Healthcare 0.58%, Materials 0.53%, IT 0.48%, Consumer Disc 0.22%, Utilities -0.05%, Industrials -0.10%, Financials -0.33%, Telecoms -0.73%

FTSE 100

Hikma (HIK LN) - Receives US FDA ANDA supplement 19 approval for ACETAZOLAMIDE SODIUM. (Newswires)

UK BRC Retail - UK BRC Retail Shop Price Index YY (Jan) 2.9% (Prev. 4.3%); BRC said UK shop prices rose at the slowest pace since May 2022. (BRC)

OTHER UK COMPANIES

Deliveroo (ROO LN) - Delivery Hero (DHER GY) is to sell up to 68mln Deliveroo Class A shares, according to terms. Following placement, Co. does not expect to hold any shares in Deliveroo. (Newswires/FT)

BROKER MOVES

Antofagasta (ANTO LN) downgraded to Reduce from Hold at Peel Hunt

IAG (IAG LN) downgraded to Underweight from Equal Weight at Morgan Stanley

DAX

OTHER GERMAN COMPANIES

Hapag Lloyd (HLAG GY) - FY23 (EUR): EBITDA 4.5bln (exp. 4.47bln, prev. 19.4bln Y/Y), Revenue 17.9bln (exp. 17.7bln, prev. 34.5bln Y/Y), EBIT 2.7bln (exp. 2.53bln). Says the Red Sea conflict negatively impacted transport volumes at the end of 2023 as the rerouting of ships around Cape of Good Hope extended voyage times. Average FY freight rates USD 1500 (prev. 2863 Y/Y, -43% Y/Y), Transport Volume 11.9mln (prev. 11.8mln Y/Y). (Newswires)

BROKER MOVES

Deutsche Lufthansa (LHA GY) upgraded to Equal Weight from Underweight at Morgan Stanley Shares seen +1.8% in pre-market trade.

Software AG (SOW GY) - Q4 (EUR): adj. Net Income 17.3mln (exp. 71mln), adj. EPS 0.23 (exp. 0.80). Delivers on 2023 guidance with strong A&N ARR growth and operating margin. (Newswires)

CAC

Renault (RNO FP) - Decides to cancel Ampere's IPO and confirms its EV and software strategy; decision has no impact on financial guidance of Renault Group and its capital allocation strategy. CEO says Co. decided to cancel Ampere IPO due to current equity market conditions and of the ability of the group to generate cash. CFO says Nissan and Mitsubishi have expressed interest to invest into Ampere even without an IPO. Qualcomm's (QCOM) investment into Ampere was dependent on the IPO taking place and Renault will now have to discuss with them if they want to participate in some other shape or stay the way it is. (Newswires)

OTHER FRENCH COMPANIES

Eiffage (FGR FP) - FY (EUR): Revenue ex-Construction 3.018bln (prev. 2.82bln). (Newswires)

BROKER MOVES

PAN EUROPE

BBVA (BBVA SM) - Q4 (EUR): Net 2.06bln (exp. 1.95bln), NII 5.25bln (exp. 5.89bln). FY Net 8.02bln (exp. 7.90bln). Co. announces execution of a EUR 781mln share buyback. (Newswires)

Snam (SRG IM) - OLT Offshore LNG Toscana is to shut down for several months for maintenance. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Bucher (BUCN SW) - FY (CHF): Sales 3.5bln (exp. 3.6bln). Co. expects a slight decline in sales as a result of the slowdown in business momentum for 2024. Profit expected to be slightly lower Y/Y, given the high base. (Newswires)

BROKER MOVES

Avolta (AVOL SW) upgraded to Buy from Hold at Stifel

SGS (SGSN SW) upgraded to Hold from Sell at Stifel

SCANDINAVIA

Ambu (AMBUB DC) - Q1 (DKK): EBIT 126mln (exp. 105mln, prev. 68mln Y/Y), Revenue 1.25bln (exp. 1.24bln, prev. 1.13bln Y/Y), Adj. EBIT Margin 10% (exp. 8.5%). Outlook for 2024: Organic Revenue Growth 7-10%, EBIT Margin before special items 8-10%. (Newswires)

FLSmidth (FLS DC) - Q4 (DKK): Revenue 6bln (exp. 5.8bln). To explore divestment options for its Cement business. Affirms FY23 guidance. Affirms long-term financial targets for FY26 of 13-15%. (Newswires)

Kesko (KESKOB FH) - Q4 (EUR): EPS 0.31 (exp. 0.29), Adj. EBIT 171mln (exp. 164mln), Revenue 2.90bln (exp. 2.92bln), adj. EBIT margin 5.9% (prev. 6.5% Y/Y). Guides initial FY24 adj. EBIT 620-720mln (exp. 672mln). (Newswires)

Tele2 (TEL2A SS) - Q4 (SEK): adj. EBITDAaL 2.62bln (exp. 2.59bln), Revenue 7.68bln (exp. 7.61bln). Launches strategy execution program including SEK 600mln of cost reduction in three years. Guides initial FY24 Service Revenue "+3-4% organic growth". (Newswires)

BROKER MOVES

Skanska (SKAB SS) upgraded to Buy from Underperform at Jefferies

US

CLOSES: SPX +0.76% at 4,927, NDX +1.01% at 17,596, DJIA +0.59% at 38,333, RUT +1.67% at 2,011.

SECTORS: Consumer Discretionary +1.37%, Technology +0.97%, Communication Services +0.89%, Real Estate +0.68%, Health +0.68%, Utilities +0.64%, Industrials +0.64%, Materials +0.52%, Consumer Staples +0.52%, Financials +0.3%, Energy -0.2%.

American Airlines (AAL) - Is to lay off 656 workers as it consolidates customer support, according to Bloomberg. (Bloomberg)

Boeing (BA) - Is withdrawing the petition for temporary exemption for the 737 MAX 7 from safety standard on engine anti-ice system, according to sources cited by Reuters. (Reuters)

Cleveland-Cliffs Inc (CLF) - Q4 2023 (USD): EPS -0.31 (exp. -0.04), adj. EBITDA 279mln (exp. 275.9mln), Revenue 5.10bln (exp. 5.15bln). (Newswires)

Super Micro Computer Inc (SMCI) - Q2 2024 (USD): Adj. EPS 5.59 (exp. 4.93), Net Sales 3.66bln (exp. 3.42bln), Gross margin 15.5% (exp. 16.5%). Raises FY24 revenue outlook to 14.3-14.7bln (prev. 10-11bln). Q3 adj. EPS view 5.20-6.01 (exp. 4.65). Q3 net sales view 3.7-4.1bln (exp. 3.07bln). Shares +10.5% after-hours

30 Jan 2024 - 06:51- Research Sheet- Source: Newsquawk