Newsquawk Daily European Equity Opening News - 30th May 2024

30th May 2024

ASIA

APAC stocks were on the back foot amid spillover selling from Wall St owing to the further upside in yields. ASX 200 was pressured with underperformance in miners after recent declines in underlying commodity prices. Nikkei 225 slumped at the open and briefly fell beneath the 38,000 level but is well off worse levels. Hang Seng and Shanghai Comp conformed to the uninspiring mood in which the Hong Kong benchmark gradually weakened with notable losses in mining and property stocks, while the mainland was rangebound following another substantial liquidity injection by the PBoC and after the central bank also vowed several support efforts including promoting trade and investment facilitation.

Toyota (7203 JT) - April global parent-only vehicle production fell 4% Y/Y to 756.3k un, while April global parent-only vehicle sales fell 0.5% Y/Y to 797.1k units. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -1.09% at 18,474.88, FTSE 100: -0.86% at 8,183.07, CAC 40: -1.52% at 7,935.03, Euro Stoxx 50: -1.31% at 4,964.25, IBEX 35: -1.16% at 11,145.10, FTSE MIB: -1.47% at 34,150.54, AEX: -0.70% at 905.83

SECTORS: Energy -0.06%, Healthcare -0.47%, Consumer Stpl -0.87%, Telecoms -0.91%, Financials -1.12%, IT -1.21%, Industrials -1.31%, Consumer Disc -1.40%, Materials -1.44%, Utilities -1.79%

FTSE 100

Anglo American (AAL LN) - BHP (BHP AT) has decided against making a firm offer for Anglo American after the Co. refused to hold more talks. After BHP Group (BHP AT) pulled out of the deal, Anglo American said it is fully focused on delivering plans it has set out to accelerate value delivery. (Newswires)

Ex-Dividends - Centrica (CNA LN), Intertek Group (ITRK LN), Coca-Cola HBC AG (CCH LN), Associated British Foods (ABF LN), Sage Group (SGE LN), Marks & Spencer (MKS LN), and Severn Trent (SVT LN) will trade without entitlement to their latest dividend payouts. (dividenddata)

IDS (IDS LN) - Columbia Threadneedle Investments, which holds a 5% stake in the Co., has pushed back against the GBP 3.6bln takeover talks, saying the offer still undervalues the Co., via The Times. Czech billionaire Kretinsky said IDS must focus on avoiding losing market share, UK market share loss would be fatal, and said he is not planning a takeover bid for Sainsbury's (SBRY LN). (The Times/Newswires)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) downgraded to Hold from Buy at Jefferies; cuts target price to 2700p from 3200p

Curry's (CURY LN) upgraded to Buy from Hold at Berenberg

Mondi (MNDI LN) resumed with Neutral at JP Morgan

DAX

SAP (SAP GY) - Salesforce (CRM) shares fell 16% after-hours after the Co. reported softer than expected Revenue metrics and weak guidance (more details in the US section below).

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Capgemini (CAP FP) - Announced a new project with the Defence Advanced Research Projects Agency on Quantum computing for the energy transition. (Newswires)

Safran (SAF FP) - Entered into an agreement with an investment services provider for implementation of a new tranche of repurchase of its shares; will repurchase for a max amount of EUR 420mln, no later than June 26 2024. (Newswires)

Vinci (DG FP) - Announced the acquisition of Helios Nordic Energy, which develops large-scale solar farms and energy storage solutions; the initial amount of EUR 73mln. (Newswires)

OTHER FRENCH COMPANIES

Bouygues (EN FP) - Bouygues Telecom has issued an update on the progress of its acquisition of MVNO La Poste Telecom, owned by the La Poste group with a 51% stake and SFR with a 49% stake. Differences between La Poste Mobile and SFR may impact the timetable for the completion of an acquisition. (Newswires)

JCDecaux (DEC FP) - Sold part of its stake in Apgisga to NZZ, which will generate cash proceeds of EUR 90.3mln before transaction costs. (Newswires)

BROKER MOVES

PAN EUROPE

European Banks - ECB is to reportedly impose its first-ever fines on banks for climate failures; as many as four lenders face penalties after not meeting deadlines set by the ECB, and whilst the fines are not finalised, they may be largely symbolic, via Bloomberg citing people familiar with the matter. (Bloomberg)

Telecom Italia (TIT IM) - Q1 24 (EUR): Revenue 3.9bln (exp. 3.81bln), +1.2% Y/Y, EBITDA 1.5bln (exp. 1.25bln), +1.6% Y/Y. Confirms all 2024 guidance. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) - Workers at Nestle have ratified a new 3-year contract; agreement with Nestle includes gains of a 3.25% wage increase, 3% in the second year. (Newswires)

OTHER SWISS COMPANIES

Helvetia (HELN SW) - FY23 Occupational Benefits CHF 48.9mln (prev. 56.8mln Y/Y). (Newswires)

BROKER MOVES

SCANDINAVIA

Subsea (SUBC NO) - Awarded a "super major" contract; Co. describes this contract as being over USD 1.25bln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.74% at 5,267, NDX -0.70% at 18,737, DJI -1.06% at 38,442, RUT -1.48% at 2,036

SECTORS: Energy -1.76%, Industrials -1.42%, Materials -1.42%, Utilities -1.32%, Real Estate -0.92%, Financials -0.85%, Health -0.80%, Consumer Staples -0.75%, Consumer Discretionary -0.56%, Communication Services -0.56%, Technology -0.36%.

HP Inc (HPQ) - Q2 2024 (USD): Adj. EPS 0.82 (exp. 0.81), Revenue 12.8bln (exp. 12.6bln). (Newswires) Shares +2.1% after-hours

Salesforce Inc (CRM) - Q1 2024 (USD): Adj. EPS 2.44 (exp. 2.38), Revenue 9.13bln (exp. 9.15bln). Weak guidance. Q2 adj. EPS view 2.34-2.36 (exp. 2.40), revenue view 9.2-9.25bln (exp. 9.34bln). FY EPS view 9.86-9.94 (exp. 9.76), FY Revenue view 37.7-38bln (exp. 37.98bln). (Newswires) Shares -16% after-hours

30 May 2024 - 06:50- Research Sheet- Source: Newsquawk