Newsquawk Daily European Equity Opening News - 3rd December 2024

ASIA

APAC stocks were mostly positive as the region took impetus from the fresh record highs seen in the S&P 500 and the Nasdaq. ASX 200 rose to a fresh record high with advances led higher by healthcare, tech and consumer discretionary. Nikkei 225 outperformed and reclaimed the 39,000 level with tech companies benefitting from further US export controls on China as restrictions related to advanced chips could spur a scramble for China to secure legacy-generation chip tools. Hang Seng and Shanghai Comp traded indecisively after the US unveiled a new package of chip export controls against China.

EUROPEAN CLOSES

CLOSES: SMI +0.61% at 11,836, DAX +1.44% at 19,908, Euro Stoxx 50 +0.86% at 4,846, FTSE MIB +0.21% at 33,483, FTSE 100 +0.31% at 8,313, CAC 40 +0.02% at 7,237, AEX +0.67% at 888, IBEX 35 +0.81% at 11,735.

SECTORS: Consumer Disc 1.38%, IT 1.33%, Materials 1.08%, Industrials 0.95%, Healthcare 0.57%, Financials 0.57%, Consumer Stpl 0.52%, Telecoms 0.30%, Utilities 0.04%, Energy -0.91%

FTSE 100

UK Consumer Spending - Barclaycard UK November Consumer Spending fell 0.5% Y/Y in November. (Newswires)

UK BRC Retail Sales - UK BRC Total Sales YY (Nov) -3.3% (Prev. 0.6%); YY (Nov) -3.4% (Prev. 0.3%); BRC exec says "While it was undoubtedly a bad start to the festive season, the poor spending figures were primarily down to the movement of Black Friday into the December figures this year". (Newswires)

OTHER UK COMPANIES

Just Eat Takeaway (JET LN) - Confirms decision to end operations in France following consultation. Final date of operation will be 9 Dec 2024. Size of Just Eat in France is a small part of the business. (Newswires)

BROKER MOVES

Persimmon (PSN LN) upgraded to Buy from Neutral at Citi

DAX

German Autos - Germany takes on EUR 600mln in Northvolt debt after its insolvency, according to Bloomberg. (Bloomberg)

OTHER GERMAN COMPANIES

BROKER MOVES

BASF (BAS GY) upgraded to Buy from Add at Baader Helvea

Mercedes Benz (MBG GY) downgraded to Underweight from Equalweight at Barclays

CAC

Airbus (AIR FP) - Airbus deliveries rose sharply to more than 80 jets in November; +25% M/M, according to Reuters citing industry sources. (Reuters)

Sanofi (SAN FP) - Sanofi is investing EUR 1bln to establish a new insulin production facility in Beijing, its largest investment in China. This move is part of a broader strategy to expand manufacturing capacity in Asia, with the new site focused on addressing local diabetes care needs. (Newswires)

OTHER FRENCH COMPANIES

Arkema (AKE FP) - Finalises the acquisition of Dow's flexible packaging business, which has annual sales of USD 250mln. Expected synergies to represent USD 30mln in EBITDA after five years. (Newswires)

Edenred (EDEN FP) - Reaffirms its ambitions for 2025 and beyond during its investor meeting. Extends share buyback programme to EUR 600mln (prev. EUR 300mln) for a period of three years. (Newswires)

Ipsen (IPN FP) - Ipsen and Biomunex announce exclusive global licensing agreement for first-in-class MAIT cell engager in immuno-oncology. Ipsen to handle Phase I preparation and commercialization of BMX-502. Biomunex eligible to receive up to $610 million under agreement. (Newswires)

Saint Gobain (SGO FP) - Completed acquisition of 100% of Yaltim. (Newswires)

BROKER MOVES

Covivo (COV FP) downgraded to Underweight from Equalweight at Morgan Stanley

PAN EUROPE

Autos - Fitch Ratings is neutral on global autos in 2025; does not expect any significant pickup in EV sales in 2025. (Newswires)

ASML (ASML NA) - Sees impact of export restrictions to fall within outlook; still sees 2025 net sales EUR 30-35bln (exp. 32.56bln) and do not expect direct material impact on business in 2024. Sees China business 20% of total net sales for FY25. If Dutch align with US exports of DUV immersion lithography systems to additional Chinese fabs could be affected. (Newswires)

Chip Names - Dutch Government will study new US restrictions on export of chips equipment to China and shares US concerns over uncontrolled export of advanced semiconductor equipment. (Newswires)

Grifols (GRF SM) - Shareholder Mason Capital calls for the Board to be replaced, according to Bloomberg. In an interview, the shareholder noted that “He’s run everything from the capital allocation to choosing directors, to choosing when to finance the balance sheet, and many of those decisions have been value destructive.” (Bloomberg)

Italian Banks - Italy PM says Government open to use special powers on UniCredit (UCG IM) and BPM (BAMI IM) deal if it goes against national interest; Government wants to make sure Italian savings are controlled by institutions based in Italy. Elsewhere, Fitch affirms UniCredit's long-term IDR and senior preferred rating at BBB+. Fitch expects Banco BPM transaction to not affect UniCredit's rating. (Newswires)

Salvatore Ferragamo (SFER IM) - Confirms outlook of ordinary management and probable negative impairment test in 2024 consolidated financial statements. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Has finalised their employee leasing agreement at their JV battery plant with Samsung SDI. Elsewhere, says process to appoint the new permanent CEO is well under way and will be concluded in H1 '25. To tap US boss and former CFO for roles after CEO's exit. Italy's PM said the Government does not want to get involved in the management reshuffle. In other news, Stellantis held 24.68% of Italy's car market in Nov (prev. 25.15% M/M). (Newswires)

BROKER MOVES

SMI

Partners (PGHN SW) - Agrees to acquire Empira Group; anticipated H1'25. (Newswires)

Swiss Life (SLHN SW) - Raises dividend payout ratio to over 75% from 2025. Increase fee result to over CHF 1bln in 2027 (2024: CHF 850-900mln). Announces CHF 750mln share buyback programme from December 2024 to May 2026. Outlook 2025-27 raise RoE 17-19% (2024: 10-12%). (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Carlsberg (CARLB DC) - Co's Russian assets are no longer under state management, according to Reuters citing a Presidential decree. (Reuters)

Novo Nordisk (NOVOB DC) - Co's India exec is pushing for an early launch of Wegovy, in fear that it may lose its competitive advantage to rival Eli Lilly (LLY), according to Reuters citing sources. Officials said after regulatory approval, it could be introduced in 2026, but more recently the co's Indian unit has proposed a launch in 2025

Vestas (VWS DC) - Co. won 342 MW order in the USA. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.24% at 6,047, NDX +1.12% at 21,165, DJIA -0.29% at 44,782, RUT -0.02% at 2,434.

SECTORS: Communication Services +1.45%, Consumer Discretionary +1.06%, Technology +1.03%, Consumer Staples -0.10%, Health -0.13%, Materials -0.20%, Industrials -0.66%, Energy -0.85%, Financials -0.90%, Real Estate -1.44%, Utilities -2.08%.

Leveraged Loans - The US leveraged loan market set a record with USD 56bln in loans launched on December 2nd, surpassing the previous high of USD 34bln. Bloomberg said the surge reflected strong investor demand, driven by expectations of prolonged high interest rates.

Microchip (MCHP) - Lowers December-quarter revenue guidance close to USD 1.025bln (exp. 1.06bln) and announces closure of its manufacturing operations at its Tempe, Arizona; affecting c. 500 employees. (Newswires)

Tesla (TSLA) - Delaware judge declines to restore Elon Musk's USD 56bln Tesla (TSLA) pay package despite shareholder approval, while judge orders Tesla to pay USD 345mln fees to plaintiffs' attorneys and rejects USD 5.6bln request. (Newswires)

US Steel (X), Nippon Steel (NPSCY) - US President-elect Trump has reiterated his opposition to Nippon Steel’s planned USD 15bln acquisition of US Steel, calling it harmful to American industry, Reuters reports. Trump promised to block the deal, citing national security concerns. Nippon Steel, however, has committed to investing at least USD 2.7bln in US Steel's unionised plants and securing union jobs. The deal is under review by the Committee on Foreign Investment in the US, with a decision due this month.

03 Dec 2024 - 06:49- Exclusive- Source: Newsquawk