Newsquawk Daily European Equity Opening News - 3rd October 2024

ASIA

APAC stocks traded mixed amid the backdrop of several holiday closures and ongoing geopolitical tensions, while Hong Kong participants booked profits. ASX 200 lacked direction alongside varied data releases including downward PMI revisions and mixed trade figures. Nikkei 225 outperformed on the back of a weaker currency after yesterday's dovish-leaning remarks from Japanese PM Ishiba who said they are not in an environment for an additional rate hike following a meeting with BoJ Governor Ueda, while Ueda said the BoJ will adjust the degree of monetary easing if the outlook is realised, but will take careful steps to determine that as it takes time. Hang Seng suffered heavy losses amid profit taking and in a possible sign that the China stimulus euphoria has finally worn out.

EUROPEAN CLOSES

CLOSES: DAX: -0.33% at 19,149, FTSE 100: +0.17% at 8,291, CAC 40: +0.05% at 7,578, Euro Stoxx 50: +0.14% at 4,961, AEX: +0.74% at 917, IBEX 35: -0.55% at 11,610, FTSE MIB: -0.28% at 33,675, SMI: +0.19% at 12,110, PSI: -0.65% at 6,695

SECTORS: Energy 1.91%, IT 0.99%, Industrials 0.32%, Materials 0.24%, Consumer Disc 0.22%, Financials 0.10%, Consumer Stpl -0.27%, Healthcare -0.44%, Telecoms -0.61%, Utilities -1.55%

FTSE 100

AstraZeneca (AZN LN), Arcus Biosciences (RCUS) - Arcus Biosciences and AstraZeneca announced a collaboration to evaluate the combination of casdatifan and volrustomig in treating advanced renal cell carcinoma. (Newswires)

BAE Systems (BA/ LN) - Darpa awards Cos' Fast Labs USD 6mln. (Newswires)

British Land (BLND LN) - Acquires seven retail parks for GBP 441mln; placing and acquisition to be EPS accretive in FY25. Expect underlying profit for H1'24 to be GBP 142-144mln, EPS 15.2-15.4p. Confirms guidance for FY25. (Newswires)

Ex-Dividends - Centrica (CNA LN), Weir (WEIR LN), Smith & Nephew (SN/ LN), Hargreaves Lansdown (HL/ LN), Phoenix (PHNX LN), F&C Investment Trust (FCIT LN) will trade without entitlement to its latest dividend payout. (dividenddata)

OTHER UK COMPANIES

BROKER MOVES

Aston Martin (AML LN) downgraded to Hold from Buy at HSBC

DAX

BMW (BMW GY) - Co. is said to have ruled out investing in a new Northvolt funding round, according to Bloomberg citing sources. (Bloomberg)

SAP SE (SAP GY) - US prosecutors have expanded their investigation into potential price-fixing by SAP SE and Carahsoft Technology, now involving nearly 100 government agencies, according to Bloomberg. Legal documents reveal the probe focuses on allegations of overcharging the military and other sectors for over USD 2bln in SAP technology purchases since 2014.

Vonovia (VNA GY) - Secures EUR 1.8bln in liquidity, liquidity inflows expected at end of 2024/ H1 2025. Following sales revenue of EUR 1.5bln in the first half of the year. Vonovia and Apollo agreed to set up a Co. that will hold 20% of shares in Deutsche Wohnen SE in which Vonovia and long-term investors advised by Apollo will be invested. (Newswires)

OTHER GERMAN COMPANIES

Deutsche Wohnen (DWNI GY) - Disposal of 27 nursing homes and seven development projects for over EUR 300mln; transaction exp. to be closed by end-2024. (Newswires)

Kion (KGX GY) - Opens automotive center in Belgium. (Newswires)

BROKER MOVES

CAC

Axa (CS FP) - To repurchase shares for cancellation for up to EUR 452.2mln. (Newswires)

EssilorLuxottica SA (EL FP), Meta Platforms (META) - Meta confirmed that any image shared with its AI via Ray-Ban Meta smart glasses may be used to train its AI models, Tech Crunch reported citing Meta's Privacy Policy. Users are advised that images submitted for analysis contribute to data collection, which has raised privacy concerns. (Newswires)

LVMH (MC FP) - Agrees 10-year sponsorship deal with Formula One racing, WSJ reports. (WSJ)

TotalEnergies (TTE FP) - The CEO says they asked the team to stop exploration in the UK North Sea. (Newswires)

OTHER FRENCH COMPANIES

Bouygues (EN FP) - Confirmed its 2024 guidance and reiterated 2026 FCF target. Reduction in investment requirements from 2025 onwards. Sees services sales and EBITDAAL 2024 up modestly vs 2023 and below the figures presented at the CMD. (Newswires)

Casino (CO FP) - Sold 51% stake in 50 stores to Les Mousquetaires on 30 Sept 2024. (Newswires)

BROKER MOVES

PAN EUROPE

Telecom Italia (TIT IM) - Italy's Economy Ministry and Asterion submit a bid for the cos sub-sea unit Sparkle; the offer values the unit at EUR 700mln and expires on Oct 15. (Newswires)

BROKER MOVES

SMI

Zurich Insurance (ZURN SW) - Co. said it is on track to exceed all current targets and believes that markets offer further attractive opportunities. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.01% at 5,710, NDX +0.15% at 19,803, DJIA +0.09% at 41,197, RUT -0.09% at 2,195

SECTORS: Consumer Discretionary -0.78%, Consumer Staples -0.78%, Communication Services -0.44%, Real Estate -0.37%, Materials -0.33%, Health -0.21%, Industrials -0.19%, Utilities +0.05%, Financials +0.10%, Technology +0.59%, Energy +1.12%.

Bank of America (BAC), Berkshire Hathaway (BRK) - Berkshire sold USD 337.9mln worth of Bank of America shares in three transactions (on September 30th, October 1st, and October 2th), for prices between USD 39.6141 and USD 39.4036 per share. Barron's notes that the sale reduces Berkshire's stake to nearly 10%, and continues the trend of the company adjusting its investment in the bank. (Newswires)

Levi Strauss (LEVI) - Shares tumbled 10.9% in extended trading after it issued weak guidance, and announced it is mulling a sale of its underperforming Dockers brand. It reported Q3 adj. EPS of 0.33 (exp. 0.31), Q3 revenue of USD 1.52bln (exp. 1.55bln); Q3 gross margin 60%, adj. operating margin +250bps to 11.6% (exp. 10.5%); cash and cash equivalents USD 577.1mln (exp. 289.1mln), adj. free cash flow USD 2.3mln. By region, Americas sales USD 757.2mln (exp. 784.8mln), Europe sales USD 406.6mln (exp. 390.1mln), Asia sales USD 247.1mln (exp. 250.2mln). By sales channel, Q3 DTC sales +12%, adj. wholesale sales -3%. Q3 Dockers brand revenue -13%; has initiated a formal review of strategic alternatives for its Dockers brand. Exec said underlying fundamentals of the business are getting stronger, driven by the Levi's brand, which grew +5% globally in Q3, a significant acceleration from H1 and its highest revenue growth in two years. Direct-to-consumer business, continued positive performance in the US, and Europe inflecting to growth. Sees FY net revenue growth of +1% (prev. saw +1-3%), reaffirms FY adj. EPS outlook at between USD 1.17-1.27 (exp. 1.25). (Newswires)

Lockheed Martin (LMT) - Declares Q4 dividend of USD 3.30/shr and authorises purchase of up to an additional USD 3bln of Lockheed Martin common stock under its share repurchase program. (Newswires)

Tesla (TSLA) - Tesla has discontinued the Model 3 Standard Range Rear-Wheel-Drive, its cheapest electric car at USD 39,000, according to Electrek, with the publication suggesting it was due to increased tariffs on Chinese LFP battery cells. The next most affordable option is the USD 42,500 Model 3 Long Range RWD. (Newswires)

03 Oct 2024 - 07:00- Geopolitical- Source: Newsquawk