Newsquawk Daily European Equity Opening News - 4th June 2024

4th June 2024

ASIA

APAC stocks traded mixed following a similar performance from Wall Street in the absence of any fresh overnight catalysts, with the tone tilting lower towards the end of the session. ASX 200 saw losses in the energy sector being countered by gains among gold names. Nikkei 225 was the regional laggard with losses among energy names, whilst autos slipped after a safety test scandal among some Japanese automakers widened on Monday, with Toyota Motor and Mazda both halting shipments of some vehicles. Hang Seng and Shanghai Comp were mixed with modest gains in the former amid the upside in healthcare and properties, whilst the Mainland was flat/slightly softer albeit within tight ranges. India's Nifty 50 slipped as election results are being counted and PM Modi's lead fluctuated, with early weakness in Indian markets attributed to a narrowing lead.

Asia Investing - EQT (EQT SS) Private Equity Chair said "the bar is high" for investing in China and there are also better dealmaking opportunities in India/Japan, via the FT. (FT)

TSMC (2330 TT/TSM) - Co. said they have had conversations with customers about whether to move TSMC's fabs out of Taiwan amid China tensions; said it is impossible to move TSMC's fabs out of Taiwan as 80%-90% of production capacity is in Taiwan. (Newswires)

Japanese Auto Names - A safety test scandal at Japanese automakers widened on Monday, with Toyota Motor (7203 JT) and Mazda (7261 JT) both halting shipments of some vehicles after Japan's transport ministry found irregularities in applications to certify certain models", according to Reuters. Japanese Finance Minister Suzuki is concerned that automakers' certification irregularities could have large implications. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.61% at 18,610.27, FTSE 100: -0.15% at 8,262.75, CAC 40: + 0.06 at 7,998.02, Euro Stoxx 50: +0.39% at 5,003.35, IBEX 35: +0.66% at 11,397.20, FTSE MIB: +0.52% at 34,670.06, AEX: +0.16% at 905.10, SMI: -0.05% at 11,955.22

SECTORS: Telecoms 1.48%, Utilities 0.95%, IT 0.93%, Consumer Stpl 0.64%, Industrials 0.40%, Financials 0.37%, Consumer Disc 0.30%, Materials 0.05%, Healthcare -0.28%, Energy -1.13%

FTSE 100

BP (BP/ LN) - S&P revised BP's outlook to stable from positive on slower-than-expected debt reduction. (Newswires)

Carnival (CCL LN) - Carnival to strategically align its portfolio and absorb P&O Cruises Australia into Carnival Cruise Line. (Newswires)

Housing / HSBC (HSBA LN) - HSBC has announced a new wholesale rate hike to its residential and buy-to-let mortgage products, via Sky News. (Sky News)

Rio Tinto (RIO LN) - Co. to develop a bio-iron R&D facility in Western Australia to test low-carbon steelmaking. Will invest USD 143mln. (Newswires)

Standard Chartered (STAN LN) - A court filing is seeking to bring back a US lawsuit which claimed that the Co. has helped Hezbollah and the Taliban, via the FT. (FT)

UK Stocks - The FT writes that hedge funds are growing wary of shorting UK stocks after a flurry of recent takeover deals; Millennium Management, GLG and Gladstone Capital are among those who have been caught out recently. (FT)

UK Retail - UK Barclays May Consumer Spending +1.0% Y/Y - the smallest rise since Feb 2021. UK BRC Retail Sales YY (May) 0.4% (Prev. -4.4%). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Telekom (DTE GY) - KFW announced it is to sell 110mln shares of Deutsche Telekom; the aggregate holding of shares owned by KFW and the Federal Republic of Germany will decrease to c. 27.8%. Subsequently: Co. temporarily multiplies max volume for weekly purchases under the ongoing share buyback programme for 2024. Buyback volume increase is in response to the sale of Deutsche Telekom shares from KFW. Weekly buybacks can be increased to almost six times the volume since the beginning of the year. Following the adjustment, the max. the volume of share buyback is just over EUR 200mln/week. (Newswires)

SAP (SAP GY) - Alphabet (GOOG) is reportedly laying off employees from several teams in Google’s cloud unit, one of its fastest-growing businesses, CNBC sources say. (CNBC). Microsoft (MSFT) is cutting hundreds of employees from its Azure Cloud business, according to Business Insider. (Business Insider)

OTHER GERMAN COMPANIES

BROKER MOVES

Fresenius SE (FRE GY) upgraded to Buy from Hold at HSBC

CAC

Credit Agricole (ACA FP) - Indosuez Wealth Management, a subsidiary of Credit Agricole, finalises the acquisition of Degroof Petercam. CA Indosuez now controls 65% of Degroof. The impact on Credit Agricole CET1 ratio will amount to approx. 30bps. The transaction is expected to generate additional net income share after synergies of EUR 150-200mln by 2028. (Newswires)

Eiffage (FGR FP) - Eiffage Genie Civil and Vinci (DG FP) construction secured in consortium with Veolia (VIE FP); the design and build contract is worth more than EUR 400mln. (Newswires)

L'Oreal (OR FP) - Announces the launch of a fourth employee share ownership plan. (Newswires)

Safran (SAF FP) - Quebec Safran workers, who make components for landing gear on Airbus (AIR FP) and Boeing (BA) jets, are set to start general strikes on Tuesday, according to the Union. (Newswires)

Sanofi (SAN FP) - Co. said Sarclisa is the first anti-CD38 to significantly improve progression-free survival in combination with VRd for newly diagnosed transplant-ineligible multiple myeloma in phase 3. (Newswires)

STMicroelectronics (STMPA FP) - Geely Auto (175 HK) gears up NV transformation and innovation with long-term SIC supply agreement and joint lab with STMicroelectronics. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

European Steel Makers - The European steel industry risks missing ambitious climate targets despite pledging billions of Euros from the region's governments, according to the FT. (FT)

Enel (ENEL IM) / Endesa (ELE SM) - Moody's affirms Cos with BAA1; changes outlook to stable. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) - Co's Private Equity Chair said "the bar is high" for investing in China and there are also better dealmaking opportunities in India/Japan, via the FT. (FT)

Maersk (MAERSKB DC) - Raises 2024 guidance; FY underlying EBITDA seen at USD 7-9bln (exp. 6.58bln), and EBIT of USD 1-3bln (exp. -157mln); FY FCF of at least USD 1bln. Trading conditions remain subject to higher than normal volatility given unpredictability of Red Sea situation. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.11% at 5,283, NDX +0.35% at 18,600, DJIA -0.3% at 38,571, RUT -0.5% at 2,060

SECTORS: Energy -2.6%, Utilities -1.26%, Industrials -1.24%, Materials -0.61%, Financials -0.6%, Real Estate -0.35%, Consumer Staples flat, Consumer Discretionary +0.14%, Communication Services +0.49%, Health +0.74%, Technology +0.98%

Alphabet (GOOG) - Co. is reportedly laying off employees from several teams in Google’s cloud unit, one of its fastest-growing businesses, CNBC sources say. (CNBC)

Microsoft (MSFT) - Co. is cutting hundreds of employees from its Azure Cloud business, according to Business Insider. (Business Insider)

Supermicro (SMCI) - Unveiled new X14 AI, rackmount, multi-node, and edge server families based on Intel® Xeon® 6 processors with E-cores and soon, P-cores systems with liquid cooling. (Newswires)

04 Jun 2024 - 06:57- Research Sheet- Source: Newsquawk