Newsquawk Daily European Equity Opening News - 4th March 2024

4th March 2024

ASIA

APAC stocks traded mixed amid a tentative mood ahead of an event-packed week. ASX 200 lacked conviction amid varied data releases and despite initially printing a fresh record high. Nikkei 225 resumed its uptrend and climbed above the 40,000 level for the first time. KOSPI outperformed as it played catch up on its return from a 3-day weekend. Hang Seng and Shanghai Comp. were choppy with an early lacklustre mood after the PBoC's liquidity drain, while China begins its Two Sessions meeting with a focus on the NPC tomorrow including Premier Li's first government work report and the official GDP target.

BYD (1211 HK) - Launched a new version of Yuan model Plus EV at a lower starting price. (Newswires)

Fast Retailing (9983 JT) - February domestic Uniqlo same-store sales rose 7.2% Y/Y (prev. 0.4%). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: 0.00% at 17,735.00, FTSE 100: +0.69% at 7,682.50, CAC 40: +0.09% at 7,934.17, Euro Stoxx 50: +0.33% at 4,894.05, IBEX 35: +0.63% at 10,064.70, FTSE MIB: +1.08% at 32,934.29, SMI: +0.45% at 11,490.30.

SECTORS: IT 1.56%, Energy 1.43%, Healthcare 1.37%, Materials 0.81%, Financials 0.45%, Consumer Disc 0.43%, Telecoms 0.23%, Consumer Stpl 0.14%, Industrials -0.09%, Utilities -0.26%

FTSE 100

AstraZeneca (AZN LN) - Challenged US President Biden's drug price negotiation programme, but a Federal judge dismisses AZN drug price plan challenge. (Newswires)

DS Smith (SMDS LN) - Mondi (MNDI LN) is said to increase its takeover bid for DS Smith; though DS Smith believes the revised offer is still inadequate, according to Bloomberg. (Bloomberg)

Lloyds (LLOY LN) - Co. is to become the first high street bank to support not-for-profit lenders via a GBP 62mln fund for investment in CDFIs. (FT)

NatWest Group (NWG LN) – UK Treasury is said to be mulling a parallel share sale to institutional investors alongside the previously reportedly “Tell Sid” retail sale in a bid to maximise proceeds, according to The Times. The article notes that an institutional sale could “significantly boost” the offer size. (Times) The term "Tell Sid" refers to a public advertising campaign aimed at encouraging ordinary citizens to purchase shares in privatized companies

Rio Tinto (RIO LN) - The US Appeals Court rejected the bid by Arizona’s San Carlos Apache Tribe and allies to block a land transfer for Rio Tinto’s Resolution copper mine. (Newswires)

St James’s Place (SJT LN) – Following the GBP 426mln provision for client refunds reported by the Co. last week, it has been revealed that the firm faces over 15,000 overcharging claims, which could cost as much as GBP 426mln. (CityAM/Times)

UK Airliners/Homebuilders – UK Chancellor Hunt is said to be mulling an increase in airfare duty for Business Class, according to The Telegraph citing sources. An additional proposal being evaluated involves eliminating advantages for individuals who profit from vacation rentals in their second homes, which is projected to generate around GBP 300mln. The proposals are part of broader measures targeting the wealthier class to fund a tax cut in Wednesday’s budget. (Telegraph)

UK Tax - UK PM Sunak hints at further national insurance tax cut citing boost for union, via Sky News. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

BT (BT/ LN) upgraded to Buy from Hold at Berenberg

DAX

Bayer (BAN GY) - Co. is calling on state lawmakers within the US to reconfirm that the EPA has authority over pesticide labels, via FT citing sources. The article reminds us that the EPA ruled that Roundup is safe and approved the labelling. (FT)

BMW (BMW GY) - Launched construction for its mainland manufacturing facility for Gen-5 high voltage batteries in Thailand, via Reuters. (Reuters)

Henkel (HEN3 GY) - Revenue 21.5bln (exp. 21.5bln), EPS 4.35 (prev. 3.90 Y/Y), Adj. EBIT 2.56bln (prev. 2.32bln Y/Y). Guides initial FY24 adj. EPS +5-20% Y/Y, adj. EBIT margin 12-13.5%, Organic Revenue +2-4% Y/Y. (Newswires) Shares +1.7% in pre-market trade

Volkswagen (VOW3 GY) - Battery unit chief said they will not consider an IPO of unit until its factories are running and unified cell is in use. (Newswires)

OTHER GERMAN COMPANIES

Delivery Hero (DHER GY) - Affirms FY24 guidance. Launches financing transactions to optimise its capital structure. (Newswires)

Douglas Group - Perfume retailer Douglas plans to IPO in Frankfurt as soon as Q1, according to Bloomberg. (Bloomberg)

Evonik (EVK GY) - FY23 (EUR): adj. EBITDA 1.66bln (exp. 1.67bln), Revenue 15.3bln (exp. 15.5bln), Net -465mln (exp. 405mln, prev. +545mln Y/Y). Plans to cut 2k jobs to reduce costs by 2026. Guides initial FY24 adj. EBITDA 1.7-2bln, Revenue 15-17bln. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Airbus reportedly explored buying Spirit AeroSystems (SPR) A220 wings plant but no deal likely in the short-term, according to Reuters sources. The Belfast A220 wing plant discussion was part of ongoing price negotiations between Airbus and Spirit. Any deal to buy Spirit's Belfast plant could entail further investments by Airbus to lower the production cost of A220 wings. (Reuters)

Danone (BN FP) - US FDA issued a letter of enforcement discretion for certain qualified health claims regarding the consumption of yoghurt and reduced risk of type 2 diabetes. (Newswires)

Saint Gobain (SGO FP) - Divests treated timber business in UK and Ireland, to be completed by end-2024. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Autos - Italy New Car Registrations (Feb) Y/Y: 12.8% (prev. 10.6%). (Newswires)

Enel (ENEL IM) - Announces partnership with Sosteneo to develop battery and open-cycle plant projects in Italy. The agreement provides for the entry of Sosteneo, which will acquire 49% of the share capital, in Enel Libra Flexsys, a company fully owned by Enel Italia, for a consideration of approx. EUR 1.1bln upon closing. (Newswires)

Santander (SAN SM) - Proxy advisor ISS has reportedly recommended that shareholders vote against the new remuneration plan, which would see CEO Botin’s salary increase by 5%. Elsewhere, Bloomberg reports the Co. has cut around 320 jobs within the US. (FT/Newswires)

BROKER MOVES

SMI

Novartis (NOVN SW) - Novartis presented new data on the safety and efficacy of Zolgensma, including maintained and improved motor milestones in older and heavier children with SMA. (Novartis)

OTHER SWISS COMPANIES

Belimo (BEAN SW) - FY23 (EUR): EBIT 152.5mln (prev. 152.4mln Y/Y), Revenue 859mln (prev. 847mln Y/Y), EBIT margin 17.8% (prev. 18% Y/Y). (Newswires)

SoftwareOne (SWON SW) - Founding shareholders of Co, who together hold a 29% stake, have scrapped their agreement with US investor Bain Capital, according to a press release. (Newswires)

Sandoz (SDZ SW) - Acquires Cimerli from Coherus at, an upfront cash purchase price of USD 170mln. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.80% at 5,137, NDX +1.44% at 18,302, DJIA +0.23% at 39,087, RUT +1.05% at 2,076.

SECTORS: Technology +1.78%, Energy +1.17%, Real Estate +1.08%, Health +0.97%, Communication Services +0.51%, Materials +0.39%, Consumer Discretionary +0.38%, Industrials +0.36%, Consumer Staples -0.04%, Financials -0.22%, Utilities -0.72%.

Apple (AAPL) - Goldman Sachs cut Apple (AAPL) from its conviction buy list amid underperformance in its shares, according to Bloomberg. (Bloomberg)

Boeing (BA) - Says it has been working closely with Spirit AeroSystems (SPR) and its leadership to strengthen the quality of the commercial airplanes they build together; confirms the collab resulted in preliminary discussions about making SPR part of BA again. Tells suppliers it is delaying 737 production increases; new Boeing supplier schedule calls for 737 output to reach 42 per month in Jun (previous target Feb) and 47/m in Jan 2025 (prev. Aug 2024), according to Reuters sources. (Reuters / Newswires)

S&P 500 - BofA Global Research raises year-end 2024 S&P 500 target to 5,400 from 5,000. (Newswires)

04 Mar 2024 - 06:55- Research Sheet- Source: Newsquawk