Newsquawk Daily European Equity Opening News - 5th May 2021

The Daily European Equity Opening News is uploaded at 0700BST/0200EDT recapping all of the overnight equity news.

From 0700BST/0200EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715BST/0215EDT.

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asian equity markets traded cautiously as the region battled to shrug off the tech-led declines in the US and amid holiday-thinned conditions due to market closures in China, Japan and South Korea. There was also plenty of attention on recent comments by US Treasury Secretary Yellen who stated that interest rates will have to rise somewhat to ensure the economy does not overheat, which added to the headwinds on Wall Street, although some of the jitters gradually eased given that the comments were taken somewhat out of context and was regarding the future not imminent policy, while Yellen later clarified that she is not predicting nor recommending a rate increase. ASX 200 (+0.6%) brushed aside the early indecision and climbed above the 7,100 level for the first time since early last year helped by much stronger than expected Building Approvals data and with gains in most the big four banks aside from ANZ Bank despite a surge in H1 cash profit which more than doubled to AUD 2.99bln as the CEO also flagged significant uncertainty. Hang Seng (Unch.) was choppy after disappointing Retail Sales data for Hong Kong and continued absence of stock connect trade with the mainland, although downside was also limited after data from MOFCOM showed China’s online retail sales jumped 29.0% in Q1 and the China Iron and Steel Association noted a 15.6% output expansion for the nation’s steel sector. India’s NIFTY (+0.6%) was also mildly supported following RBI Governor Das unscheduled speech in which he eventually announced several measures including another INR 350bln of purchases of government securities and on-tap liquidity facility of INR 500bln for fresh lending to vaccine manufacturers and others.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -1.87% AT 3,926; FTSE 100 -0.59% AT 6,928; DAX -2.38% AT 14,875; CAC 40 -0.89% AT 6,252; IBEX 35 -0.62% AT 8,839; FTSE MIB -1.82% AT 23,977; SMI -1.35% AT 10,969

SECTORS: Energy +1.21%, Telecoms 0.00%, Consumer Stpl -0.40%, Materials -0.42%, Healthcare -1.20%, Utilities -1.31%, Industrials -1.63%, Financials -1.69%, Consumer Disc -2.14%, IT -3.87%

FTSE 100

Melrose (MRO LN) – Co. is to work on creating new storage methods for hydrogen, CEO adding that hybrid plants at a local scale make commercial and environmental sense. (FT)

Tesco (TSCO LN) – Co. has agreed to increase the sale of healthier food items following pressure from shareholders to do so. (FT)

OTHER UK COMPANIES

Indivior (INDV LN) – ISS and Glass Lewis, the proxy advisory services, have recommended investors vote against the pay report at the upcoming AGM. (FT) AGM takes place on May 6th

BROKER MOVES

DAX

Daimler (DAI GY) - Nissan (7201 JT) said it is selling its 1.5% stake in Daimler via an accelerated bookbuild offer. A bookrunner guided shares at EUR 69.85/shr. (Newswires) Daimler closed at EUR 72.41 on Tuesday

Delivery Hero (DHER GY) - Reports state that a shareholder is to sell a 9.8mln stake in the Co. with the offering priced at EUR 123.10/shr. (Newswires) Delivery Hero closed at EUR 127.90 on Tuesday

Deutsche Post (DPW GY) - Q1 EBIT EUR 1.9bln vs exp. EUR 1.87bln. Revenue EUR 18.9bln vs prev. EUR 15.5bln. Net EUR 1.19bln vs prev. EUR 0.3bln Y/Y. Co. raises its FY EBIT and FCF guidance. (Newswires)

Deutsche Telekom (DTE GY) - T-Mobile US Inc (TMUS) reported Q1 2021 (USD): EPS 0.74 (exp. 0.57), Revenue 19.76bln (exp. 18.90bln). Raises FY Postpaid Net Customer Additions view to between 4.4-4.9mln (prev. 4.0-4.7mln). (Newswires) Deutsche Telekom owns a 43.3% stake in T-Mobile. T-Mobile shares rose 2% after-market.

Merck (MRK GY) - Co. raises FY21 guidance, now sees net sales between EUR 18.5-19.5bln, and FY profit between EUR 7.50-8.20bln. (Newswires)

OTHER GERMAN COMPANIES

Hannover Re (HNR1 GY) - Q1 EBIT EUR 403.8mln vs prev. EUR 426.6mln Y/Y. Gross premium EUR 7.8bln vs prev. EUR 7.0bln. RoE 11.1% vs 8.2% Q/Q. Co. affirms its guidance. (Newswires)

Hugo Boss (BOSS GY) - Q1 revenue EUR 497mln vs exp. EUR 444mln. EBIT EUR 1mln vs exp. EUR -30mln. Co. expects its global business to recover noticeably this year. Co. refrains from providing guidance but remains optimistic. (Newswires)

Siemens Energy (ENR GY) - Q2 net EUR 24mln vs exp. EUR -11mln. Revenue EUR 6.48bln vs exp. EUR 6.9bln. Co. narrowed its FY21 revenue growth guidance to the range of +3-8% Y/Y vs prev. 2-12% Y/Y. (Newswires)

BROKER MOVES

CAC

Axa (CS FP) - Q1 revenue EUR 30.7bln vs exp. EUR 31.2bln. Co. guides Q2 solvency ratio to keep rising. P&C revenue +2% Y/Y, health revenue +5% , life & savings revenue 0%, solvency ratio +8ppts Y/Y. (Newswires)

Veolia (VIE FP) - Q1 Revenue EUR 6.81bln vs prev. EUR 6.68bln. EBITDA EUR 1.08bln vs prev. EUR 970mln. Co. says it is ahead of its FY21 targets and affirms FY21 revenue guidance. (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP)- Bombardier is to sell 11.5mln Alstom shares, consistent with its previously announced strategy. (Newswires)

Ubisoft (UBI FP) - Activision Blizzard Inc (ATVI) reported Q1 21 (USD): Adj. EPS 0.98 (exp. 0.70), Revenue 2.28bln (exp. 1.78bln); Activision MAUs 150mln (exp. 118mln). Co. raised its FY revenue view on Call of Duty boost. (Newswires) Shares rose 5% after market

BROKER MOVES

BNP PARIBAS (BNP FP) UPGRADED TO HOLD FROM SELL AT BERENBERG

PAN EUROPE

Atlantia (ATL IM) - Investor TCI proposes to spin off Co's Autostrade unit. (Newswires)

DSM (DSM NA) - Q1 EBITDA EUR 441mln vs prev. EUR 390mln. Revenue EUR 2.19bln vs exp. EUR 2.17bln. For the FY, Co. continues to expect an adj. EBITDA increase in nutrition at the upper end of its mid-term strategic ambition. (Newswires)

Renewable Energy Names - Spain's Opdenergy has shelved its IPO amid unfavourable market conditions, according to source. (Newswires)

Solvay (SOLB BB) - Q1 underlying net sales EUR 2.37bln vs Co. exp. EUR 2.32bln. Underlying EBITDA EUR 583mln vs Co. exp. EUR 535mln. Underlying FCF EUR 282mln vs Co. exp. EUR 142mln. FCF guidance has been revised at the upper end of the prior range. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) – Co. is launching a pea milk product, dubbed Wunda, in their first entrant to the USD 17bln plant-based dairy item market. Co. had considered acquiring a plant-based dairy brand but did not due to high prices. (FT)

Roche (ROG SW) - Roche’s Tecentriq has been approved by the European Commission as a first-line monotherapy treatment for people with a type of metastatic non-small cell lung cancer. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker Solutions (AKSO NO) - Q1 EBITDA NOK 427mln vs prev. NOK 314mln. Revenue NOK 6.5bln vs prev. NOK 6.5bln. CEO sees increasing market activity in the near-term. (Newswires)

Novo Nordisk (NOVOB DC) - Q1 revenue DKK 33.804bln vs exp. DKK 32.531bln. EBIT DKK 14.982bln vs exp. DKK 14.6bln. Co. expands its current share buyback programme by DKK 1bln. Co. announces plans to develop a new treatment for patients with obesity. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.66% AT 4,165, NDX -1.85% AT 13,545, RUT -1.28% AT 2,248

SECTORS: TECHNOLOGY -1.89%, CONSUMER DISCRETIONARY -1.24%, COMMUNICATION SVS. -0.93%, REAL ESTATE -0.61%, CONSUMER STAPLES -0.54%, UTILITIES -0.35%, ENERGY +0.02%, HEALTH +0.04%, INDUSTRIALS +0.41%, FINANCIALS +0.7%, MATERIALS +1.04%

05 May 2021 - 06:51- Research Sheet- Source: Newsquawk