Newsquawk Daily European Equity Opening News - 6th May 2024

6th May 2024

ASIA

APAC stocks traded with a positive bias after a dovish jobs report from the US but with the upside limited amid holiday-thinned conditions with Japan and South Korea shut for holidays. ASX 200 was led higher by continued outperformance in the rate-sensitive sectors, while financials were also underpinned following Westpac's earnings, special dividend and buyback announcement. Hang Seng & Shanghai Comp were somewhat varied as Hong Kong stocks took a breather after the recent hot streak and as attention shifted to the mainland where stocks outperformed as they played catch up on their return from the Labour Day Golden Week holidays with property stocks boosted by recent support pledges, while participants also digested Caixin Services PMI data which matched estimates.

Westpac (WBC AT) - H1 (AUD) net income 3.34bln (exp. 3.34bln), declares interim dividend of AUD 0.75/shr and special dividend of AUD 0.15/shr, while it announces increase in the buyback program of AUD 1bln to AUD 2.5bln

EUROPEAN CLOSES

CLOSES: DAX: +0.54% at 17,993.69, FTSE 100: +0.51% at 8,213.49, CAC 40: +0.54% at 7,957.57, Euro Stoxx 50: +0.63% at 4,920.95, IBEX 35: -0.16% at 10,854.70, FTSE MIB: -0.32% at 33,629.21, SMI: +0.62% at 11,279.60.

SECTORS: IT 2.07%, Consumer Disc 1.24%, Industrials 1.05%, Materials 0.90%, Telecoms 0.82%, Utilities 0.50%, Financials 0.03%, Consumer Stpl 0.01%, Healthcare -0.59%, Energy -0.73%

FTSE 100 - UK markets are closed on the account of the UK Bank Holiday

Anglo American (AAL LN) - Rio Tinto (RIO LN) and Glencore (GLEN LN) hold off on rival bids for Anglo American, and instead are monitoring BHP's (BHP AT) takeover offer, Bloomberg reports. The complex deal, rejected by Anglo, could lead to asset sales. Both Rio and Glencore eye specific Anglo assets, and are awaiting potential opportunities amid the unfolding drama, the report suggests. (Bloomberg)

NatWest (NWG LN) - Retail investors could receive a "bonus" share in the Co., should they hold the stock for at least a year, according to The Times. (The Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

BMW (BMW GY) – Neue Klass will be produced in Mexico from 2027 onwards. (Newswires)

OTHER GERMAN COMPANIES

Daimler Truck (DTG GY) – UAW members ratify a contract, details light. (Newswires)

Hypoport (HYQ GY) – Q1 (EUR): Revenue 400mln, +15% Y/Y, EBITDA 13mln. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Atos (ATO FP) - Four financial restructuring proposals were received as part of the current conciliation process. EUR 100 million interim financing agreement with bondholders signed; discussions progressing with banks and the French State on the remaining EUR 350 million. Kretinsky joined Attestor in a bid for Atos, including a EUR 600mln equity injection. (Newswires)

BROKER MOVES

PAN EUROPE

Ferrovial (FER SM) – Completes regulatory review process for Nasdaq listing. Has filed an acceleration request asking SEC to declare its registration statement effective May 8. (Newswires)

Heathrow – Strikes over proposed outsourcing plans at Heathrow airport have been called off to allow for last-minute plans. Strikes were due for May 7-8. (Newswires)

Intesa Sanpaolo (ISP IM) – CEO does not see any M&A options for the bank abroad to create value at the moment. (Newswires)

Tod’s (TOD IM) – Confirms that shares will be delisted from listing and trading on Euronext Milan. Crown Bidco and the person acting in concern will come to own an aggregate stake greater than 90% of Tod’s share capital. (Newswires)

PostNL (PNL NA) – Q1 (EUR): Revenue 765mln (prev. 783mln Y/Y). Confirms outlook. Co. to increase stamp prices from 1st July; to EUR 1.14 (prev. 1.09). (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) – Unifor said workers at its Toronto plant have decided to strike over the lack of improvements of their pension plans. (Newswires)

UBS (UBSG SW) – The last remaining executive of Credit Suisse is to leave UBS in the coming weeks, according to the FT. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Bakkafrost (BAKKA NO) – Q1 (DKK): Revenue 1.59bln (exp. 2.09bln), Op. EBIT 710mln (exp. 647mln). (Newswires)

Heineken (HEIA NA) - Co. is investing GBP 39mln to reopen some pubs in the UK, via The Times. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.26% at 5,128, NDX +1.99% at 17,891, DJI +1.18% at 38,676, RUT +0.97% at 2,036.

SECTORS: Technology +3.01%, Communication Services +1.02%, Materials +1%, Utilities +0.86%, Real Estate +0.82%, Consumer Discretionary +0.71%, Industrials +0.7%, Consumer Staples +0.33%, Financials +0.31%, Health +0.23%, Energy -0.05%.

Apple (AAPL), Berkshire Hathaway (BRK.B) - Berkshire Hathaway decreased its substantial Apple stake in Q1, now valued at USD 135.4bln, a 13% reduction, CNBC reports. This marks the second consecutive quarter of trimming. CEO Warren Buffett cited tax reasons and potential future tax hikes as motives, though he maintains confidence in Apple's long-term prospects, and thinks it is likely that Apple will remain Berkshire’s largest holding at the end of 2024.

Berkshire Hathaway (BRK.B) - Berkshire Hathaway reported Q1 operating profit surged 39% Y/Y to USD 11.22bln, or USD 5.20/shr (exp. 4.58), led by a +185% Y/Y increase in insurance underwriting earnings. Q1 net earnings fell 64% Y/Y to USD 12.7bln, and Q1 revenue was USD 89.86bln (exp. 85.9bln). Q1 insurance underwriting operating earnings USD 2.59bln (+185% Y/Y). Q1 cash holdings reached a record high of USD 188.99bln (prev. 167.6bln in Q4), which CNBC said points to Buffett’s inability to find a suitable major acquisition target. Berkshire also bought back USD 2.6bln in stock in the quarter (prev. 2.2bln in Q4); asked about returning some of the cash balance to shareholders, CEO Buffett said he'd prefer a larger share buyback programme rather than a dividend).

Paramount Global (PARA) - Skydance’s proposed deal With Paramount Global (PARA) appears to be falling apart, according to Variety; adds neither the Sony (SONY) / Apollo (APO) deal or Skydance / RedBird deal are in play

Social Media / X – Grok AI will be available in the UK for premium subscribers. (Newswires)

06 May 2024 - 06:55- - Source: Newsquawk