Newsquawk Daily European Equity Opening News - 6th November 2024

6th November 2024

ASIA

APAC stocks mostly followed suit to the risk on performance on Wall St as participants digested the US Presidential Election results where Trump is leading so far and betting markets boosted their pricing of the former President returning to the White House. ASX 200 was lifted with outperformance in tech, consumer discretionary and financials leading the gains seen in all sectors. Nikkei 225 surged above the 39,000 level with the momentum propelled by a weaker currency. Hang Seng and Shanghai Comp lagged with the Hong Kong benchmark the worst hit as tech was pressured amid the increased tariff threat for Chinese companies, while the mainland traded indecisively as prospects of looming fiscal stimulus offset the tariff threat.

Honda (7267 JT) 6-month (JPY) net fell 19.7% Y/Y to 494.7bln, lowers FY24/25 net forecast to 950bln from 1.0tln. Co. lowers FY24/25 global group retail sales to 3.8mln from previous forecast of 3.9mln units. (Newswires)

Toyota (7203 JT) - 6-month (JPY) group net fell 26.4% Y/Y to 1.91tln, maintains FY24/25 net profit forecast at 3.57tln, lowers FY24/25 global group-wide retail sales forecast to 10.85mln units from 10.95mln units. CFO said North America production is recovering and will be back to regular pace from January. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.55% at 19,253, FTSE 100: -0.14% at 8,172, CAC 40: +0.48% at 7,407, Euro Stoxx 50: +0.39% at 4,871, AEX: +0.37% at 883, IBEX 35: +0.29% at 11,839, FTSE MIB: -0.20% at 34,472, SMI: -0.25% at 11,867, PSI: -0.55% at 6,549.

SECTORS: Industrials 1.01%, Energy 0.69%, IT 0.64%, Financials 0.55%, Telecoms 0.33%, Materials 0.26%, Utilities 0.17%, Consumer Stpl -0.08%, Consumer Disc -0.28%, Healthcare -1.95%

FTSE 100

AstraZeneca (AZN LN) - Says co. does not comment on speculative media reports including those related to ongoing investigations in China; continue to deliver their medicines to patients in China and operations are ongoing. If requested, co. will fully cooperate with Chinese authorities. (Newswires)

Rio Tinto (RIO AT) - Co. partners with China’s SPIC to trial battery swap truck technology. (Newswires)

Prudential (PRU LN) – 9m (USD): New Business Profit 2.34bln, +11% Y/Y. On track for expected 2024 new business profit growth trajectory of 9-13%. (Newswires)

WPP (WPP LN) – Retains US Marine Corps account and awarded USD 1.9bln 10 year contract. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Burberry (BRBY LN) upgraded to Outperform from Sector Perform at RBC

Smith & Nephew (SN/ LN) downgraded to Hold from Buy at Berenberg

DAX

BMW (BMW GY) - Q3 (EUR): Revenue 32.41bln (exp. 33.31bln). EBIT 1.7bln (exp. 1.65bln). Automotive EBIT margin 2.3% (exp. 2.87%). Co. confirms latest 2024 guidance. (Newswires) Shares -1.1% in pre-market trade

Commerzbank (CBK GY) – Q3 (EUR): NII 2.04bln (exp. 2.0bln), Op. Result 886mln (exp. 886mln), Pretax profit 885mln (exp. 866mln). Improve FY outlook results after 9 months ahead of plan. Raises NII approx. 8.2bln (prev. guided approx. 8.1bln). Plans a second tranche of buyback of up to EUR 400mln, according to Bloomberg. (Newswires)

Deutsche Bank (DBK GY) – Invests EUR 571mln in India growth strategy. (Newswires)

Evotec (EVT GY) – 9m (EUR): Adj. EBITDA 6mln (prev. 50.2mln Y/Y). One off costs related to priority reset measures. (Newswires)

Evonik (EVK GY) – Q3 (EUR): Sales 3.83bln, +2% Y/Y. Confirms FY outlook. (Newswires)

Fresenius SE (FRE GY) – Q3 (EUR): Revenue 5.3bln (exp. 5.31bln), EBIT 552mln (exp. 533.8mln). Upgrades 2024 outlook for EBIT before special items growth to 8-11% (prev. guided 6-10%). (Newswires)

Siemens Healthineers (SHL GY) – FY (EUR): Adj. EBIT 3.5bln (exp. 3.5bln). Q4: Comparable revenue growth of 5.6% (exp. 5.6%), Adj. EPS 0.67 (exp. 0.64). Outlook FY25: Expects comparable revenue growth of 5-6%. Expects adj. EPS to be between EUR 2.35-2.5. (Newswires) Shares +1.3% in pre-market trade

Vonovia (VNA GY) – 9m (EUR): Adj. EBITDA 199bln, +1.4% Y/Y. Confirms its FY guidance at upper end. (Newswires)

OTHER GERMAN COMPANIES

Henkel (HEN3 GY) – Q3 (EUR): Revenue 5.49bln (prev. 5.44bln Y/Y). (Newswires)

BROKER MOVES

Volkswagen (VOW3 GY) downgraded to Sector Perform from Outperform at RBC

CAC

Credit Agricole (ACA FP) - Q3 (EUR): Revenue 6.49bln (exp. 6.56bln), Net Income 1.67bln (exp. 1.58bln), CET1 11.7% (exp. 11.7%). (Newswires)

Eurazeo (RF FP) – 9m (EUR): AuM 35.5bln. Expects fundraising of around 4bln vs 3.5bln Y/Y. (Newswires)

OTHER FRENCH COMPANIES

Arkema (AKE FP) – Q3 (EUR): Sales 2.39bln (Co. consensus 2.41bln). Expects to achieve EBITDA at lower end of its guidance range. (Newswires)

Rubis (RUI FP) – Q3 (EUR): Sales 1.63bln (exp. ). Revises 2024 guidance, EBITDA 675-725mln, Net Income 240-375mln. (Newswires)

Nexans (NEX FP) – RTE has contracted with Five to secure underground power cables; contract worth total of EUR 1bln. (Newswires)

BROKER MOVES

PAN EUROPE

Solvay (SOLB BB) – Q3 (EUR): EBITDA 259mln (exp. 250mlln), Revenue 1.15bln (exp. 1.45bln). (Newswires)

US Election - Results from the election showed Trump in the lead in electoral votes and boosted betting market odds for a Trump victory with Polymarket assigning a 97% probability for him to win a second term. US futures have ripped higher, while European futures have been hit given the potential EZ growth implications.

UniCredit (UCG IM) - Q3 (EUR): Net Income 2.51bln (exp. 2.23bln), Revenue 6.14bln (exp. 5.9bln), NII 3.56bln (exp. 3.49bln). Lifts FY24 revenue guidance to 24bln, net profit to above 9bln. (Newswires)

BROKER MOVES

SMI

Barry Callebaut (BARN SW) – FY (CHF): Revenue 10.4bln, +28.1% Y/Y. Op. Profit 704.4mln, +12.7% Y/Y. Outlook for FY25: Flat volume in a challenging market, with slight positive growth for global chocolate. Double digit EBIT recurring growth in constant currency. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Mowi (MOWI NO) – Q3 (EUR): Revenue 1.44bln (exp. 1.53bln). (Newswires)

Novo Nordisk (NOVOB DC) - Q3 (DKK): Net Sales 71.311bln (exp. 72.466bln). EBIT 33.822bln (exp. 33.512bln). Wegovy sales 17.304bln (exp. 15.937bln); FY guidance: narrows FY revenue growth range +23-27% Y/Y (prev. guided 22-29%). Op. profit growth +21-27% (prev. guided +20-28%)  FCF 57-65bln (prev. guided 59-69bln).  CEO: "The sales growth is driven by increasing demand for our GLP-1-based diabetes and obesity treatments, and we are serving more patients than ever before". (Newswires) 

Pandora (PNDORA DC) - Q3 (DKK): EBIT 980mln (exp. 911mln), Sales 6.10bln (exp. 6.12bln); performance in China continues to be challenged ending at -33% LFL in the quarter

BROKER MOVES

Elisa (ELISA FH) upgraded to Overweight from Underweight at Barclays

Telenor (TEL NO) downgraded to Equalweight from Overweight at Barclays

US

CLOSES: SPX +1.23% at 5,783, NDX +1.32% at 20,227, DJIA +1.02% at 42,222, RUT +1.88% at 2,261

SECTORS: Materials +0.20%, Energy +0.57%, Consumer Staples +0.69%, Health +0.75%, Financials +0.98%, Communication Services +0.99%, Real Estate +1.36%, Technology +1.46%, Utilities +1.48%, Industrials +1.67%, Consumer Discretionary +1.83%.

Microchip Technology Inc (MCHP) - Q3 2024 (USD): Adj. EPS 0.46 (exp. 0.43), Revenue 1.16bln (exp. 1.15bln), raises quarterly cash dividend 3.6% Y/Y to USD 0.455/shr. (Newswires)

Super Micro (SMCI) - Co. announces an update from the independent special committee and Q1 FY25 Preliminary Financial Information; sees Q2 net sales between USD 5.5-6.1bln (exp. 6.79bln) and adj. EPS between 0.56-0.65 (exp. 0.83), says AI contributed to over 70% of revenue across enterprise and cloud service provider markets. Q1 revenue reduced as some customers were waiting for Nvidia's (NVDA) new chip. Says its servers are ready for production when NVDA chips arrive.

06 Nov 2024 - 07:02- Research Sheet- Source: Newsquawk