Newsquawk Daily European Equity Opening News - 7th February 2024

7th February 2024

ASIA

APAC stocks were mostly positive after a decline in global yields and further Chinese support efforts. ASX 200 gained with the index led by outperformance in mining and property sectors amid lower yields.Nikkei 225 was indecisive amid a slew of earnings and with the BoJ reportedly on track for a policy shift by April. Hang Seng and Shanghai Comp were mixed despite early momentum following the latest support efforts from China which were targeted at real estate financing and new energy vehicles. Nonetheless, Chinese stocks gradually faded some of their initial gains and the Hong Kong benchmark ultimately turned negative.

Woodside Energy (WDS AT) - Has ended discussions with Santos (STO AT) regarding a potential merger. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.76% at 17,033.24, FTSE 100: +0.90% at 7,681.01, CAC 40: +0.65% at 7,638.97, Euro Stoxx 50: +0.77% at 4,690.95, IBEX 35: +0.62% at 10,003.00, FTSE MIB: +0.53% at 31,116.75, SMI: -0.25% at 11,246.50.

SECTORS: Energy 2.25%, Industrials 1.37%, Materials 0.95%, Consumer Disc 0.68%, IT 0.57%, Healthcare 0.56%, Financials 0.34%, Consumer Stpl 0.17%, Telecoms 0.15%, Utilities -1.00%         

FTSE 100

Auto Names - UK Advertising Watchdog has ruled that any name selling EVs has to qualify that “zero emission” claims only apply when the vehicle is being driven, ruling was part of a judgement on BMW (BMW LN). (FT)

BP (BP/ LN) - CEO says they are considering bringing in partners to its solar business after it completes the takeover of Lightsource BP; BP is in talks with companies on possible partnerships. (Newswires)

NatWest (NWG LN) - A “Tell Sid”-style by the Government to offer NatWest shares to the public could begin in June, according to The Times. (The Times)

Standard Chartered (STAN LN) - Co. has been assessing the interest of a range of City of London figures and senior bankers for the Chairman role when Vinals steps down. (FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Post (DHL GY) - KFW is to sell 50mln shares in Deutsche Post, according to Bloomberg. (Bloomberg)

Hannover Rueck (HNR1 GY) - Prelim. FY23 (EUR): Net 1.80bln (exp. 1.78bln), EBIT 1.97bln (exp. 2.4bln). Confirms outlook, citing improvements in terms and conditions and sustained attractive prices. (Newswires)

Siemens Energy (ENR GY) - Q1 (EUR): Net 1.88bln (exp. 813mln, prev. -384mln Y/Y), Revenue 7.65bln (exp. 7.42bln, prev. 7.06bln Y/Y), Orders 15.4bln +23.9%. Affirms outlook. (Newswires)

Sartorius (SRT GY) - Files to sell EUR 1.2bln in preference shares. (Newswires)

OTHER GERMAN COMPANIES

Metro AG (B4B GY) - Q1 (EUR): Net 130mln (prev. 522mln Y/Y), Revenue 8.12bln (prev. 8.11bln Y/Y). Reaffirms long-term (by 2030) growth targets. (Newswires)

TeamViewer (TMV GY) - Q4 (EUR): EBIT 41.5mln (prev. 49.5mln Y/Y), Revenue 163.1mlm (exp. 159.5mln). Americas unit reorganisation on track. Guides initial FY24 Revenue 660-685mln, +7-11%; adj. EBITDA margin of at least 43%. (Newswires)

BROKER MOVES

Siemens Healthineers (SHL GY) upgraded to Outperform from Neutral at BNP Paribas

CAC

Amundi (AMUN FP) - Q4 (EUR): adj. Net 313mln (exp. 309mln), Pretax 407mln (exp. 432mln, prev. 398mln Y/Y), adj. Revenue 806mln (prev. 709mln Y/Y). (Newswires)

Saint Gobain (SGO FP) - Signs a renewable electricity supply agreement in Italy. (Newswires)

OTHER FRENCH COMPANIES

Sartorius Stedim Biotech (DIM FP) - To offer EUR 1.2bln of new shares. (Newswires)

BROKER MOVES

Verallia (VRLA FP) upgraded to Buy from Hold at Berenberg

PAN EUROPE

Auto Names - Ford Motor Co (F) Q4 2023 (USD): Adj. EPS 0.29 (exp. 0.14), Revenue 46bln (exp. 40.12bln). Shares +6.3% in pre-market trade

Akzo Nobel (AKZA NA) - Q4 (EUR): Adj. Op. 221mln (exp. 229mln), Revenue 2.53bln (exp. 2.52bln), Adj. EBITDA 307mln (exp. 327mln, prev. 196mln Y/Y). Guides initial FY24 Adj. EBITDA 1.5-1.65bln. (Newswires)

BMPS (BMPS IM) – Q4 (EUR): Net 1.12bln (exp. 340mln), Revenue 993mln (exp. 953mln), Resumes dividend first time in 13 years. CET1 Ratio 18.1% (prev. 15.6% Y/Y). (Newswires)

Banking Names - Moody's downgrades New York Community Bancorp (NYCB) to junk status of Ba2, said most ratings remain on review for a further downgrade; see US section for more detail.

EV Names - China's MOFCOM issued guidelines to support the new energy vehicle industry and will optimise credit support for the NEV sector, as well as improve management for exports. MOFCOM encourages NEV firms to set up R&D centres overseas and will optimise export procedures for NEVs and batteries, while it will guide banks to provide domestic and overseas financial services for the NEV supply chain. (Newswires)

EU Cos - Trump is targeting the EU for a "potential slew of punitive trade measures designed to address long-standing grievances should he retake office", according to Bloomberg. (Bloomberg)

Voestalpine (VOE AV) - 9M (EUR): Net 431.2mln (prev. 864.2mln Y/Y), EBITDA 1.28bln (prev. 1.88bln Y/Y), Revenue 12.4bln (prev. 13.6bln Y/Y). Affirms FY24 EBITDA 1.7bln. (Newswires)

BROKER MOVES

Phillips (PHIA NA) downgraded to Underperform from Outperform at BNP Paribas

SMI

Novartis (NOVN SW) - STAT News speculates that Novartis is going to walk away from its acquisition of MorphoSys (MOR GY). Six months from now, or sooner, Novartis will walk away happy to pay a small breakup fee to avoid owning a drug for myelofibrosis that regulators turned away. MorphoSys will not fare as well from the breakup. Its future, and that of the drug called pelabresib at the centre of the deal, will be thrown into limbo. STAT News article adds, "This is all speculation on my part, but it’s supported by separate conversations with two people familiar with pelabresib and the debate inside Novartis over the MorphoSys acquisition. They requested anonymity to discuss confidential matters." (STAT News)

Holcim (HOLN SW) – Acquires German based advanced green roofing systems from ZinCo, no terms disclosed. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Julius Baer (BAER SW) upgraded to Equal Weight from Underweight at Morgan Stanley

Straumann (STMN SW) downgraded to Reduce from Hold at HSBC

SCANDINAVIA

Clas Ohlson (CLASB SS) - January (SEK): Sales 737mln, +16%; Organic Sales +18%; Online Sales 96mln, +31%. (Newswires)

Equinor (EQNR NO) - Q4 (USD): Revenue 29.1bln (exp. 27.4bln). Adj. Net 1.88bln (exp. 2.47bln). Adj. Operating Profit 8.68bln (exp. 8.55bln); Plans to distribute USD 14bln in dividends and buybacks this year. Announces Ordinary cash dividend amount: USD 0.35. In this first tranche of the share buy-back programme for 2024, shares for up to USD 396 million will be purchased in the market, implying a total first tranche of up to USD 1.2 billion including shares to be redeemed from the Norwegian State. The tranche will end no later than 5 April 2024. Equinor announces a two-year share buy-back programme of total USD 10-12 billion for 2024-2025, with up to USD 6 billion for 2024, including shares to be redeemed from the Norwegian State. (Newswires)

Kindred (KIND SS) – Names Nils Anden as CEO, effective immediately. (Newswires)

Lundbeck (LUN DC) – FY23 (DKK): EPS 0.58 (prev. 0.87 Y/Y), Adj. EBITDA 793mln (prev. 1.12bln Y/Y), Revenue 4.98bln (prev. 4.68bln Y/Y). Guides initial Revenue +7-10%, Adj. EBITDA +10-16%. (Newswires)

Pandora (PNDORA DC) - Q4 (DKK): Revenue 10.8bln (exp. 10.8bln), EBIT 3.6bln (exp. 3.2bln), EBIT Margin 34%. Performance in China fell short of expectations, -11% LFL decline; US saw positive momentum LFL growth 10% (prev. 5%). Despite positive indicators via the ongoing brand relaunch in Shanghai the pace/extent of the recovery has been subdued. New DKK 4bln buyback programme; proposed total cash return of 5.5bln for 2024. Q1: Current trading healthy, LFL growth at high single-digit levels, aided by strong brand momentum. FY24 Guidance; 6-9% Organic Growth, EBIT Margin ~25%. (Newswires)

SBB (SBBB SS) - Provides update regarding bondholder allegations. (Newswires)

Skanska (SKABB SS) - Awarded a USD 113mln contract order. (Newswires)

Storebrand (STB NO) - Q4 (NOK): Adj. Net 853mln (exp. 1.14bln), Op. 481mln (exp. 767mln). Initiates NOK 400mln share buyback programme. (Newswires)

Telenor (TEL NO) - Q4 (NOK): EBITDA 8.45bln (prev. 8.04bln Y/Y), Revenue 20.9bln (exp. 20.6bln). Guides initial FY24 Nordic Service Revenue "low single-digit". (Newswires)

Vestas Wind Systems (VWS DC) – FY23 (EUR): Adj. EBIT 231mln (exp. 187mln), Revenue 15.7bln (exp. 15.2bln). Guides initial FY24 Revenue 16-18bln, Adj. EBIT margin 4-6% (exp. 5.1%). Does not propose dividend. (Newswires)

BROKER MOVES

Nordic Semiconductor (NOD NO) downgraded to Hold from Buy at Jefferies

Nordic Semiconductor (NOD NO) upgraded to Hold from Sell at Arctic Securities

Nibe Industrier (NIBEB SS) upgraded to Equal Weight from Underweight at Morgan Stanley

US

CLOSES: SPX +0.23% at 4,954, NDX -0.23% at 17,572, DJIA +0.37% at 38,521, RUT +0.85% at 1,953.

SECTORS: Materials +1.7%, Real Estate +1.49%, Health +1.09%, Industrials +0.89%, Consumer Discretionary +0.37%, Energy +0.32%, Utilities +0.31%, Financials +0.28%, Consumer Staples +0.23%, Communication Services -0.21%, Technology -0.48%.

Amgen Inc (AMGN) - Q4 2023 (USD): Adj. EPS 4.71 (exp. 4.60), Revenue 8.2bln (exp. 8.12bln). GUIDANCE: FY24 revenue 32.4-33.8bln (exp. 32.51bln). FY24 adj. EPS 18.90-20.30 (exp. 19.83). (Newswires)

Ford Motor Co (F) Q4 2023 (USD): Adj. EPS 0.29 (exp. 0.14), Revenue 46bln (exp. 40.12bln); declares Q1 regular dividend of 0.15/shr and supplemental dividend of 0.18/shr. KEY METRICS: Ford Blue revenue 26.2bln (exp. 24.52bln). Ford Model E revenue 1.6bln (exp. 1.91bln). Ford Pro revenue 15.4bln (exp. 13.86bln). Adj. EBIT 1.1bln (exp. 997.4mln). FY24 GUIDANCE: Adj. EBIT 10-12bln (exp. 9.24bln). Ford Pro EBIT at least 8-9bln (exp. 7.05bln). Ford Blue Ebit 7-7.5bln (exp. 6.34bln). (Newswires) Shares +6.3% in pre-market trade

Gilead Sciences Inc (GILD) - Q4 2023 (USD): Adj. EPS 1.72 (exp. 1.76), Revenue 7.12bln (exp. 7.10bln). Sees FY adj. EPS USD 6.85-7.25 (exp. 7.21). Sees FY total product sales 27.10bln-27.50bln (exp. 27.66bln). (Newswires)

Snap Inc (SNAP) - Q4 2023 (USD): Adj. EPS 0.08 (exp. 0.06), Revenue 1.36bln (exp. 1.38bln). KEY METRICS: Adj. EBITDA 159.1mln (exp. 111.8mln). DAUs 414mln (exp. 411.59mln). ARPU 3.29 (exp. 3.33). GUIDANCE: Q1 revenue 1.10-1.14bln (exp. 1.11bln). Q1 adj. EBITDA loss 55-95mln (exp. loss 32.7mln). Q1 DAUs 420mln (exp. 418.55mln). COMMENTARY: “While we are encouraged by the progress we are making with our ad platform and the improved results we are delivering for many of our advertising partners, we estimate that the onset of the conflict in the Middle East was a headwind to year-over-year growth of approximately 2 percentage points in Q4.” (Newswires)

New York Community Bancorp (NYCB) - Moody's downgrades New York Community Bancorp to junk status of Ba2, said most ratings remain on review for a further downgrade. The CRA said NYCB's elevated use of market funding may limit the bank's financial flexibility in the current environment, adding that pressure on profitability could challenge NYCB's internal capital generation plans. NYCB subsequently issued liquidity and deposit information; notes that it maintains over USD 10bln of reciprocal deposit capacity to offer expanded deposit insurance to its clients. Said total uninsured deposits excluding collateralised and internal deposits are USD 22.9bln. Took decisive actions to fortify the balance sheet and strengthen risk management processes during Q4. Total liquidity of USD 37.3bln which exceeds uninsured deposits with a coverage ratio of 163%. Said Moody's downgrade was not expected to have a material impact on contractual arrangements. Total deposits approximately USD 83bln. (Newswires)

07 Feb 2024 - 06:57- Research Sheet- Source: Newsquawk