Newsquawk Daily European Equity Opening News - 7th October 2024

ASIA

APAC stocks began the week on the front foot following last Friday's gains on Wall St owing to the blockbuster jobs report, while Japanese stocks led the advances on the back of recent currency weakness. ASX 200 shrugged off early indecision as strength in tech, financials and miners picked up the slack from weakness in defensives. Nikkei 225 gapped above the 39,000 level with the rally facilitated by recent JPY weakness, while a Reuters analysis report suggested that a preference by Japan's new leadership for loose monetary policy raises the hurdle for rate hikes. Hang Seng climbed at the open ahead of tomorrow's resumption of trade in the mainland and the NDRC's news conference to discuss implementing a package of policies to promote economic growth, although the gains were initially capped by weakness in some property stocks and China-EU tariff frictions.

Hon Hai (2317 TT) / Foxconn (2354 TT) - Co. Q3 (TWD) rev. rose 20.2% Y/Y to TWD 1.85tln (exp. 1.79tln) and September rev. rose 10.9% Y/Y to 733bln, Co. noted that Q4 should be in line with current market expectations and entering the peak season in H2, it anticipates its operation to gradually gain momentum. (Newswires)

Seven & I Holdings (3382 JT) - Co. looks to bolster defences with non-core asset sales, according to FT. (FT)

EUROPEAN CLOSES

CLOSES: DAX +0.55% at 19,120, FTSE 100 -0.02% at 8,281, CAC 40 +0.85% at 7,541, Euro Stoxx 50 +0.68% at 4,955, AEX +0.16% at 912, IBEX 35 +0.35% at 11,659, FTSE MIB +1.28% at 33,594, SMI -0.10% at 12,001.

SECTORS: Energy 1.54%, Financials 1.15%, Consumer Disc 0.57%, Materials 0.51%, Industrials 0.51%, Telecoms 0.30%, IT 0.28%, Consumer Stpl -0.04%, Healthcare -0.44%, Utilities -0.69%

FTSE 100

BP (BP/ LN) - Co. is monitoring Tropical Storm Milton to protect its people and operations in the Deepwater Gulf of Mexico but does not expect major impacts to its offshore facilities in the Gulf of Mexico. (Newswires)

Rio Tinto (RIO LN) - Co. confirmed it approached Arcadium Lithium but will not further comment until an update is appropriate, while a previous report noted that Rio Tinto is in talks with Arcadium Lithium on a deal that could be valued between USD 4bln-6bln or higher but there is no certainty a transaction will be agreed, according to Reuters citing sources. (Reuters)

UK Utilities Sector - UK ministers were warned that power market reforms pose a danger to the industry and investment with trade groups warning proposals for regional pricing could risk deindustrialisation and higher costs, according to FT. (FT)

UK Steel names – The UK Steel Industry has called for the Government to consider further protectionist trade measures; it expects a heightened amount of imported steel amid a global surplus given the recent Chinese recession, via FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

BMW (BMW GY) - Co. is to invest BRL 1.1bln in Brazil from 2025-2028, according to an executive. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Evotec (EVT GY) downgraded to Hold from Buy at Jefferies

CAC

Danone (BN FP) – Co. is planning to expand its operations in India in an attempt to catch up to rivals; the CEO said the Co. is “nowhere near where it should be”, according to the FT. (FT)

Sanofi (SAN FP) - Bidders for Sanofi's consumer healthcare unit are revising offers to mitigate potential liabilities linked to its Gold Bond brand, known for talc products, Bloomberg reports. The adjustments may involve excluding parts of Gold Bond or shifting future legal risks back to Sanofi. The unit is being valued at around EUR 15bln. (Bloomberg)

TotalEnergies (TTE FP) - Co. is considering a foray into copper trading, according to FT citing a top executive. He noted that the energy transition was the reason to consider expanding into copper trading, but it had not decided to do so yet. (FT)

OTHER FRENCH COMPANIES

Unibail-Rodamco-Westfield (URW FP) – Mr Xavier Niel has decided to resign as a member of the Supervisory Board, effective Oct 4. (Newswires)

BROKER MOVES

PAN EUROPE

EU – Spain is to propose mini-coalitions to break the EU capital markets stalemate, according to the FT. (FT)

Eni (ENI IM) - Co. is in talks with Japan on supplying LNG to the country. "Eni plans to build its LNG portfolio to 18 million metric tonnes per year by 2027 and would be ready to commit part of it to Japan if the opportunity is there". (Reuters)

Italian Stocks - Italy seeks contributions to the budget from large e-commerce companies and groups that do not have registered offices in Italy, via Treasury officials. Italy is also looking to review the fiscal regime of stock option schemes, and banks' deferred tax assets to provide additional cash for state finances. (Newswires)

Italgas (IG IM) – Signed the sale and purchase agreement for the acquisition of 2i Rete Gas; deal valued at EUR 2.06bln. (Newswires)

Poste Italiane (PST IM) – Italy hires banks as global coordination and book runners in Poste Italiane stake sale. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Stellantis is implementing cost-cutting measures known as "doghouse" restrictions to conserve cash amidst declining profits, WSJ reports. Elsewhere, Stellantis filed a lawsuit against the United Auto Workers union over strike threats, stemming from disputes about factory investments, including reopening an Illinois plant. Reuters reports that UAW workers at Stellantis' Los Angeles parts distribution centre voted to authorise a strike if grievances over US investment commitments are not settled; the union alleges Stellantis failed to meet promises made during 2023 contract negotiations. (WSJ)

Telecom Italia (TIT IM) - Co. said Sparkle purchase officer examined and the board grants an exclusivity period for discussions by November 30th of a binding offer for Sparkle. (Newswires)

UniCredit (UCG IM) / Nexi (NEXI IM) – Co’s have agreed to extend its existing payments partnership in Italy, Austria and Germany until 2036, according to Corriere della Sera. (Corriere della Sera)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Executives told the Brazilian President the Co. will invest BRL 864mln in the country, according to a government statement. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.90% at 5,751, NDX +1.22% at 20,035, DJIA +0.81% at 42,353, RUT +1.50% at 2,213.

SECTORS: Financials +1.64%, Consumer Discretionary +1.62%, Communication Services +1.2%, Energy +1.07%, Technology +0.99%, Industrials +0.63%, Materials +0.41%, Consumer Staples +0.22%, Health +0.08%, Utilities -0.17%, Real Estate -0.65%.

GS S&P Target - Goldman Sachs raises its S&P 500 price target to 6,000 by end-2024, and sees the index rising to 6,300 in 12 months

Air Products (APD) - Activist investor Mantle Ridge has built a more than USD 1bln stake in Air Products and plans to push for improvements, according to WSJ citing sources. (WSJ)

Pfizer (PFE) - Activist Starboard Value takes a USD 1bln stake in Pfizer, according to WSJ. (WSJ)

Regeneron Pharmaceuticals (REGN) - Regeneron’s co-founder warned that popular weight-loss drugs like GLP-1s could cause long-term harm by accelerating muscle loss, leading to health issues, FT reports. Regeneron is testing a muscle-preserving drug, trevogrumab, as a potential solution, with trials ongoing. The report adds that others, like Eli Lilly (LLY), are also exploring treatments to counteract the muscle loss associated with these drugs. (FT)

07 Oct 2024 - 06:53- Research Sheet- Source: Newsquawk