Newsquawk Daily European Equity Opening News - 8th January 2024

8th January 2024

ASIA

APAC stocks gradually deteriorated following a muted start and last Friday’s post-data whipsawing stateside with Japanese participants absent for Respect for the Aged Day and markets awaiting this week's key inflation data releases. ASX 200 declined as initial gains in energy, resources and financials were overshadowed by losses in miners and tech. KOSPI was initially underpinned by strength in Samsung Electronics after its unit showcased a line-up of various foldable displays, although the gains later faded amid geopolitical tensions after North Korea conducted a third day of artillery firing on Sunday. Hang Seng and Shanghai Comp were pressured amid shadow banking woes and geopolitical frictions, with the losses in Hong Kong exacerbated by tech selling and as China Evergrande New Energy Vehicle shares slumped following the arrest of its vice chairman.

China Evergrande New Energy Vehicle (708 HK) - Applies for a resumption of trading in shares effective 13:00HKT (05:00GMT/00:00EST) and said it learned its executive director Liu who is the vice chairman was detained on suspicion of illegal crimes. (Newswires)

LG Electronics (066570 KS) - Prelim. Q4 (KRW) oper. rose 351% Y/Y to 312.5bln (exp. 661.5bln), rev. 23.2tln (exp. 22.9tln). (Newswires)

Samsung Electronics (005930 KS) - Is expected to report its smallest profit drop in 6 quarters owing to a rebound in semiconductor prices. (Newswires)

Gaming Names – China is taking measures to ease fears of another regulatory crackdown on the video game industry, via FT citing sources; measures include firing a key official and discussions on new measures with limited notice. (FT)

EUROPEAN CLOSES

CLOSES: DAX -0.14% at 16,594.21, FTSE 100: -0.43% at 7,689.61, CAC 40 -0.40% at 7,420.69, Euro Stoxx 50 -0.24% at 4,463.45, IBEX 35 -0.18% at 10,164.50, FTSE MIB +0.12% at 30,440.95, SMI -0.34% at 11,186.50.

SECTORS: Utilities 0.33%, Financials 0.11%, Telecoms 0.10%, Energy -0.07%, Healthcare -0.15%, IT -0.15%, Materials -0.26%, Consumer Stpl -0.27%, Consumer Disc -0.51%, Industrials -0.61%

FTSE 100

AstraZeneca (AZN LN) - Omniose announces scientific collaboration with AstraZeneca to research vaccines for serious bacterial diseases. (AstraZeneca)

BAE Systems (BA/ LN) – China has sanctioned a subsidiary of the firm over its part in a Taiwanese defence deal. BAE Systems Land and Armaments will be forbidden from conducting business with Chinese firms and individuals, according to Bloomberg. (Bloomberg)

BT (BT/A LN) - In January, Co. will launch the first roadside EV charging station which will be connected to a telecom cable cabinet. Co. is looking into upgrading 60k cabinets if the pilot succeeds. (FT)

Entain (ENT LN) - Co. says it has exited over 140 unregulated gambling territories, via FT citing an internal document. (FT)

OTHER UK COMPANIES

BROKER MOVES

Ashtead (AHT LN) downgraded to Hold from Buy at HSBC

Berkeley (BKG LN) downgraded to Equal Weight from Overweight at Barclays

Barratt Developments (BDEV LN) downgraded to Equal Weight from Overweight at Barclays

Bellway (BWY LN) upgraded to Overweight from Equal Weight at Barclays

Crest Nicholson (CRST LN) upgraded to Overweight from Equal Weight at Barclays

Legal & General (LGEN LN) upgraded to Buy from Hold at Berenberg

Prudential (PRU LN) downgraded to Neutral from Buy at Daiwa Securities

Spectris (SXS LN) downgraded to Hold from Buy at HSBC

DAX

Bayer (BAYN GY) - Co. is reportedly facing renewed calls for a breakup, with investing Harris Associates LP (~4% stake) suggesting the three divisions – crop science, pharma, and consumer health – are all “good businesses”, but probably do not belong under one roof, according to Bloomberg; AskBio Announces Initiation of Phase 2 GenePHIT Trial in Congestive Heart Failure (Bloomberg/Bayer)

OTHER GERMAN COMPANIES

Evotec (EVT GY) - Co. notes of progress in strategic neuroscience partnership with Bristol Myers Squibb (BMY), receives a payment of USD 25mln for further research. Phase II study for BMS-986419 is scheduled for 2024. (Newswires)

Qiagen (QIA GY) - Announced plans to return USD 300mln to shareholders through synthetic share repurchase that combines a direct capital repayment with a reverse stock split. (Newswires)

BROKER MOVES

Carl Zeiss Meditec (AFX GY) upgraded to Buy from Neutral at UBS

Fresenius Medical Care (FME GY) downgraded to Underweight from Equal Weight at Morgan Stanley

CAC

Airbus (AIR FP) - Alaska Air (ALK) temporarily grounded all of its Boeing (BA) 737-9 aircraft following the mid-air window blowout on Friday, while the FAA ordered a temporary grounding and inspection of certain Boeing 737 MAX 9 aircraft operated by US airlines which affects 171 aircraft worldwide and said the planes will remain grounded until it is satisfied that they are safe. (Newswires)

OTHER FRENCH COMPANIES

Casino (CO FP) - The European Commission has, under merger control, authorised a consortium to take control of the Co. as part of financial restructuring. (Newswires)

Orpea (ORP FP) – French prosecutors are reportedly investigating allegations of mistreatment of elderly people at Orpea’s nursing homes, according to Le Parisien citing sources. This probe follows the April 2022 government report on the allegations alongside 53 complaints. (Bloomberg)

BROKER MOVES

Gecina (GFC FP) downgraded to Underweight from Equal Weight at Morgan Stanley

PAN EUROPE

DSM-Firmenich (DSFIR NA) - Remaining holders of DSM ordinary shares (approx. 3.9%) can sell shares to Co. through a voluntary tender offer launched today. (Newswires)

European Firms – The Rhine River, Germany has reopened to shipping after being halted last week. The river was stopped around Koblenz due to heavy rain resulting in the water level being too high. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Stellantis will not advertise during the NFL Super Bowl this year due to tough US automotive market conditions, Reuters reports. The news follows General Motors' (GM) earlier decision to also abstain from Super Bowl ads as part of cost-cutting measures. Stellantis recently also announced it would not be participating in forthcoming auto shows in Chicago and Washington. (Newswires)

TomTom (TOM2 NA) - Co. and Mitsubishi Electric (6503 JT) collaborate on advancing automated driving. (Newswires)

UCB (UCB BB) - European Commission approves Rystiggo for treatment of adults with generalised myasthenia gravis. (Newswires)

BROKER MOVES

Amplifon (AMP IM) upgraded to Overweight from Equal Weight at Morgan Stanley

Elia (ELI BB) upgraded to Buy from Neutral at Goldman Sachs

EDP Renovaveis (EDPR PL) downgraded to Neutral from Outperform at BNP Paribas

Endesa (ELE SM) downgraded to Underperform from Neutral at BNP Paribas

Galp Energia (GALP PL) downgraded to Underweight from Equal Weight at Morgan Stanley

Inmobiliaria Colonial (COL SM) downgraded to Underweight from Equal Weight at Morgan Stanley

Merlin Properties (MRL SM) downgraded to Equal Weight from Overweight at Morgan Stanley

Natural Energy Corp (NTGY SM) downgraded to Underperform from Neutral at BNP Paribas

SMI

Novartis (NOVN SW) - Shanghai Argo announces multi-program RNAI licenses and strategic collaborations with Co. Scemblix ASC4First phase 3 trials met both primary endpoints. Shows superior MMR rates for patients with chronic myeloid leukaemia. (Newswires)

UBS (UBSG SW) – Co. is aiming to grow its Chinese wealth and asset management business, according to Bloomberg citing UBS’ China head, which comes despite the slowing economy. (Bloomberg)

OTHER SWISS COMPANIES

BROKER MOVES

Geberit (GEBN SW) upgraded to Hold from Reduce at HSBC

Sonova (SOON SW) upgraded to Overweight from Equal Weight at Morgan Stanley

SCANDINAVIA

Getinge (GETIB SS) - Getinge/Atrirum Medical Corp. issues medical device correction for nurse-assist syringes provided with express drains. (Newswires)

Pandora (PANDORA DC) - Prelim Q4 (DKK): EBIT 3.7bln (exp. 3.7bln), Revenue 10.8bln (exp. 10.6bln). Prelim Organic Revenue +12% (exp. 9.6%). (Newswires)

BROKER MOVES

Demant (DEMANT DC) downgraded to Underweight from Equal Weight at Morgan Stanley

Equinor (EQNR NO) downgraded to Underweight from Equal Weight at Morgan Stanley

Fortum (FORTUM FH) downgraded to Neutral from Buy at Goldman Sachs

Rockwool (ROCKB DC) downgraded to Hold from Buy at HSBC

Sweco (SWECA SS) downgraded to Hold from Buy at SEB

Wartsila (WRT1V FH) downgraded to Sell from Reduce at OP Corporate Bank

US

CLOSES: SPX +0.18% at 4,697, NDX +0.15% at 16,305, DJI +0.07% at 37,466, RUT -0.34% at 1,951.

SECTORS: Financials +0.53%, Utilities +0.39%, Communication Services +0.34%, Consumer Discretionary +0.29%, Materials +0.21%, Industrials +0.21%, Technology +0.15%, Energy +0.07%, Health -0.02%, Real Estate -0.19%, Consumer Staples -0.24%.

Apple (AAPL) - The US moves closer to filing an antitrust case against Apple's (AAPL) strategies to protect the dominance of the iPhone as soon as the first half of 2024, according to NYT. (NYT)

Alaska Air (ALK) - Says 170 Sunday flights affecting around 25,000 guests and it expects additional significant cancellations through the first half of the week. As a reminder, Alaska Air (ALK) temporarily grounded all of its Boeing (BA) 737-9 aircraft following the mid-air window blowout on Friday, while the FAA ordered a temporary grounding and inspection of certain Boeing 737 MAX 9 aircraft operated by US airlines which affects 171 aircraft worldwide and said the planes will remain grounded until it is satisfied that they are safe. Furthermore, it was also reported that Spirit AeroSystems (SPR) had manufactured and installed the plug door involved in the incident.

Boeing (BA) - Says MAX 9 door plug accident is and must be the focus of its team right now and it will hold a company-wide webcast on safety on Tuesday to address the response to the Alaska Airlines safety event. (Newswires)

Crypto - Firms looking to launch spot-Bitcoin ETFs last week cleared a major hurdle on getting sign-off from US regulators in the coming days, Bloomberg reports. SEC told several exchanges and issuers seeking to list ETFs that they should submit a final version of a key documents as soon on Friday, and a flood of these documents were posted Friday evening. BBG adds that the SEC is expected to soon vote on the exchange-rule filings this week.

Coinbase (COIN) - Coinbase told CNBC that it is pursuing an acquisition of an undisclosed holding company possessing a Mifid II license. This license will enable Coinbase to provide regulated derivatives in the EU, expanding its offerings from spot trading in cryptocurrencies.

08 Jan 2024 - 06:55- CryptocurrencyResearch Sheet- Source: Newsquawk