Newsquawk Daily European Equity Opening News - 8th January 2025

ASIA

APAC stocks traded mixed following the weak handover from Wall St where tech underperformed as yields climbed after the hot ISM Services and strong JOLTS data. ASX 200 gained amid strength in mining stocks and the top-weighted financial sector, while participants digested mixed monthly inflation data in which the Weighted CPI reading topped forecasts, but the annual trimmed mean figure softened. Capital Economics suggested would provide greater confidence the RBA is on track to meet its inflation mandate if it the result is replicated in the quarterly figures due later this month. Nikkei 225 gradually nursed the majority of its opening losses and reclaimed the key 40,000 level. Hang Seng and Shanghai Comp were pressured with market participants underwhelmed by the latest press briefing in Beijing where the NDRC announced to expand the scope of home appliance trade-ins eligible for subsidies, while frictions lingered with China's MOFCOM voicing criticism over recent US restrictions on Chinese companies.

Chinese Stocks - PBoC official says will step up financial support for private and small firms in equipment upgrades, while the PBoC allocates CNY 100bln loans for select small technology firms. (Newswires)

Fast Retailing (9983 JT) - Is to raise salaries for new hires to JPY 330k per month and will increase wages for full-time HQ and sales staff by as much as 11% from March. (Newswires)

Samsung Electronics (005930 KS) - Q4 prelim. (KRW) oper. profit 6.5tln (exp. 7.7tln), rev. 75tln (exp. 76.8tln). Says: Memory chip profit fell despite largest Q4 revenue due to R&D cost increase and early ramp-up cost. Demand was weak for conventional memory chips for PCs and mobile. Logic chip business earnings fell due to lower utilization rates and higher R&D cost. Set business earnings fell due to fading effect of new mobile phones and rising competition. (Newswires) Shares +3.4% in Asia trade

EUROPEAN CLOSES

CLOSES: DAX: +0.66% at 20,350, FTSE 100: -0.05% at 8,245, CAC 40: +0.59% at 7,489, Euro Stoxx 50: +0.49% at 5,011, AEX: +0.27% at 894, IBEX 35: +0.03% at 11,812, FTSE MIB: +0.45% at 34,939, SMI: +1.15% at 11,825, PSI: -0.53% at 6,401

SECTORS: Energy 1.19%, IT 0.63%, Consumer Stpl 0.54%, Healthcare 0.49%, Consumer Disc 0.43%, Industrials 0.34%, Financials 0.21%, Materials -0.15%, Telecoms -0.22%, Utilities -0.44%

FTSE 100

Flutter Entertainment (FLTR LN) - Cuts US FY24 Revenue USD 5.8bln (prev. guided 6.1-6.3bln), Adj. EBITDA USD 505mln (prev. guided 670-750mln), citing “very unfavourable” sports results in November-December. Q4 US adj. EBITDA is estimated to be about USD 161mln and revenue USD 1.59bln. (Newswires)

GSK (GSK LN) - FDA said GSK and Pfizer's (PFE) RSV vaccines to carry warnings of neurological disorder risk. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Ashmore (ASHM LN) downgraded to Hold from Buy at Jefferies

DAX

OTHER GERMAN COMPANIES

TeamViewer (TMW GY) - FY (EUR): Revenue 671mln (prev. guided 662-668mln). Says Adj. EBITDA margin guidance for FY24 of at least 44% remains unchanged. Upside driven by stronger-than-expected billings particularly from large Enterprise and Frontline deals in the last weeks of Q4. (Newswires)

BROKER MOVES

Lufthansa (LHA GY) upgraded to Buy from Sell at Citi

CAC

Airbus (AIR FP) - Airbus received a USD 315mln US Army contract modification for UH-72 Lakota logistics support and engineering services.

OTHER FRENCH COMPANIES

Dassault Aviation (AM FP) - In 2024: 21 Rafale were delivered (prev. guided 20), 31 Falconwere delivered (prev. guided 35), 30 export Rafale were ordered (prev. 60 Y/Y), 26 Falconwere ordered (prev. 23 Y/Y). (Newswires)

Vallourec (VK FP) - Achieves net debt zero objective one year ahead of plan; has reduced debt by more than EUR 240mln in Q4'24. Affirms guidance. (Newswires)

BROKER MOVES

Air France (AF FP) downgraded to Neutral from Buy at Citi

Danone (BN FP) downgraded to Underperform from Hold at Jefferies

PAN EUROPE

BROKER MOVES

SMI

Helvetia (HELN SW) - Successfully places two senior bond tranches totalling CHF 250mln; proceeds used for general corporate purposes. (Newswires)

Roche (ROG SW) - Purchases shares in tender offer for Poseida Therapeutics (PSTX) at USD 9/shr plus CVR; Poseida will cease to be traded on completion. (Newswires)

OTHER SWISS COMPANIES

SGS (SGSN SW) - Announces acquisition of Aster Global Environmental Solutions. (Newswires)

BROKER MOVES

Nestle (NESN SW) downgraded to Underperform from Hold at Jefferies; PT CHF 67 (prev. 82). Analysts fear potential for cost-cutting and persistent key input inflation.

SCANDINAVIA

Clas Ohlson (CLASB SS) - Dec. net sales SEK 1.59bln (prev. 1.42bln), +12% Y/Y. (Newswires)

Danish Stocks / Novo Nordisk (NOVOB DC) - When asked for assurance that he will not use military or economic coercion as he tries to get control over Greenland, Trump said he can't assure of either of those two. Would consider tariffs on Denmark over Greenland. (Newswires)

Skanska (SKAB SS) - Divests 73 BoKlok homes UK for SEK 300mln. (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.11% at 5,909, NDX -1.79% at 21,173, DJIA -0.42% at 42,528, RUT -0.74% at 2,250

SECTORS: Technology -2.39%, Consumer Discretionary -2.21%, Communication Services -1.05%, Real Estate -0.72%, Utilities -0.29%, Consumer Staples -0.27%, Financials -0.15%, Industrials -0.1%, Materials -0.02%, Health +0.58%, Energy +1.06%.

Goodyear (GT) - Goodyear has agreed to sell its Dunlop brand to Sumitomo Rubber Industries for approximately USD 701mln, advancing its Goodyear Forward transformation plan. The transaction includes a Transition Offtake Agreement for Dunlop tires, with Goodyear continuing production until 2025. (Newswires)

Lithium - Lithium prices remain low due to a supply glut and slow electric vehicle demand growth, Bloomberg reports. While some mines may restart if prices rise, analysts predict a smaller surplus in 2025, with no significant recovery expected this year. (Bloomberg)

Nvidia (NVDA) - CFO says company will have 'a little bit more' Blackwell chip revenue that previously forecasted. Plans for a broader PC push. (Newswires)

OpenAI - Bloomberg reports that OpenAI CEO Sam Altman has been accused by his sister, Ann Altman, of sexually abusing her for nearly a decade, starting when she was three years old. The lawsuit, filed in federal court, claims the abuse continued into her teenage years. Sam Altman has denied the allegations.

US Tariffs - US President-elect Trump says something will have to be done with Canada and Mexico trade; very serious tariffs on Mexico and Canada. (Newswires)

08 Jan 2025 - 06:53- Research Sheet- Source: Newsquawk