Newsquawk Daily European Equity Opening News - 9th October 2024

ASIA

APAC stocks traded mixed and initially took impetus from the positive performance on Wall St where the major indices were led higher amid a tech rally, although Chinese stocks clouded over sentiment following the recent stimulus-related disappointment. ASX 200 eked marginal gains as strength in tech and telecoms offset the losses in the commodity-related industries. Nikkei 225 was underpinned at the open and climbed back above the 39,000 level but with gains capped by a lack of drivers. Hang Seng and Shanghai Comp were mixed as the Hong Kong benchmark fluctuated between gains and losses, with a late boost derived from reports China's Finance Ministry is to hold a press briefing on fiscal policy and economic development on October 12th. The mainland was pressured after the recent stimulus-related disappointment and amid China's ongoing trade frictions with the EU and US.

Alimentation Couche-Tard (ATD TO) - Co. suggested a higher price of USD 47bln for Seven & I Holdings (3382 JT) and sent the Co. a new potential acquisition price of USD 18.19/shr, according to Bloomberg. (Bloomberg)

Chinese stocks - China's Finance Ministry is to hold a press briefing on fiscal policy and economic development on October 12th at 10:00 local time (03:00BST/22:00EDT), while it will introduce details of intensifying fiscal policy adjustment. Hang Seng Index pared its earlier losses and traded with gains of about 1% several minutes after the announcement.

TSMC (2330 TW) - Q3 (TWD): Revenue 759.69bln (exp. 750.36bln). (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.40% at 4,912, DAX -0.20% at 18,912, CAC 40 -0.72% at 7,476, FTSE 100 -1.36% at 8,184, SMI +0.04% at 11,887, FTSE MIB -0.24% at 33,503, IBEX 35 +0.15% at 11,606, PSI -0.37% at 6,654, AEX -0.28% at 905.

SECTORS: IT 0.67%, Utilities 0.61%, Telecoms 0.40%, Industrials -0.17%, Healthcare -0.37%, Consumer Stpl -0.45%, Financials -0.65%, Consumer Disc -1.40%, Materials -1.87%, Energy -2.46%

FTSE 100

Anglo American (AAL LN) - Elliott says its long term thesis on the Co. is “very interesting and very much intact”, adding that they have good and constructive dialogue with management. (FT)

BP (BP/ LN) - Arbitration has ruled in favour of BP as the sole buyer of Kosmos Energy's Senegal LNG project. (Newswires)

Rio Tinto (RIO LN) - Co. is to acquire Arcadium Lithium (ALTM) for USD 5.85/shr, an all cash transaction; valuing the Co. at around USD 6.7bln. Transaction unanimously approved by boards of both Cos. (Newswires)

UK Cos - Investment Association will, on Wednesday, publish revised guidelines emphasising the importance of “flexibility” in the approach taken to executive pay, via Sky News citing sources. (Sky News)

UK Economy - UK Chancellor Reeves is pushing ahead with plans to borrow billions of pounds extra for infrastructure investment despite concerns about an increasing cost of UK government debt, with Reeves likely to free up GBP 10bln-20bln worth of borrowing room for capital investment by excluding the losses incurred by the state from the BoE's previous asset purchase programs when calculating debt, according to The Guardian. (The Guardian)

OTHER UK COMPANIES

Just Eat Takeaway.com (JET LN) - Cancelled 5% of its total issued shares. (Newswires)

BROKER MOVES

DAX

Continental (CON GY) - Expect Q3 global production of passenger cars and light trucks to be down more than 3% Q/Q. Europe's Q3 passenger car and light truck production is expected to fall more than 18% Q/Q, North America's by almost 10%, and China's to grow at about 4%. Expect global passenger and light truck production this year to fall by 1-3% from last year, assuming a significant increase in Q4 production. (Newswires)

Thyssenkrupp (TKA GY) - German federal and state government to provide millions of Euros in additional funding for Co's move to Hydrogen-powered steel production, according to Handelsblatt. (Handelsblatt)

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Order intake grows to 5.1 GW in the first nine months of 2024. Q3'24 order intake at 1.7 GW. Order intake driven by Germany, Baltic States, and Canada. Secured 5,083 MW of orders in the projects segment (excluding service business) in the first nine months, +4% Y/Y. (Newswires)

BROKER MOVES

CAC

French stocks - French Central Bank sees underlying Q3 growth of 0.2% (prev. 0.1-0.2%) and expects Olympics to add 0.25ppt points to that. (Newswires)

Kering (KER FP) - Appoints Stefano Cantino appointed CEO of Gucci, succeeding Jean-Francois Palus, effective January 1st, 2025. (Newswires)

Renault (RNO FP) - Ampere and E2-Cad announces strengthened technological collaboration in embedded electronics. As part of the agreement, Ampere is acquiring a 40% stake in E2-Cad. (Newswires)

Sanofi (SAN FP) - New Beyfortus data featured at IDWeek reinforce real-world effectiveness against RSV disease and hospitalization in infants. Beyfortus doses continue to be shipped to meet global commitments ahead of the 2024-2025 RSV season. A second manufacturing filling line has been approved by regulatory authorities in the US, Canada, and Europe and represents the majority of our supply for the 2024-2025 season. A third filling line, expected to provide additional doses for the 2024-2025 season, is approved by the European Medicines Agency and under review by the US Food and Drug Administration. (Sanofi)

Thales (HO FP) - Co. announces distribution of an interim dividend and reduction of its share capital by cancellation of Treasury shares. To distribute an interim ordinary cash dividend of EUR 0.85/shr for the current 2024 financial year. To reduce the share capital of Thales S.A. by cancelling 4,268,227 Treasury shares. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Alcohol names - EU to robustly challenge at WTO level the announced imposition of provisional anti-dumping measures by China on imports of Brandy from the EU. To assess all possibilities to offer appropriate support to EU producers from situations of market disturbance, or threat thereof. Commission will always stand firmly and fearlessly on the side of EU producers, industry, open and fair trade, and a global level playing field. (Newswires)

Europastry - Co. has postponed its IPO plans for the second time. Co. was seeking a EUR 1.5bln valuation, but bankers said book-building did not progress well with the price seen as too high by some. (FT)

Italian stocks - Italy's economy minister says Italy's budget plan fully complies with requirements set under new EU stability pact rules. Istat revisions make it harder to reach the Government's 1% growth target in 2024. Istat revisions do not raise concern as future upward GDP revisions for late 2023 and early 2024 are to be considered likely. Italy sees the 2024 primary balance at 0.1%. (Newswires)

Pirelli (PIRC IM) - Italy's Brembo (BRE IM) starts the sale process for its 5.6% Pirelli stake. (Newswires)

Stellantis (STLAM IM/ STLAP FP) - Spain grants a USD 146mln subsidy to Stellantis for a potential EV battery plant. (Newswires)

TomTom (TOM2 NA) - Provides enhanced navigation to Iveco commercial vehicles. (Newswires)

BROKER MOVES

ASML (ASML NA) reiterated with Overweight at JPMorgan; raises PT to USD 1,207 (prev. USD 1,202); JPMorgan says the bear thesis on the Co. is overstated and the litho intensity in memory should rise.

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Zealand Pharma (ZEAL DC) - Provides US regulatory update on dasiglucagon in congenital hyperinsulinism. Zealand remains committed to working with the FDA and the third-party manufacturer to bring dasiglucagon to patients in the U.S. as soon as possible. FDA issues Complete Response Letter (CRL) for dasiglucagon in CHI for up to three weeks of dosing due to the timing of a third-party manufacturing facility reinspection. (Zealand Pharma) US FDA declined to approve the Cos drug.

BROKER MOVES

US

CLOSES: SPX +0.97% at 5,751, NDX +1.55% at 20,108, DJIA +0.30% at 42,080, RUT +0.09% at 2,195.

SECTORS: Technology +2.12%, Communication Services +1.07%, Consumer Discretionary +1.04%, Consumer Staples +0.67%, Financials +0.57%, Health +0.54%, Real Estate +0.28%, Industrials +0.22%, Utilities +0.06%, Materials -0.37%, Energy -2.63%

Boeing (BA) - Boeing is exploring options to raise billions, including selling stock and hybrid securities, to protect its credit rating from falling into junk status, Reuters reports. Investment banks, including Goldman Sachs and JPMorgan, have proposed raising around USD 10bln. Boeing's finances are strained due to production issues and a worker strike, and the company currently has around USD 60bln in debt. Elsewhere, S&P Global Ratings has placed Boeing's ratings on CreditWatch negative due to a strike by its machinist union, now in its fourth week. S&P says the company may face a USD 10bln cash outflow in 2024, raising the need for additional funding to cover operational costs and debt maturities, adding that a downgrade is likely if the strike continues and capital is insufficient. Meanwhile, Boeing says further negotiations with the IAM union do not make sense at this point, and it has withdrawn its offer after it claims that the union did not seriously consider the proposal.

General Motors (GM) - CEO says it is on track to achieve positive variable profitability for EVs in Q4 and 2025 profits will be in a similar range to 2024. (Newswires)

Google (GOOGL) - US Justice Department outlines potential remedies in Google (GOOG) antitrust case with US said to be weighing a Google breakup as remedy in monopoly case, according to Bloomberg. Says it will respond to the DoJ's ultimate proposals as the Co. makes its case in court next year, while it is concerned the DoJ is already signalling requests that go far beyond the specific legal issues in this case. (Bloomberg / Newswires)

Pfizer (PFE) - Pfizer's CEO will meet activist investor Starboard Value following its USD 1bln stake in the company, FT reports. Starboard seeks a strategic shift, and has criticised Pfizer's post-pandemic management and acquisitions. Two former Pfizer executives support Starboard’s campaign. (FT)

09 Oct 2024 - 06:57- Fixed IncomeResearch Sheet- Source: Newsquawk