Newsquawk Daily European Equity Opening News - 9th September 2024

ASIA

APAC stocks suffered firm losses as the region took its opportunity to react to last Friday's disappointing US jobs data, while participants also braced for this week's key events including the latest US CPI report. ASX 200 declined with the index pressured by underperformance in gold stocks and the top-weighted financials sector. Nikkei 225 gapped beneath the 36,000 level with sentiment not helped by disappointing Japanese Q2 GDP revisions. Hang Seng and Shanghai Comp conformed to the negative mood with the former dragged lower by notable weakness seen in the energy-related stocks after recent oil price pressures, while the mainland also reflected on softer-than-expected CPI data and sharper PPI deflation.

EUROPEAN CLOSES

CLOSES: DAX: -1.59% at 18,280, FTSE 100: -0.73% at 8,181, CAC 40: -1.07% at 7,352, Euro Stoxx 50: -1.57% at 4,740, AEX: -1.41% at 879, IBEX 35: -0.89% at 11,173, FTSE MIB: -1.17% at 33,291, SMI: -0.98% at 11,914, PSI: -0.33% at 6,719.

SECTORS: Utilities 0.15%, Healthcare 0.03%, Consumer Stpl -0.43%, Telecoms -0.75%, Materials -1.26%, Consumer Disc -1.37%, Financials -1.39%, Industrials -1.46%, Energy -1.86%, IT -2.86%

FTSE 100

Anglo American (AAL LN) - Co. is preparing to receive the first round of bids this week for its coal assets. The assets were widely expected to be valued between USD 4-5bln, but the fire in June at the largest mine Grosvenor has complicated the deal. Bankers cited by the FT suggested some offers could entail payment structures that depend on the state of the mine. Analysts suggest Grosvenor mine is the most valuable mine in the deal and accounts for around 25% of the total package value. (FT)

AstraZeneca (AZN LN) - Novel computational pathology-based TROP2 biomarker for datopotamab deruxtecan was predictive of clinical outcomes in patients with non-small cell lung cancer in TROPION-Lung01 Phase III trial. (AstraZeneca)

OTHER UK COMPANIES

BROKER MOVES

Rightmove (RMV LN) upgraded to Hold from Underperform at Jefferies

DAX

Munich Re (MUV2 GY) – Co. said the global reinsurance market is to grow inflation-adj. by 2-3% over the next 3 years. Damage inflation is above overall inflation in many reinsurance segments. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

BNP Paribas (BNP FP) – Confirmed its 2024 trajectory in the new phase of the economic cycle. Will further step up the implementation of operation efficiency measures from H2’24. Will deliver further optimisation of RWA in H2’24. Trajectory out to end-2025: Capital distribution pay-out ratio is at 60%. Basel 4 impact of the finalisation of 1 Jan 2025, -50bps. (Newswires)

Renault (RNO FP) - Renault CEO Luca de Meo warned that Europe's auto industry may face EUR 15bln in fines due to slow electric vehicle adoption, Reuters reports. Tougher CO2 targets in 2025 could force automakers to either pay hefty penalties or reduce production by 2.5mln vehicles. (Reuters)

OTHER FRENCH COMPANIES

Atos (ATO FP) – Atos shareholders and creditors gathered in classes of affected parties to vote on the draft accelerated safeguard plan. (Newswires)

BROKER MOVES

Kering (KER FP) downgraded to Underweight at Barclays

PAN EUROPE

Aedifica (AED BB) - Invests GBP 61.5mln in four futureproofed UK care homes. (Newswires)

Auto Stocks – EU Industry Commissioner Breton will today tell the auto industry today that Europe’s carmakers are lagging in phasing out internal combustion engines (ICE) by 2035 and that China is far ahead in making more affordable EVs. (FT)

China-exposed stocks - Chinese PPI YY (Aug) -1.8% vs. Exp. -1.4% (Prev. -0.8%); CPI YY (Aug) 0.6% vs. Exp. 0.7% (Prev. 0.5%); CPI MM (Aug) 0.4% vs. Exp. 0.5% (Prev. 0.5%); Chinese data saw softer-than-expected CPI metrics and sharper PPI deflation.

European Luxury Sector - European luxury firms have lost USD 240bln in market value in recent months, with analysts predicting further declines amid China's economic downturn, Bloomberg reports. High-end brands are suffering from reduced demand, especially as wealthy Chinese consumers cut back on luxury spending. (Bloomberg)

Edison (EDNR IM) – CEO said Co. will use cash coming from gas storage deals for acquisitions; potentially in Greece/Spain. (Newswires)

Nuclear companies – Italy’s Energy Minister aims to draft a law on nuclear energy by year-end. In other news, Bloomberg reports that Italy is in early talks for the creation of a nuclear power company; the report adds that Italy is holding prelim talks with Enel (ENEL IM) and other cos. (Newswires/Bloomberg)

Stellantis (STLAM IM/ STLAP FP) – Co. to recall about 1.2mln vehicles, due to a disabled electronic stability control system. (Newswires)

BROKER MOVES

Azelis (AZE BB) upgraded to Overweight from Equalweight at Morgan Stanley

Viscofan (VIS SM) reinstated with Buy at Berenberg

SMI

Baloise (BALN SW) – Cevian Capital has called for a strategic overhaul at Baloise after becoming the largest shareholder with a stake of over 9%. This comes ahead of Baloise strategy day later this week on the 12th of September. (FT)

Roche (ROG SW) - Roche advances AI-driven cancer diagnostics by expanding its digital pathology open environment. (Roche)

UBS Group (UBSG SW) - SNB Chairman Jordan urged UBS to increase its capital reserves, citing the need to address weaknesses identified by the government, Neue Zurcher Zeitung reported. Jordan emphasised that improvements in resolvability and capital levels are in UBS’s best interest. (Neue Zurcher Zeitung)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

EQT (EQT SS) - To acquire Gebbs Healthcare Solutions; exp. to close in Q4'24. (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.73% at 5,408, NDX -2.69% at 18,421, DJIA -1.01% at 40,345, RUT -1.91% at 2,091.

SECTORS: Communication Services -2.90%, Consumer Discretionary -2.81%, Technology -2.40%, Financials -1.57%, Materials -1.35%, Energy -1.17%, Industrials -1.07%, Utilities -0.94%, Health -0.40%, Consumer Staples -0.31%, Real Estate +0.01%.

Arm Holdings (ARM) - Apple's iPhone 16 launch on Monday will feature a new A18 chip based on Arm's V9 architecture, FT reports. The adoption of V9, which will offer higher royalties for Arm, will be on a multiyear licensing basis with Apple, as the iPhone maker pushes into generative AI for its smartphones. (Newswires)

Alimentation Couche-Tard (ATD TO) - Comments on Seven & I Holdings' (3382 JT) response not to engage in friendly discussion regarding a combination and stated it continues to have strong conviction a combination has strategic and financial benefits. Remains ready and willing to enter into an appropriate NDA to advance friendly discussions. (Newswires)

09 Sep 2024 - 06:57- Research Sheet- Source: Newsquawk