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StreetAccount Summary - EU Market Recap: FTSE 100 (1.56%) to 7440.58, DAX (0.94%) to 16415.63, CAC40 (1.10%) to 7316.90, STOXX 600 (1.17%) to 467.51

Jan 17 ,2024

  • Synopsis:

    • European indices ended in negative territory, but off the session's lows. Latest bond yield backup put down to concerns markets have become too aggressive on extent of rate cuts being priced. Some economists noted Fed Governor Waller's remarks raised some doubt about a March rate cut and pace of easing. Comes as some Fed and ECB officials lately have pushed back against market's dovish rate outlook (pricing at least six Fed and ECB rate cuts this year). ECB's Lagarde said likely to cut rates in the summer, but will remain data dependent. Red Sea tensions also spurring concerns about downstream impact on supply chains that could influence disinflation momentum. China still seen as a global growth drag, particularly as policy fine-tuning measures continue to underwhelm

    • Macro-focus on UK inflation data, which surprised on the upside, dampening BoE rate cut expectations. Final Eurozone inflation data in line with flash readings

    • On the reporting front, DACH names kicked off the session with Geberit (GEBN.SW), Schoeller-Bleckmann Oilfield Equipment (SBO.AV) and Inficon Holding (IFCN.SW) reporting preliminary Q4/FY earnings. In France, Renault (RNO.FP) reported preliminary FY sales of ~2.24M vehicles, +9% y/y, whilst VINCI SA (DG.FP) and Aeroport de Paris (ADP.FP) reported their most recent traffic numbers. In the Netherlands, Just Eat Takeaway.com (TKWY.NA) Q4 GTV missed and indicated that FY23 adjusted EBITDA is ahead of guidance and is expected to be ~€320M. In Sweden, Thunderful Group (THUNSS) announced that it will implement a restructuring program to strengthen its long-term competitive position. The restructuring program is expected to affect ~20% of the workforce and is estimated to incur one-off expenses of SEK30-40M in H1 of the year. In the UK, Pearson (PSON.LN), Midwich Group (MIDW.LN), Rathbones Group (RAT.LN), 888 Holdings (888.LN), Brooks MacDonald Group (BRK.LN), Galliford Try (GFRD.LN) are among other companies from the region to update investors with their latest numbers. In M&A news, according to German local press, RWE (RWE.GR) would be interested in Ørsted (ORSTED.DC), even though initial talks failed. Worldline (WLN.FP) retained Morgan Stanley, Rothschild to advise on activism defense strategy, including potential minority stake sale. IAG (IAG.LN) expects EU antitrust regulators to open full-scale probe into proposed acquisition of Air Europa; similarly, Lufthansa (LHA.GR) proposed acquisition of minority stake in ITA Airways set to face full-scale EU antitrust investigation.

    • Looking ahead to tomorrow calendars, Richemont (CFR.SW), EQT (EQT.SS), DATAGROUP (D6H.GR), Dunelm (DNLM.LN), Galenica (GALE.SW), Currys (CURY.LN), Sage Group (SGE.LN), Flutter Entertainment (FLTR.LN) Flughafen Wien (FLU.AV) will be among few other names to update investors. Macro-data will include Netherlands Dec unemployment rate, Eurozone Nov construction output, Portugal Dec PPI, Spain Nov trade balance and UK Dec house price

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers: Media (0.41%), Insurance (0.53%), Travel & Leisure (0.60%), Telecom (0.69%), Health Care (0.72%), Technology (0.78%), Banks (0.79%), Financial Svcs (1.15%), Food & Beverage (1.17%)

      • Underperformers: Real Estate (2.81%), Basic Resources (2.08%), Autos & Parts (2.02%), Oil & Gas (1.92%), Utilities (1.88%), Persnl & HHold Goods (1.70%), Chemicals (1.59%), Retail (1.59%), Construct & Mtls (1.57%), Ind Goods & Svcs (1.26%)

    • Macro:

      • German CEOs warn of far-right threat to economy (Reuters)

      • France's Macron shifts to right on schools and birth rate (BBC)

      • UK Post Office IT scandal: minister asks Fujitsu for talks on payouts for victims (Guardian)

      • China snubs Zelenskyy in Switzerland (Politico)

      • Italian economy slowing, growth under 1% this year - BoI's Panetta (Ansa)

      • Sanchez Wants Government to Have Bigger Role in Spanish Business (BBG)

      • Ukraine-Russia war live: Nato military chief demands 'warfighting transition' (Telegraph)

    • Company news:

      • Notable Gainers

        • +16.4% FDEV.LN (Frontier Developments £1.38, +0.19) -- H1 earnings

        • +11.8% NXQ.LN (Nexteq £1.23, +0.13) -- trading update

        • +11.7% HUNT.NO (Hunter Group NOK2.52, +0.26) -- confirms 3-year charter for second Scrubber-fitted Eco VLCC

        • +10.4% ALPIX.FP (Pixium Vision €0.42, +0.04) -- notes postponement of Commercial Court decision to adopt sale plan and opening of judicial liquidation proceedings

        • +10.2% GMS.LN (Gulf Marine Services £0.16, +0.01) -- raises FY guidance

        • +4.9% OVH.FP (OVHCloud €9.91, +0.46) -- 2026 financial targets

        • +3.8% DOV.IM (doValue €2.58, +0.10) -- doValue CEO Manuela Franchi says the company does not require additional capital -- Milano Finanza

        • +3.7% BNN.GR (BRAIN Biotech €3.93, +0.14) -- FY earnings

        • +3.7% GFRD.LN (Galliford Try Holdings £2.50, +0.09) -- trading update

        • +2.7% THUNDR.SS (Thunderful Group SEK5.00, +0.13) -- to restructure operations; expected to affect ~20% of workforce and will incur one-off expenses of SEK30-40M in H1

        • +2.1% MAERSK.B.DC (Maersk DKK13,640.00, +285.00) -- and Hapag-Lloyd sign agreement for a new long-term operational collaboration

        • +1.9% KLR.LN (Keller Group £8.46, +0.16) -- trading update

        • +1.8% IFCN.SW (Inficon Holding CHF1,274.00, +22.00) -- prelim FY results

        • +1.7% CRW.LN (Craneware £18.35, +0.30) -- trading update

        • +0.6% TIT.IM (Telecom Italia €0.29, -0.00) -- TIM receives approval to execute NetCo transaction pursuant to Golden Power legislation

      • Notable Decliners

        • -32.6% MBTN.SW (Meyer Burger Technology CHF0.09, -0.04) -- reports prelim FY revenue; enters into discussions with selected potential strategic partners

        • -23.8% OBD.LN (Oxford BioDynamics £0.26, -0.08) -- prelim FY earnings

        • -16.7% SDRY.LN (Superdry £0.22, -0.04) -- hires PwC to explore debt-raising options - Sky News

        • -15.4% PMP.LN (Portmeirion Group £2.37, -0.43) -- trading update

        • -10.7% MAGI.SS (MAG Interactive SEK11.38, -1.36) -- Q1 earnings

        • -9.5% GTLY.LN (Gateley (Holdings) £1.44, -0.15) -- H1 earnings

        • -8.6% SAFE.LN (Safestore Holdings £7.77, -0.73) -- FY earnings

        • -7.6% JAY.LN (Bluejay Mining £0.00, -0.00) -- places 300.0M shares at 0.4p/share

        • -7.5% MIDW.LN (Midwich Group £3.70, -0.30) -- trading update

        • -6.9% MUL.LN (Mulberry Group £1.35, -0.10) -- trading update

        • -5.7% CHH.LN (Churchill China £12.50, -0.75) -- trading update

        • -4.9% GEBN.SW (Geberit CHF490.70, -25.50) -- prelim Q4 revenue

        • -4.2% F3C.GR (SFC Energy €17.44, -0.76) -- order

        • -4.2% FDE.FP (La Française de l'Energie €49.35, -2.15) -- to acquire a controlling stake in Greenstat Asa

        • -4.2% GRF.SM (Grifols €8.60, -0.38) -- resumed underperform at Oddo

        • -4.2% KMR.LN (Kenmare Resources £3.45, -0.15) -- prelim FY production

        • -3.5% RWE.GR (RWE €37.02, -1.33) -- RWE interested in Ørsted; has held initial talks which failed - Manager magazin

        • -3.4% IBST.LN (Ibstock £1.38, -0.05) -- trading update

        • -2.8% DSFIR.NA (DSM-Firmenich €90.61, -2.64) -- UK's CMA extends investigation of suspected anti-competitive behavior in relation to the supply of fragrances and fragrance ingredients

        • -2.8% INDT.SS (Indutrade SEK243.60, -7.00) -- ABG Sundal Collier downgrade

        • -2.8% LIO.LN (Liontrust Asset Management £5.63, -0.16) -- trading update

        • -2.5% ORSTED.DC (Ørsted DKK375.80, -9.80) -- RWE interested in Ørsted; has held initial talks which failed - Manager magazin

        • -2.4% 888.LN (888 Holdings £0.79, -0.02) -- trading update

        • -2.2% RNO.FP (Renault €33.69, -0.77) -- FY23 deliveries

        • -2.0% ANTO.LN (Antofagasta £15.89, -0.33) -- Q4 production

        • -2.0% CFR.SW (Richemont CHF105.85, -2.15) -- sector weakness on China GDP

        • -1.5% GIVN.SW (Givaudan CHF3,352.00, -50.00) -- UK's CMA extends investigation of suspected anti-competitive behavior in relation to the supply of fragrances and fragrance ingredients

        • -1.5% SIE.GR (Siemens AG €158.70, -2.40) -- pressing ahead with sale of its large gearbox division Innomotics; aims for sales proceeds of more than €3B - HB

        • -1.3% HLAG.GR (Hapag-Lloyd €157.80, -2.00) -- and Maersk sign agreement for a new long-term operational collaboration

        • -1.2% SY1.GR (Symrise €96.06, -1.12) -- UK's CMA extends investigation of suspected anti-competitive behavior in relation to the supply of fragrances and fragrance ingredients

        • -0.9% UHR.SW (Swatch Group CHF212.30, -1.90) -- sector weakness on China GDP

        • -0.8% HYL.BB (Hyloris Pharmaceuticals €12.45, -0.10) -- FDA Orphan Drug Designation for PTX-252

        • -0.7% BP.LN (BP £4.49, -0.03) -- confirms appointment of Murray Auchincloss as new CEO

        • -0.7% KNOW.SS (Knowit SEK135.60, -1.00) -- Court rejects Solita's complaint about Knowit in the tender for the visa information system project of the Ministry of Foreign Affairs

        • -0.7% RILBA.DC (Ringkjøbing Landbobank DKK995.00, -7.00) -- expects FY net income DKK1.80B-2.2B vs FactSet DKK2.12B [2 est, DKK2.11-2.13B]

        • -0.3% WLN.FP (Worldline €13.07, -0.04) -- retains Morgan Stanley, Rothschild to advise on activism defense strategy, including potential minority stake sale - Reuters

    • EU companies reporting tomorrow:

      • Earnings: EQT (EQT.SS), DATAGROUP (D6H.GR), TheWorks.co.uk (WRKS.LN)

      • Trading Update: Dunelm (DNLM.LN), Galenica (GALE.SW), Richemont (CFR.SW), DATAGROUP (D6H.GR), Currys (CURY.LN), Sage Group (SGE.LN), Flutter Entertainment (FLTR.LN), Catering International & Services (ALCIS.FP), Focus Entertainment (ALFOC.FP), Hydrogen-Refueling-Solutions (ALHRS.FP), SergeFerrari (SEFER.FP)

      • Traffic: Flughafen Wien (FLU.AV)

  • Data:

    • Economics:

      • Eurozone

        • Dec CPI +2.9% y/y vs prelim +2.9%; +0.2% m/m vs prelim +0.2%

      • UK Dec

        • CPI +4.0% y/y vs cons +3.8% and prior +3.9%; +0.4% m/m vs cons +0.2% and prior (0.2%)

        • RPI +5.2% y/y vs cons +5.1% and prior +5.3%; +0.5% m/m vs cons +0.4% and prior (0.1%)

        • Output PPI +0.1% y/y vs cons +0.4% and prior revised (0.1%) from (0.2%); (0.6%) m/m vs cons (0.2%) and prior (0.1%)

        • Input PPI (2.8%) y/y vs cons (1.9%) and prior revised (2.7%) from (2.6%);

      • Austria Dec CPI +5.6% y/y vs prelim +5.6%; +0.4% m/m vs prelim +0.4%

    • Markets:

      • WTI Crude (Feb 24): ($0.21) or (0.29%) to $72.19

      • €-$ (0.0030) or (0.28%) to 1.0849

      • £-$ +0.0024 or +0.19% to 1.2660

      • €-£ (0.0037) to 0.8571

      • S&P 500 (0.53%)

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