Feb 07 ,2024
Synopsis:
European equity markets closed mostly lower with the exception of Denmark +1.0%. Telecom, Personal Care and Oil/Gas were the worst performers, while Technology, Auto/Parts and Construction/Materials outperformed.
Rate stabilization supportive for equity markets after recent bout of Fed pivot repricing amid US data strength. Market expectations wound back to 4-5 Fed rate cuts in 2024 vs the 7 being priced last month. Comes amid debate over path of disinflation in light of resilient macro data and policymaker wariness about easing too soon. ECB officials edging towards a rate cut but warn against easing too soon. Schnabel says incoming data and recent events in Red Sea cautions against adjusting policy stance.
In macro-data, German December industrial production worse than forecast (1.6%) m/m vs consensus (0.4%) and down from prior month revised (0.2%) from (0.7%) whilst UK Halifax house price data show fourth consecutive increase and reinforce expectations that housing market has stabilized +1.3% m/m vs consensus +0.8%, equating to +2.5% y/y vs consensus +1.9% and prior revised +1.8% from +1.7% and prior +1.1%. France Dec. trade balance deficit widens to (€6.83B) vs consensus (€6.0B) and prior revised to (€5.94B) from (€5.94B) while Italy retail sales miss (0.1%) m/m vs consensus +0.2% and prior revised +0.3% from +0.4%. Elsewhere, Spain industrial production contracting in line with consensus (0.2%) y/y vs consensus (0.2%) and prior revised +0.9% from +0.8%.
On a busy earnings calendar, DACHs region companies releasing their results included Siemens Energy (ENR.GR) confirming prelim. Q1 results and reporting Q1 EPS €1.79 vs FactSet €1.25, METRO (B4B.GR) Q1 EPS €0.36 vs consensus €0.27, TeamViewer (TMV.GR) reporting Q4 adjusted EBITDA €62.4M vs FactSet €69.3M, CTS Eventim (EVD.GR) preliminary FY adjusted EBITDA €501.4M vs prior guidance well above €400M, FactSet €447.6M, Voestalpine (VOE.AV) Q3 EPS €0.45 vs FactSet €0.46 and Hannover Re (HNR1.GR) announcing prelim FY23 EBIT €1.97B; likely not comparable to FactSet €2.40B. In France, TotalEnergies (TTE.FP) reports Q4 adj net income $5.23B vs consensus $5.30B, hikes divi by ~7% and announces $2B of buybacks in Q1 while Amundi (AMUN.FP) reports Q4 adj net income €313M vs consensus €314M. In Italy, Banca Monte dei Paschi di Siena (BMPS.IM) reports Q4 net income €1.12B and unclear if comparable to FactSet €316.8M.
In the Nordics, Equinor (EQNR.NO) reports Q4 adjusted net income $1.88B vs consensus $2.33B, Pandora (PNDORA.DC) final Q4 EPS DKK29.40 vs FactSet DKK31.13, hikes divi by 12.5% and announces DKK4.0B buyback whilst Telenor (TEL.NO) reports Q4 EBITDA before items NOK8.47B vs consensus NOK8.57B, H. Lundbeck (HLUN.B.DC) reports Q4 Adj. EPS DKK0.58 vs FactSet DKK0.65, Vestas Wind Systems (VWS.DC) reports FY net income €78M vs FactSet €72.3M, Ørsted (ORSTED.DC) reports Q4 EBITDA excl. new partnerships DKK8.62B vs FactSet DKK6.29B, pauses dividends for financial years 2023-2025 and presents updated business plan following comprehensive portfolio review, Svenska Handelsbanken (SHB.A.SS) reports Q4 EPS SEK3.66 vs FactSet SEK3.45 and Schibsted (SCHA.NO) reports Q4 Adj. EPS NOK0.47 vs consensus NOK1.02; updates medium-term targets for jobs.
Elsewhere, Akzo Nobel (AKZA.NA) reports Q4 EPS €0.24 vs consensus €0.69 while Smurfit Kappa Group (SKG.LN) reports FY EPS €3.49 ex-items vs FactSet €3.45, hikes divi by 10% to 118.4c per share. In notable UK M&A news, Barratt Developments PLC (BDEV.LN) announced a recommended offer for Redrow plc (RDW.LN), offerings for each Redrow Share 1.44 new Barratt shares (RDW.LN) in deal worth ~£2.5B.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Technology +0.75%, Autos & Parts +0.51%, Construct & Mtls +0.36%, Consumer Products and Services +0.18%, Health Care +0.14%, Media +0.13%, Ind Goods & Svcs (0.08%), Food, Beverage and Tobacco (0.17%)
Underperformers:
Telecom (1.19%), Personal Care Drug and Grocery Stores (1.13%), Energy(1.06%), Basic Resources (1.05%), Banks (0.87%), Retail (0.73%), Utilities (0.71%), Chemicals (0.55%), Insurance (0.54%), Real Estate (0.48%), Financial Svcs (0.42%)
Macro:
Central banks:
ECB's Schnabel says incoming data and Red Sea tensions cautions against adjusting policy -link
Dhingra urges BoE not to take a risk with the economy - FT
UK lawmakers criticize BoE's QT framework - London Times
Netherlands:
Talks between Wilder's PVV and three other parties fail again - NLTimes
Germany
German industrial production weaker than forecast - Destasis
UK:
Halifax house price data sees larger than expected increase - Halifax
NIESR says UK living standards to turn corner slowly - Reuters
Improving UK economy no election game-changer for Sunak - Reuters
Better times coming for UK mortgage holders - FT
New CBI president says it is pushing for Labour to soften workers' right pledges - FT
Brussels weakens plans to shift derivatives clearing from London - FT
Company news:
Notable Gainers
+18.6% CEVI.SS (CellaVision SEK261.00, +41.00) -- Q4 earnings
+17.5% REDX.LN (Redx Pharma £0.24, +0.04) -- to sell KRAS inhibitor program to Jazz Pharmaceuticals (JAZZ) for $10M (£7.9M) up front
+14.9% HOFI.SS (Hoist Finance SEK40.95, +5.30) -- reports Q4 EPS SEK1.82 vs year-ago SEK0.19; Confirms SEK100M share buyback
+14.8% RDW.LN (Redrow £6.89, +0.89) --
reports H1 EPS 18.7p vs year-ago 45.4p; guides FY24
Barratt Developments announces recommended offer for Redrow; offers for each Redrow Share 1.44 new Barratt shares
-5.5% BDEV.LN (Barratt Developments £5.01, -0.29) -- H1 earnings
+8.2% ADDT.B.SS (Addtech SEK244.20, +18.60) -- Q3 earnings
+8.1% BIOG.B.SS (BioGaia SEK122.10, +9.10) -- Q4 earnings
+6.4% VWS.DC (Vestas Wind Systems DKK200.20, +11.98) -- FY earnings
+6.3% ZIN.LN (Zinc Media Group £0.85, +0.05) -- FY trading update
+6.2% LAGR.B.SS (Lagercrantz Group SEK143.20, +8.40) -- rebound; Redeye says "company will continue to deliver strong growth from acquisitions in the coming quarters while organic growth will likely be soft."
+5.8% LNA.FP (LNA Santé €20.85, +1.15) -- reports preliminary FY revenue €720M vs FactSet €749.8M [3 est, €742.4-754.7M]
+5.5% BMPS.IM (Banca Monte dei Paschi di Siena €3.56, +0.19) -- Q4 earnings
+5.5% EVD.GR (CTS Eventim €66.75, +3.45) -- reports preliminary FY adjusted EBITDA €501.4M vs prior guidance well above €400M, FactSet €447.6M [10 est, €411.1-476M]
+5.4% TMV.GR (TeamViewer €14.39, +0.74) -- Q4 earnings
+5.2% ITAB.SS (ITAB Shop Concept SEK14.20, +0.70) -- Q4 earnings
+5.1% SHB.A.SS (Svenska Handelsbanken SEK119.10, +5.75) -- reports Q4 EPS SEK3.66 vs FactSet SEK3.45 [13 est, SEK3.13-3.92]
+5.0% CLAS.B.SS (Clas Ohlson SEK154.20, +7.30) -- Jan sales
+4.5% SCHA.NO (Schibsted NOK322.20, +14.00) -- reports Q4 Adj. EPS NOK0.47 vs consensus NOK1.02; updates medium-term targets for Jobs
+4.0% CARL.B.DC (Carlsberg DKK941.40, +36.40) -- reports FY Adj. EPS continuing ops DKK54.6 vs consensus DKK52.3; announces new DKK 1.0B share buyback program
+3.5% AAK.SS (AarhusKarlshamn SEK243.00, +8.20) -- Q4 earnings
+3.4% SK3.ID (Smurfit Kappa Group €34.80, +1.13) -- FY earnings
+2.7% EVT.GR (Evotec €14.52, +0.39) -- Evotec Biologics expands development and manufacturing agreement with ABL for broadly neutralising antibodies against HIV
+2.6% SECU.B.SS (Securitas SEK102.40, +2.60) -- Q4 earnings
+2.5% LIAB.SS (Lindab International SEK203.40, +4.90) -- Q4 earnings
+2.3% BPSO.IM (Banca Popolare di Sondrio €6.71, +0.15) -- reports FY net income attributable €461.2M vs FactSet €453.0M [5 est, €428-471.4M]
+1.9% GRI.LN (Grainger £2.66, +0.05) -- Trading Update: YTD Like-for-like rental growth +8.4%
Notable Decliners
-19.4% ALCJ.FP (Crossject €4.07, -0.98) -- strategic update
-18.1% A28890.GR (CompuGroup Medical €32.78, -7.22) -- FY earnings
-16.4% PZC.LN (PZ Cussons £1.07, -0.21) -- H1 earnings
-15.9% IRLAB.A.SS (IRLAB Therapeutics SEK12.15, -2.30) -- reports Q4 EPS (SEK0.67) vs year-ago (SEK0.64)
-13.0% HDD.GR (Heidelberger Druckmaschinen €0.93, -0.14) -- reports Q3 EPS €0.00 vs year-ago €0.04
-9.7% CREO.LN (Creo Medical Group £0.37, -0.04) -- FY trading update
-9.4% EQS.FP (Equasens Group €48.30, -5.00) -- prelim FY sales
-8.9% BAB.LN (Babcock International Group £4.24, -0.42) -- announces no new information on trading will be shared at today's CMD
-7.8% EQNR.NO (Equinor NOK284.60, -23.95) -- Q4 earnings
-7.8% AFM.LN (Alpha Financial Markets Consulting £3.42, -0.29) -- FY trading update
-7.6% VRS.LN (Versarien £0.00, -0.00) -- legal claims
-7.4% FUTR.LN (Future Plc £6.65, -0.53) -- issues AGM trading update; 4M overall performance broadly in-line with expectations
-6.3% ATO.FP (ATOS SE €2.64, -0.18) -- ATOS SE and Kretinsky talks over sale of legacy IT business have reportedly stalled - Bloomberg
-6.1% SBRY.LN (J Sainsbury £2.59, -0.17) -- strategy update
-6.1% BILI.A.SS (Bilia SEK114.60, -7.50) -- Q4 earnings
-5.6% FLNG.NO (Flex LNG NOK286.00, -17.00) -- Q4 earnings
-5.6% SANOMA.FH (Sanoma €6.35, -0.38) -- reports Q4 operational EPS (€0.22) vs year-ago (€0.07)
-5.3% VOE.AV (Voestalpine €25.90, -1.46) -- Q3 earnings
-5.2% DHL.GR (DHL Group €42.09, -2.32) -- KfW starts selling 50M shares in Deutsche Post AG
-5.0% FORTUM.FH (Fortum €11.78, -0.63) -- Q4 earnings; strategic focus and targets update
-4.6% COIC.SS (Concentric SEK160.00, -7.80) -- Q4 earnings
-3.7% B4B.GR (METRO €6.11, -0.23) -- reports Q1 EPS €0.36 vs consensus €0.27
-3.7% STB.NO (Storebrand NOK92.08, -3.58) -- Q4 earnings
-3.2% TTE.FP (TotalEnergies €58.39, -1.91) -- reports Q4 adj net income $5.23B vs consensus $5.30B; hikes divi by ~7% and announces $2B of buybacks in Q1
-3.2% SF.SS (Stillfront Group SEK10.00, -0.34) -- reports Q4 EPS SEK0.02 vs year-ago SEK0.42
-2.6% FIA1S.FH (Finnair €0.03, -0.00) -- reports January traffic +1.3% y/y
-2.6% DNO.NO (DNO ASA NOK8.80, -0.23) -- DNO acquires 25% interest in the Arran field on the UK Continental Shelf from ONE-Dyas E&P Limited for $70M plus contingent amount up to $5M
-2.3% AMUN.FP (Amundi €60.70, -1.40) -- Q4 earnings; acquisition
-2.3% AKZA.NA (Akzo Nobel €69.60, -1.64) -- reports Q4 EPS €0.24 vs consensus €0.69
-2.1% JEN.GR (Jenoptik €28.90, -0.62) -- prelim FY earnings
-2.0% SPNO.DC (Spar Nord Bank DKK115.60, -2.30) -- reports FY EPS DKK19.90 vs year-ago DKK11.2
-1.8% ORSTED.DC (Ørsted DKK378.60, -6.90) --
reports Q4 EBITDA excl. new partnerships DKK8.62B vs FactSet DKK6.29B [5 est, DKK5.87-7.12B]
pauses dividends for financial years 2023-2025; presents updated business plan following comprehensive portfolio review
EU companies reporting tomorrow:
Earnings:
Benelux: Unibail-Rodamco-Westfield (URW.NA), Adyen (ADYEN.NA), ArcelorMittal (MT.NA), Flow Traders (FLOW.NA), Sligro Food (SLIGR.NA), KBC Group (KBC.BB), Barco (BAR.BB), Ontex (ONTEX.BB)
Denmark: A.P. Moller-Maersk (MAERSK.B.DC), ALK-Abello (ALK.B.DC), GN Store Nord (GN.DC), Alm. Brand (ALMB.DC), Solar (SOLAR.B.DC), Gyldendal (GYLD.A.DC),
DACHs: Siemens (SIE.GR), Nemetschek (NEM.GR), KWS SAAT & Co. (KWS.GR), Verbio (VBK.GR), Hamborner REIT (HABA.GR), Deutsche Beteiligungs (DBAN.GR), Swisscom (SCMN.SW), Banque Cantonale Vaudoise (BCVN.SW), Swiss Prime Site (SPSN.SW), Leonteq (LEON.SW)
Finland: Neste Corp. (NESTE.FH), Sampo (SAMPO.FH), Huhtamaki (HUH1V.FH), Metsa Board (METSB.FH), Outokumpu (OUT1V.FH), Fiskars (FSKRS.FH), Caverion (CAV1V.FH), Aktia Bank (AKTIA.FH), Harvia (HARVIA.FH), Etteplan (ETTE.FH), Verkkokauppa.com (VERK.FH)
France: L'Oreal (OR.FP), Kering (KER.FP), Credit Agricole (ACA.FP), Publicis Groupe (PUB.FP), Societe Generale (GLE.FP), Ipsen (IPN.FP), ALD (ALD.FP), X-FAB Silicon Foundries (XFAB.FP)
Norway: Aker BP (AKRBP.NO), Orkla (ORK.NO), SpareBank 1 SR-Bank (SRBNK.NO), SpareBank 1 SMN (MING.NO), Aker Solutions (AKSO.NO), Atea (ATEA.NO), Elkem (ELK.NO), Veidekke (VEI.NO), Odfjell (ODF.NO), SpareBank 1 Nord-Norge (NONG.NO), DNO (DNO.NO), Gram Car Carriers (GCC.NO), REC Silicon (RECSI.NO), Norske Skog (NSKOG.NO), OKEA (OKEA.NO), XXL (XXL.NO)
Sweden: Swedish Orphan Biovitrum (SOBI.SS), Wallenstam (WALL.B.SS), Mycronic (MYCR.SS), Pandox (PNDX.B.SS), FastPartner (FPAR.A.SS), Bufab (BUFAB.SS), New Wave (NEWA.B.SS), Modern Times Group MTG (MTG.B.SS), Mips (MIPS.SS), Boozt (BOOZT.SS), Inwido (INWI.SS), Attendo (ATT.SS), XANO Industri (XANO.B.SS), Ambea (AMBEA.SS), BICO Group (BICO.SS), Coor Service Management (COOR.SS), Green Landscaping (GREEN.SS), Knowit (KNOW.SS), MilDef Group (MILDEF.SS), Proact IT Group (PACT.SS), Bactiguard (BACTI.B.SS), Ework (EWRK.SS), PowerCell Sweden (PCELL.SS), I.A.R. Systems (IAR.B.SS), Bulten (BULTEN.SS), RugVista (RUG.SS), Infant Bacterial Therapeutics (IBT.B.SS), Humana (HUM.SS), G5 Entertainment (G5EN.SS), Sivers Semiconductors (SIVE.SS), Pricer (PRIC.B.SS), Studsvik (SVIK.SS)
Southern Europe: Banco BPM (BAMI.IM), Banca Mediolanum (BMED.IM), Banca Generali (BGN.IM), Credito Emiliano (CE.IM), BFF Bank (BFF.IM), Cementir (CEM.IM), Sanlorenzo (SL.IM), Banca IFIS (IF.IM), Banco di Desio e della Brianza (BDB.IM), NH Hotel (NHH.SM)
UK: AstraZeneca (AZN.LN), Unilever (ULVR.LN), British American Tobacco (BATS.LN), Redrow (RDW.LN)
Trading Update: Compass Group (CPG.LN), Anglo American (AAL.LN), Watches of Switzerland (WOSG.LN), Assystem (ASY.FP), Ubisoft Entertainment (UBI.FP), Delta Plus (ALDLT.FP), Waga Energy (WAGA.FP) AKWEL (AKW.FP), Guerbet (GBT.FP), Vente-Unique.com (ALVU.FP), Claranova (CLA.FP), ICAPE (ALICA.FP), Wallix Group (ALLIX.FP)
CMD/events: Revolution Beauty Group (REVB.LN), Waga Energy (WAGA.FP)
Data:
Economics:
UK Jan Halifax House Prices +2.5% y/y vs cons +1.9% and prior revised +1.8% from +1.7%
Switzerland Jan Unemployment Rate (sa) 2.2% vs cons 2.2% and prior 2.2%
Dec Industrial Production:
Germany (1.6%) m/m vs cons (0.4%) and prior revised (0.2%) from (0.7%)
Spain (0.2%) y/y vs cons (0.2%) and prior revised +0.9% from +0.8%
France Dec Trade Balance (€6.83B) vs cons (€6.0B) and prior (€5.94B)
Italy Dec Retail Sales +0.3% y/y vs cons +1.0% and prior revised +1.4% from +1.5%; (0.1%) m/m vs cons +0.2% and prior revised +0.3% from +0.4%
Dec Manufacturing Production
Denmark +5.7% m/m vs cons (6.7%) and prior revised +8.1% from +9.9%
Norway +0.3% m/m vs cons +0.5% and prior (0.3%)
Markets:
WTI Crude (Mar 24): +$0.42 or +0.57% to $73.73
€-$ +0.0012 or +0.11% to 1.0768
£-$ +0.0027 or +0.21% to 1.2626
€-£ (0.0007) to 0.8529
S&P 500 +0.68%
Performance year-to-date
FTSE 100: (1.35%)
DAX: +1.02%
CAC: +0.90%
MIB: +2.06%
Stoxx 600: +1.39%
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