Feb 19 ,2024
Synopsis
European equity markets set to open marginally lower after last week's gains when the STOXX Europe 600 rose ~1.4%, to hit near all-time highs. It should be a relatively quiet session today with US Markets closed for President's Day. Asian equities mixed Monday. Mainland China outperforming as markets resumes trade following holiday break. Big growth in China holiday travel and spending viewed positively. However, some commentators warned against extrapolating to consumption more broadly after private data showed sharp drop in January car sales. Hang Seng pulling back amid renewed weakness in tech and property stocks
European macro data releases out today include Spain Dec trade balance, Sweden Jan CPI, Finland Jan CPI, Portugal Jan PPI
Focus on UK property data. Average new seller asking prices rose by 0.9% in January, taking the average asking price for a house in the UK up to £362,839, according to data from Rightmove. Prices are 0.1% higher than a year earlier.
On the corporate front, focus on Currys (CURY.LN) following report JD.com exploring takeover. Also Elliott reportedly considering a possible cash offer for Currys, after its previous 62p/share cash offer was rejected.
Today's agenda also sees EU's von der Leyen expected to launch her bid for a second term as President of the EU Commission (two days ahead of the official deadline to become a candidate) at an event hosted by her Christian Democratic Union party in Germany. EU's Dombrovskis participates in a meeting with the International Trade Committee of the EP whilst EU's Simson speech at the H2 Forum 'Empowering the future of hydrogen'. In UK, MPs questions on defence at 14:30GMT whilst committee business includes examining impact of medicine shortages on patients 16:30. In central banks, Bundesbank's Monthly Report released at 12noon CET whilst Bundesbank's Balz at public hearing at 13:00CET of the Finance Committee of the German Bundestag on the digital euro.
Politics/Macro/World News
Top company news
Earnings/updates
ICAD.FP (Icade) -- reports FY net income €221.9M vs FactSet €298.6M [10 est, €203-411.1M]
RBT.FP (Robertet) -- reports preliminary FY revenue €721.1M vs FactSet €732.2M
SFQ.GR (SAF-HOLLAND) -- reports preliminary FY EBIT ~€202M ex-items vs FactSet €161.7M [4 est, €147-172M]
ALM.SM (Almirall) -- reports FY Normalized net income €15.6M vs FactSet €17.4M [11 est, €7-23.7M]
Also reporting today
Earnings: Temenos (TEMN.SW), BIC (BB.FP), OEM International (OEM.B.SS), Moneysupermarket.com Group (MONY.LN), Wilmington (WIL.LN), NNIT (NNIT.DC), Dialight (DIA.LN)
Trading Update: Forvia (FRVIA.FP)
M&A
CURY.LN (Currys) --
board unanimously rejects unsolicited 62p/share cash offer from Elliott - Sunday Times
JD.com exploring takeover of Currys - Telegraph; Elliott Advisors considering making new cash bid for Currys - London Times
8058.JP (Mitsubishi) -- Newlat Food stops negotiations for the acquisition of Princes Limited (post EU close 16-Feb)
IMCD.NA (IMCD) -- announces acquisition of ResChem; terms undisclosed
MUSTI.FH (Musti Group) -- Musti reports preliminary results of Flybird's tender offer; minimum acceptance condition to be waived subject to final acceptance level of at least 40%
ACAD.SS (AcadeMedia) -- Mellby Gård cancels deal to sell all shares in AcadeMedia to the Akelius Foundation
PMET.CN (Patriot Battery Metals) -- Speculation Patriot Battery Metals may be a takeover target- The Australian
500672.IN (Novartis India) -- Dr Reddy's seeking Novartis's 70.68% stake in Novartis India - CNBC-TV18
Graphcore in discussions to sell itself - Telegraph
Healthcare
AZN.LN (AstraZeneca) -- FDA approves Tagrisso for locally advanced or metastatic NSCLC
Other
STLA.IM (Stellantis) -- North America reorganizes sales organization
RHM.GR (Rheinmetall) -- signs MoU to set up a JV with a Ukrainian partner company
ECV.GR (Encavis AG) -- Encavis sign a long-term Power Purchase Agreement for the European business operations of Aliaxis
EURN.BB (Euronav) -- SEC filing: SC 13D/A (Filed by Compagnie Maritime Belge NV)
EZJ.LN (EasyJet) -- Founder Stelios Haji-Ioannou wants EasyJet to implement secondary listing on Nasdaq - Mail on Sunday
CO.FP (Casino Guichard-Perrachon) -- announces proceedings for recognition of financial restructuring in the U.S.
NEOEN.FP (Neoen) -- to more than double zero emission generation pipeline in Australia by 2030 - The Australian
By some measures, Mondelez growing rather than cutting its presence in Russia - Bloomberg
Estimated weekend box office revenues in US, Canada $76.0M, (47.6%) y/y - Box Office Mojo
Regional Gaming Revenues - New Jersey January 2024
UK's Secretary of State for Energy Security and Net Zero grants development consent for the Net Zero Teesside project
Key rating changes
Upgrades
EQNR.NO (Equinor) -- to equal-weight from underweight at Morgan Stanley
REP.SM (Repsol) -- to overweight from equal-weight at Morgan Stanley
AUTO.NO (AutoStore Holdings) -- to buy from hold at Arctic Securities
SPM.IM (Saipem) -- Saipem reinstated overweight at Barclays; prior rating was equal weight
SSE.LN (Scottish and Southern Energy) -- to buy from hold at Jefferies
TIETO.FH (Tietoevry) -- to hold from reduce at Kepler Cheuvreux
CABK.SM (CaixaBank) -- to hold from reduce at Kepler Cheuvreux
US.IM (UnipolSai Assicurazioni) -- to hold from reduce at Kepler Cheuvreux
Downgrades
PIRC.IM (Pirelli & C.) -- to hold from buy at HSBC
JDEP.NA (JDE Peet's) -- to equal weight from overweight at Barclays
METSO.FH (Metso Corp.) -- to hold from buy at Kepler Cheuvreux
SAAB.B.SS (Saab) -- to hold from buy at Kepler Cheuvreux
ALLFG.NA (Allfunds Group) -- to neutral from outperform at BNP Paribas Exane
Initiations
BC8.GR (Bechtle) -- underweight at Barclays
Data
Nikkei (0.04%) to 38470.38
Hang Seng (0.79%) to 16210.96
Shanghai Composite +1.38% to 2905.31
S&P futures +5.5 vs prior close of 5019.8
€-$ +0.0009 or +0.08% to 1.0787
$-¥ (0.18) or (0.12%) to 149.97
€-¥ (0.07) or (0.04%) to 161.76
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