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StreetAccount Summary - Europe Pre-Open: FTSE (0.29%), DAX (0.21%), CAC (0.03%)

Feb 26 ,2024

  • Synopsis

    • European equity markets set to open broadly lower following last week's gains when European equity markets ended mostly higher; the benchmark STOXX Europe 600 registered a new all-time high. FTSE 100 lagged amid weakness in miners and energy names.

    • There may be some further weakness this morning in the miners as iron ore fell to the lowest since October - after dropping almost 9% last week (Bloomberg)

    • Asian equities trading mixed Monday. Japan's markets to close on another record high. Greater China mixed. Ongoing caution towards China equities despite a raft of policy measures that have helped global outperformance in Hong Kong A-shares this month while CSI 300 has advanced for nine days, the longest streak since 2018. Bullish phase largely framed as temporary, driven by state fund support amid persistent macro headwinds.

    • In central banks, BOE's Breeden speech at 9:00GMT at annual BEAR research conf, BOE's Pill speech at 11:00, BOE's Saporta panelist at 13:00. Bundesbank Nagel and Finance Minister Lindner press conf 7:00CET. ECB' Lagarde speech at 17:00CET in plenary debate on the ECB Annual Report at EP.

    • Macro data releases include Norway Jan unemployment rate, Spain Jan PPI, UK Feb distributive trades - CBI

    • Today also sees meeting of the G20 finance and Central Bank deputies followed by Finance Ministers and Central Bank Governors (Mon-Thu). Norway's PM Støre attends the central board meeting and strategy meeting for the Labor Party. 13th WTO Ministerial Conf in Abu Dhabi (through Thu). Mobile World Congress in Barcelona; EU's Breton speech on 'Changing the DNA of our connectivity infrastructure'. Western Balkans Investment Summit 2024 speakers include EU's Várhelyi.

    • In corporate news highlights: Kinnevik agrees to sell its entire shareholding in Tele2 to an investment vehicle jointly controlled by iliad and NJJ for SEK 13B; PostNL reports Q4 Normalized EBIT €77M vs consensus €78.0M; final FY normalized EBIT €92M in line with prelim. Guides 2024 normalised EBIT between €80M and €110M. SGL to evaluate strategic options for the Business Unit Carbon Fibers. Santander rejects offers of ~ €700M from M&G, Carval, and Morgan Stanley for its subsidiary's mortgage portfolio, reports El Confidencial, citing sources. Saint-Gobain signs definitive agreement to acquire CSR Limited; Next expresses interest in potential deal to acquire parts of The Body Shop, reports Sky News

  • Macro/politics

    • ECB Officials Try to Buy More Time for Decision on Rate Cuts (Bloomberg)

    • ECB's Makhlouf in no rush to cut as vigilance on wages needed (Bloomberg)

    • Global house prices rebound as economists predict turning point (FT)

    • UK public services will buckle under planned spending cuts, economists warn (Guardian)

    • UK seeks to spur business investment with coordinated ministerial push (Bloomberg)

    • Britons at risk of lower pay than migrants under new visa salary rules (Telegraph)

    • The peer, the pollster and the rumblings of a plan to oust Rishi Sunak (London Times)

    • Who could replace Rishi Sunak? These are the agents of change (London Times)

    • Draghi Urges EU to Ready Huge Spending as World Order Shifts (Bloomberg)

    • European banks promise €120bn of shareholder returns on interest rate gains (FT)

    • Lindsay Hoyle braced for tough week as SNP demands new Gaza vote in Commons (FT)

  • Top company news

    • Earnings/updates

      • PNL.NA (PostNL) -- reports Q4 Normalized EBIT €77M vs consensus €78.0M; final FY normalized EBIT €92M in line with prelim.; 2024 Outlook: Normalised EBIT between €80M and €110M

      • LOCAL.FP (Solocal Group) -- reports prelim FY revenue €359.7M; postpones 2023 financial results announcement

      • Also reporting today

        • Earnings:

          • DACHs: Liechtensteinische Landesbank (LLBN.SW)

          • France: Gaztransport & Technigaz (GTT.FP)

          • Nordics: Samh nllsbyggnadsbolaget I Norden (SBB.B.SS), Fynske Bank (FYNBK.DC)

          • Southern Europe: Banco Comercial Portuguese (BCP.PL), CIE Automotive (CIE.SM)

          • UK/Ireland: Bunzl (BNZL.LN), Bank of Ireland Group (BIRG.ID), Tristel Plc (TSTL.LN)

        • Trading Update: Freelance.com (ALFRE.FP)

        • CMD/events: Bavarian Nordic (BAVA.DC)

    • M&A

      • TEL2.B.SS (Tele2) -- Kinnevik agrees to sell its entire shareholding in Tele2 to an investment vehicle jointly controlled by iliad and NJJ for SEK 13B

      • SAN.SM (Banco Santander) -- rejects offers of ~ €700M from M&G, Carval, and Morgan Stanley for its subsidiary's mortgage portfolio - El Confidencial, citing sources

      • CSR.AU (CSR) -- Saint-Gobain signs definitive agreement to acquire CSR Limited; closing expected in H2 of 2024

      • UBSG.SW (UBS Group) -- Ant Group a surprise high bidder for Credit Suisse's investment bank venture in China - Bloomberg

      • NXT.LN (Next) -- expresses interest in potential deal to acquire parts of The Body Shop - Sky News

      • ECV.GR (Encavis AG) -- acquires two more solar parks in Spain

      • CSR.AU (CSR) -- Trading halted in CSR pending announcement regarding a potential material transaction

      • IGD.IM (IGD SIIIQ) -- signs an agreement with Sixth Street and Starwood Capital for the sale of a real estate portfolio valued at €258M

      • Accolade Wines considering mergers - The Australian

      • Sun TV Network, Culver Max Entertainment looking at buying stake in Arha Media & Broadcasting - Mint (17:36 IT/21:06 JT)

    • Healthcare

      • AZN.LN (AstraZeneca) -- notes publication of MANDARA Phase III study of FASENRA in New England Journal of Medicine

      • SAN.FP (Sanofi) -- reports results from the Phase 2 study RILECSU demonstrate rilzabrutinib rapidly reduced itch severity and significantly improved disease activity in adults with chronic spontaneous urticaria

      • ROG.SW (Roche Holding) -- Data from Stage 1 of the NIH-sponsored Phase III OUtMATCH study evaluating Xolair (omalizumab) published in NEJM

      • ONCO.SS (Oncopeptides) -- FDA finalizes decision to withdraw approval for Pepaxto effective immediately

    • Other

      • RYA.ID (Ryanair Holdings) -- Ryanair wants compensation from Boeing for worsening aircraft delivery delays - FT

      • SAP.GR (SAP) -- launches second €1.25B tranche of €5B share buyback program

      • MT.NA (ArcelorMittal) -- EU Commission approves German state aid to ArcelorMittal for decarbonization

      • VOW.GR (Volkswagen) -- Audi CEO Gernot Döllner has become a source of irritation for Volkswagen management - Handelsblatt

      • HSBA.LN (HSBC Holdings) -- files automatic mixed shelf of indeterminant amount - F-3ASR

      • RR.LN (Rolls-Royce Holdings) -- initiates talks with partners on narrow-body jet engines - London Times

      • CS.FP (AXA) -- announces share buy-back program of up to €1.6B

      • VPK.NA (Royal Vopak) -- Vopak commissions 40,000 cubic meters of capacity at Sebarok terminal for blending of biofuels into marine fuels

      • SGL.GR (SGL Carbon) -- to evaluate strategic options for the Business Unit Carbon Fibers

      • SBB.B.SS (Samhällsbyggnadsbolaget i Norden) -- SBB establishes a joint venture for community properties with Castlelake generating cash proceeds to SBB of approximately SEK 5.2B

      • Estimated weekend box office revenues in US, Canada $58.8M, (37.6%) y/y - Box Office Mojo

      • Fincantieri expecting order boom for marine industry - Handelsblatt

      • HDFC Bank annonces the Reserve Bank of India approves previously announced sale of 90% of stake in HDFC Credila to BPEA EQT-led consortium

      • Heathrow denies reports that third runway has been shelved - Bloomberg

  • Key rating changes

    • Upgrades

      • BAS.GR (BASF) -- to buy from hold at Stifel

      • HSX.LN (Hiscox) -- to buy from add at Peel Hunt

    • Downgrades

      • LHA.GR (Deutsche Lufthansa) -- to equal weight from overweight at Barclays

      • NESN.SW (Nestle) -- to hold from buy at Stifel

      • HLMA.LN (Halma) -- to hold from buy at HSBC

      • ORNBV.FH (Orion) -- to underperform from hold at Jefferies

      • NK.FP (Imerys) -- to neutral from outperform at BNP Paribas Exane

    • Initiations

      • DNR.IM (Industrie De Nora) -- buy at Jefferies

  • Data

    • Nikkei +0.35% to 39233.71

    • Hang Seng (0.54%) to 16636.09

    • Shanghai Composite (0.71%) to 2983.55

    • S&P futures (12.5) vs prior close of 5101.5

    • €-$ +0.0002 or +0.02% to 1.0825

    • $-¥ (0.05) or (0.03%) to 150.42

    • €-¥ (0.05) or (0.03%) to 162.80

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