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StreetAccount Summary - Europe Pre-Open: FTSE +0.16%, DAX +0.23%, CAC40 +0.29%

Mar 18 ,2024

  • Synopsis

    • European equity markets are set to open higher, extending gains after recording their longest winning streak since 2018.

    • Focus this week on interest rate decisions in UK, Norway and Switzerland. Also this week: EU Summit, Eurozone, France, Germany, UK Mar flash manufacturing/services PMIs as well as earnings/updates out from the likes of Enel (ENEL.IM), Partners Group (PGHN.SW), Prudential (PRU.LN), Next (NXT.LN) and Talanx (TLX.GR).

    • In Russia, Vladimir Putin wins a fifth term as Russian president. BBC notes Putin faced no credible opposition candidate as the Kremlin tightly controls Russia's political system, the media and elections. In a post-election news conference, the Russian leader has vowed to press on with the war in Ukraine.

    • Asian equities mostly higher Monday. Nikkei outperforming region with semis seeing notable gains. China Jan-Feb industrial production growth unexpectedly expanded while retail sales growth slowed by less than forecast. Fixed asset investment notably higher than consensus with infrastructure strong. Real estate investment declines narrowed, though other housing metrics significantly weaker.

    • Macro data releases in Europe include Spain Jan trade balance, Eurozone Feb final CPI and Jan trade balance, Austria Feb final CPI

    • According to the UK Mar house price index from Rightmove, this month's 1.5% asking price growth is notably higher than the historical March average of 1%, and is the biggest monthly increase for 10 months.

    • Today's agenda also sees EU foreign ministers meeting (through Tue). EU's Simson speech and panellist at event 'Energy: The Impact of Competition and Rivalries in a Multipolar World' at CERAWeek (also panellist on Tue). EU's McGuinness speech at Global Money Week 2024.

    • In central banks, Latvia Central Bank's Andris Strazds interview on the Latvian Radio, on of several reps of the bank speaking during Financial Literacy Week, the event also in Lithuania. ECB's Buch fireside chat at 11:15CET at Handelsblatt's Banking Supervision conf (through Tue). First of the ECB Economic Bulletin pre-releases.

  • Macro/politics

    • Russia

      • Putin hails electoral victory that was preordained, after harshly suppressing opposition voices - AP

      • Putin claims landslide and scorns US democracy - BBC

    • Central banks

      • ECB's Rehn Sees Prerequisites for Several Rate Cuts This Year - BBG

      • Bank of England set to hold interest rates as it awaits more signs on inflation - FT

      • SNB to Start Cutting Interest Rates in June, Survey Shows - BBG

    • Germany

      • Germany Is in Recession Due to First-Quarter Slump, Survey Shows - BBG

    • UK

      • UK house prices rise by 1.5% in biggest increase for 10 months - Guardian

      • Sunak urges Tories to 'stick with the plan' as leadership talk grows - Telegraph

    • Southern Europe

      • Moody's changes outlook on Spain to positive; affirms Baa1 ratings - link

  • Top company news

    • Earnings/updates

      • HNR1.GR Hannover Re reports FY numbers in line with preliminary; proposes raised dividend distribution of altogether €7.20/sh vs year-ago €6.00/sh; FY24 guidance confirmed

      • DG.FP (VINCI SA) -- Vinci reports reports Feb Traffic for VINCI Autoroutes (2.1%). VINCI Airports +14.4%

      • FLOW.NA (Flow Traders) -- reports February ETP market data

      • BO.DC (Bang & Olufsen) -- reports preliminary Q3 revenue DKK614M vs FactSet DKK674.5M [2 est, DKK670-679M]

      • Also reporting today:

        • Earnings: Industrie De Nora (DNR.IM), SECO (IOT.IM), Newlat Food (NWL.IM), Hoffmann Green Cement Technologies (ALHGR.FP), Parrot (PARRO.FP), Sigmaroc (SRC.LN), Marshalls (MSLH.LN), Team Internet Group (TIG.LN),

        • Traffic: Aeroports de Paris ADP (ADP.FP)

        • CMD/events: Boliden (BOL.SS)

    • M&A

      • FOUR (Shift4 Payments) -- says bids from potential suitors have failed to sufficiently value the company - Bloomberg

      • UBSG.SW (UBS Group) -- UBS does not require more capital; will seek M&A opportunities in the US - NZZ am Sonntag

      • DLG.LN (Direct Line Insurance Group) -- Ageas to meet largest shareholder Fosun as it seeks to bolster support to raise offer for Direct Line - Sunday Times

      • BHJ acquires Staughton Group for just over A$100M - Australian Financial Review

    • Healthcare

      • GSK.LN (GSK Plc) -- GSK presents results from RUBY/ENGOT-EN6/GOG3031/NSGO phase III trial

      • IDIA.SW (Idorsia) -- Idorsia, Viatris successfully close transaction for global research and development collaboration

      • VLA.FP (Valneva) -- Announces Extension of the Interest-Only Period of Its Debt Facility with Deerfield and OrbiMed

      • COTN.SW (COMET Holding) -- to propose to AGM on 19-Apr election of director Paul Boudre as successor to Heinz Kundert as chairman

      • ALBPS.FP (Biophytis) -- announces 1-for-400 reverse stock split

    • Other

      • LOGN.SW (Logitech International) -- Logitech announces CFO Charles 'Chuck' Boynton departure

      • BATS.LN (British American Tobacco) -- defends London listing; focused on other matters including US revenues and new products - FT

      • MKS.LN (Marks & Spencer Group) -- Marks & Spencer nearing deal with HSBC to overhaul banking arm - Sky News

      • MBTN.SW (Meyer Burger Technology) -- amends proposals for CHF200M rights issue at CHF0.01/share

      • FING.B.SS (Fingerprint Cards) -- to issue new shares as payment in connection to the third amortisation and interest payment under its outstanding convertible bonds

      • "Anti-ESG" shareholder proposals receive little support and SEC agrees to no-action request on living wage resolutions (15-Mar)

      • Estimated weekend box office revenues in US, Canada $87.0M, (5.6%) y/y - Box Office Mojo

      • Korean Air Lines near deal to purchase around 20 A350 planes from Airbus - Bloomberg

      • Regional Gaming Revenues - New Jersey Month February 2024

      • SBTi actions in the past month include numerous missed deadlines; removals include Arcelor Mittal, IAG, JBS,

  • Key rating changes

    • Upgrades

      • RTO.LN (Rentokil Initial) -- to outperform from neutral at BNP Paribas Exane

      • COV.FP (Covivio) -- to buy from hold at HSBC

      • DAL.IM (Datalogic) -- to outperform from neutral at Intermonte (timing uncertain)

      • EOAN.GR (E.ON SE) -- to equal-weight from underweight at Morgan Stanley

      • LIGHT.NA (Signify) -- to overweight from underweight at Barclays

      • ALO.FP (Alstom) -- to buy from hold at Deutsche Bank

    • Downgrades

      • GFC.FP (Gecina) -- to hold from buy at HSBC

      • ENI.IM (Eni) -- to hold from buy at Intesa Sanpaolo (timing uncertain)

      • AENA.SM (Aena S.M.E.) -- to hold from buy at Jefferies

      • BC.IM (Brunello Cucinelli) -- to neutral from outperform at Intermonte (timing uncertain)

      • CNA.LN (Centrica) -- to sector perform from outperform at RBC Capital Markets

      • MBTN.SW (Meyer Burger Technology) -- to neutral from buy at Goldman Sachs

    • Initiations

      • BREE.LN (Breedon Group) -- buy at HSBC

  • Data

    • Nikkei +2.67% to 39740.44

    • Hang Seng +0.24% to 16761.31

    • Shanghai Composite +0.89% to 3081.86

    • S&P futures +15.5 vs prior close of 5182.8

    • €-$ +0.0001 or +0.01% to 1.0890

    • $-¥ +0.20 or +0.14% to 149.24

    • €-¥ +0.30 or +0.18% to 162.53

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