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
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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