Mar 25 ,2024
Synopsis
European equity markets set to open mixed (flat to lower) Monday having posted fresh all-time highs last week, with ninth straight week of gains and longest winning streak since 2012 on central bank easing plans. STOXX Europe 600 closed up +0.96% last week, while the FTSE 100 rose +2.68% for the week. DAX rose +1.5% to another record high last week. Recall SNB delivered surprise cut and BoE edges towards policy easing.
This week sees Riksbank interest rate decision, ECB's Lagarde participate in EIB meeting, release of Germany Mar unemployment change, a number of Q4 final GDPs and Mar preliminary CPIs from across the region as well as earnings/updates from the likes of Buzzi (BZU.IM), Flutter Entertainment (FLTR.LN), H&M Hennes & Mauritz (HM.B.SS), Kingfisher (KGF.LN) and Smiths Group (SMIN.LN)
On today's agenda, in central banks, ECB's Lagarde participates at 11:00CET at EIB Group Climate and Environment Advisory Council. BOE's Mann speech at 14:15GMT at Royal Economic Society Annual Conf (thru Wed). Bundesbank's Balz panellist at 19:30CET at event hosted by Ostfriesische Volksbank Leer (cooperative bank) livestream.
In the UK, MPs questions on defence kicks-off House of Commons session. Institute for Government hosts event at 17:30GMT title General election: How big a threat is AI and disinformation to elections in 2024? Chancellor Scholz and Economics Minister Habeck will take part in the groundbreaking ceremony and start of construction for Northvolt's (+NVOLT.SS) battery gigafactory in Heide. In the evening, the Chancellor holds latest in "Chancellor Talk" series in Brandenburg/Havel. EU's Environment Council meets. EU's Šef�?ovi�? participates in the annual Brussels meeting of the Ad-Hoc Council on the topic '2024 a year of change for the EU?'. Conf. on The Demographic Transformation sees participation/speeches by a number of EU Commissioners. Also, Switzerland's KOF consensus forecast (survey of active economists in business and public administration on their forecasts).
Macro data releases out today include out today include Spain Feb PPI, inland Feb PPI. Netherlands Q4 final GDP already on the tape, coming in at (0.4%) y/y v preliminary (0.5%)
Holidays: Cyprus, Greece (Independence Day)
Politics/Macro/World News
Triple lock for pensions to be in Tory manifesto, Jeremy Hunt says - BBC
Fitch Revises the United Kingdom's Outlook to Stable; Affirms at 'AA-' - link
Harris Will Take on Sinn Fein, Migration as Next Irish Premier - Bloomberg
Polish central bank chief seeks truce with Tusk over 'idiotic' accusations - FT
Mixed signals cloud the way for the Bank of England - Times
Top company news
Earnings/updates
PSH.LN (Pershing Square Holdings) -- reports FY EPS $13.17 vs year-ago ($5.96)
SIGHT.FP (GenSight Biologics) -- reports FY EPS (€0.54) vs FactSet (€0.62) [2 est, (€0.65)-(0.58)]
Also reporting today
Earnings:
DACHs: Synlab (SYAB.GR), adesso (ADN1.GR), Heidelberg Pharma (HPHA.GR), Addex Therapeutics (ADXN.SW)
France: Quadient (QDT.FP)
Southern Europe: Technogym (TGYM.IM)
UK: Kingfisher (KGF.LN), Gamma Communications (GAMA.LN), Central Asia Metal (CAML.LN), Henry Boot (BOOT.LN), Virgin Wines (VINO.LN)
Trading Update: Pennon Group (PNN.LN)
M&A
ULVR.LN (Unilever) -- may sell most of its nutrition business - Mail on Sunday
TIT.IM (Telecom Italia) -- Italy, Asterion may make joint bid for Telecom Italia's Sparkle - Bloomberg
ATO.FP (Atos) -- Onepoint CEO David Layani reveals his plan to save Atos -- Le Figaro
DLG.LN (Direct Line Insurance Group) -- confirms Ageas does not intend to make an offer for Direct Line
NETW.LN (Network International Holdings) -- and Brookfield receive approval from Central Bank of the UAE for merger
SFOR.LN (S4 Capital) -- "Everyone is looking at" S4 Capital - London Times, citing PE source
MQG.AU (Macquarie Group) -- Macquarie looking at buying into Heathrow Airport - Telegraph
Other
STMPA.FP (STMicroelectronics) -- Italy, France reach agreement on STMicroelectronics governance - Bloomberg
SAP.GR (SAP) -- pursuing more US investors as it seeks to catch up with US competitors - Börsen-Zeitung
BN.FP (Danone) -- provides update on its EDP business in Russia
DTE.GR (Deutsche Telekom) -- amends first tranche of 2024's up-to-€2B buyback program
LHA.GR (Deutsche Lufthansa) -- Italian Finance Minister says EU opposes ITA Airways-Lufthansa deal - Handelsblatt
TIGO.SS (Millicom International Cellular) -- CFO Sheldon Bruha stepping down; effective 15-Apr
AVOL.SW (Avolta) -- adds Germany's Cologne Bonn Airport to operational portfolio with award of 17 new stores for ten years
CABK.SM (CaixaBank) -- discloses receipt of updated minimum fund requirements from Bank of Spain
FHZN.SW (Flughafen Zuerich) -- FOCA srarts stakeholder involvement on possible introduction of "roll-over mechanism" at Zurich Airport for upcoming charge period
WDP.BB (Warehouses de Pauw) -- Warehouses de Pauw's co-CEO Tony De Pauw to stand down effective 1-Jul; remains active as a special advisor
PNL.NA (PostNL) -- and trade unions reached agreement for new collective labor agreement
Estimated weekend box office revenues in US, Canada $103.4M, (11.3%) y/y - Box Office Mojo
Western Australia's TAB fails to attract sufficient interest - Australian Financial Review
Key rating changes
Upgrades
LEG.GR (LEG Immobilien) -- to overweight from underweight at Barclays
HEI.GR (Heidelberg Materials) -- to buy from hold at Deutsche Bank
UCB.BB (UCB) -- UCB assumed equal-weight at Morgan Stanley; prior rating was underweight
ERF.FP (Eurofins Scientifi) -- to buy from hold at Kepler Cheuvreux ;
Downgrades
ITX.SM (Inditex) -- to neutral from buy at UBS
TEG.GR (TAG Immobilien) -- to equal weight from overweight at Barclays
GLE.FP (Societe Generale) -- to equal-weight from overweight at Morgan Stanley
ATO.FP (ATOS) -- to sell from hold at Societe Generale
APPS.SM (Applus Services) -- to hold from buy at Kepler Cheuvreux
ITRK.LN (Intertek Group) -- to hold from buy at Kepler Cheuvreux
SLHN.SW (Swiss Life Holding) -- to hold from buy at Kepler Cheuvreux (
Other
LONN.SW (Lonza Group) -- initiated outperform at BNP Paribas Exane
Data
Nikkei (1.16%) to 40414.12
Hang Seng (0.11%) to 16480.84
Shanghai Composite (0.55%) to 3031.13
S&P futures (7.8) vs prior close of 5293.3
€-$ +0.0005 or +0.04% to 1.0814
$-¥ (0.05) or (0.04%) to 151.35
€-¥ (0.72) or (0.44%) to 163.70
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