Apr 23 ,2024
Synopsis
European equity markets set to open higher amidst Asian equities mostly higher Tuesday. Hang Seng again leading China markets as mainland stocks swing lower. TSMC rebound driving Taiex higher. Shares in Japan, Australia and Korea seeing milder gains. S&P 500 futures flat afterhours.
On today's agenda, Germany's Ministry of Finance publishes Apr monthly report. High-Level Task Force on the Digital Euro meeting. Online ABE-EBA meeting "The untapped power of bank-fintech partnerships", speakers include Bank of Lithuania's Krėpšta. Norway sovereign wealth fund annual investment conf from 12noon CET. Finland's President Stubb on state visit to Sweden. Informal meeting of EU health ministers (through Wed). In UK, parliamentary committee topics include Export-led growth (10:00BST) and UK trade policy: food and agriculture (14:30). EU's Šef�?ovi�? and Simson speak at the expert meeting 'The EU blueprint for fusion energy'. In Germany, DAV economic forum with the topic "The pharmacy reform of the traffic light coalition - opportunity or upheaval?". UK PM Sunak visits Poland and Germany (thru Wed), meets PM Tusk, NATO's Stoltenberg
In central banks, BOE's Haskel panellist at 9:00BST at event hosted by Bayes Business School. ECB's Fernandez-Bollo in roundtable at 10:15CET on AI organised by Regulation Partners in Lanzarote. Bank of Italy's Panetta lecture at ~11:30CET at Roma Tre University. BOE's Pill speech at 12:15BST at event at Univ. of Chicago. Bundesbank's Nagel speech at 14:30CET at event organised by Assn of German Banks, other speakers include Chancellor Scholz 9:10, finance minister Linder 14:00. BOE's Jackson speech at 15:30BST at event organised by UK Finance. Czech Central Bank 2024 discussion forum.
Macroeconomic calendar for today includes Eurozone, France, Germany, UK Apr preliminary manufacturing/services PMIs, UK Mar public sector borrowing and Kantar UK grocery market share figures and update on inflation for the 12 weeks ending 14 April 2024
In earnings news, in the DACHs region, Novartis (NOVN.SW), SAP (SAP.GR) and Kuehne & Nagel (KNIN.SW) reported Q1 earnings. In France, Plastic Omnium (POM.FP) and Renault (RNO.FP) issued their Q1 revenue with the latter reaffirming its 2024 outlook. In Benelux, Akzo Nobel (AKZA.NA) and Randstad (RAND.NA) updated investors with their latest Q1 numbers. In Italy, Saipem (SPM.IM) reported Q1 numbers.
Politics/Macro/World News
EU companies grapple with expiry of Russia sanctions carve-out - FT
Hungary to Slow Rate Reductions to Anchor Forint - Bloomberg
Rishi Sunak's Rwanda bill to become law after late-night showdown - BBC, The Guardian
Germany urges UK's Rishi Sunak to spend big on defense - Politico
Top company news
Earnings/updates
DACHs
NOVN.SW (Novartis) -- reports Q1 core EPS $1.80 vs consensus $1.67; raises FY24 guidance
SAP.GR (SAP) -- reports Q1 EPS €0.81 ex-items vs FactSet €0.98 [16 est, €0.81-1.29]
KNIN.SW (Kuehne & Nagel) -- reports Q1 EPS CHF2.30 vs StreetAccount CHF2.30
HYQ.GR (Hypoport) -- reports preliminary Q1 EBIT €4.3M vs year-ago €0.8M
XLS.SW (Xlife Sciences) -- reports FY EPS CHF2.73 vs year-ago CHF2.72
HABA.GR (Hamborner REIT) -- reports Q1 FFO €0.17 vs FactSet €0.17; reaffirms FY guidance
France
RNO.FP (Renault) -- reports Q1 revenue €11.71B vs StreetAccount €11.65B; reaffirms FY guidance
POM.FP (Plastic Omnium) -- reports Q1 consolidated revenue €2.61B vs year-ago €2.56B
OVH.FP (OVHCloud) -- reports H1 net income (€17.2M) vs year-ago (€26.6M)
Southern Europe
SPM.IM (Saipem) -- reports Q1 adjusted net income from cont. ops €57M vs FactSet €67.0M
ENC.SM (ENCE Energia y Celulosa) -- reports Q1 net income attributable €7.9M vs FactSet €9.8M
ENG.SM (Enagas) -- reports Q1 net income €65.3M vs StreetAccount €58.7M
Nordics
VAR.NO (Vår Energi) -- reports Q1 EPS $0.04 vs FactSet $0.07 [8 est, $0.04-0.09]
ENTRA.NO (Entra Eiendom) -- reports Q1 EPS NOK1.77 vs year-ago NOK2.13
ATRAV.FH (Atria) -- reports Q1 adjusted EPS €0.10 vs FactSet (€0.01)
NTI.NO (Norsk Titanium) -- offers operational & financial update
AGLX.NO (Agilyx) -- reports FY EPS continuing ops ($0.20) vs FactSet ($0.19)
MTRS.SS (Munters Group) -- reports Q1 EPS SEK1.19 vs FactSet SEK1.49
NETI.B.SS (Net Insight) -- reports Q1 EPS SEK0.04 vs year-ago SEK0.03
DNB.NO (DNB Bank) -- reports Q1 net income NOK10.20B vs consensus NOK9.28B
NORION.SS (Norion Bank) -- reports Q1 EPS SEK1.53 vs FactSet SEK1.48
WIHL.SS (Wihlborgs Fastigheter) -- reports Q1 EPRA NRVPS SEK 90.39 vs year-ago SEK 92.08
VPLAY.A.SS (Viaplay Group) -- reports Q1 net income SEK605M vs year-ago (SEK288M)
GIGA.NO (Gigante Salmon) -- reports Q1 net income (NOK31K) vs year-ago (NOK38K)
MING.NO (SpareBank 1) SMN's share of SpareBank 1 Gruppen's net profit after tax in Q1 was NOK39M vs year-ago NOK34M
BOL.SS (Boliden) -- reports Q1 EPS SEK4.16 vs consensus SEK3.89
INWI.SS (Inwido) -- reports Q1 EPS SEK0.37 vs FactSet SEK0.38
Benelux
BAI.NA (BenevolentAI) -- provides update on business priorities; will focus on its AI-driven drug discovery collaboration and proprietary pipeline revenue generating pillars
AKZA.NA (Akzo Nobel) -- reports Q1 adjusted EPS €1.12 vs consensus €0.86
RAND.NA (Randstad) -- reports Q1 adjusted net income €123M vs consensus €122M
BAR.BB (Barco) -- reports Q1 revenue €195.9M vs FactSet €209.0M
M&A
RI.FP (Pernod Ricard) -- Sainte Marguerite en Provence signs agreement to acquire Terres de Ravel estate and its 280 hectares of vineyards, terms not disclosed
MGN.NO (Magnora) -- notes Helios Nordic Energy hands over PV solar projects to a fund managed by Commerz Real
BFG.SS (BYGGFAKTA GROUP) -- applies for delisting in connection with previously announced acquisition
GHT.LN (Gresham Technologies) -- reaffirms Court and General Meetings in connection with offer from Alliance Bidco to be held on 16-May
Healthcare
SAN.FP (Sanofi) -- announces rilzabrutinib LUNA 3 phase 3 study met primary endpoint in immune thrombocytopenia
ALCLS.FP (Cellectis SA) -- to present data exploring new editing processes by TALEN at ASGCT
MDG1.GR (Medigene) -- launches 1-for-5 rights issue at €1.20/share
COV.FP (Covivio) -- announces signing of strategic partnership in Germany Residential with CDC investissement immobilier; transaction signed on the basis of portfolio valuation of €274M
Other
TEF.SM (Telefonica) -- SEC filing: SC 13D (Filed by State Industrial Participation Co)
VIV.FP (Vivendi) -- abstains from voting on Telecom Italia's board renewal at the 23-Apr-24 AGM
ENEL.IM (Enel) -- Italian antitrust authorities investigating Enel Energia over communication of energy price hikes
EQT.SS (EQT AB) -- resolves to repurchase up to 2.2M shares for total maximum amount of SEK 1.00B
Key rating changes
Upgrades
GETI.B.SS (Getinge) -- to buy from hold at DnB Markets
GETI.B.SS (Getinge) -- Getinge short-term recommendation upgraded to buy from hold at Handelsbanken
HLUN.B.DC (H. Lundbeck) -- H. Lundbeck short-term recommendation downgraded to hold from buy at Handelsbanken
OVS.IM (OVS) -- to buy from hold at Equita
TEL.NO (Telenor) -- to buy from hold at Deutsche Bank
GALP.PL (Galp Energia SGPS) -- to equal-weight from underweight at Morgan Stanley
to outperform from neutral at BNP Paribas Exane
to outperform from neutral at Santander
STMPA.FP (STMicroelectronics) -- to buy from hold at Berenberg
MBTN.SW (Meyer Burger Technology) -- to buy from reduce at Baader Helvea
TROAX.SS (Troax Group) -- to buy from hold at Carnegie Securities
LR.FP (Legrand) -- to buy from neutral at Goldman Sachs
SAND.SS (Sandvik) -- to buy from hold at Pareto
Downgrades
RTO.LN (Rentokil Initial) -- Rentokil Initial reinstated neutral at JPMorgan; prior rating was overweight
BNR.GR (Brenntag) -- to Add from Buy at Baader Helvea
EMBRAC.B.SS (Embracer Group) -- to hold from buy at Deutsche Bank
LTG.LN (Learning Technologies Group) -- to hold from buy at Berenberg
YACHT.IM (Ferretti) -- to neutral from outperform at BNP Paribas Exane
Initiations
BIM.FP (bioMerieux) -- buy at Deutsche Bank
ITP.FP (Interparfums) -- buy at Berenberg
SL.IM (Sanlorenzo) -- outperform at BNP Paribas Exane
Others
VIMIAN.SS (Vimian Group) -- resumed buy at Carnegie Securities
Data
Nikkei +0.24% to 37526.77
Hang Seng +1.84% to 16815.99
Shanghai Composite (0.35%) to 3033.85
S&P futures (3.0) vs prior close of 5047.5
€-$ (0.0002) or (0.02%) to 1.0653
$-¥ (0.05) or (0.03%) to 154.79
€-¥ (0.08) or (0.05%) to 164.88
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