Apr 26 ,2024
Synopsis
European indices are set to open higher as Asian indices trade up after the BOJ left key policy rate unchanged, matching expectations.
Greater China markets gaining momentum with Hang Seng extending its week-to-date outperformance on property developers. Semis driving gains in Korea and Taiwan. Nikkei widened gains following BOJ decision
US equities ended lower Thursday, just off best levels as market regained some sharp early-morning losses. All four major indices still positive for the week. Big tech was mixed with META a notable decliner on its report but NVDA jumped. Laggards also included autos, credit cards, media (CMCSA), retail/apparel, IT services, biotech, banks, and containerboard (IP).
Among central banks updates: SNB's Steiner and Jordan speak at SNB's general meeting of shareholders at 10:00CET. ECB's 'ChaMP' conf, Bank of Portugal's Centeno panellist at 11:00CET and Germany's President Steinmeier visits the Bundesbank at the same time.. ECB's de Guindos lecture at 10:00CET at Academia Europea Leadership. Russia Central Bank is expected to leave its benchmark interest rate unchanged at 16% when it announces its decision at 11:30BST, press conf 13:00.
Macroeconomic releases due today include: : UK Apr consumer confidence - GfK, France Apr consumer confidence, Spain Q1 unemployment rate, Mar retail sales, Norway Mar retail sales, Sweden Mar trade balance, Eurozone Mar M3 money supply
In corporate news: Betsson reports Q1 EPS €0.30 vs FactSet €0.25. (KEMIRA.FH) Kemira reports Q1 EPS €0.49 vs FactSet €0.40. Cloetta reports Q1 EPS SEK0.37 vs FactSet SEK0.41. Remy Cointreau reports Q4 revenue €237.5M vs consensus €231; 2023-24 COP margin guidance confirmed. Saab reports Q1 EPS SEK5.71 vs FactSet SEK5.88. Proximus reports Q1 adjusted EBITDA €454M vs consensus €441.0M; reaffirms FY guidance. Umicore confirms that it expects FY24 EBITDA between €900M-€950M vs FactSet €932.2M; updates on Q1.
On today's agenda in UK/Ireland: Kingspan Group (KRX.ID), Smurfit Kappa (SKG.LN), Pearson (PSON.LN)
Politics/Macro/World News
Top company news
Earnings/updates
AIR.FP (Airbus SE) -- reports Q1 Adjusted EBIT €577M vs consensus €789.0M; FY24 guidance unchanged
SAF.FP (Safran) -- reports Q1 revenue €6.22B vs consensus €6.14B; FY24 outlook reaffirmed
AC.FP (Accor) -- reports Q1 revenue €1.24B vs consensus €1.22B
SGO.FP (Compagnie de Saint-Gobain) -- reports Q1 revenue €11.36B vs StreetAccount €11.35B
DG.FP (VINCI SA) -- reports Q1 revenue €15.73B vs consensus €15.54B; confirms FY guidance
SKF.B.SS (SKF) -- reports Q1 EPS SEK4.83 ex-items vs FactSet SEK4.18 [15 est, SEK3.32-4.70]; reaffirms FY guidance
FR.FP (Valeo SE) -- reports Q1 revenue €5.43B vs StreetAccount €5.50B; 2024 and 2025 objectives reaffirmed
URW.FP (Unibail-Rodamco-Westfield) -- reports Q1 Proportionate revenue €942.8M vs year-ago €909.3M; confirms FY guidance
SGSN.SW (SGS) -- reports Q1 revenue CHF1.58B vs FactSet CHF1.58B [1 est]
SCHA.NO (Schibsted) -- reports Q1 Adj. EPS (NOK0.40) vs consensus NOK0.57
LIGHT.NA (Signify) -- reports Q1 net income €44M vs consensus €37M
ATE.FP (Alten) -- reports Q1 revenue €1.07B vs FactSet €1.08B [2 est, €1.08-1.08B]
SK.FP (SEB) -- reports Q1 revenue €1.89B vs FactSet €1.87B [2 est, €1.85-1.88B]
GFC.FP (Gecina) -- reports Q1 total gross rental income €173.8M, +4% vs year-ago €166.7M
TLX.GR (Talanx) -- reports preliminary Q1 net income €572M vs FactSet €480.0M [1 est]; maintains FY forecast
SBS.GR (Stratec) -- reports Q1 EPS €0.10 ex-items vs year-ago €0.18; reaffirms FY guidance
MF.FP (Wendel) -- reports Q1 revenue €1.85B, +12% vs year-ago €1.65B
CLARI.FP (Clariane) -- reports Q1 revenue €1.31B vs FactSet €1.26B [1 est]
FTK.GR (flatexDEGIRO) -- reports Q1 net income €30.0M vs FactSet €29.2M [3 est, €29-29.5M]; guides FY revenues and net income at upper end of prior guidance
TKTT.FP (Tarkett) -- reports H1 revenue €668.1M, (4%) vs year-ago €698.4M
VU.FP (VusionGroup) -- reports Q1 adjusted sales €177.7M, +12% vs year-ago €159.3M
FII.FP (Lisi) -- reports Q1 revenue €449.3M vs FactSet €426.0M [1 est]
M&A
TKA.GR (ThyssenKrupp) -- EP Corporate Group set to acquire 20% stake in ThyssenKrupp's steel business; in discussions to purchase additional 30%; goal of establishing 50/50 jv
AAL.LN (Anglo American) -- does not find BHP's all share proposal attractive - Reuters
LHA.GR (Deutsche Lufthansa) -- Lufthansa planning to submit new concession proposal to EU regulators in effort to get ITA Airways transaction approved -- Bloomberg
FUSN (Fusion Pharmaceuticals) -- announces the Ontario Superior Court of Justice issues interim order in connection with previously announced arrangment with AstraZeneca
DUE.GR (Duerr) -- sells Danish subsidiary Agramkow
MOL.HB (MOL Hungarian Oil & Gas) -- MOL closed the acquisition of 15% stake in Waberer's
SHUR.BB (Shurgard Self Storage) -- acquires additional property from Box à la Carte; total acquisition cost of €9.3M
Healthcare
GSK.LN (GSK Plc) -- GSK files US patent infringement suit against Pfizer/Biontech over mRNA technology in companies' COVID-19 vaccines -- Reuters (earlier, intraday)
IDIA.SW (Idorsia) -- receives positive opinion from EU's CHMP for JERAYGO (aprocitentan) for treatment of resistant hypertension
Other
ELUX.B.SS (Electrolux) -- Group announces Jonas Samuelson will leave position as President & CEO on 1-Jan-25
TIGO.SS (Millicom International Cellular) -- board appoints Marcelo Benitez as CEO; effective 1-Jun-24
VK.FP (Vallourec) -- wins additional order from ExxonMobil Guyana
IGG.LN (IG Group Holdings) -- IG Group under fire from clients for money incorrectly being removed from accounts; company blames technical issue - FT
FDJ.FP (La Francaise des Jeux) -- board implements share buyback program
ATE.FP (Alten) -- board to propose a dividend of €1.50 per ordinary share at 2024 AGM on 20-Jun
NEL.NO (NEL ASA) -- Nel partners with Hy Stor Energy on Mississippi Clean Hydrogen Hub and receives capacity reservation for more than 1 gigawatt of alkaline electrolysers
Unibail-Rodamco-Westfield notes higher US sales, footfall in Q1 results
Key rating changes
Upgrades
ABDN.LN (abrdn Plc) -- to hold from reduce at HSBC
AHT.LN (Ashtead Group) -- Ashtead Group assumed buy at HSBC; prior rating was hold
AKSO.NO (Aker Solutions) -- to neutral from underweight at JPMorgan
AZN.SS (AstraZeneca) -- AstraZeneca short-term recommendation upgraded to buy from hold at Handelsbanken
FABG.SS (Fabege) -- to buy from hold at Pareto
HUSQ.B.SS (Husqvarna) -- to buy from hold at Jefferies
REG1V.FH (Revenio Group) -- to buy from hold at Danske Bank
Downgrades
KER.FP (Kering) -- to hold from buy at TD Cowen
ANOD.B.SS (Addnode Group) -- to hold from buy at Carnegie Securities
PNDX.B.SS (Pandox) -- to hold from buy at DnB Markets
Data
Nikkei +1.05% to 38023.89
Hang Seng +2.43% to 17705.23
Shanghai Composite +1.20% to 3089.46
S&P futures +42.5 vs prior close of 5082.3
€-$ (0.0003) or (0.03%) to 1.0727
$-¥ +0.48 or +0.31% to 156.12
€-¥ +0.42 or +0.25% to 167.45
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