Apr 30 ,2024
Synopsis
European equity markets set to open mixed whilst Asia equities trading mostly higher Tuesday. Mainland China the lone decliner, contrasting with gains in the rest of the region led by Japan. US contracts narrowly mixed following cash gains in a mostly uneventful session.
European macro data releases out today include: Germany Q1 preliminary GDP, Apr unemployment change, Mar retail sales, France Q1 preliminary GDP, Apr preliminary CPI, Mar PPI, household consumption, Switzerland Apr leading indicator - KOF, Italy Q1 preliminary GDP, Apr preliminary CPI, UK Mar mortgage approvals, M4 money supply, Eurozone Q1 preliminary GDP, Apr preliminary CPI, Denmark Mar unemployment rate, Austria Q1 preliminary GDP, Apr preliminary CPI, Mar PPI, Portugal Q1 preliminary GDP, Apr preliminary CPI, Mar retail sales, Greece Mar PPI, Feb retail sales
Also on today's agenda, in the UK, MPs consider Lords amendments to Digital Markets, Competition and Consumers Bill. Committee topics include export-led growth (10:00BST), Are the UK's Russian financial sanctions working? (10:15), whilst Secretary of State for Foreign, Commonwealth and Development Affairs Cameron is before committee (15:00).
In central banks, Norges Bank's Bache and Norges Bank Investment Management CEO Tangen before the Standing Committee on Finance and Economic Affairs of the Storting at 10:15CET. ECB's Buch speech at 12:00CET at conf "Globalisation: What's Next?" co-organised by Banque de France, CEPR, World Bank, and the Univ. of Surrey. BOE's Mills speech at 13:00BST at London Institute of Banking & Finance. Spain publishes Annual Report 2023. Bundesbank's Balz speech at 19:00CET at Bamberg Business Assn. Bank of Spain publishes Annual Report 2023.
In earnings, in the DACHs region, Covestro (1COV.GR), Clariant (CLN.SW), Mercedes-Benz Group (MBG.GR), Volkswagen (VOW3.GR), OMV (OMV.AV), Erste Group Bank (EBV.AV) and Deutsche Lufthansa (LHA.GR) reported Q1 earnings. In France, Capgemini (CAP.FP), Rexel (RXL.FP), Exclusive Networks (EXN.FP) and Thales (HO.FP) issued Q1 updates with the latter confirming its targets for 2024.
In Nordics, Kongsberg Gruppen (KOG.NO), Aker Horizons (AKH.NO), Sparebanken Vest (SVEG.NO) and Telenor (TEL.NO) are amongst others in the region to update investors with their latest numbers. Elsewhere, HSBC Holdings (HBA.LN), Banco Santander (SAN.SM) and CaixaBank (CABK.SM) reported Q1 earnings.
Politics/Macro/World News
French capital markets union plan gets backing from European funds body - FT
France Grows in Hope Region Out of Recession: Europe GDP Latest - Bloomberg
Labour poised to profit from SNP chaos after Humza Yousaf resigns - The Times
Northern Irish farmers face supply chain risks over Brexit deal, warn Lords - FT
Top company news
Earnings/updates
DACHs
LOGN.SW (Logitech International) -- reports Q4 non-GAAP EPS $0.99 vs StreetAccount $0.66
STMN.SW (Straumann Holding) -- reports Q1 revenue CHF643.8M vs StreetAccount CHF633.3M; on track to meet 2024 outlook
1COV.GR (Covestro) -- reports Q1 net income (€35M) vs year-ago (€26M); confirms FY24 outlook and guides Q2
NEM.GR (Nemetschek) -- reports Q1 net income €42.5M vs FactSet €42.9M [4 est, €42.5-43.3M]; Outlook for 2024 and Ambition for 2025 confirmed
CLN.SW (Clariant) -- reports Q1 EBITDA CHF184M ex-items vs consensus CHF161.0M; confirms FY guidance
FPE3.GR (FUCHS SE) -- reports Q1 EPS €0.58 vs FactSet €0.58
VNA.GR (Vonovia) -- reports Q1 EPRA NTA per share €46.72 vs year-ago €46.82; confirms its FY24 forecast
MBG.GR (Mercedes-Benz Group) -- reports Q1 EPS €2.86 vs FactSet €2.63 [7 est, €2.41-2.79]; confirms FY24 financial targets
BALN.SW (Baloise) -- publishes Financial Condition Report 2023; as per 1-Jan-24, Group Swiss Solvency Test ratio 207%
OMV.AV (OMV) -- reports Q1 Clean CCS Net Income attributable €696M vs consensus €572M
WIHN.SW (WISeKey International Holding) -- announces extension of deadline for publication of its Annual Report; issues prelim FY numbers
SIGN.SW (SIG Combibloc Group) -- reports Q1 adjusted net income €39.7M vs FactSet €51.8M; FY guidance confirmed
RLF.SW (RELIEF THERAPEUTICS Holding) -- reports FY net income (CHF98.2M) vs year-ago (CHF50.8M) - Annual Report
LHA.GR (Deutsche Lufthansa) -- reports Q1 net income (€734M) vs FactSet (€562.3M)
BRNK.GR (Branicks Group) -- reports FY FFO €0.62 vs FactSet €0.60
DWNI.GR (Deutsche Wohnen) -- reports preliminary Q1 Adj. pretax income €141.3M
EBS.AV (Erste Group Bank) -- reports Q1 net income €783M vs consensus €731.4M
FIE.GR (Fielmann Group) -- reports final FY numbers in line with preliminaries as of 29-Feb; reports Q1 sales €529M vs FactSet €525.6M
VOW3.GR (Volkswagen) -- reports Q1 net income €3.27B vs StreetAccount €3.41B; Outlook 2024 confirmed
France
CAP.FP (Capgemini) -- reports Q1 revenue €5.53B vs consensus €5.55B
ALCLS.FP (Cellectis SA) -- reports Q4 EPS ($0.59) vs FactSet ($0.30) [1 est]
RXL.FP (Rexel) -- reports Q1 sales €4.71B vs consensus €4.75B
POXEL.FP (Poxel) -- SCOR SE Q1 financial update; postpones publication of its 2023 FY results
VCT.FP (Vicat) -- reports Q1 revenue €911M vs year-ago €899M
EXN.FP (Exclusive Networks) -- reports Q1 revenue €1.26B vs FactSet €1.25B [1 est]; confirms FY guidance
VETO.FP (Vetoquinol) -- reports Q1 revenue €133.7M vs FactSet €146.2M
ALTHX.FP (Theranexus) -- reports FY net income (€6.8M) vs year-ago (€6.6M)
DEEZR.FP (Deezer) -- reports Q1 revenue €132.5M vs year-ago €115.2M
HO.FP (Thales) -- reports Q1 revenue €4.42B vs consensus €4.36B; confirms its targets for 2024
SESG.FP (SES) -- reports Q1 net income attributable €73M vs consensus €39M; reaffirms FY guidance
UK
HSBA.LN (HSBC Holdings) -- reports Q1 EPS ex-items $0.34 vs FactSet $0.25 [3 est, $0.10-0.34]
PRU.LN (Prudential) -- Q1 update: APE sales +7% on constant exchange rate y/y to $1.63B
Southern Europe
CABK.SM (CaixaBank) -- reports Q1 net income attributable €1.01B vs consensus €1.00B
TENERGY.GA (Terna Energy) -- reports FY adjusted net income from cont. ops. €64.6M vs FactSet €61.4M
GEKTERNA.GA (GEK Terna) -- reports FY EPS €1.42 ex-items vs FactSet €1.26 [1 est]
SAN.SM (Banco Santander) -- reports Q1 underlying attributable profit €2.85B vs consensus €2.89B
LTMC.IM (Lottomatica Group) -- reports Q1 adjusted net income €49.7M;guides FY24 including 8 months of contribution from SKS365
Nordics
KOG.NO (Kongsberg Gruppen) -- reports Q1 EPS NOK6.36 vs FactSet NOK5.49 [5 est, NOK4.88-5.90]
LSG.NO (Lerøy Seafood Group) -- repeats FY25 harvest volume guidance of 205,000 GWT in annual report
MUSTI.FH (Musti Group) -- reports Q2 EPS (€0.15) vs FactSet €0.21
AKH.NO (Aker Horizons) -- reports Q1 pretax income (NOK2.07B)
AKTIA.FH (Aktia Bank) -- reports Q1 EPS €0.38 vs FactSet €0.32
TEL.NO (Telenor) -- reports Q1 net income NOK11.56B vs consensus NOK7.91B; reaffirms FY guidance
NAVA.NO (Navamedic) -- reports Q1 net income (NOK1.6M) vs year-ago NOK13.2M
MPCES.NO (MPC Energy Solutions) -- reports Q1 EPS $0.02 vs year-ago
SATS.NO (SATS ASA) -- reports Q1 EPS NOK0.38 vs FactSet NOK0.28
SVEG.NO (Sparebanken Vest) -- reports Q1 net income NOK1.22B vs FactSet NOK1.16B
SCATC.NO (Scatec) -- reports Q1 EPS (NOK0.73) vs year-ago (NOK1.02)
BWE.NO (BW Energy) -- issues Q1 trading update
Benelux
ARCAD.NA (ARCADIS) -- reports Q1 operating EBITA €104M vs FactSet €129.0M
VLK.NA (Van Lanschot Kempen) -- reports Q1 net income €32.7M vs year-ago €19.9M
UPG.BB (Unifiedpost Group) -- issues strategic update and FY24 objectives
M&A
GS (Goldman Sachs) -- in talks to transfer General Motors credit-card business to Barclays - Reuters
CPHN.SW (CPH Chemie + Papier Holding) -- closes acquisition of Sorbead India and Swambe Chemicals
BRKN.SW (Burkhalter Holding) -- to acquire Elektro Bernina AG in Madulain; terms undisclosed
Healthcare
PFE (Pfizer) -- FDA approves Pfizer's tisotumab vedotin-tftv for recurrent or metastatic cervical cancer
RYTM (Rhythm Pharmaceuticals) -- reports previously disclosed results from Phase 2 study of setmelanotide published in The Lancet Diabetes & Endocrinology
REC.IM (Recordati) -- FDA grants orphan drug designation to Isturisa for endogenous Cushing's syndrome
BAVA.DC (Bavarian Nordic A/S) -- Bavarian Nordic receives €65M contract to supply smallpox vaccines for EU strategic reserve
SDZ.SW (Sandoz Group) -- Amgen (AMGN) and Sandoz reach settlement agreement for denosumab biosimilar candidates; launch by 31-May-2025
NWRN.SW (Newron Pharmaceuticals) -- Phase II/III study 008A of evenamide meets primary, key secondary endpoints
4587.JP (PeptiDream) -- expands peptide discovery collaboration with Novartis
Other
ERIC.B.SS (Telefonaktiebolaget LM Ericsson) -- Ericsson warns Europe is at risk of falling behind on digital infrastructure as overregulation drives it to irrelevance - FT, citing CEO interview
GLEN.LN (Glencore) -- A number of Glencore's largest shareholders advocate for keeping coal assets - Bloomberg, citing people familiar with the matter
NESTE.FH (Neste) -- President and CEO Matti Lehmus to step down
KOG.NO (Kongsberg Gruppen) -- announces NOK 255M contract to develop THOR Remote Control Terminal for Norwegian Defence Materiel Agency
FRAS.LN (Frasers Group) -- to acquire IP assets of Matches Fashion
DAN.IM (Danieli & C. Officine Meccaniche) -- Chairman Gianpietro Benedetti passes away
AES Brazil unit receiving interest from TotalEnergies (TTE.FP), China Three Gorges (600905.CH), and Auren Energia(AURE3.BZ) - Bloomberg (earlier)
Quick Take - BHP Group's rejected offer for Anglo American & Samarco settlement commentary
Key rating changes
Upgrades
PHIA.NA (Koninklijke Philips) -- to buy from hold at Kepler Cheuvreux
to hold from sell at Deutsche Bank
to neutral from sell at UBS
to neutral from underweight at JPMorgan
LDA.SM (Linea Directa Aseguradora) -- to buy from hold at Berenberg
HUM.SS (Humana AB) -- to buy from hold at ABG Sundal Collier
Downgrades
WRT1V.FH (Wartsila) -- to reduce from buy at Inderes
ANTO.LN (Antofagasta) -- to sell from reduce at Peel Hunt
DWS.GR (DWS Group) -- to neutral from overweight at JPMorgan
MANTA.FH (Mandatum) -- to hold from buy at SEB
Initiations
DHL.GR (DHL Group) -- overweight at Morgan Stanley
Data
Nikkei +0.80% to 38237.88
Hang Seng (0.28%) to 17696.38
Shanghai Composite (0.23%) to 3105.92
S&P futures (10.3) vs prior close of 5147.0
€-$ (0.0027) or (0.25%) to 1.0696
$-¥ +0.44 or +0.28% to 156.78
€-¥ +0.00 or +0.00% to 167.59
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