Jun 03 ,2024
Synopsis
European equity markets are set for a positive open amidst higher Asian equities Monday. Regional benchmarks notably higher with semis/tech contributing to Kospi and Taiex outperformance. Hang Seng leading China markets with techandproperty stocks rallying.Mainlandstocks weaker. Indian stocks staging post-election rally. S&P 500 futures edging higher.
Over the weekend, Icelandic presidential election saw Halla Tomasdottir, an entrepreneur, winning the election with 34% of the votes to beat former PM Katrin Jakobsdottir with 25%. Tomasdottir will be sworn in on 1-Aug. On Sun (2nd), OPEC+ ministerial meeting agreed to extend deep production cuts into next year.
In the UK, BBC announced its line-up of televised general election debates starting on Friday 7-Jun and likely concluding with a final head-to-head clash between Rishi Sunak and Sir Keir Starmer before polling day. Chancellor Scholz delivers a speech at 17:00CET at German School of Journalism whilst France, Italy, Spain May new car registrations are due to be released
In central banks, BBC has announced televised general election debates starting next Friday 7th June and likely ending with head-to-head clash between Rishi Sunak and Keir Starmer before polling day. Croatia Central Bank's Vuj�?ić speech at 2:15CET at Croatian-Korean business forum in South Korea. Lithuanian central bank's Simkus speech at 9:00CET in connection with the Financial Stability Review. Bank of Portugal's Centeno speech at 14:30BST at conf on Financial Intermediation co-hosted with CEPR. Latvia Central Bank's Kaz�?ks speech at the EBIT conf. Italy's Central bank jointly hosts event on Digital Policy and Data Governance in the Age of AI, speakers include Senior Deputy Governor Signorini.
On the macro front, Germany May unemployment change, Spain May unemployment change, Switzerland May CPI, Eurozone Apr consumer inflation expectations and UK May retail sales monitor - BRC are due to be released.
A light earnings front sees, DSM-Firmenich (DSFIR.NA) guiding mid-term organic sales growth of 5-7% and adj EBITDA margin of 22-23% in connection with its CMD whilst Cosmo Pharmaceuticals (COPN.SW) reports FY net income (€4.7M) vs year-ago €17.5M and ATOS SE (ATO.FP) releasing a market update saying they have received two revised financial restructuring proposals as part of conciliation process
ALK-Abello (ALK.B.DC), ITV (ITV.LN) and Kongsberg Gruppen (KOG.NO) are due to to host CMDs/investor events.
Politics/Macro/World News
Opec+ agrees to extend deep production cuts into next year - FT
BBC announces dates for election TV debates - BBC
Iceland elects businesswoman Halla Tomasdottir as new president, beating former PM - Reuters
Netherlands Apr Retail Sales +2.3% y/y vs consensus +4.9% and prior revised +4.3% from +4.8% (00:30ET)
Top company news
Earnings/updates
Benelux:
DSFIR.NA (DSM-Firmenich) -- sees mid-term organic sales growth of 5-7% and adj EBITDA margin of 22-23% -- CMD
DACHs:
COPN.SW (Cosmo Pharmaceuticals) -- reports FY net income (€4.7M) vs year-ago €17.5M
France:
ATO.FP (ATOS SE) -- market update: received two revised financial restructuring proposals as part of conciliation process
M&A
AIR.FP (Airbus)-- A consortium of Japanese businesses led by NTT DOCOMO commit to invest $100M in AALTO HAPS Limited
TWEKA.NA (TKH Group) -- completes divestment of HE System Electronic to Magna International, deal announced 15-May
GVOLT.PL (Gamma Lux Holdco S.à.r.l. (KKR)) -- has control over 78.9% of Greenvolt Energias Renováveis shares; announce mandatory tender offer
SAN.FP (Sanofi) -- proceeding with dual track sale process and potential spin-off of consumer division; expected to value business at ~€20B - FT
HO.FP (Thales) -- completes the sale of its Ground Transportation Systems business to Hitachi Rail for €1.66B (enterprise value)
CO.FP (Casino Guichard-Perrachon) -- completes the sale of 90 stores to Groupement Les Mousquetaires and Auchan Retail France
HLN.LN (Haleon) -- completes disposal of ChapStick brand to Suave Brands Company
ATO.FP (ATOS SE) -- market update: received two revised financial restructuring proposals as part of conciliation process
NEOEN.FP (Neoen) -- ACCC approval of Brookfield's potential acquisition of Neoen not a sure thing - Australian Financial Review
ONTEX.BB (Ontex Group) -- Ontex finalizes divestment of its business in Pakistan
CLA.B.SS (Cloetta) -- to divest Nutisal brand
SONG.LN (Hipgnosis Songs Fund) -- Blackstone set to sweeten offer for Hipgnosis Songs Fund; planning to change it to scheme of arrangement - FT
003490.KS (KOREAN AIR LINES Co.) -- Korean Air planning to order up to 30 new jets from Boeing as soon as next month - Bloomberg
ATRLJ.B.SS (Atrium Ljungberg) -- sells two properties in Sundbyberg
ODHN.SW (Orascom Development Holding) -- enters sale agreement for RAK Tourism Investment FZC; enterprise value $40M
TFF.FP (TFF Group) -- acquires 51% stake in the PETITRENAUD group; terms undisclosed
V3S.GR (Vectron Systems) -- enters into business combination agreement with the Shift4 group
Healthcare
TNG.FP (Transgene) -- enrolls first patient in Phase II part of randomized Phase I/II trial evaluating lead cancer vaccine TG4050 in head and neck cancer
ALK.B.DC (ALK-Abello) -- presents positive phase 3 paediatric trial data at EAACI
JNJ (Johnson & Johnson) -- announces new data from the Phase 3 MARIPOSA study demonstrating treatment with RYBREVANT in combination with lazertinib in patients with high-risk disease
AZN.LN (AstraZeneca) --
announces ENHERTU (fam-trastuzumab deruxtecan-nxki) demonstrated a median progression-free survival of 13.2 months in HR-positive, HER2-low and HER2-ultralow metastatic breast cancer following one or more lines of endocrine therapy
AstraZeneca's IMFINZI (durvalumab) is the first and only immunotherapy to show survival benefit in limited-stage small cell lung cancer in global Phase III trial, reducing the risk of death by 27% vs. placebo
announces TAGRISSO (osimertinib) reduced the risk of disease progression or death by 84% in patients with unresectable, stage III EGFR-mutated lung cancer vs. placebo in LAURA Phase III trial
AstraZeneca's Truqap (capivasertib) plus fulvestrant now available in Canada
GSK.LN (GSK Plc) --
announces belantamab mafodotin combination reduced the risk of disease progression or death by nearly 50% versus standard of care combination in relapsed/refractory multiple myeloma
issues statement regarding Zantac (ranitidine) litigation; to appeal ruling by Delaware State Court
4502.JP (Takeda Pharmaceutical) -- Takeda and Pfizer announce four-year results from positive Phase 3 HD21 trial of additional ADCETRIS (brentuximab vedotin) combination in frontline hodgkin lymphoma
BNTX (BioNTech) -- announces initial data from ongoing Phase 2 trial evaluating acasunlimab which in combination with Pembrolizumab demonstrates meaningful clinical activity in phase 2 trial in patients with previously treated mNSCLC
GMAB.DC (Genmab) -- reports new efficacy and safety data from two ongoing Phase 1/2 clinical trials evaluating epcoritamab
IDIA.SW (Idorsia) -- presents new data with daridorexant at SLEEP 2024
MOLN.SW (Molecular Partners) -- presents positive data from completed phase 1 trial of MP0317 (FAP X CD40 DARPin) monotherapy in patients with advanced solid tumors at ASCO 2024
NANO.FP (Nanobiotix) -- announces new data showing disease control and tumor response in patients treated with RT-activated NBTXR3 followed by anti-PD-1 for 2l+ R/M HNSCC Naïve or resistant to prior anti-PD-1 therapy
TLX.AU (Telix Pharmaceuticals) -- submits BLA to FDA for TLX250-CDx (Zircaix) for characterization of renal masses as clear cell renal cell carcinoma
CANTA.SS (Cantargia) -- ASCO presentation highlights positive clinical data on nadunolimab counteracting neuropathy
Other
AFG.NO (AF Gruppen) -- wins contract with a value that exceeds NOK500M excl VAT
EVT.GR (Evotec) -- and QIAGEN enter software collaboration for enhanced multi-omics data insights
BWE.NO (BW Energy) -- concludes the drilling and the logging of the DHIBM-7P pilot well; specifies estimated increase in Hibiscus gross recoverable reserves
RLF.SW (RELIEF THERAPEUTICS Holding) -- interim CEO Michelle Lock and interim CFO Andrew Einhorn transit out as CEO and CFO respectively
AC.FP (Accor) -- shareholders approve buyback program for up to €1.76B
LHA.GR (Deutsche Lufthansa) -- Lufthansa seeking to expand into military, weapon-carrying systems - Handelsblatt
KPN.NA (Royal KPN) -- completes €200M share buyback
SUBC.NO (Subsea 7) -- awarded four PLSV contracts in Brazil
BAKKA.NO (Bakkafrost) -- holder Sprucegrove Investment Management increases stake to 5.02%
KOG.NO (Kongsberg Gruppen) -- awarded $141.0M USAF contract
NAS.NO (Norwegian Air Shuttle) -- and the Norwegian Pilot Union reach agreement through mediation
AKAST.NO (Akastor) -- ASA 50% owned affiliate HMH announces its intention to pursue US listing
022.GR (NextTrip) -- SEC filing: NT 10-K
Estimated weekend box office revenues in US, Canada $64.0M, (68.8%) y/y - Box Office Mojo
France May new passenger car registration (2.9%) y/y to 141,298 vehicles -- PFA (1-Jun)
Qatar Airways nears decision on Boeing and Airbus widebody jet order - Bloomberg
Key rating changes
Upgrades
RXL.FP (Rexel) -- buy from hold at Kepler Cheuvreux
RCDO.LN (Ricardo) --buy from hold at Berenberg
Goldman Sachs upgrades GPE.LN; downgrades LAND.LN
JPMorgan upgrades QLT.LN, STJ.LN
ANE.SM (Corporación Acciona Energías Renovables) -- to equal-weight from underweight at Morgan Stanley
AZA.SS (Avanza Bank Holding) -- to equal weight from underweight at Barclays
FGR.FP (Eiffage) -- to buy from neutral at Goldman Sachs
Initiations
BNP Paribas Exane initiates BYG.LN, SAFE.LN; transfers SHUR.BB
SAAB.B.SS (Saab) -- buy at UBS
Data
Nikkei +1.21% to 38952.90
Hang Seng +2.37% to 18508.41
Shanghai Composite (0.42%) to 3073.92
S&P futures +12.3 vs prior close of 5295.5
€-$ +0.0005 or +0.05% to 1.0853
$-¥ +0.14 or +0.09% to 157.40
€-¥ +0.20 or +0.12% to 170.81
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