Jun 12 ,2024
Synopsis
European equity markets set to open flat to higher. Asia equities trading mixed to mostly lower Wednesday. Hong Kong the biggest laggard followed by Japan and Australia.
Broader market focus now squarely on upcoming US CPI and FOMC meeting. CPI gains seen slowing sequentially with year-ago changes little changed at the headline and core measure edging lower. Consensus largely coalesced on Fed remaining on hold until at least September though key focus will be on whether the median dot for 2024 shifts down to two or just one rate cut from the three seen at the March meeting.
European macro data releases out today include Germany May final CPI, UK Apr industrial/manufacturing production, trade balance, construction output, May monthly GDP tracker - NIESR
Among stocks in focus this morning, in the Italian energy sector, Eni (ENI.IM) announces that it has successfully completed the sale of 10% of the share capital of Saipem (SPM.IM) at €1.97 per share, totaling approximately €393M of proceeds. Rentokil (RTO.LN) eyed amid reports the activist Trian has taken a 'significant position' in the UK company. Umicore (UMI.BB) lowers FY24 adj EBITDA guidance for group and Battery Materials Business due to slowdown in EV growth. Bilfinger (GBF.GR) hosting CMD and updates FY24 revenue outlook to €4.8-5.2B from €4.5-4.8B, EBITA margin range to 4.8-5.2% from 4.9% to include acquired Stork units
Attention on news European Commission to apply additional duties of 25% on imported China-made EVs from July, far short of 50% tariff cited by think tank as necessary to effectively curb imports. Germany still said to be objecting to tariff on fears it may trigger trade war.
Among central bank speakers, Bundesbank's Balz speech at 9:00CET at Bundesbank-Symposium 2024 - Banking supervision in dialogue; ECB's Buch speech at 13:30, Tuominen panellist at 11:15 and makes closing remarks at 16:00. ECB's Schnabel speech at 11:30CET at the Finance Committee of the German Bundestag. MNI Connect event with ECB's de Guindos at 14:00BST. ECB's McCaul speech at 15:45CET at the Central Banking's Summer Meetings (through Thu). Bundesbank's Mauderer speech at 16:05CET at Wirtschaftstag 2024 whilst Bundesbank's Nagel and Bank of France's Villeroy panellists at 21:30CET at Conf. of Montreal 2024 (livestream). Croatia Central Bank's Vuj�?ić speech at Frankfurt School of Economics and Latvia Central Bank's Kaz�?ks interview on the Latvian Television. IEA monthly report are due to be released.
On the political front, Spain's PM Sanchez hosts Turkish President Erdogan (through Thu) whilst Norway's minister of business and industry Myrseth presents the state's ownership report at 9:30CET. In Denmark, there's political democracy festival, Folkemødet (through Sat), speakers include EU's Vestager. The Battle for Number 10, a UK Election Leaders (Sunak vs Starmer) Special Event will be aired on Sky News at 19:00BST, the same time as on the BBC, Nick Robinson interviews the leader of the SNP, John Swinney.
Other events on Wed include the Fitch on Banking global event series, at 15:00BST there's Banking 2024 Western Europe as well as Handelsblatt CFO-Summit speakers include from Jenoptik (JEN.GR), Heidelberg Materials (HEI.GR), Symrise (SY1.GR) and Handelsblatt Hydrogen Summit (through Thu) speakers include thyssenkrupp (TKA.GR) and thyssenkrupp nucera (NCH2.GR), Green Hydrogen Technology CEOs. Also taking place are FT hosts its Hydrogen Summit, speakers include thyssenkrupp's (TKA.GR) CEO. EP Group and Daniel Kretinsky provisionally scheduled to meet with UK business secretary Badenoch over bid for International Distribution Services (Royal Mail) (IDS.LN) according to reports. NEL (NEL.NO) expects listing of Cavendish Hydrogen (CAVEN.NO) to occur
Macro/politics
Top company news
Earnings/updates
GBF.GR (Bilfinger) -- updates FY24 revenue outlook to €4.8-5.2B from €4.5-4.8B, EBITA margin range to 4.8-5.2% from 4.9% to include acquired Stork units - CMD
PRX.NA (Prosus) -- FY Trading Statement: FY Core headline earnings to be between 90c and 97c vs year-ago 99c
COLR.BB (Colruyt Group) -- reports FY Adjusted net income €357M vs FactSet €336.2M
BELA.GA (Jumbo) -- reports May sales ~ +10% y/y
STM.GR (Stabilus) -- guides FY24 revenue €1.3B-1.35B vs prior guidance to the lower end of €1.4B-1.5B and FactSet €1.38B [8 est, €1.29-1.44B]
Also reporting today
Earnings: Castings (CGS.LN), Safestore Holdings (SAFE.LN), OVS (OVS.IM)
Trading Update: Flughafen Zurich (FHZN.SW), Flughafen Wien (FLU.AV), DFDS (DFDS.DC), Puuilo (PUUILO.FH)
CMD/events: Legal & General Group (LGEN.LN), Diaceutics (DXDX.LN), Bilfinger (GBF.GR), Ipsos (IPS.FP), Stolt-Nielsen (SNI.NO)
M&A
ATO.FP (ATOS SE) -- Atos enters into exclusive negotiations with ALTEN for sale of Worldgrid for binding enterprise value of €270M
SPM.IM (Saipem) -- Eni (ENI.IM) places 10% of Saipem at €1.97/share
MITRA.BB (Mithra Pharmaceuticals) -- sells Estetra SRL, Neuralis SA and specific assets to Gedeon Richter for an aggregate price of €175M
ELLAKTOR.GA (Ellaktor) -- Motor Oil's Manetial agrees to acquire 94.44% of Helector from Ellaktor for €114.7M
DSFIR.NA (DSM-Firmenich) -- announces sale of yeast extract business to Lesaffre for an undisclosed sum
LHA.GR (Deutsche Lufthansa) -- Lufthansa unlikely to offer more remedies to EU antitrust regulators over bid for ITA stake despite concerns about long-haul flights - Reuters, citing sources (11-Jun, 16:52 CET)
LDO.IM (Leonardo) -- announces an interruption to negotiations with KNDS for the creation of a strategic alliance (11:50 ET)
EMMN.SW (Emmi) -- Group acquires coffee roaster Hochstrasser AG in Lucerne; price not disclosed
AERO.SW (Montana Aerospace) -- divests its e-mobility segment; terms undisclosed
ALVIV.FP (Visiativ) -- and Groupe SNEF announce the final completion of the sale of 75.72% of the share capital of Alliativ (Visiativ's controlling shareholder) to Groupe SNEF
+STADA.GR (Stada Arzneimittel) -- Stada owners reportedly seeking €11B in sale, with CD&R said to be leading bidder -- Bloomberg
Healthcare
NOVO.B.DC (Novo Nordisk) -- Senate HELP committee to hold hearing on drug pricing on 10-Jul; to seek subpoeana of Novo President Langa
RARE (Ultragenyx Pharmaceutical) -- and Mereo BioPharma announce new Phase 2 data from Phase 2/3 Orbit study demonstrating sustained reductions in fracture rates following treatment with setrusumab (UX143) in patients with OI
UCB.BB (UCB) -- announces first presentations of BIMZELX (bimekizumab) two-year data in axial spondyloarthritis and psoriatic arthritis at EULAR 2024
CAMX.SS (Camurus) -- holder Sandberg Development sells 1.3M shares at SEK550/share through ABG Sundal Collier and SEB
Other
RTO.LN (Rentokil Initial) -- Trian noted to amass stake in Rentokil -- Bloomberg
RTO.LN (Rentokil Initial) -- Trian confirms it has taken a 'significant position' in Rentokil -- CNBC
SRS.IM (Saras) -- announces Court of Appeal confirms the non-suit judgement against the managers involved in alleged irregularities in the purchase of crude oil from Iraq
EU proceeding with additional tariffs of up to 25% on Chinese EVs that will bring in over €2B per year; European Commission set to notify carmakers on 12-Jun - FT
Key rating changes
Upgrades
ACA.FP (Credit Agricole) -- to buy from hold at Jefferies
Downgrades
BBVA.SM (BBVA) -- to underperform from neutral at BNP Paribas Exane
BME.LN (B&M European Value Retail) -- to hold from buy at Investec
Other Actions
STJ.LN (St. James's Place) -- reinstated buy at Peel Hunt; prior rating was buy
Data
Nikkei (0.52%) to 38931.46
Hang Seng (1.09%) to 17978.10
Shanghai Composite +0.32% to 3037.72
S&P futures +3.5 vs prior close of 5384.0
€-$ +0.0005 or +0.05% to 1.0746
$-¥ +0.09 or +0.06% to 157.22
€-¥ +0.16 or +0.09% to 168.94
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