Jun 17 ,2024
Synopsis
European equity markets are set to open mixed. Recall that last week European markets ended sharply lower with political risk weighing on sentiment after last week's EU elections saw big gains for the far right and French President Macron called a snap election. Against this backdrop, there were deep losses for the Eurozone banking sector as France's CAC recorded its biggest weekly drop since March 2022. The auto sector was also in focus after the EU announced it will impose additional tariffs on Chinese electric vehicles (EVs) on top of existing tariffs. US macro developments were also somewhat influential after CPI surprised to the downside, but the FOMC meeting saw hawkish dot plots with just one rate cut priced in versus three in March. The UK election campaign captured a lot of headlines after tax and spending policies of the main political parties were criticized by independent economists and think tanks.
Asian equities mixed Monday. Nikkei under pressure though other markets lackluster with Greater China indexes fluctuating following soft activity data; this data showed industrial production growth slowed by more than forecast and fixed asset investment growth unexpectedly fell amid steeper decline in property investment.
This week's agenda includes policy decisions from BoE, SNB and Norges Bank, Eurozone prelim June Consumer Confidence, Flash June Manufacturing and Services PMIs for Eurozone, UK, Germany and France, as well as earnings/updates from the likes of Ashtead Group (AHT.LN), Whitbread (WTB.LN) and DS Smith (SMDS.LN).
In corporate highlights: ING (INGA.NA) is in focus this morning amid its Capital Markets Day. Says it is to target FY27 fee income of €5B, a cost/income ratio of 52-54% and a return on equity of 14%. In M&A, Sampo (SAMPO.FH) to offer 1.25 newly issued Sampo A shares in exchange for each share of Topdanmark (TOP.DC) in deal worth DKK33B
Today's macro agenda sees Switzerland SECO economic forecasts and Eurogroup meetings (until Tue). Reportedly, EU leaders are scheduled to meet for an informal dinner. Economic data releases include Italy May CPI, Norway May Trade Balance, Spain Trade Balance
Note Iceland is closed today (Independence Day)
Macro/politics
Rachel Reeves to seek 'improved' UK-EU trade terms if Labour wins election - FT
Asking prices for UK houses stagnate in June, Rightmove says - Reuters
ECB in no rush to discuss French bond rescue, sources say - Reuters
ECB's Inflation Problem Mustn't Drag Into 2026, Kazaks Says - Bloomberg
Scholz Demands More Team Spirit as Budget Showdown Looms - Bloomberg
France's Le Pen says she won't seek Macron's resignation if far right wins snap election - POLITICO
Top company news
Earnings/updates
INGA.NA (ING Groep) -- ING to target FY27 fee income of €5B, a cost/income ratio of 52-54% and a return on equity of 14% -- CMD
ESSITY.B.SS (Essity) -- presents new financial targets following the divestment of the subsidiary Vinda
Also reporting today
Earnings: Mind Gym (MIND.LN)
Traffic: Aeroports de Paris ADP (ADP.FP)
M&A
TOP.DC (Topdanmark) -- Sampo to offer 1.25 newly issued Sampo A shares in exchange for each share of Topdanmark in deal worth DKK33B
ACKB.BB (Ackermans & Van Haaren) -- invests in marine support services provider V.Group
SAF.FP (Safran) -- wins auction for the acquisition of Preligens -- Les Echos
HL.LN (Hargreaves Lansdown) -- "Price is not the main consideration" for potential sale of Hargreaves Lansdown - FT
SAB.SM (Banco de Sabadell) -- postpones completion of sale of Paycomet to Nexi - Reuters
UTDI.GR (United Internet) -- resolve to make no further investments in holding company Kublai
AZM.IM (Azimut Holding) -- brings in Jefferies to provide strategic advice in regards to AZ NGA unit - Australian Financial Review
SVIK.SS (Studsvik) -- enters agreement to acquire Extrem Borr och Sagteknik AB
Rosebank Industries to go public on AIM - Sky News
Healthcare
AZN.LN (AstraZeneca) -- presents results from ECHO Phase III trial of Calquence at EHA
NOVO.B.DC (Novo Nordisk) -- CEO agrees to testify at Senate HELP hearing in early September
ROG.SW (Roche Holding) -- announces Genentech's Phase III STARGLO study demonstrates Columvi significantly extends survival in people with relapsed or refractory diffuse large B-cell lymphoma
GLPG.NA (Galapagos) -- presents encouraging new data for CD19 CAR-T candidate GLPG5101 in non-Hodgkin lymphoma at EHA 2024
MIRM (Mirum Pharmaceuticals) -- to host investor call tomorrow, 17-Jun at 08:30 ET regarding Volixibat VANTAGE and VISTAS studies
IPH.FP (Innate Pharma) -- Shares Updated Results From the Sanofi Developed Blood Cancer Phase 1/2 SAR443579/IPH6101 Trial
Other
ADS.GR (Adidas) -- probes alleged multi-million euro bribery by senior managers in China - FT
BA.LN (BAE Systems) -- announced that former U.S. Senator Kelly Ayotte will step down as the Chair of the board as she embarks on run for Governor of New Hampshire
ANTO.LN (Antofagasta) -- looks at M&A opportunistically; sees cost advantages in existing reserves - London Times
MB.IM (Mediobanca) -- completes placement of the inaugural Quarzo SRT (Significant Risk Transfer) ABS
Estimated weekend box office revenues in US, Canada $213.0M, +30.1% y/y - Box Office Mojo
Rio Tinto expected to receive approval from Serbia to move forward with lithium mine - FT
Key rating changes
Upgrades
CRST.LN (Crest Nicholson Holdings) -- to add from hold at Peel Hunt
Downgrades
SSPG.LN (SSP Group) -- to sell from neutral at Goldman Sachs
Other Actions
STMN.SW (Straumann Holding) -- transferred buy at Stifel
Citi downgrades Continental Europe from overweight to neutral in its global equity market strategy
Data
Nikkei (1.82%) to 38107.27
Hang Seng +0.24% to 17985.01
Shanghai Composite (0.51%) to 3017.31
S&P futures +0.0 vs prior close of 5437.5
€-$ (0.0004) or (0.04%) to 1.0701
$-¥ +0.08 or +0.05% to 157.47
€-¥ +0.03 or +0.02% to 168.50
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