Jun 19 ,2024
Synopsis
European equity markets indicate a mixed open mirroring Asian markets. Hang Seng outperforms, but mainland China lower and ASX slightly lower. US futures unchanged afterhours; note US markets are closed today for public holiday. Dollar softer versus yen and Aussie, little changed against euro and sterling. Oil steady after moving higher in prior session. Gold down. Industrial metals mostly higher.
On the agenda for today, in central banks, Bank of Portugal's Centeno speaks at 9:30CET at parliament's Budget, Finance and Public Administration Committee hearing, Bundesbank's monthly report pre-release at 12:00 CET, Estonia Central Bank mediates the ECB's digital euro interim report and Müller participates at a meeting of the Banking Industry Dialogue and Bank of Lithuania's Šimkus and Krėpšta participate in an online meeting of the ECB Macroprudential Forum. Eurogroup's Donohoe, Austrian finance minister Brunner speak at conference in Vienna. Germany's economy minister Habeck begins trip to China, South Korea (thru Sun). EU Commission decision on excessive deficit procedure on Poland and Italy.
Amidst light earnings calendar, Young & Co.'s Brewery (YNGA.LN), Severfield (SFR.LN), Speedy Hire (SDY.LN) are scheduled to report.
In macroeconomic releases, Sweden May Unemployment Rate, UK May CPI and Input/Output PPI are due at 07:00 BST; inflation is expected to reach BoE's target of 2% for the first time in nearly three years from +2.3% in April but unlikely to have much bearing on tomorrow's BoE decision with policy widely expected to remain unchanged. UK House Price Index at 09:30 BST and Eurozone Apr Construction Output at 10:00 BST. Press report said EU set to criticize France over budget deficit to start process that could lead to fines under excessive deficit procedure. Latest UK election polls showed Conservatives on course to lose two out of three seats and Labour with a 256-seat majority. More speculation in UK press over plans for tax hikes. On geopolitical front, US reportedly lobbying Japan and Netherlands to tighten curbs on China's ability to develop high-end chips. Press reports indicated that longest-serving Dutch PM Rutte set to become next Nato secretary-general.
Politics/ Macro/ World News:
EU to slam France over budget deficit, adding to political woes ( Bloomberg)
UK has made 'glacial' progress toward levelling up, IFS says (Bloomberg)
Three-fifths of voters expect Labour to raise capital gains tax, Telegraph poll finds (Telegraph)
UK inflation figures for May likely to show that inflation has fallen to 2%, analysts say (BBC)
UK pay deals tick higher in May, Brightmine survey shows (Reuters)
SNB silence sets up another rate-cut cliffhanger (Bloomberg)
Russian President Putin begins talks with Kim Jong Un after arriving in Pyongyang overnight (BBC)
Top company news
Earnings/updates
QDT.FP (Quadient) -- announces new strategic plan 'Elevate to 2030'; aims at delivering €250M of current EBIT in 2030 - CMD
KTCG.AV (Kapsch TrafficCom) -- FY EPS €1.72 vs FactSet €3.41 [2 est, €2.63-4.19]
DG.FP (VINCI SA) -- May airport passenger traffic (1.2%)
S92.GR (SMA Solar Technology) -- cuts FY guidance; expects adj EBITDA €80-130M vs prior guidance €220-290M
FLOW.NA (Flow Traders) -- May ETP market statistics
M&A
MAREL.NA (Marel) -- John Bean Technologies and Marel to hold joint conference call to discuss takeover transaction
SRS.IM (Saras) -- announces fulfilment of conditions triggering the requirements for Vitol to launch a mandatory tender offer for Saras; appoints Franco Balsamo as CEO; Massimo Moratti will continue to hold the office of Chairman until settlement of the offer
JTC.LN (JTC) -- announces proposed acquisition of FFP for a maximum consideration of $110.0M
EFGN.SW (EFG International) -- EFG International, Julius Baer merger talks were halted due to Swiss regulatory concerns - Reuters
VOD.LN (Vodafone) -- 22.4% of Indus Towers (534816.IN) sold in block deals - CNBC-TV18
Healthcare
INDV.LN (Indivior) -- announces publication of new data on comparative effectiveness of IN nalmefene (OPVEE 2.7Mg) and in naloxone (4 mg) in translational model
GALD.SW (Galderma Group) -- Galderma Granted Key Manufacturing License Updates for New Biologics Capabilities at Its Center of Excellence
Other
UBSG.SW (UBS Group) -- UBS among Swiss banks pushing government to postpone global capital rules for their trading businesses - Bloomberg
HSBA.LN (HSBC Holdings) -- FINMA finds HSBC violated money laundering regulations (18-Jun, timing uncertain)
VWS.DC (Vestas Wind Systems) -- receives 577 MW order in Australia for second stage of the 1.3 GW Golden Plains wind project
ML.FP (Cie Generale des Etablissements Michelin SA) -- Michelin publishes global tire market data for May
AVOL.SW (Avolta) -- partners to use marine biofuels for goods transportation
EQT.SS (EQT AB) -- considering sale of Karo Healthcare for more than €2B - Bloomberg
FING.B.SS (Fingerprint Cards) -- notes final outcome in rights issue through Pareto Securities
HTWS.LN (Helios Towers) -- holders announce sale of 3% stake in the company through BofA Securities and Jefferies
OBEL.BB (Orange Belgium) -- appoints Philippe Toussaint as Chief Technology Officer effective 1-Jul-24
ALCOX.FP (Nicox) -- announces success of its capital increase with maintenance of preferential subscription rights in the form of ABSA for a total amount of €3.3M and extends its cash flow horizon
Key rating changes
Upgrades
AVCT.LN (Avacta Group) -- to hold from sell at Deutsche Numis
KGX.GR (Kion Group) -- to outperform at Bernstein
G1A.GR (GEA Group) -- to buy from hold at Jefferies
GRF.SM (Grifols) -- to hold from sell at Deutsche Bank
Downgrades
DSY.FP (Dassault Systemes) -- to underperform from neutral at BNP Paribas Exane
HL.LN (Hargreaves Lansdown) -- to hold from buy at Jefferies (timing uncertain)
S92.GR (SMA Solar Technology) -- to neutral from outperform at Oddo
Initiations
VTURA.NO (Ventura Offshore Holding) -- initiated buy at DnB Markets
Other Actions
VOD.LN (Vodafone Group) -- resumed buy at Deutsche Bank
Data
Nikkei (0.02%) to 38472.63
Hang Seng +2.34% to 18335.57
Shanghai Composite (0.29%) to 3021.55
S&P futures +2.3 vs prior close of 5559.8
€-$ (0.0000) or (0.00%) to 1.0740
$-¥ (0.07) or (0.05%) to 157.80
€-¥ (0.11) or (0.06%) to 169.44
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