Jun 20 ,2024
Synopsis
European equity markets indicate a mixed open mirroring Asian markets. Greater China markets swinging lower with property developers weighing on Hang Seng. Nikkei also trading lower while shares in Australia, Korea, Taiwan, and India little changed. S&P 500 futures inching higher. Bonds weakening with Treasury and Australian curves bear steepening.Short-end JGB yields up 1-2 bp. FX markets steady with kiwi erasing gains that followed New Zealand GDP beat. Base and precious metals leading commodity market gains. Crude flat. Bitcoin edging up from earlier lows.
Focus on interest rate decisions beginning with SNB at 9:30CET (press conf at 10:30CET). SNB Financial Stability Report is released at 6:30CET. Norges Bank releases its rate decision at 10:00CET whilst BoE announces its policy decision at 12:00BST. BoE also releases MPC Meeting Minutes at 12:00BST and Inflation Letter at 13:00BST. Bundesbank's monthly report at 12noon CET. Among central banks speakers, Norges Bank's Bech-Moen speech at 16:30CET at Norwegian Finance Society. Other central bank events see National Banks of Poland and Ukraine host conf (through Fri) "Navigating the Changing Landscape: Central Banks in a New Normal", speakers include Bank of Lithuania's Šimkus on Fri.
Further on today's agenda, ECB issues latest Economic Bulletin at 10:00CET, the same time as von der Leyen speaks at Austrian World Summit. Eurogroup meeting, participants include EU's Lagarde and Cipollone. Annual meeting of the European Stability Mechanism, participants include Eurogroup's Donohoe, before he chairs Eurogroup meeting. European Automobile Manufacturers' Association (ACEA) May new passenger car registrations for the EU + EFTA + UK. Swiss monthly watch data is also due. Austrian World Summit, speakers include EU's von der Leyen.
Macroeconomic data due today include: Eurozone prelim Jun Consumer Confidence, Germany May PPI, Switzerland May Trade Balance, Netherlands May Unemployment Rate
On the political front, BBC Question Time Leaders' Special with the four biggest political parties at 20:00BST and OMFIF's Global Sovereign debt forum.
In corporate news, Danone (BN.FP) expects FY25-28 like-for-like net sales growth between +3%-+5% and recurring operating income to grow faster than net sales, said company ahead of its CMD today. Also in France, GenSight Biologics (SIGHT.FP) renegotiates financial obligations and provides operational updates. In the UK, DS Smith (SMDS.LN), CMC Markets (CMCX.LN) and XPS Pensions (XPS.LN) are expected to update the market with their respective earnings/trading updates.
Politics/Macro/World News
Why Meloni's enlarged hard-right group changes the EU power balance - FT
Europe's EV battery plans fade on China price war, US subsidies - Bloomberg
French bond auctions are first big test since Macron's gambit - Bloomberg
Portuguese banking consolidation likely soon, says central bank governor - Reuters
Sunak to lose seat in Tory wipeout, major poll predicts - The Telegraph
Tory ministers fear defeat beyond their 'wildest nightmares' - The Times
Netherlands May Unemployment Rate 3.6% vs consensus 3.7% and prior 3.7%
Top company news
Earnings/updates
BB.FP (Bic) -- lowers FY Group net sales growth at constant currency excluding Argentina guidance; cites challenging trading environment
VLK.NA (Van Lanschot Kempen) -- provides update on wealth management strategy and presents 2027 financial targets; targets 10% average annual AuM growth
SKIS.B.SS (SkiStar) -- reports Q3 EPS SEK3.99 vs FactSet SEK4.36 [3 est, SEK4.10-4.74]
M&A
ALV.GR (Allianz) -- Australia's Hunter Premium Funding no longer on the block - Australian Financial Review
LDO.IM (Leonardo) -- to sell stake in Industria Italiana Autobus to Seri Industrial; terms unidsclosed
SRS.IM (Saras) -- Vitol launches mandatory tender offer for Saras at €1.60/sh
ARBN.SW (Arbonia) -- sells the "Zelgstrasse" site in Arbon to the HRS Group for around CHF34M
MPCC.NO (MPC Container Ships) -- MPCC announces vessel acquisitions and new charter package deal
ALVIV.FP (Visiativ) -- Visiativ's board deems Groupe SNEF's offer price is fair from a financial point of view for the company's shareholders
GLE.FP (Societe Generale) -- enters talk to sell its unit, Shine, to Ageras in Denmark -- Les Echos
Healthcare
YPSN.SW (Ypsomed Holding) -- mylife YpsoPump receives market authorisation from the FDA
ALBPS.FP (Biophytis) -- extends bond financing agreement with Atlas with term expiring 14-Jun-26 and allowing for issue of up to €16M in convertible bonds
ALBPS.FP (Biophytis) -- grants Blanver exclusive rights to BIO101 in Latin America in deal valued at up to €108M
CANTA.SS (Cantargia) -- presents Phase 2 clinical data in pancreatic cancer with nadunolimab at ESMO Gastrointestinal Cancer Congress 2024
EGTX.SS (Egetis Therapeutics) -- announces Phase 2 Triac Trial II with Emcitate (tiratricol) for MCT8 deficiency did not meet its co-primary endpoints
OSE.FP (OSE Immunotherapeutics) -- Presents Preclinical Data on mRNA Therapeutic Platform for the Treatment of Inflammatory and Autoimmune Disorders at the FOCIS Annual Meeting
ALSEN.FP (Sensorion) -- announces upcoming presentation of promising SENS-401 results at next CI202) taking place on July 10-13
Other
ORA.FP (Orange) -- KKR closing in on deal to acquire ~€1.9B of loans from Orange Bank - Bloomberg
ALO.FP (Alstom) -- signs €323M contract with the Polo Logistica FS to supply 70 Traxx Universal locomotives with maintenance services
MOWI.NO (Mowi) -- notes Canadian government proposal to move BC salmon farms to closed-containment systems or onto land
CABK.SM (CaixaBank) -- KRUK agree to acquire portfolios of unsecured retail debt with a total nominal value close to €363M from entities of CaixaBank Group
TE.FP (Technip Energies) -- awarded significant contract for IOCL's grassroots naphtha cracking unit at Paradip in India
FNOX.SS (Fortnox) -- restates key market share figures in response to FT challenge over numbers presented at last month's capital markets day underplaying its market dominance - FT
BCP.PL (Banco Comercial Portugues) -- informs about completion of the implementation of the Recovery Plan by Bank Millennium in Poland (post EU close 19-Jun)
VX8A.SW (voxeljet) -- CEO and founder Ingo Ederer to step-down 30-Jun-24, CFO Rudolf Franz appointed replacement
ALESK.FP (Esker) -- shareholders approve a dividend of €0.65/share for FY23
DEME Group consortium wins contract with a value of more than €300M for the supply and installation of high-voltage subsea cables in the Belgian North Sea
Key rating changes
Upgrades
ASM.NA (ASM International) -- to overweight from equal-weight at Morgan Stanley
BCP.PL (Banco Comercial Portugues) -- transferred buy at Jefferies; prior rating was hold
Downgrades
WRT1V.FH (Wartsila) -- to hold from buy at Deutsche Bank
SSPG.LN (SSP Group) -- to hold from buy at Berenberg
VACN.SW (VAT Group) -- to equal-weight from overweight at Morgan Stanley
LHA.GR (Deutsche Lufthansa) -- to hold from buy at Stifel
Data
Nikkei +0.00% to 38570.40
Hang Seng (0.61%) to 18318.30
Shanghai Composite (0.33%) to 3008.20
S&P futures +17.3 vs prior close of 5559.8
€-$ (0.0004) or (0.04%) to 1.0741
$-¥ +0.06 or +0.04% to 158.16
€-¥ (0.02) or (0.01%) to 169.83
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