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StreetAccount Summary - Europe Pre-Open: Futures: FTSE +0.05%, DAX (0.59%), CAC40 (0.43%)

Jun 25 ,2024

  • Synopsis

    • European equity markets set to open mixed to mostly lower whilst Asian equities mostly higher Tuesday. Hang Seng leading China market gains as mainland indexes trade lower. ASX, Kospi and Nikkei among notable gainers. S&P 500 futures unchanged afterhours.

    • Focus has turned to renewed tech weakness with Asian semis/AI stocks under pressure for a second session. Comes after NVDA entered correction territory as SOX fell to two-week low, which follows run of record-breaking gains over preceding weeks and months. Analysts pointing to overbought conditions/stretched positioning along and signs of fatigue amid rich valuations in AI space.

    • Airbus SE (AIR.FP) last night updated its FY24 guidance and now expects adjusted EBIT around €5.5B vs prior guidance €6.5B-7.0B and FactSet €6.82B. A €0.9B charge was taken in its Space business and the company is also lowering its full year Airbus delivery guidance to now 770 aircraft from 800 and it has reduced its 2024 FCF guidance.

    • On today's agenda, there's the publication of a special chapter of the BIS Annual Economic Report at 13:00 CEST. In Germany, at BDI conf, speakers include foreign minister Baerbock and finance minister Lindner. World Economic Forum's Annual Meeting of the New Champion (thru Thu). Reportedly, EU intends to launch membership negotiations with Moldova and Ukraine. In France, there's a legislative election tv debate - Gabriel Attal, Jordan Bardella and Manuel Bompard - on TF1 at 21:00CET, ahead of first round voting on Sun (30th). Russia's President Putin hosts his Republic of Congo counterpart Nguesso. EU's Gentiloni delivers closing remarks at G20 Framework Working Group meeting. EU's Ferreira speech at the annual event of the ​Commission/European Investment Bank Advisory Platform for Financial Instruments. IfW Kiel/CEPR host event title Economic frontlines: Ukraine and Russia's war economies. Bruegel hosting event at 12:15CET title Europe's banking union at 10: unfinished yet transformative, speakers include EU's McGuinness. First day of trading for the shares of Perlen Industrieholding (PERL.SW) (spin-off by CPH Chemie + Papier Holding).

    • In central banks, Austria Central Bank's Holzmann speech ay 9:00CET at forum on the topic of digital euro and payment transactions. Bank of Spain's Delgado panellist at 12:30CET title "Moving ahead on CMU [Capital Markets Union]: a central banking perspective". Bundesbank's Nagel speech at event arranged by the IT and digital division of Schwarz Group. EBA Board of Supervisors meeting, participants include Lithuania Central Bank's Krėpšta. Bank of Greece's Stournaras speaks at Hellenic Bank Assn's AGM.

    • European macro data releases due today include Sweden May PPI, Spain Q1 final GDP, and May PPI.

    • In corporate news, in Germany, Hornbach Holding (HBH.GR) reported Q1 earnings amd confirmed its FY outlook in light of still subdued customer sentiment. In the Netherlands, Ebusco Holding (EBUS.NA) issued interim update indicating that the current guidance of revenue in excess of €325M combined with positive EBITDA in 2024 are no longer achievable.

  • Politics/Macro/World News

    • Ukraine to start EU accession talks - FT

    • Meloni and Orbán display united front ahead of EU leaders' summit - FT

    • Macron Says Extreme Opposition Parties Would Cause Civil War - Bloomberg

    • Denmark to Tax Emissions From Farmers in Pioneering Move - Bloomberg

    • study finds 'huge rise in working households pushed into poverty' under Tories - The Guardian

  • Top company news

    • Earnings/updates

      • AIR.FP (Airbus SE) -- Airbus provides 2024 guidance update; guides FY24 adjusted EBIT around €5.5B vs prior guidance €6.5B-7.0B and FactSet €6.82B [19 est, €6.26-7.47B]

      • TRI.FP (Trigano) -- reports Q3 revenue €1.15M, +11% vs year-ago €1.03B

      • HBH.GR (Hornbach Holding) -- reports Q1 EPS €5.96 vs year-ago €4.15; FY outlook unchanged

      • EBUS.NA (Ebusco Holding) -- interim update: current guidance of revenue in excess of €325M combined with positive EBITDA in 2024 no longer achievable

    • M&A

      • SPR (Spirit AeroSystems) -- Boeing's stock-funded offer to acquire Spirit AeroSystems values the company at about $35/share - Bloomberg

        • SPR (Spirit AeroSystems) -- Boeing looking to buy Spirit AeroSystems with stock rather than cash - media report

      • CAP.FP (Capgemini) -- anounces agreement to acquire D+I, terms not disclosed

      • HL.LN (Hargreaves Lansdown) -- holder Lancaster Investment Management LLP publishes letter to Chair

      • MF.FP (Wendel) -- Growth plans to sell its stake in Preligens

      • TRI.FP (Trigano) -- reports Q3 revenue €1.15M, +11% vs year-ago €1.03B

      • BLV.FP (Believe) -- further updates on Upbeat BidCo offer for shares

      • FCH.LN (Funding Circle Holdings) -- iBusiness Funding LLC enters definitive agreement to acquire Funding Circle Holdings

      • GIG.NO (Gaming Innovation Group) -- SKYCITY Entertainment Group to sell shareholding of around 10% in Gaming Innovation Group

    • Healthcare

      • NOVO.B.DC (Novo Nordisk) -- announces $4.1B investment to expand US manufacturing capacity

      • ROG.SW (Roche Holding) -- EC grants marketing authorisation for Roche's OCREVUS to treat RMS, PPMS

      • MRK.GR (Merck KGaA) -- announces Phase III trials of xevinapant in locally advanced head & neck cancer discontinued

      • MOB.SS (Moberg Pharma) -- receives SEK336M through exercise of warrants and directed issue issued to top guarantors

    • Other

      • AI.FP (Air Liquide) -- plans to invest up to $850M to build, own and operate four Large Modular Air separation units at ExxonMobil's Baytown site

      • DG.FP (VINCI SA) -- Vinci announces agreement to repurchase up to €200M of shares through 2-Aug-24

      • GLE.FP (Societe Generale) -- completes ~€280M share buyback program for cancellation purpose

      • AGN.NA (Aegon) -- presents its plans to accelerate transformation of UK into digital savings and retirement platform

      • ERA.FP (Eramet) -- and BASF decide against joint investment in a nickel-cobalt refining complex in Indonesia

      • MBTN.SW (Meyer Burger Technology) -- Meyer Burger progressing toward moving its core business to US; strategic partnership pending

      • LOOMIS.SS (Loomis) -- completes up to SEK 200M share buyback program; repurchased 702,500 shares

  • Key rating changes

    • Upgrades

      • ADM.LN (Admiral Group) -- to buy from hold at Berenberg

      • ELISA.FH (Elisa Oyj) -- short-term recommendation upgraded to buy from hold at Handelsbanken

    • Downgrades

      • AIR.FP (Airbus SE) -- to hold from buy at Deutsche Bank

      • GUBRA.DC (Gubra A/S) -- to hold from buy at ABG Sundal Collier

      • DLG.LN (Direct Line Insurance Group) -- to hold from buy

    • Initiations

      • MANTA.FH (Mandatum) -- hold at Carnegie Securities

      • RPI.LN (Raspberry Pi Holdings) -- buy at HSBC

      • NANO.FP (Nanobiotix) -- buy at Stifel

      • MAAT.FP (Maat Pharma) -- buy at Stifel

  • Data

    • Nikkei +0.88% to 39146.83

    • Hang Seng +0.56% to 18129.27

    • Shanghai Composite (0.09%) to 2960.32

    • S&P futures +7.8 vs prior close of 5517.0

    • €-$ +0.0007 or +0.07% to 1.0742

    • $-¥ (0.19) or (0.12%) to 159.42

    • €-¥ (0.08) or (0.05%) to 171.24

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