Jul 03 ,2024
Synopsis
European equity markets are set for a mixed open amidst mostly higher Asia equities Wednesday. Mainland China lagging in contrast to gains in the rest of the region, led by Hong Kong with tech among the leading sectors. Growth mostly outperforming value in Japan and mainland. US futures slightly lower following broad-based main session gains in a choppy session.
UK press continues to cover political campaigning ahead of Thursday's general election. Reuters cites a Survation poll on Tuesday as showing Labour winning 484 of the 650 seats in parliament with Conservatives predicted to win just 64 seats. In France, local candidates debates in connection with legislative election broadcast on local television and radio (France 3, France Bleu). Chancellor Scholz will answer questions from members of the Bundestag in the plenary session during his second government questioning this year. In the afternoon, he exchanges view with the EU Committee of the German Bundestag. EP's political groups constitutive meetings continue with ECR, ID and The Left groups' scheduled, follows those of EPP, S&D, Renew and the Greens/EFA having already been held. Portuguese PM Montenegro hosting EP President Metsola. Shanghai Cooperation Organization summit (through Thu), Turkish President Erdogan and Russian President Putin scheduled to attend. What to expect (CGTN). Also on Wed, Handelsblatt conf "The future of retail banking" (through Thu)
In central banks, ECB Forum includes panels chaired by ECB's de Guindos, Cipollone and Lane. Netherland Central Bank's Knot in conversation at 14:30CET, ECB's Lagarde closing remarks at ~15:30. Poland interest rate decision at 15:00CET is expected to see an unchanged benchmark interest rate at 5.75%. Turkey due to release at 13:00CET the minutes of last MPC meeting. US FOMC minutes published after the EU close.
Economic data due include Italy, Spain, Sweden, Switzerland Jun services PMIs as well as final reads for Eurozone, France, Germany and UK, Eurozone May PPI, Ireland Jun unemployment rate
In earnings, bpost (BPOST.BB) guides FY adjusted EBIT between €165-185M prior to the consolidation impact of Staci and provides updated divisional guidance following Press negotiations. Zumtobel Group (ZAG.AV) reports FY EPS €0.57 vs FactSet €0.62. Stellantis (STLAM.IM) FCA US reports Q2 sales of 344,993 vehicles, (21%) y/y whilst Aker BP (AKRBP.NO) reports Q2 Net production mboepd 444.1K vs prior 448.0 and GRENKE (GLJ.GR) is out with prelim Q2 new leasing business +21.5% y/y to €790.3M vs year-ago €650.3M.
Companies hosting CMD/events include Secure Trust Bank (STB.LN), Krones (KRN.GR) and Hapag-Lloyd (HLAG.GR) CEO press conf. for customers at 16:00CET.
Macro
French political turmoil throws spotlight on debt vulnerability - FT
Poll predicts record win for Labour Party at UK election - Reuters
Starmer and Sunak gear up for final day of campaign as Boris makes surprise appearance at Tory rally - The Standard
Private rents in Great Britain hit record high, data shows - Guardian
Scotland result 'on a knife-edge' on election eve - BBC
Labour landslide may boost investment and confidence in UK, say City analysts - Guardian
Top company news
Earnings/updates
ZAG.AV (Zumtobel Group) -- reports FY EPS €0.57 vs FactSet €0.62 [1 est]
RNO.FP (Renault) -- prepares its next strategic plan as it expects to achieve its objectives for 2030 earlier than expected -- Les Echos
BPOST.BB (bpost) -- guides FY adjusted EBIT between €165-185M prior to the consolidation impact of Staci, provides updated divisional guidance following Press negotiations
STLAM.IM (Stellantis) -- FCA US reports Q2 sales of 344,993 vehicles, (21%) y/y
AKRBP.NO (Aker BP) -- reports Q2 Net production mboepd 444.1K vs prior 448.0
GLJ.GR (GRENKE) -- reports prelim Q2 new leasing business +21.5% y/y to €790.3M vs year-ago €650.3M
M&A
MAERSK.B.DC (Maersk) -- DOF Group to acquire Maersk Supply Service A/S for consideration of ~$1.112B
VOW3.GR (Volkswagen) -- Germany to block sale of MAN Energy Solutions' gas turbine business to GHGT - Reuters
ABN.NA (ABN AMRO Bank) -- completes the acquisition of neobroker BUX, deal announced 14-Dec-23
VIRP.FP (Virbac) -- finalizes minority shares' acquisition of Globion; terms undisclosed
MERY.FP (Mercialys) -- announces disposal of four hypermarkets for €117.5M
ZEHN.SW (Zehnder Group) -- agrees to acquire Siber for ~€86M
TNXT.IM (Tinexta) -- notes receipt of notice from selling shareholders regarding Defence Tech call option
SVM.AU (Sovereign Metals) -- Rio Tinto exercises options to invest further A$18.5M in Sovereign Metals, increasing holding to 19.76%
SG.IM (SAES Getters) -- S.G.G. Holding S.p.A. announces final results of offer for SAES Getters; shares to be suspended from 5-Jul (post EU close 2-Jul)
Healthcare
BIIB (Biogen) -- Shares of Biogen trade down on FDA approval of competitor's drug for Alzheimer's
CARM (Carisma Therapeutics) -- terminates Manufacturing and Supply agreement with Novartis relating to CT-0508 product candidate - 8-K
ORPHA.DC (Orphazyme) -- issues strategic update, starts process with Nasdaq regarding changing its identity
Other
KTN.GR (Kontron) -- announces order for intelligent wallboxes goes into production; order volume €120M
D6H.GR (Datagroup) -- launches project to improve IT security at 24 universities with contract volume of several million euros
FRU.GR (Multitude) -- to repurchase up to 80K shares for up to €560K, to run from today to 31-Dec
NACON.FP (Nacon) -- launches rights issue with pre-emptive rights of ~€16.5M which may be increased to €19.0M
NDX1.GR (Nordex Group) -- secures orders for 245 MW from France and Türkiye at the end of June
SKA.B.SS (Skanska) -- repairs naval shipyard berths in Portsmouth, Virginia, USA, for $97M (~SEK 1.0B)
ERF.FP (Eurofins Scientific) -- provides detailed information to refute allegations and misleading information spread by Muddy Waters
NKR.NO (Nekkar) -- enters two-stage transaction to acquire Globetech AS by 2027
TTE.FP (TotalEnergies) -- to exit Block 11B/12B offshore South Africa - Reuters (18:16 CET/12:16 ET)
ENGI.FP (ENGIE) -- and Google sign new Corporate Power Purchase agreements for which will provide more than 118 MW of renewable power to Google's digital infrastructure portfolio in Belgium
HTO.GA (Hellenic Telecommunications Organization) -- shareholders approve previously disclosed dividend of €0.71/share (post EU close 2-Jul)
DOKA.SW (dormakaba Holding) -- announces current CFO, Christina Johansson, will be on sick leave; appoints René Peter, Head of Global Controlling, as CFO ad interim
Rivian and Volkswagen could significantly expand partnership - Handelsblatt
Key rating changes
Upgrades
ABG Sundal Collier upgrades BALD.B.SS; downgrades CAST.SS
OR.FP (L'Oreal) -- sector perform from underperform at RBC Capital Markets
HM.B.SS (H&M Hennes & Mauritz) --buy from sell at Deutsche Bank
Downgrades
TEL2.B.SS (Tele2) -- neutral from buy at Redburn Atlantic
JD.LN (JD Sports Fashion) -- underweight from equal weight at Barclays
COIC.SS (Concentric) -- hold from buy at SEB
TROAX.SS (Troax Group) -- hold from buy at Carnegie Securities
EQT.SS (EQT) -- hold from buy at Deutsche Bank
SINCH.SS (Sinch) -- to sell from neutral at Goldman Sachs
III.LN (3i Group) -- to equal-weight from overweight at Morgan Stanley
Initiations
VALMT.FH (Valmet) -- underweight at Barclays
ASM.NA (ASM International) -- buy at Stifel
KOO.LN (Kooth) -- buy at Berenberg
RHM.GR (Rheinmetall) -- overweight at Morgan Stanley
ANDR.AV (Andritz) -- equal weight at Barclays
Other Actions
PNL.NA (PostNL) -- transferred sell at UBS; prior rating was neutral
ENI.IM (Eni) -- resumed equal-weight at Morgan Stanley
Data
Nikkei +1.45% to 40656.12
Hang Seng +0.93% to 17934.37
Shanghai Composite (0.42%) to 2984.29
S&P futures (5.5) vs prior close of 5568.8
€-$ (0.0004) or (0.04%) to 1.0740
$-¥ +0.41 or +0.26% to 161.85
€-¥ +0.36 or +0.21% to 173.80
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