Jul 09 ,2024
Synopsis
European equity markets set to open mixed/mostly flat amidst Asian equities mixed Tuesday. Hang Seng leading China market declines, weighed down by tech and mainland property developers. Nikkei outperforming while Taiex has eased from record high amid pullback in semis. S&P 500 and Nasdaq futures advancing afterhours.
On today's agenda, EU's Dombrovskis and Gentiloni among participants in the semi-annual meeting with the European Stability Mechanism. Also out Tue is EIA Short-Term Energy Outlook whilst U.S. hosts NATO's 75th anniversary summit (through Thu). Made in Italy Pre-Summit event hosted by FT at 13:30BST. In the UK, first House of Commons session planned after the British parliamentary election; business will be the election of the Speaker. On the corporate front, Sampo (SAMPO.FH) shareholders vote to authortise issuance of new shares in connection with offer for Topdanmark (TOP.DC) and Logistea (LOGI.B.SS) shareholders do the same in connection with acquisition of KMC Properties.
In central banks, BOE's Cleland speech at 9:05BST at Financial Stability Board, Regulatory Oversight Committee, and Global LEI Foundation Conf and BOE's Truran speech at 16:00 BST at Insurance Asset Risk Webinar. ECB's Cipollone video message at 11:00CET at digital euro event organised by the Central Bank of Cyprus. Bank of Lithuania's Kuniyoshi participates in the online meeting of the Economic and Financial Committee and Krėpšta participates in the European Banking Authority (EBA) meeting (through Wed) in Budapest.
European macro data releases out today include, UK Jun retail sales monitor - BRC (already out), Denmark May trade balance and Greece Jun CPI.
In corporate news, Dassault Systemes (DSY.FP) reported preliminary Q2 earnings with a revenue of €1.50B vs prior guidance €1.525-1.555B and an EPS of €0.30 vs prior guidance €0.30-0.31. The company also updated it's FY2024 objectives downwards. Also in France, Verallia (VRLA.FP) lowered its 2024 adjusted EBITDA target to around same level y/y (€866M) vs prior guidance ~€1B. In Austria, OMV (OMV.AV) issued a Q2 trading update indicating to a total hydrocarbon production of 338 kboe/d vs year-ago 353 kboe/d
In M&A, Victory Capital Holdings and Amundi (AMUN.FP) executed an agreement to become strategic partners, with Amundi taking 26.1% stake in Victory.
Politics/Macro/World News
Geopolitics
Biden decries Russian 'brutality' over deadly Ukraine strikes as Nato leaders gather - The Guardian
China, Belarus start joint military drills near Polish border - Reuters
France
France Now Has to Face the Bond-Market Risk It Prefers to Ignore - Bloomberg
UK
Labour's Minimum Wage Plan Becomes Concern for BOE and Business - Bloomberg
Britain's Retailers Report Sharp Drop in Spending in Colder June - Bloomberg
Starmer urged to raise defence spending on eve of Nato summit - The Times
UK officials fear October port chaos unless EU again delays biometric plan - The Guardian
Poland
Polish ambassadors in limbo as Donald Tusk and Andrzej Duda tussle over policy - FT
Top company news
Earnings/updates
ENX.FP (Euronext) -- Jun trading activity
VRLA.FP (Verallia) -- lowers 2024 adjusted EBITDA target; now expected around same level y/y
ALCAR.FP (Carmat) -- reports H1 revenue €3.2M vs FactSet €5.5M
DSY.FP (Dassault Systemes) -- reports preliminary Q2 revenue €1.50B vs prior guidance €1.525-1.555B and FactSet €1.55B [11 est, €1.53-1.57B]; now guides FY total revenue growth +6-8% vs prior guidance +8-10%
ATRLJ.B.SS (Atrium Ljungberg) -- reports Q2 EPS SEK2.03 vs year-ago (SEK1.17)
OMV.AV (OMV) -- Q2 trading update: total hydrocarbon production of 338 kboe/d vs year-ago 353 kboe/d
M&A
ERF.FP (Eurofins Scientific) -- acquires Labormar; terms undisclosed
VCTR (Victory Capital Holdings) -- Victory Capital Holdings, Amundi execute agreement to become strategic partners, with Amundi taking 26.1% stake in Victory
OXUR.BB (Oxurion) -- signs a Letter of Intent and enters into exclusive negotiations to potentially acquire a pioneering French CRO in stem cell production
EXN.FP (Exclusive Networks) -- CD&R & Permira in advanced talks to take Exclusive Networks private - Bloomberg, citing sources
HTRO.SS (Hexatronic Group) -- Hexatronic signs letter of intent to acquire parts of Endor
BLV.FP (Believe) -- strikes strategic partnership with Global Records
Healthcare
ROG.SW (Roche Holding) -- to reintroduce Susvimo in the US for people with neovascular age-related macular degeneration
ROG.SW (Roche Holding) -- receives CE Mark for its Accu-Chek SmartGuide continuous glucose monitoring (CGM) solution
KYMR (Kymera Therapeutics) -- Kymera announces expansion of KT-474 (SAR444656) HS and AD Phase 2 studies following interim review of safety and efficacy
0RIS.LN (Circio Holding) -- reports preliminary results of rights issue; subscriptions received for gross proceeds of ~NOK17.8M
MED.SW (Medartis Holding) -- appoints Matthias Schupp as CEO as of beginning of Nov
HEIJM.NA (Heijmans) -- is acquiring all the activities of project developer and construction firm Van Gisbergen for €13M in cash
Other
AIR.FP (Airbus SE) -- Airbus reports June gross orders of 73 aircraft, deliveries of 67 aircraft
HSBA.LN (HSBC Holdings) -- HSBC to reallocate key projects to retain candidates who miss out on CEO role - Reuters
ENI.IM (Eni) -- announces new discovery on Yopaat-1 EXP exploration well in Block 9 offshore Mexico
ABN.NA (ABN AMRO Bank) -- announces new collective labour agreement for its employees in the Netherlands
CO.FP (Casino Guichard-Perrachon) -- Casino Guichard-Perrachon, Sherpa Cooperative announced that they have renewed their partnership.
Key rating changes
Upgrades
AZA.SS (Avanza Bank Holding) -- Avanza Bank Holding short-term recommendation transferred hold at Handelsbanken; prior rating was sell
BMW.GR (Bayerische Motoren Werke) -- to buy from hold at HSBC
KRZ.ID (Kerry Group) -- to overweight from equal weight at Barclays
NTGY.SM (Naturgy Energy Group) -- to sector perform from underperform at RBC Capital Markets
CURY.LN (Currys) -- to buy from hold at Deutsche Numis
KGF.LN (Kingfisher) -- to buy from hold at Deutsche Numis
MOON.LN (Moonpig Group) -- to buy from hold at Deutsche Numis
SEB.A.SS (Skandinaviska Enskilda Banken) -- to buy from hold at HSBC
SHB.A.SS (Svenska Handelsbanke) -- to buy from hold at HSBC
VOE.AV (Voestalpine) -- to outperform from neutral at BNP Paribas Exane
CARL.B.DC (Carlsberg) -- to buy from hold at ABG Sundal Collier
Downgrades
SWED.A.SS (Swedbank) -- to market perform from outperform at Keefe, Bruyette & Woods
DWS.GR (DWS Group) -- to neutral from outperform at BNP Paribas Exane
WALL.B.SS (Wallenstam) -- to hold from buy at Danske Bank
Initiations
SESG.FP (SES) -- underperform at Oddo
BCG.LN (Baltic Classifieds Group) -- buy at Berenberg
BCP.PL (Banco Comercial Portugues) -- overweight at Morgan Stanley
Mondi (MNDI.LN) -- buy at Stifel
SMDS.LN (DS Smith) -- buy at Stifel
UPM.FH (UPM-Kymmene) -- buy at Stifel
VRLA.FP (Verallia) -- buy at Stifel
BILL.SS (Billerud) -- hold at Stifel
Holmen (HOLM.B.SS) -- hold at Stifel
SCA.A.SS (Svenska Cellulosa) -- hold at Stifel
STERV.FH (Stora Enso) -- hold at Stifel
Other Actions
COL.SM (Inmobiliaria Colonial SOCIMI) -- resumed underweight at Morgan Stanley
Data
Nikkei +2.32% to 41728.51
Hang Seng (0.03%) to 17519.64
Shanghai Composite +0.64% to 2941.30
S&P futures +13.8 vs prior close of 5625.3
€-$ (0.0002) or (0.02%) to 1.0826
$-¥ +0.17 or +0.11% to 160.97
€-¥ +0.19 or +0.11% to 174.26
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