Jul 24 ,2024
Synopsis
European equity markets set to open lower with focus on earnings newsflow, including several European banks on the tape (SAN.SM, BNP.FP, UCG.IM, DBK.GR) as well as a miss from luxury giant LVMH (MC.FP) overnight.
Some focus on after-hours US tech earnings with TSLA down 8% following bottom line miss. Operating margin weighed down by price cuts amid weaker EV demand, and AI-driven rise in expenses. Musk also confirmed Robotaxi event delayed to Oct-10. GOOGL down 2% afterhours after Q2 revenue topped forecasts. AI-related demand underpinned Cloud revenue though capex came in a bit higher than expected.
Macro data releases due today include Eurozone, France, Germany, UK Jul preliminary manufacturing/services PMIs, Germany Aug consumer climate - GfK, Spain Jun PPI, Finland Jun PPI
Today's agenda also sees G20 Finance Ministers and Central Bank Governors meeting in Rio de Janeiro; Norges Bank Governor Bache and Norway's finance minister Vedum, ECB's Cipollone and EU's Gentiloni among the participants. ECB's de Guindos chairs a session at 8:45CET at ECB/IMF/IMFER event, and ECB's Lane a panellist at 14:00. ECB's Buch in conversation at 14:45CET at event organised by PIIE. Informal meeting of EU health ministers (through Thu). In UK, following MPs questions on Northern Ireland, there's PMQs ay 12noon, and later a general debate on education and opportunity (follows government's launching on Fri (19th) of Curriculum and Assessment Review. Germany's defence minister hosts UK counterpart John Healey
Plenty of earnings out this morning including Orange (ORA.FP), SSAB (SSAB.A.SS), Remy Cointreau (RCO.FP), among many others. Earnings/updates still due from the likes of easyJet (EZJ.LN), Repsol (REP.SM), Reckitt Benckiser (RKT.LN). After market close, Kering (KER.FP), Michelin (ML.FP) and Moncler (MONC.IM) among those due to report.
Politics/Macro/World News
Top company news
Earnings/updates higlights
MC.FP (LVMH Moet Hennessy Louis Vuitton) -- reports H1 net income €7.27B vs FactSet €7.68B [6 est, €7.39-8.36B]; Group organic sales growth +1% vs StreetAccount +2.7%
EQNR.NO (Equinor) -- reports Q2 adjusted net income $2.42B vs consensus $2.00B
ASM.NA (ASM International) -- reports Q2 adj operating result €182.3M vs consensus €188M
ALO.FP (Alstom) -- reports Q1 revenue €4.39B vs FactSet €4.41B [2 est, €4.38-4.44B]; reaffirms Fiscal year 2024/25 outlook
ORA.FP (Orange) -- reports Q2 EBITDAaL €3.11B vs consensus €3.10B; confirm its FY24 financial targets
BNP.FP (BNP Paribas) -- reports Q2 net income €3.40B vs consensus €2.91B; confirms 2024 trajectory
DBK.GR (Deutsche Bank) -- reports Q2 EPS (€0.28) vs consensus (€0.14); updates on Global Hausbank strategy
SAN.SM (Banco Santander) -- reports Q2 underlying net income €3.21B vs consensus €3.17B
UCG.IM (UniCredit) -- reports Q2 net income €2.68B vs consensus €2.34B; raises FY net revenue guidance to above €23B
SSAB.A.SS (SSAB) -- reports Q2 EPS SEK2.43 vs consensus SEK2.43; t he seasonal downturn during Q3 is assessed to be more pronounced than normal
TEMN.SW (Temenos) -- reports Q2 EPS $0.94 vs consensus $0.88; revises FY24 non-IFRS guidance
EFGN.SW (EFG International) -- reports H1 net profit CHF162.8M vs FactSet CHF159.5M [2 est, CHF154-165M]
DSV.DC (DSV A/S) -- reports Q2 net income DKK2.79B vs consensus DKK2.76B; updates FY outlook
KPN.NA (Royal KPN) -- reports Q2 net income €227M vs FactSet €223.0M [2 est, €213.2-232.7M]; On track to reach FY24 outlook
SGSN.SW (SGS) -- reports H1 adjusted EPS CHF1.67 vs consensus CHF1.60
RCO.FP (Remy Cointreau) -- reports Q1 revenue €217.0M vs consensus €220.4M; Organic Growth (15.6%) vs consensus (13.6%)
SOI.FP (SOITEC) -- reports Q1 revenue €121M vs FactSet €117.6M [2 est, €117.2-118M]; reaffirms FY25 outlook
NEM.GR (Nemetschek) -- confirms FY organic revenue +10-11% y/y
NEM.GR (Nemetschek) -- reports Q2 revenue €227.7M vs FactSet €226.7M [9 est, €225-228.9M]
AM.FP (Dassault Aviation) -- reports H1 adjusted net income €442M vs FactSet €476M
ADP.FP (Aeroport de Paris) -- reports H1 net income attributable €347M vs FactSet €208.7M [3 est, €194-228M]; reaffirms traffic assumptions, forecasts and targets for 2024-25
MMB.FP (Lagardere) -- reports H1 adjusted net income attributable €36M vs year-ago €24M
GFC.FP (Gecina) -- reports H1 recurrent EPS €3.18 vs FactSet €3.06 [2 est, €3.01-3.10]; reaffirms FY guidance
COPN.SW (Cosmo Pharmaceuticals) -- reports H1 net income €76.1M vs year-ago €1.5M
UTG.LN (UNITE Group) -- reports H1 EPS 28.6p ex-items vs year-ago 27.4p; expects FY EPS guidance at upper end of range; announces share placing
EXN.FP (Exclusive Networks) -- reports H1 EBIT €88M, +5% vs year-ago €84M
DWS.GR (DWS Group) -- reports Q2 net income €162M vs consensus €160M; increases FY24 outlook for adj revenues, adj PBT and EPS
MMT.FP (M6-Metropole) -- reports Q2 EBITA €62.2M, (18%) vs year-ago €75.5M
FTK.GR (flatexDEGIRO) -- reports Q2 net income €30.8M vs FactSet €28.9M [3 est, €26.8-30.5M]; Expects FY revenues and net income at the upper end of the guidance corridor
CMBN.SW (Cembra Money Bank) -- reports H1 EPS CHF2.67 vs year-ago CHF2.55
NHH.SM (Minor Hotels Europe & Americas) -- Follow-up: Minor Hotels Europe & Americas reports Q2 recurring net income €96.6M - slides
NHH.SM (Minor Hotels Europe & Americas) -- reports H1 EBIT €146.9M, +20% vs year-ago €122.5M
AOF.GR (ATOSS Software) -- reports Q2 EPS €0.72 vs year-ago €0.54; raises FY EBIT margin forecast
M&A
RKT.LN (Reckitt Benckiser) -- under pressure from major shareholders to reconsider sale of nutrition business Mead Johnson - FT
EXN.FP(Exclusive Networks) -- receives €24.25/share binding offer from Clayton Dubilier & Rice, in consortium with Exclusive Networks' majority holder Permira to acquire majority stake in Exclusive Networks (
SW.FP (Sodexo) -- announces sale of Sofinsod subsidiary to Bellon SA for €918M, interim dividend of €6.24 per share
UCG.IM (UniCredit) -- to acquire Vodeno Sp. and Aion Bank SA/NV for ~€370M
ASCL.LN (Ascential) -- confirms that it has received a conditional proposal from Informa regarding a possible 568p/share cash offer
BOSN.SW (Bossard Holding) -- to acquire Aero Negoce International; terms undisclosed
BYW6.GR (BayWa) -- Energy Infrastructure Partners in talks to increase stake in BayWa's renewable energy unit to at least 70-80% - Reuters
MCAP.SS (MedCap) -- agrees to acquire Picomed and Alert-IT for an initial NOK51M in cash
VINCI drops out of Queensland Airports auction due to vendors' price expectations - Australian Financial Review
Healthcare
ALCLS.FP (Cellectis SA) -- FDA grants orphan drug designation to Cellectis SA for treatment of acute lymphoblastic leukemia
ALIM (Alimera Sciences) -- enters into ILUVIEN manufacturing services agreement with Alliance Medical Products - 8-K
Other
AIR.FP (Airbus SE) -- Berniq Airways orders six Airbus A320neo Family aircraft
AIR.FP (Airbus SE) -- Airbus and Government of Quebec extend partnership
RR.LN (Rolls-Royce Holdings) -- Rolls-Royce in discussions with Airbus to supply narrow-body plane engine - media report
SKF.B.SS (SKF) -- announces Niclas Rosenlew to step down as SVP and CFO
STERV.FH (Stora Enso) -- appoints Niclas Rosenlew as new CFO
EDPR.PL (EDP Renovaveis) -- secures a 24-year Capacity Tolling Agreement with Salt River Project for a 200 MW (800 MWh) battery energy storage system (post EU close 23-Jul)
AM.FP (Dassault Aviation) -- announces share buyback program
UTG.LN (UNITE Group) -- Follow-up: UNITE Group announces share placing via accelerated bookbuild through JPMorgan and Deutsche Numis to raise £450M (gross)
MRL.SM (MERLIN Properties SOCIMI) -- to issue up to 94M new shares via accelerated bookbuild through Goldman and Morgan Stanley
MRL.SM (MERLIN Properties SOCIMI) -- places 94M new shares at €9.80/share through Goldman and Morgan Stanley
ALPHA.GA (Alpha Services & Holdings) -- appoints L.A. Papagaryfallou as Deputy CEO and V.G. Kosmas as CFO, effective 23-Jul-24
EUROB.GA (Eurobank Ergasias Services & Holdings) -- shareholders approve dividend for 2023 of €0.09333045/share (gross) (post EU close 23-Jul)
LOOMIS.SS (Loomis) -- announces up to SEK200M share buyback program
Key rating changes
Upgrades
Bernstein upgrades EPI.A.SS, METSO.FH
DEMANT.DC (Demant) -- Demant long-term recommendation upgraded to market perform from underperform at Handelsbanken
KNIN.SW (Kuehne & Nagel) -- to hold from reduce at HSBC
NTGY.SM (Naturgy Energy Group) -- to neutral from underperform at BNP Paribas Exane
ESSITY.B.SS (Essity) -- to equal weight from underweight at Barclays
Downgrades
BOSS.GR (Hugo Boss) -- to underperform from outperform at BNP Paribas Exane
SKF.B.SS (SKF) -- to sell from hold at Deutsche Bank
P911.GR (Porsche) -- to neutral from outperform at Mediobanca
Initiations
SN.LN (Smith & Nephew) -- buy at Deutsche Numis
SDZ.SW (Sandoz Group) -- buy at Kepler Cheuvreux
Other Actions
AIXA.GR (Aixtron) -- assumed equal-weight at Morgan Stanley; prior rating was equal-weight
Data
Nikkei (0.97%) to 39209.21
Hang Seng (0.67%) to 17352.15
Shanghai Composite (0.25%) to 2908.22
S&P futures (31.0) vs prior close of 5599.3
€-$ (0.0003) or (0.03%) to 1.0852
$-¥ (0.99) or (0.64%) to 154.60
€-¥ (1.13) or (0.67%) to 167.75
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