Jul 25 ,2024
Synopsis
European equity markets are set to open in negative territory amid Asian equities under pressure Thursday. Tech-led selloff with Japan and Korean markets seeing heaviest declines. Taiwan remains closed due to typhoon activity. Hang Seng leading China market declines S&P 500 and Nasdaq futures edging higher afterhours. Treasuries strengthening while JGB yields higher at the front end. Yen notably higher against other currencies. Aussie and other commodity/risk proxies weakening. Crude, gold and copper tracking equity market declines. Bitcoin losses intensifying.
On today's agenda, Bundesbank's Nagel press conf 13:00CET at G20 meeting whilst ECB's Lagarde attends, at 17:00CET, the Paris Summit 2024 Sport for Sustainable Development (S4SD). Germany's foreign minister Baerbock in discussion at 19:00CET at event organised by Zeit. EU's Dombrovskis participates in the 2nd EU-Singapore Free Trade Agreement Trade Committee meeting. EU's Hahn speech at the Salzburg Summit (Wed-Fri). Other speakers include UK's Boris Johnson, Austria's finance minister Brunner and Verbund's (VER.AV) CEO.
Macroeconomic updates include: Germany Jul Ifo survey, France Jul business confidence, Sweden Jun PPI, Norway Jun unemployment rate, Eurozone Jun M3 money supply, UK Jul industrial trends orders - CBI. Also, UK Jun car production - SMMT is due to be released
On a busy earning calenda, Dassault Systemes (DSY.FP) confirms previously reported preliminary Q2 numbers; issues Q3 guidance and confirms updated FY guidance. Still in France, Sanofi (SAN.FP)reports Q2 Business EPS €1.73 vs consensus €1.66 and upgrades FY 24 EPS guidance. STMicroelectronics (STAMPA.FP)reports Q2 EPS $0.38 vs consensus $0.35. Accor (AC.FP), JCDecaux (DEC.FP), Getlink (GET.FP) are also out with their respective earnings updates.
From the DACH region, Siltronic (WAF.GR) reports Q2 EPS €0.73 vs year-ago €1.83. Julius Baer Group (BAER.SW) reports H1 adj net income CHF459.7M vs consensus CHF475M. Roche Holding (ROG.SW) reports H1 Core EPS CHF10.23 vs consensus CHF9.32. Nestle (NESN.SW) reports H1 underlying EPS CHF2.40 vs consensus CHF2.35; adjusts FY guidance
In Southern Europe, Stellantis (STLAM.IM) reports H1 net income €5.65B vs FactSet €6.85B. Applus Services (APPS.SM) reported yesterday after the close H1 Adjusted EPS incl AD €0.47 vs year-ago €0.46; noted delisting process has started.
In the UK, Lloyds Banking Group (LLOY.LN), AstraZeneca (AZN.LN), Unilever (ULVR.LN), RELX (REL.LN), British American Tobacco (BATS.LN), Anglo American (AAL.LN), Rentokil Initial (RTO.LN) are due to update the market with earnings/trading updates.
Macro/Politics/World News
Top company news
Earnings/updates
France
STMPA.FP (STMicroelectronics) -- reports Q2 EPS $0.38 vs consensus $0.35; guides Q3 and FY24
KER.FP (Kering) -- reports H1 net income from continuing operations €940M vs FactSet €926.2M
ML.FP (Cie Generale des Etablissements Michelin SA) -- reports H1 EPS €1.62 vs consensus €1.54
RNO.FP (Renault) -- reports H1 net income €1.38B vs StreetAccount €1.50B
IPN.FP (Ipsen) -- reports H1 core EPS €4.78 vs FactSet €4.76; upgrades FY24 financial guidance
CA.FP (Carrefour) -- reports H1 Recurring Operating Income €743M vs consensus €741M; FY24 targets confirmed?
ELIS.FP (Elis) -- reports H1 net income €119.1M, (14%) vs year-ago €138.6M; revises upwards full-year 2024 organic growth and EBITDA margin targets
SK.FP (SEB) -- reports H1 EPS €1.84 vs year-ago €1.38
SOP.FP (Sopra Steria Group) -- reports H1 net income €169.3M vs FactSet €144.0M [2 est, €134-153.9M]
VANTI.FP (Vantiva) -- reports H1 net income (€166M) vs year-ago (€227M)
IPS.FP (Ipsos) -- reports H1 adjusted net income €82.3M, +17% vs year-ago €70.1M
VRLA.FP (Verallia) -- reports H1 net income €124.1M vs FactSet €191.5M [1 est]
MERY.FP (Mercialys) -- reports H1 FFO €0.63 vs FactSet €0.63
VLTSA.FP (Voltalia) -- reports Q2 revenue €137.8M vs FactSet €138.8M [1 est]
FNAC.FP (Fnac Darty) -- reports H1 net income from continuing operations (€75M) vs year-ago (€163M)
ADOC.FP (Adocia) -- reports preliminary Q2 revenue €0M vs year-ago €0.8M
S30.FP (Solutions 30) -- reports Q2 revenue €252.0M, (4%) vs year-ago €263.8M
DSY.FP (Dassault Systemes) -- confirms previously reported preliminary Q2 numbers; issues Q3 guidance and confirms updated FY guidance
SAN.FP (Sanofi)-- reports Q2 Business EPS €1.73 vs consensus €1.66 and upgrades FY 24 EPS guidance
AC.FP (Accor) -- reports H1 EBITDA €504M vs consensus €494.6M; guides FY24 and maintains its medium-term outlook
DEC.FP (JCDecaux)-- reports H1 revenue €1.81B vs consensus €1.74B
GET.FP (Getlink) -- reports H1 net income €173.0M, +8% vs year-ago €160M; confirms FY EBITDA target between €780-830M
Benelux
ARGX.BB (argenx) -- reports Q2 net income $29.1M
UMG.NA (Universal Music Group) -- reports Q2 adjusted EBITDA €649M vs StreetAccount €641.6M
UCB.BB (UCB) -- reports H1 core EPS €2.09 vs consensus €1.75; confident to reach top-end of 2024 revenue guidance; still sees FY Core EPS of €3.70-4.4 (FactSet €4.16)
BESI.NA (BE Semiconductor Industries) -- reports Q2 net income €41.9M vs FactSet €45.0M [7 est, €36.1-75M]; guides Q3 revenues below consensus
DACH
LONN.SW (Lonza Group) -- reports H1 Core EPS CHF7.02 vs consensus CHF5.02
DB1.GR (Deutsche Börse) -- reports Q2 EPS €2.91 ex-items vs consensus €2.60
MOVE.SW (Medacta Group) -- reports H1 revenue €288.6M vs FactSet €292.2M [2 est, €289.3-295M]
BANB.SW (Bachem Holding) -- reports H1 net income CHF36.2M vs FactSet CHF34.6M [4 est, CHF28.7-50M]; reaffirms FY and 2026 guidance
DOKA.SW (dormakaba Holding) -- has seen very good order intake in the airport sector for financial year 2023/24
BUCN.SW (Bucher Industries) -- reports H1 EPS CHF14.07 vs FactSet CHF11.57 [3 est, CHF8.78-14.04]
4FZ.GR (Orbia Advance Corp SAB de CV) -- Orbia Advance Corp SAB de CV reports Q2 net income attributable $195M vs year-ago $8M
WAF.GR (Siltronic) -- reports Q2 EPS €0.73 vs year-ago €1.83
ROG.SW (Roche Holding) -- reports H1 Core EPS CHF10.23 vs consensus CHF9.32
NEWSN.SW (Nestle) -- reports H1 underlying EPS CHF2.40 vs consensus CHF2.35; adjusts FY guidance
DRW3.GR (Drägerwerk) -- confirms previously reported Q2 earnings
BFSA.GR (Befesa) -- reports Q2 EPS €0.26 vs FactSet €0.30 [3 est, €0.00-0.46]; raises lower end of FY adjusted EBITDA guidance
Southern Europe
MONC.IM (Moncler) -- reports H1 net income €180.7M vs consensus €166.6M
APPS.SM (Applus Services) -- reports H1 Adjusted EPS incl AD €0.47 vs year-ago €0.46; notes delisting process has started
SPM.IM (Saipem) -- reports Q2 adjusted net income €61M vs StreetAccount €67.9M
JMT.PL (Jeronimo Martins) -- reports Q2 net income attributable €156M vs consensus €170.1M
LOG.SM (Logista Integral) -- reports 9M net profit €237M, +23% vs year-ago €193M
STLAM.IM (Stellantis) -- reports H1 net income €5.65B vs FactSet €6.85B [10 est, €6.38-7.48B]
Nordics
SECARE.SS (Swedencare) -- reports Q2 EPS SEK0.13 vs FactSet SEK0.34 [2 est, SEK0.33-0.34]
HUH1V.FH (Huhtamaki) -- reports Q2 Adjusted EPS €0.63 vs FactSet €0.63 [9 est, €0.60-0.66]
M&A
SRG.IM (Snam) -- Snam, Edison set to announce deal on gas storage assets with base price of almost €600M - Reuters
SPIE.FP (SPIE) -- announces the acquisition of the companies ABC, ETC and SIRAC (GIE HORUS) in France
PARKEN.DC (PARKEN Sport & Entertainment) -- announces accepted bid for Elias Jelert
Healthcare
GSK.LN (GSK Plc) -- GSK's Jemperli receives full approval from Health Canada for the treatment of patients with recurrent or advanced dMMR/MSI-H endometrial cancer
IPN.FP (Ipsen) -- Ipsen, Day One enter into exclusive ex-U.S. licensing agreement to commercialize tovorafenib for most common childhood brain tumor
GALD.SW (Galderma Group) -- Results of phase III ARCADIA 1, 2 trials of Galderma's nemolizumab published in The Lancet
Other
MRL.SM (MERLIN Properties SOCIMI) -- MERLIN Properties SOCIMI's new shares issued in recent capital increase will be admitted to trading with effect from, or around, 29-Jul
ALPHA.GA (Alpha Services & Holdings) -- shareholders approve dividend of €0.026/ share for 2023
EDR.SM (eDreams ODIGEO) -- receives CNMV authorisation of company's previously disclosed tender offer for 4.5M shares at €6.9/share
Key rating changes
Downgrades
UMG.NA (Universal Music Group) -- to neutral from buy at Guggenheim Securities
REP.SM (Repsol) -- to sector perform from outperform at RBC Capital Markets
RS1.LN (RS Group plc) -- to hold from buy at HSBC
ASCL.LN (Ascential) -- to equal weight from overweight at Barclays
Other Actions
FCT.IM (Fincantieri) -- reinstated neutral at BNP Paribas Exane; prior rating was neutral
Data
Nikkei (2.99%) to 37984.83
Hang Seng (1.64%) to 17026.92
Shanghai Composite (0.64%) to 2883.34
S&P futures +9.5 vs prior close of 5472.0
€-$ +0.0002 or +0.02% to 1.0844
$-¥ (1.13) or (0.74%) to 152.76
€-¥ (1.22) or (0.73%) to 165.64
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