Jul 26 ,2024
Synopsis
European equity markets are set to open mixed amid Asian equities mostly higher Friday. Stocks steadying though sentiment decidedly cautious following tech rout. Hang Seng erased initial advance. Nikkei inching up after falling into correction. TSMC-led selloff in Taiwan. ASX and Kospi outperforming. S&P 500 futures recovering afterhours. Treasuries little changed while JGB yields down 1-2 bp. Gold little changed near three-week low. Crude and copper flat. Bitcoin rebounding from one-week low.
On today's agenda, ECB releases at 10:00CET latest results of consumer expectations survey. Russia Central Bank interest rate decision, consensus expectations are for a 200bps increase in benchmark interest rate to 18%. ASEAN Foreign Ministers hold a conf. includes meetings with their counterparts from EU, Russia, Turkey and UK. In UK, MPs debate making Britain a clean energy superpower. Also, there's Olympic Games Opening Ceremony in Paris.
Macroeconomic updates include: France Jul consumer confidence, Spain Jun retail sales, Q2 unemployment rate, Italy Jul business/consumer confidence, Sweden Jun PPI, trade balance, Norway Jun retail sales, UK Jul distributive trades survey - CBI, Denmark Jun retail sales.
In corporate news, ThyssenKrupp (TKA.GR) reported prelim Q3 earnings yesterday after the close and guides FY24 adjusted EBIT >€500M vs prior guidance in the high three-digit million € range and FactSet €757.9M. Also in the DACH region, this morning Mercedes-Benz Group (MBG.GR) reports Q2 EPS €2.95 vs consensus €2.86, and FY24 guidance for revenue, EBIT and FCF remains unchanged. BAS (BAS.GR) Q2 adj EPS €0.93 vs consensus €0.86 with unchanged forecast. Holcim (HOLN.SW) reports Q2 recurring EBIT CHF1.68B vs StreetAccount CHF1.62B.
In Southern Europe, Enel (ENEL.IM) posted H1 earnings yesterday after the close including H1 net income €3.96B vs StreetAccount €3.81B.This morning Eni (ENI.IM) reports Q2 adj net income €1.52B vs consensus €1.42B; FY24 proforma adj EBIT guidance raised to ~€15B; potential for extra €500M buyback.
In France, Air Liquide (AIR.FP) reports H1 net income attributable €1.68B vs consensus €1.62B. Capgemini (CAP.FP) reports H1 Normalized EPS €5.88 vs StreetAccount €5.47 and updated the Group's financial targets for 2024.From the Benelux, Bekaert (BEKB.BB) reports H1 Underlying EPS €3.03 vs year-ago €3.06 and updates FY outlook. Proximus (PROX.BB) reports Q2 net income €91M vs FactSet €100.8M and raises FY revenue and EBITDA guidance.
In the UK, NatWest Group (NWG.LN), SEGRO (SGRO.LN), IMI (IMI.LN) and Rightmove (RMV.LN) are expected to update investors with their latest numbers.
Macro/Politics/World news
Top company news
Earnings/updates
France
EL.FP (EssilorLuxottica) -- reports H1 adjusted net income €1.75B vs consensus €1.73B
RMS.FP (Hermes) -- reports H1 net income €2.37B vs StreetAccount €2.38B
VIV.FP (Vivendi) -- reports H1 adjusted net income €329M vs year-ago €324M
SGO.FP (Compagnie de Saint-Gobain) -- reports H1 EPS €3.31 vs year-ago €2.84
DG.FP (VINCI SA) -- reports H1 attributable net income €2.00B vs FactSet €1.93B [4 est, €1.88-1.96B]
FR.FP (Valeo SE) -- reports H1 revenue €11.12B vs StreetAccount €11.20B
BVI.FP (Bureau Veritas) -- reports H1 adj EPS €0.64 vs FactSet €0.61 [2 est, €0.60-0.61]; raises FY24 organic revenue growth guidance
ENX.FP (Euronext) -- reports Q2 adj EPS €1.53 vs consensus €1.53
TFI.FP (TF1) -- reports Q2 net income €66.3M, (10%) vs year-ago €73.3M
GTT.FP (Gaztransport & Technigaz) -- reports H1 net income €170.3M vs FactSet €134M [1 est]; confirms 2024 objectives
FDJ.FP (La Francaise des Jeux) -- reports H1 net income €235M ex-items, +28% vs year-ago €183M
SPIE.FP (SPIE) -- reports H1 net income €157.6M vs FactSet €152.2M [1 est]
ATE.FP (Alten) -- reports preliminary H1 revenue €2.11B vs year-ago €2.05B; no tangible signs of foreseeable improvement in H2
NEOEN.FP (Neoen) -- reports H1 adjusted net income €27.7M vs year-ago €63.0M; reiterates FY24 adj EBITDA targets
VCT.FP (Vicat) -- reports H1 net income €104M, +11% vs year-ago €94M
TKTT.FP (Tarkett) -- reports H1 EPS €0.27 vs year-ago €0.04
VU.FP (VusionGroup) -- reports H1 revenue €430.0M vs FactSet €431.5M [1 est]
XFAB.FP (X-FAB Silicon Foundries) -- reports Q2 net income $19.8M vs FactSet $19.1M [3 est, $13.9-29.5M]
LSS.FP (Lectra) -- reports Q2 net income €4.4M vs year-ago €6.6M; FY results expected at the lower end of guided ranges.
FII.FP (Lisi) -- reports H1 net income €31.6M vs year-ago €13.5M
ERA.FP (Eramet) -- reports H1 net income (€41M) vs FactSet (€103M) [1 est]
RBT.FP (Robertet) -- reports preliminary H1 revenue €414.6M vs year-ago €376.4M; confidence for FY24
NXI.FP (Nexity) -- reports H1 revenue €1.70B vs FactSet €1.67B [1 est]
SMCP.FP (SMCP) -- reports H1 net income (€27.7M) vs year-ago €14M
CGM.FP (Cegedim) -- reports preliminary H1 revenue €319.0M vs year-ago €301.0M; guides FY24
SRP.FP (SRP Groupe) -- reports H1 net income (€20.7M) vs year-ago (€2.7M)
GBT.FP (Guerbet) -- reports H1 revenue €419.2M vs FactSet €409.2M [1 est]
AIR.FP (Air Liquide) -- reports H1 net income attributable €1.68B vs consensus €1.62B
VK.FR (Vallourec) -- reports Q2 net income €111M, (30%) vs year-ago €159M
DACHs
HOLN.SW (Holcim) -- reports Q2 recurring EBIT CHF1.68B vs StreetAccount CHF1.62B
TKA.GR (ThyssenKrupp) -- guides FY24 adjusted EBIT >€500M vs prior guidance in the high three-digit million € range and FactSet €757.9M [2 est, €205.1-247M]
reports preliminary Q3 adjusted EBIT ~€150M vs FactSet €226.0M [2 est, €205.1-247M]
WCH.GR (Wacker Chemie) -- reports Q2 EPS €0.58 vs consensus €0.65; full-year forecast confirmed
SUN.SW (Sulzer) -- reports H1 net income CHF117.4M vs StreetAccount CHF121.4M
FORN.SW (Forbo Holding) -- reports H1 EPS CHF34.36 vs FactSet CHF41.50 [1 est]
MBG.GR (Mercedes-Benz Group) -- reports Q2 EPS €2.95 vs consensus €2.86; FY24 guidance for revenue, EBIT and FCF remains unchanged
Southern Europe
ENEL.IM (Enel) -- reports H1 net income €3.96B vs StreetAccount €3.81B
WBD.IM (Webuild) -- reports H1 net income attributable €54.4M vs FactSet €30M [1 est]; reaffirms FY guidance
ARIS.IM (Ariston Holding) -- reports preliminary Q2 EBIT €27M ex-items vs FactSet €38.0M [2 ests, €38-38M]; Lowers FY guidance
RENE.PL (Redes Energeticas Nacionais SGPS) -- reports H1 net income €47.5M ex-items, (23%) vs year-ago €61.5M
HOME.SM (Neinor Homes) -- reports H1 EPS €0.16 ex-items vs year-ago €0.08
ALTR.PL (Altri SGPS) -- reports Q2 net income €40.4M vs FactSet €38.5M [3 est, €35.4-43.1M]
Benelux
LIGHT.NA (Signify) -- reports Q2 EPS €0.49 vs consensus €0.37; maintains FY24 guidance
WDP.BB (Warehouses de Pauw) -- reports H1 EPRA EPS €0.71 vs year-ago €0.71
PROX.BB (Proximus) reports Q2 net income €91M vs FactSet €100.8M [2 est, €93-108.6M]; Raises FY revenue and EBITDA guidance
BECKB.BB (Bekaert) -- reports H1 Underlying EPS €3.03 vs year-ago €3.06; updates FY outlook
UMI.BB (Umicore) -- reports H1 EPS €0.49 ex-items vs consensus €0.58; confirms FY outlook
Nordics
KCR.FH (Konecranes) -- reports Q2 EPS €1.26 vs consensus €0.90; not expecting profitability to improve sequentially in Q3 versus Q2
M&A
PROX.BB (Proximus) -- acquires full ownership of Fiberklaar
SRG.IM (Snam) -- agrees to acquire Edison Stoccaggio for an initial ~€560M
EQT.SS (EQT AB) -- agrees to sell its majority stake in fiber network Fiberklaar to Proximus, its co-shareholder for £246M
NXI.FP (Nexity) -- Crédit Agricole Immobilier and Nexity enter into exclusive negotitions for the acquisition of Nexity Property Management by Crédit Agricole Immobilier
PUB.FP (Publicis Groupe) -- to acquire Influential; price not disclosed
AAL.LN (Anglo American) -- Glencore considering bid for Anglo American's Queensland coal mines - The Australian
BVI.FP (Bureau Veritas) -- acquires Security Innovation Inc.; price not disclosed
ELE.SM (Endesa) -- to sell 49.99% of Enel Green Power España Solar 1, S.L. to Masdar for €817M
SAB.SM (Banco de Sabadell) -- warns BBVA could be forced by CNMC to divest part of Sabadell's SME business if merger goes ahead - FT, citing CEO
Healthcare
ALCLS.FP (Cellectis SA) -- Cellectis confirms FDA grants orphan drug and rare pediatric disease designation status to UCART22 product candidate for acute lymphoblastic leukemia (ALL) treatment
IVA.FP (Inventiva) -- secures new patent in Japan expanding IP protection of lead product candidate lanifibranor
OXUR.BB (Oxurion) -- announces 1 new share for 10,000 existing share consolidation program
Other
AIR.FP (Airbus SE) -- enters MoU with Abra Group for five A350-900s
UCG.IM (UniCredit) -- receives clarity from the ECB on certain parts of its application to the General Court of the European Union
EDPR.PL (EDP Renovaveis) -- secures a 20-year PPA with a major technological company in Japan
Key rating changes
Upgrades
GFC.FP (Gecina) -- to outperform from neutral at BNP Paribas Exane
Downgrades
STMPA.FP (STMicroelectronics) -- to equal-weight from overweight at Morgan Stanley
NESN.SW (Nestle) -- to hold from buy at Berenberg
RWE.GR (RWE) -- to market perform from outperform at Bernstein
GNC.LN (Greencore Group) -- to hold from buy at HSBC
SAVE.SS (Nordnet) -- to hold from buy at Berenberg
ARIS.IM (Ariston Holding) -- to neutral from outperform at Mediobanca
Other Actions
TIT.IM (Telecom Italia) -- resumed outperform at Mediobanca
Data
Nikkei +0.01% to 37873.55
Hang Seng +0.29% to 17054.05
Shanghai Composite (0.12%) to 2883.38
S&P futures +23.5 vs prior close of 5441.3
€-$ +0.0011 or +0.10% to 1.0858
$-¥ (0.17) or (0.11%) to 153.76
€-¥ (0.02) or (0.01%) to 166.93
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