Jul 30 ,2024
Synopsis
European equity markets are set to open mixed whilst Asian equities trading lower Tuesday. Markets in China, Japan, Korea, Australia, and Taiwan all seeing declines as S&P 500 futures ease afterhours. Bonds mixed with front-end Treasury yields up 1-2 bp while JGB and Aussie yields a touch lower.
On today's agenda, Germany, Federal Constitutional Court due to rule on electoral reform of the traffic light coalition. Last day of business for UK Parliament as goes into recess. House will next sit on 2-Sep. MPs hold second reading of the Budget Responsibility Bill which imposes duties on the Treasury and the OBR in respect of the announcement of fiscally significant measures.
European Macro data releases out today include Germany Q2 preliminary GDP, Jul preliminary CPI, France Q2 preliminary GDP, Jun household consumption, Italy Q2 preliminary GDP, Spain Q2 preliminary GDP, Jul preliminary CPI, Eurozone Q2 preliminary GDP, Jul business/consumer confidence, Switzerland Jul leading indicators - KOF, Portugal Q2 preliminary GDP, Greece Jun PPI, Belgium Jul CPI, Ireland Jul preliminary HICP, Austria Q2 preliminary GDP, Jun PPI
On a busy earning calendar, DAHCs names kicked off the session with Covestro (1COV.GR), Avolta (AVOL.SW), Heidelberg Materials (HEI.GR), Sika Group (SIKA.SW) and Fresenius Medical Care (FME.GR) reporting H1/Q2 earnings. In France, SCOR SE (SCR.FP) reported Q2 earnings and Rexel (RXL.FP) issued H1 earnings with the latter indicating that it expects FY in the lower end of guidance range.
Elsewhere, Gestamp Automoción (GEST.SM), Accion (ANA.SM) and DSM-Firmenich (DSFIR.NA) are among other in their region to update investors with their latest numbers. In the UK, Standard Chartered (STAN.LN) reported Q2 earnings and announced a $1.5B buyback starting imminently. The company also upgraded FY24 income guidance while all other key points of guidance remain unchanged. Other Notable earnings due today frrom Airbus (AIR.FP), L'Oreal (OR.FP), Casino, Guichard-Perrachon (CO.FP), Bollore (BOL.FP), Intesa Sanpaolo (ISP.IM), Davide Campari-Milano (CPR.IM), Leonardo (LDO.IM), EDP-Energias de Portugal (EDP.PL), bp (BP.LN), Diageo (DGE.LN), Rio Tinto (RIO.LN), Greggs (GRG.LN) and Glencore (GLEN.LN).
In M&A, Lundin Mining, BHP (BHP.LN) to jointly acquire Filo for total consideration of ~C$4.1B, or C$33.00/share.
Macro/Politics/World news
Poor weather and cost of living crisis drive UK summer spending down - The Guardian
OBR to investigate Hunt's Treasury spending forecasts over £22bn black hole - The Telegraph
France's Economic Growth Beats Forecasts in Boost for Euro Area - Bloomberg
BOE's Asset Sales Are Set to Become Bigger Headache for Treasury - Bloomberg
UK Housing Market Signaling Revival as Deals Jump, Zoopla Says - Bloomberg
Russia also wants to bring Malaysia into the BRICS economic alliance - Handelsblatt
Top company news
Earnings/updates
DACHS
SIKA.SW (Sika Group) -- reports H1 EPS CHF3.59 vs year-ago CHF2.59
1COV.GR (Covestro) -- reports Q2 EBITDA €320M vs consensus €311M and guidance €270M-€370M; FY24 EBITDA guidance narrowed
AVOL.SW (Avolta) -- reports H1 CORE net income CHF253.2M vs consensus CHF21.6M
KARN.SW (Kardex Holding) -- reports H1 net income €38.3M vs FactSet €30M [1 est]
AEVS.SW (AEVIS VICTORIA) -- reports prelimiary H1 revenue of more than CHF450M vs year-ago CHF428M
CLN.SW (Clariant) -- reports Q2 adjusted EBITDA CHF166M vs StreetAccount CHF172.9M
RDC.GR (Redcare Pharmacy) -- reports Q2 net sales €561M vs preliminary €560M and FactSet €559.2M [5 est, €555.8-560.2M]
FPE3.GR (FUCHS SE) -- reports H1 EPS €1.17 vs year-ago €1.03
HEI.GR (Heidelberg Materials) -- reports Q2 RCOBD €1.29B vs consensus €1.29B; outlook for 2024 confirmed
FME.GR (Fresenius Medical Care) -- reports Q2 EPS (reported) €0.64 vs consensus €0.60; confirms FY guidance
SIGN.SW (SIG Combibloc Group) -- reports Q2 adjusted net income €80.5M vs FactSet €91.8M; Adjusts FY guidance, reaffirms mid-term guidance
RBI.AV (Raiffeisen Bank International) -- reports Q2 consolidated profit €661M vs consensus €523M; ROE guidance for 2024 confirmed at 10%, excluding Russia and Belarus
Benelux
DSFIR.NA (DSM-Firmenich) -- reports Q2 adjusted EBITDA €513M vs consensus €498M; raises FY Adjusted EBITDA guidance to €2.0B vs prior guidance of at least €1.9B
France
RXL.FP (Rexel) -- reports H1 recurring net income €340.8M; expects FY in the lower end of guidance range
NK.FP (Imerys) -- reports Q2 net income €73M vs year-ago €44M; guides FY24
THEP.FP (Thermador Groupe) -- reports H1 net income €25.3M vs FactSet €26.8M [1 est]
PLNW.FP (Planisware) -- reports H1 net income €16.0M vs year-ago €18.7M
TRACT.FP (Teract ) --reports preliminary FY revenue €911.5M, in line with guidance €900-950M, vs year-ago €902.1M
SCR.FP (SCOR SE) -- reports Q2 net income (€308M) vs year-ago €192M
Southern Europe
BCP.PL (Banco Comercial Portugues) -- Banco Comercial Português informs about Millennium bim (Mozambique) H1 results
OHLA.SM (Obrascon Huarte Lain) -- reports H1 net income attributable (€34.2M) vs year-ago €0.6M
EXAE.GA (Hellenic Exchanges-Athens Stock Exchange) -- reports H1 net income €9.4M vs FactSet €8.6M [1 est]
GEST.SM (Gestamp Automoción) -- reports H1 net income €106M vs FactSet €137M [1 est]
IDR.SM (Indra Sistemas) -- reports Q2 net income €53M vs consensus €60.1M; adjusts FY24 targets upward
UNI.SM (Unicaja Banco) -- reports Q2 net income €184M vs FactSet €187.3M [9 est, €176-197M]
ANA.SM (Accion) -- reports H1 net income attributable €116M vs FactSet €43M [2 est, €35-51M]
Nordics
IPCO.SS (International Petroleum Corp) -- reports Q2 net income $45.2M vs FactSet $41.4M [5 est, $31-47.5M]
MUSTI.FH (Musti Group) -- reports Q3 EPS (€0.01) vs year-ago €0.22
UK
STAN.LN (Standard Chartered) -- reports Q2 underlying EPS $0.44 vs FactSet $0.45 [3 est, $0.43-0.46]; announces $1.5B buyback
Also due to report today include:
Earnings
Benelux: Allfunds Group (ALLFG.NA),
DACHs: Biotest (BIO.GR),
France: Airbus (AIR.FP), L'Oreal (OR.FP), Casino, Guichard-Perrachon (CO.FP), Bollore (BOL.FP), Manitou BF (MTU.FP), Tikehau Capital (TKO.FP), NRJ Group (NRJ.FP), Altarea (ALRA.FP), EUROAPI (EAPI.FP), Deezer (DEEZR.FP), Teleperformance (TEP.FP), Viridien (VIRI.FP)
Italy: Intesa Sanpaolo (ISP.IM), Davide Campari-Milano (CPR.IM), Leonardo (LDO.IM), Recordati (REC.IM), A2A (A2A.IM), FinecoBank (FBK.IM), Poste Italiane (PST.IM), Fincantieri (FCT.IM), Ascopiave (ASC.IM), Biesse (BSS.IM), Elica (ELC.IM), Banco di Desio e della Brianza (BDB.IM), Industrie De Nora (DNR.IM), Brembo (BRE.IM), Amplifon (AMP.IM)
Nordics: Securitas (SECU.B.SS), Storytel (STORY.B.SS)
Portugal: EDP-Energias de Portugal (EDP.PL), Sonae (SON.PL)
Spain: Prosegur (PSG.SM), Applus Services (APPS.SM), Ferrovial (FER.SM), Laboratorio Reig Jofre (RJF.SM), Viscofan (VIS.SM), Grifols (GRF.SM), ACS Actividades de Construccion y Servicios (ACS.SM), Fomento de Construcciones y Contratas (FCC.SM), ENCE Energia y Celulosa (ENC.SM)
UK: bp (BP.LN), Diageo (DGE.LN), Rio Tinto (RIO.LN), Greggs (GRG.LN), The Weir Group (WEIR.LN), Games Workshop Group (GAW.LN), Filtronic (FTC.LN), Bodycote (BOY.LN), SDI Group (SDI.LN), NWF Group (NWF.LN), St. James's Place (STJ.LN), Inchcape (INCH.LN), Foxtons Group (FOXT.LN), Croda International (CRDA.LN), Convatec Group (CTEC.LN), Essentra (ESNT.LN), Spectris (SXS.LN), Sabre Insurance Group (SBRE.LN), Staffline Group (STAF.LN), Pod Point Group Holdings (PODP.LN)
Trading Update:
France: McPhy Energy (MCPHY.FP)
UK: Glencore (GLEN.LN), Paragon Banking Group (PAG.LN), The Sage Group (SGE.LN)
M&A
AIR.FP (Airbus SE) -- reportedly working on cash savings plan for its Defense and Space divisions and restructuring for its Space Systems business - Reuters
EMEIS.FP (Emeis SA) -- to acquire 8 clinics as part of a commitment to buy real estate assets made by the company during 2021 for a transaction valued ta €185M
FIL.CN (Filo Corp.) -- Lundin Mining, BHP to jointly acquire Filo for total consideration of ~C$4.1B, or C$33.00/share
LLQ.SW (Lalique Group) -- applies for delisting of shares
2INV.GR (2invest) -- to sell 1.4M shares of 4basebio (4BB.LN)
Silver Lake Management reportedly joining IFM Investors Pty and DigitalBridge Group in bidding for Airtrunk, a data center operator - Bloomberg
Healthcare
NOVN.SW (Novartis) -- announces Scemblix granted FDA Priority Review for the treatment of adults with newly diagnosed CML
ROG.SW (Roche Holding) -- EC approves Roche's Vabysmo to treat RVO
ALCLS.FP (Cellectis SA) -- FDA grants orphan drug designation to Cellectis' alemtuzumab for the treatment of acute lymphoblastic leukemia
EFYA.GR (PharmaCyte Biotech) -- SEC filing: NT 10-K
FYB.GR (Formycon) -- starts clinical phase III trial for Keytruda biosimilar candidate FYB206
Other
WPP.LN (WPP Group) -- WPP set to appoint former BT CEO Philip Jansen as chair to succeed Roberto Quarta; announcement could be made as soon as Tuesday 30-Jul - FT
VWS.DC (Vestas Wind Systems) -- receives 795 MW order for OranjeWind offshore wind farm; terms undisclosed
VIV.FP (Vivendi) -- provides update on Canal+ listing on LSE
OCDO.LN (Ocado Group) -- launches offering of approximately £250M of guaranteed senior unsecured convertible bonds due 2029
NWG.LN (NatWest Group) -- UK government abandons previous government's plan to sell NatWest shares to general public (29-Jul, timing uncertain)
HLN.LN (Haleon) -- SEC filing: SC 13D/A (Filed by PFIZER INC)
EDPR.PL (EDP Renovaveis) -- EDP Renewables, Salt River Project, and Meta unveil Brittlebush solar park in Arizona
A2A.IM (A2A) -- notes outcome of auction launched by Terna
INTRUM.SS (Intrum) -- Some Intrum bondholders preparing to attempt to block debt restructure amid threat of writedown on their holdings - FT
COK.GR (CANCOM) -- SE completes voluntary public share buyback offer 2024 successfully
Key rating changes
Upgrades
ENI.IM (Eni) -- to buy from hold at HSBC
SMCP.FP (SMCP) -- to outperform from neutral at Oddo
ASML.NA (ASML Holding) -- to overweight from equal weight at Barclays
SALM.NO (Salmar) -- upgraded to buy from hold at SEB
ATEA.NO (Atea) -- to buy from hold at Arctic Securities
BESI.NA BE (Semiconductor Industries) -- to hold from reduce at Degroof
Downgrades
INGA.NA (ING Groep) -- to market perform from outperform at Keefe, Bruyette & Woods
BFIT.NA (Basic-Fit) -- Basic-Fit transferred hold at Berenberg; prior rating was buy
EMG.LN (Man Group) -- to hold from buy at Deutsche Bank
HWDN.LN (Howden Joinery Group) -- to sector perform from outperform at RBC Capital Markets
XSPRAY.SS (Xspray Pharma) -- to hold from buy at Pareto
Initiations
VU.FP (VusionGroup) -- outperform at BNP Paribas Exane
Data
Nikkei (0.15%) to 38409.51
Hang Seng (1.13%) to 17043.23
Shanghai Composite (0.55%) to 2876.06
S&P futures (2.3) vs prior close of 5503.0
€-$ (0.0003) or (0.03%) to 1.0819
$-¥ +0.74 or +0.48% to 154.73
€-¥ +0.71 or +0.43% to 167.40
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE