Jul 31 ,2024
Synopsis
European equity markets are set for a positive open amidst firmer Asian equity markets. Greater China markets outperforming. ASX rallying following dovish CPI. Nikkei little changed amid volatile yen after BoJ decision. Mild gains for Kospi and Taiex. US equity futures firmer with S&P up 0.4%.
Inflation data dominate the macro calendar today, with Jul preliminary CPI for Eurozone, France, Italy, Portugal, Austria and Netherlands already on the tape. Also out are Germany Jul unemployment change, France and Italy Jun PPI, Italy May industrial sales, Switzerland Jul ZEW expectations, Portugal, Denmark and Greece Jun unemployment rate, Greece May retail sales and Ireland Jul unemployment rate.
Also today, Fitch webinar at 15:00BST title European Airlines: Is Consumer Strength Finally Turning?
A busy earnings front kicked off with Benelux companies, Just Eat Takeaway.com (TKWY.NA) reporting H1 adjusted EBITDA €203M vs StreetAccount €190.6M and announcing an up to €150M share buyback program whilst Solvay (SOLB.BB) reported Q2 Underlying net income €116M vs consensus €105M and raising FY organic growth of underlying EBITDA to -10-15% vs prior guidance -10-20%. From France after the close yesterday, Airbus (AIR.FP) reported Q2 Adj. EBIT €814M vs consensus €699M whilst L'Oreal (OR.FP) reported H1 Adj. EPS €6.98 vs StreetAccount €7.09 and new €500M share buyback to launch during H2. This morning, Danone (BN.FP) reported H1 recurring EPS €1.80 vs consensus €1.72 whilst Schneider Electric (SU.FP) reported H1 Adj EPS €4.01 vs consensus €3.79 with upgraded FY24 targets and Safran (SAF.FP) reported H1 EPS €3.27 vs consensus €3.26.
In the DACHs region, Fresenius (FRE.GR) reported Q2 EPS €0.81 vs consensus €0.67 and Siemens Healthineers (SHL.GR) reported Q3 net income €445M vs consensus €445M. In the UK, Rio Tinto (RIO.LN) reported H1 Underlying earnings $5.81B vs StreetAccount $5.84B and HSBC Holdings (HSBA.LN) reported Q2 EPS $0.35 vs consensus $0.32. Elsewhere, Leonardo (LDO.IM) reported Q2 EBITA €321M vs consensus €313.0M and Banco Bilbao Vizcaya Argentaria (BBVA.SM) is out with Q2 net income attributable €2.79B vs StreetAccount €2.46B.
In M&A, Millicom (TIGO.SS) announced potential acquisition of Telefonica's (TEF.SM) stake in Coltel for $400M in cash.
Politics/Macro/World News
Top company news
Earnings/updates
Benelux:
TKWY.NA (Just Eat Takeaway.com) -- reports H1 adjusted EBITDA €203M vs StreetAccount €190.6M; reaffirms FY guidance; up to €150M share buyback program
SOLB.BB (Solvay) -- reports Q2 Underlying net income €116M vs consensus €105M; now guides FY organic growth of underlying EBITDA to -10-15% vs prior guidance -10-20%
JDEP.NA (JDE Peet's) -- reports Q2 underlying EPS €0.76 vs year-ago €0.85; raises FY outlook
ONTEX.BB (Ontex Group) -- reports Q2 operating income from continuing operations (€3.1M) vs year-ago €18.6M; revises upwards FY24 guidance
AED.BB (Aedifica) -- reports H1 EPRA EPS €2.50 vs year-ago €2.76; improves outlook for 2024
EBUS.NA (Ebusco Holding) -- reports H1 net income (€64.7M) vs year-ago (€35.8M)
DACHs:
FRE.GR (Fresenius) -- reports Q2 EPS €0.81 vs consensus €0.67
SHL.GR (Siemens Healthineers) -- reports Q3 net income €445M vs consensus €445M; expectations for FY24 adj basic EPS unchanged at between €2.10 and €2.30 vs FactSet €2.20
KGX.GR (Kion Group) -- reports Q2 net income €70.7M vs preliminary ~€69M; narrows FY revenue and adj. EBIT guidance
LHA.GR (Deutsche Lufthansa) -- reports final Q2 earnings: EPS €0.39 vs FactSet €0.44 [5 est, €0.24-0.70]
KRN.GR (Krones) -- reports Q2 EPS €2.19 vs FactSet €1.59 [4 est, €0.00-2.14]
COTN.SW (COMET Holding) -- reports H1 net income CHF4.1M vs FactSet CHF11.6M [3 est, CHF9-15.9M]; reaffirms FY guidance
IFCN.SW (Inficon Holding) -- reports Q2 Operating income $33.7M vs FactSet $35.2M [3 est, $31.4-40.3M]; narrows targeted sales range
NEM.GR (Nemetschek) -- reports confirms prelim Q2 earnings and FY outlook as per 23-Jul update
OMV.AV (OMV) -- reports Q2 Clean CCS Net Income attributable €494M vs consensus €541M
SNBN.SW (Schweizerische Nationalbank) -- reports H1 net income CHF56.80B vs year-ago CHF13.72B
SCMN.SW (Swisscom) -- reports Q2 EPS CHF7.35 vs FactSet CHF7.71 [2 est, CHF7.20-8.22]; confirms 2024 outlook
SUR.GR (Surteco Group) -- reports H1 EPS €0.89 vs year-ago (€0.26)
AG1.AV (Auto1 Group) -- reports Q2 adjusted EBITDA €20.7M vs year-ago (€14.8M); raises FY outlook
France:
SU.FP (Schneider Electric) -- reports H1 Adj EPS €4.01 vs consensus €3.79; upgrades FY24 targets
BN.FP (Danone) -- reports H1 recurring EPS €1.80 vs consensus €1.72; 2024 guidance confirmed
SAF.FP (Safran) -- reports H1 EPS €3.27 vs consensus €3.26; confirms FY24 outlook
AIR.FP (Airbus SE) -- reports Q2 Adj. EBIT €814M vs consensus €699M; confirms FY guidance
OR.FP (L'Oreal) -- reports H1 Adj. EPS €6.98 vs StreetAccount €7.09; announces new €500M share buyback to launch during H2
DBV.FP (DBV Technologies) -- reports Q2 EPS ($0.34) vs FactSet ($0.45) [3 est, ($0.62)-(0.20)]
TEP.FP (Teleperformance) -- reports H1 adjusted net income €432M, +26% vs year-ago €343M
VIRI.FP (Viridien) -- reports Q2 operating income $26M vs FactSet $28.0M [1 est]
CO.FP (Casino Guichard-Perrachon) -- reports H1 underlying net profit (€349M) vs year-ago (€892M)
BOL.FP (Bolloré) -- reports H1 EBITA €619M, +34% vs year-ago €462M
EAPI.FP (Euroapi) -- reports H1 net income (€34.8M) vs year-ago €62.8M
TKO.FP (Tikehau Capital) -- reports H1 net income group share €57.5M vs FactSet €112.2M [1 est]
MTU.FP (Manitou BF) -- reports H1 net income €81.8M, +31% vs year-ago €62.6M
LR.FP (Legrand) -- reports Q2 net income €301.7M vs consensus €287.1M; FY24 target unchanged
LI.FP (Klepierre) -- reports H1 CFPS €1.25 vs year-ago €1.21; raises FY CFPS guidance to €2.50-2.55 vs prior guidance €2.45-2.50
Southern Europe:
TEF.SM (Telefonica) -- reports Q2 EBITDA €3.22B vs consensus €3.17B; 2024 guidance reiterated
BBVA.SM (Banco Bilbao Vizcaya Argentaria) -- reports Q2 net income attributable €2.79B vs StreetAccount €2.46B
FER.SM (Ferrovial) -- reports H1 net income €414M vs year-ago €114M
LDO.IM (Leonardo) -- reports Q2 EBITA €321M vs consensus €313.0M; confirms FY24 guidance
EDP.PL (EDP-Energias de Portugal) -- reports H1 net income €762M vs consensus €693.4M
CABK.SM (CaixaBank) -- reports Q2 net income attributable €1.67B vs consensus €1.57B
INW.IM (Infrastrutture Wireless Italiane) -- reports Q2 net income €89.3M vs FactSet €93.6M [5 est, €88.8-99M]; reaffirms FY guidance
PHM.SM (Pharma Mar) -- reports H1 net income €3.5M vs year-ago €6.4M
COL.SM (Inmobiliaria Colonial SOCIMI) -- reports H1 recurring net profit €92M, +6% vs year-ago €87M
VIS.SM (Viscofan) -- reports Q2 net income €37.2M vs FactSet €36.2M [4 est, €34.7-37.1M]
PRS.SM (Promotora de Informaciones) -- reports Q2 net income (€44M) vs year-ago (€41M) [1 est]
ENC.SM (ENCE Energia y Celulosa) -- reports Q2 net income €23.1M vs FactSet €25.8M [4 est, €20-37.5M]
TLGO.SM (Talgo) -- reports H1 net income €14.6M vs FactSet €8.5M [2 est, €6.2-10.7M]
ROVI.SM (Laboratorios Farmaceuticos Rovi, S.A.) -- reports H1 net income attributable €44.3M vs FactSet €42M [1 est]
SON.PL (Sonae SGPS) -- reports Q2 net income attributable €50M vs FactSet €47M [1 est]
UK:
RIO.LN (Rio Tinto) -- reports H1 Underlying earnings $5.81B vs StreetAccount $5.84B
HSBA.LN (HSBC Holdings) -- reports Q2 EPS $0.35 vs consensus $0.32
M&A
DGV.IM (Digital Value) -- agrees to acquire Italtel S.p.A. for €120M
TEF.SM (Telefonica) -- Millicom (Tigo) announces potential acquisition of Telefonica's stake in Coltel for $400M in cash
VOS.GR (Vossloh) -- to acquire Sateba Group for €450M
PRFT (Perficient) -- stockholders approve acquisition by EQT - 8-K
GLE.FP (Societe Generale) -- signs agreement with the state of Benin to sell Société Générale Bénin
1COV.GR (Covestro) -- still in concrete negotiations with Adnoc and making good progress - Börsen-Zeitung
ISP.IM (Intesa Sanpaolo) -- considers acquisition of domestic rival unlikely due to its market share - Reuters (30-Jul, 16:22 CET)
TLGO.SM (Talgo) -- responds to letter received from Skoda
RECAF (Reconnaissance Energy Africa) -- Reconnaissance Energy Africa enters definitive farm down agreement with BW Energy for sale of 20% working interest in PEL 73
ADMR.LN (Admiral Acquisition) -- completes acquisition of ASP Acuren Holdings
Healthcare
BIIB (Biogen) -- Eisai and Biogen present three year data on LEQEMBI at AAIC
FGEN (Fibrogen) -- announces two late-stage trials of pamrvlumab arm in patients with pancreatic cancer did not meet primary endpoint of overall survival
DBV.FP (DBV Technologies) -- SEC filing: 10-Q
BIOA.B.SS (BioArctic) -- announces long-term lecanemab data show increased patient benefit with maintained safety profile
TNG.FP (Transgene) -- announces the conversion of €33.0M debt into shares, drawn from the current account advance granted by TSGH
Other
NDX1.GR (Nordex Group) -- receives follow-up order from Aquila Clean Energy for 141.6 MW in Spain
OMV.AV (OMV) -- secures additional gas pipeline capacities until 2029
TGS.NO (TGS-NOPEC Geophysical Co.) -- launches new Seismic Survey in Seram Basin, Indonesia
TEL.NO (Telenor) -- appoints Wallenius Wilhelmsen CFO Torbjørn Wist as new EVP and Group CFO no later than 1-Feb-25
BBVA.SM (Banco Bilbao Vizcaya Argentaria) -- reorganizes its global Client Solutions area by segments: Commercial and Retail
LDO.IM (Leonardo) -- StreetAccount Metrics Recap - Leonardo Q2 Earnings
RAND.NA (Randstad) -- provides update on Beheer shareholder structure
CABK.SM (CaixaBank) -- initiates previously disclosed share buyback
FRES.LN (Fresnillo) -- announces cyber security incident: all business units continue activities and no material operational or financial impact experienced or is foreseen
CCR.LN (C&C Group) -- ~5.0% holder Engine Capital nominates two candidates for election to board amid recent activism
Key rating changes
Upgrades
AGS.BB (Ageas) -- to neutral from sell at UBS
EBRO.SM (Ebro Foods) -- to buy from neutral at UBS
FDR.SM (Fluidra) -- to buy from hold at Jefferies (earlier, timing uncertain)
GFC.FP (Gecina) -- to buy from hold at Jefferies (earlier, timing uncertain)
NESN.SW (Nestle) -- to hold from underperform at Jefferies
SXS.LN (Spectris) -- to neutral from underweight at JPMorgan
Downgrades
FARN.LN (Faron Pharmaceuticals) -- to accumulate from buy at Inderes (earlier, timing uncertain)
Data
Nikkei +0.31% to 38646.82
Hang Seng +1.98% to 17339.23
Shanghai Composite +1.76% to 2929.93
S&P futures +36.5 vs prior close of 5472.5
€-$ +0.0011 or +0.10% to 1.0827
$-¥ +0.15 or +0.10% to 152.93
€-¥ +0.34 or +0.21% to 165.57
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