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StreetAccount Summary - Europe Pre-Open: Futures FTSE +0.59%, DAX30 +0.21%, CAC40 +0.17%

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

    • Optimism floods UK firms in wake of election result, Lloyds survey shows - Reuters

    • Investors beef up bets on BoE interest rate cut - FT

    • Hamas leader Ismail Haniyeh killed inside Iran by Israel - Bloomberg/Reuters

    • Netherlands Jul Preliminary CPI +3.7% y/y vs consensus +2.8% and prior +3.2%

  • 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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