Sep 02 ,2024
Synopsis
European equity markets indicate a higher open amidst mostly lower session in Asia at this time. Greater China markets underperforming with property developers under pressure following Friday's rally. Muted price action elsewhere with Japan, Korea, Australia and Taiwan equities little changed. S&P 500 contracts pulling lower; note US markets are closed Monday for Labor Day. Bonds mixed with Treasury yields down 1 bp while JGB and Australian curves bear steepening. Yen rebounding from one-week low against dollar. Crude weakening amid OPEC+ production hike reports. Gold and copper backsliding. Bitcoin down to lowest since mid-August.
On the agenda for today, EU and UK Parliamentary business resumes. In the UK parliamentary committee formation process continues. Norway's PM Støre attends conf organized by the Ministry of Foreign Affairs, on the EEA and the internal market. In central banks, ECB's Buch at hearing at 15:00CET of the Committee on Economic and Monetary Affairs of the EP. Elsewhere, Spain, Italy, France Aug new car registrations whilst Schibsted shareholders to vote on 2-Sep on proposed NOK8.56/sh special dividend; ex-dividend from 3-Sep, payable 13-Sep.
Over the weekend, out of Germany, far-right AfD party won state election for first time since the Second World War; the party collected the most votes in the eastern state of Thuringia; AfD won 32.8% of the vote, followed by CDU with 23.6%. In France, the search for the country's next prime minister continues.
Light earnings calendar for today. On the macro front, Italy, Norway, Spain, Sweden Switzerland Aug manufacturing PMIs due as well as final reads for Eurozone, France, Germany and UK. Italy Q2 final GDP and Jul PPI also due. Switzerland Jul retail sales, Netherlands Jul retail sales, Austria Q2 final GDP, Aug unemployment rate, Ireland Q2 final GDP also expected.
Politics/Macro/World News
German far right hails 'historic' election victory in east (BBC)
Germany's Scholz worried by far-right surge in regional elections (Reuters)
France's Macron continues meetings amid prime minister search (Reuters)
SNP will focus on 'people's priorities' - Swinney (BBC)
OPEC+ leaning towards proceeding with plans to raise crude production in October
Netherlands Jul Retail Sales +2.6% y/y vs consensus +3.9% and prior revised (0.8%) from (0.7%)
Top company news
Earnings/updates
ATO.FP (Atos) -- updates its financial projections for 2024-2027 to reflect H1 results, the current business environment in its key markets, and the expected impact on free cash flow
MGNT.RU (Magnit) -- H1 net income RUB22.44B, (40%) vs year-ago RUB37.32B
KBCA.BB (KBC Ancora) -- FY EPS €4.78 vs year-ago €3.82
M&A
SHB.A.SS (Svenska Handelsbanken) -- completes divestment of the private, life insurance and SME operations in Finland
CLNX.SM (Cellnex Telecom) -- halts plans to sell stake in Polish business - Bloomberg (30-Aug, 16:12 CET)
LHA.GR (Deutsche Lufthansa) -- Lufthansa CEO Carsten Spohr set to meet with Portuguese government officials amid possible investment in TAP - Bloomberg
RMV.LN (Rightmove) -- REA Group considering cash and share offer for Rightmove, no discussions have taken place
TKA.GR (ThyssenKrupp) -- rules out complete sale of steel division to Daniel Kretinsky - FAZ
SWP.FP (Sword Group) -- acquires digital transformation company INCOR; terms undisclosed
GJF.NO (Gjensidige Forsikring) -- merger of wholly owned Danish subsidiary Gjensidige PenSam implemented today
DNO.NO (DNO ASA) -- completes acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi ASA
HHFA.GR (Hamburger Hafen und Logistik) -- EU sets a provisional deadline of 3-Oct to rule on MSC and City of Hamburg's acquisition of Hamburger Hafen und Logistik
LNZ.AV (Lenzing) -- Suzano completes purchase of 15% stake in Lenzing for €39.70/share; deal was announced 12-Jun
AR4.GR (AURELIUS Equity Opportunities) -- Aurelius to run auction process for AAH Pharmaceuticals; HIG and CapVest set to enter the race - FT
DATA.LN (GlobalData) -- completes acquisition of Business Trade Media International Limited
OMASP.FH (Oma Savings Bank) -- completes acquisition of Handelsbanken's SME enterprise operations in Finland
ALERS.FP (Eurobio-Scientific) -- EU clears NextStage AM and IK Partners' acquisition of Eurobio-Scientific
ABN.NA (ABM AMRO Bank) -- EU clears BNP Paribas (BNP.FP) Cardif's acquisition of ABN AMRO Bank's stake in Neuflize Vie; EU clears ABN AMRO Bank's acquisition of Hauck Aufhäuser Lampe (656.HK)
Healthcare
SAN.FP (Sanofi) -- phase III Hercules trial in Tolebrutinib meets primary endpoint in delaying time to onset of confirmed disability progression in people with nrSPMS. While Gemini Phase III trial did not meet the primary endpoint
BAYN.GR (Bayer AG) -- Bayer presents, publishes late-breaking investigational data on KERENDIA at ESC 2024
GETI.B.SS (Getinge) -- makes provision of BRL240M (SEK480M) related to investigation by Brazil's CGU
COPN.SW (Cosmo Pharmaceuticals) -- Study of Cosmo's GI Genius published in The Lancet
RLF.SW (RELIEF THERAPEUTICS Holding) -- Relief Therapeutics announces PKU GOLIKE study results presentation at SSIEM 2024
IBT.B.SS (Infant Bacterial Therapeutics) -- announces phase III study shows no significant effects on primary endpoints but significant reduction in secondary endpoint
Other
LDO.IM (Leonardo) -- Leonardo UK remains in the £1B contest to replace ageing Puma helicopter after Airbus (AIR.FP) and Lockheed Martin (LMT) pull out -- FT
SAP.GR (SAP) -- announces third tranche of €5B share buy-back program will be carried out from 02-Sep-24
ULVR.LN (Unilever) -- completes first tranche of previously announced 2024 share buyback
DTE.GR (Deutsche Telekom) -- completes second tranche of up-to-€2B buyback programme; third tranche begins today
TEMN.SW (Temenos) -- completes CHF200M share buyback
BESI.NA (BE Semiconductor Industries) -- announces new €100M share repurchase program effective 1-Sep-24
HSX.LN (Hiscox) -- likely to replace Burberry in FTSE 100 - Daily Mail, seemingly citing its own calculations
Key rating changes:
Upgrades:
AMBU.B.DC (Ambu) -- to buy from hold at SEB z
MNDI.LN (Mondi) -- to outperform from neutral at BNP Paribas Exane
Downgrades:
DEME.BB (DEME Group) -- to neutral from outperform at BNP Paribas Exane
KGF.LN (Kingfisher) -- to equal weight from overweight at Barclays
Initiations:
BOY.LN (Bodycote#) -- initiated buy at Berenberg
DANSKE.DC (Danske Bank) -- initiated buy at Deutsche Bank
NDA.FI.FH (Nordea Bank) at Deutsche Bank
SWED.A.SS (Swedbank) -- initiated buy at Deutsche Bank
DNB.NO (DNB Bank) -- initiated hold at Deutsche Bank
SEB.A.SS (Skandinaviska Enskilda Banken) -- initiated hold at Deutsche Bank
SHB.A.SS (Svenska Handelsbanken ) -- initiated hold at Deutsche Bank
Other:
DDRIL.NO (Dolphin Drilling AS) -- reinstated hold at DnB Markets; prior rating was buy
HSBA.LN (HSBC Holdings) -- transferred neutral at Mediobanca; prior rating was outperform
LLOY.LN (Lloyds Banking Group) -- transferred neutral at Mediobanca; prior rating was neutral
NWG.LN (NatWest Group) -- transferred neutral at Mediobanca, prior rating was neutral
BARC.LN (Barclays) -- transferred underperform at Mediobanca, prior rating was neutral
STAN.LN (Standard Chartered) -- transferred underperform at Mediobanca; prior rating was neutral
Data
Nikkei +0.16% to 38709.44
Hang Seng (1.46%) to 17726.35
Shanghai Composite (0.59%) to 2825.42
S&P futures (6.0) vs prior close of 5661.0
€-$ +0.0008 or +0.07% to 1.1057
$-¥ +0.02 or +0.01% to 146.10
€-¥ +0.12 or +0.07% to 161.57
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