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StreetAccount Summary - Europe Pre-Open: Futures: FTSE +1.18%, DAX30 +1.08%, CAC40 +1.04%, IBEX +1.2%, MIB +1.02%

Sep 12 ,2024

  • Synopsis

    • European equity markets are set to open higher amidst Asian equities advancing Thursday. Tech rally driving strongest gains in Japan, Korea, Taiwan and Hong Kong. S&P 500 futures flat afterhours. Bonds weakener with Treasury and JGB yields up 1-2 bp. FX markets steady after yen fell back from Dec-2023 high against dollar. Crude continues to edge up from late-2021 lows. Copper extending bounce to one-week high. Gold little changed. Bitcoin strengthening to highest in a week.

    • Focus on ECB policy decision at 14:15CET, with consensus for a 25bps cut to 4.00%, press conf 14:45. Today also sees ECB staff latest economic projections. This is the same day as the previously disclosed changes to ECB's operational framework for implementing monetary policy, including the spread between the rate on the main refinancing operations and the deposit facility rate being reduced to 15 basis points. ECB's McCaul panellist at 8:25CET, af Jochnick at 9:25 and Buch speech at 16:00 at the EUROFI Financial Forum. Elsewhere, IEA monthly report.

    • Further on today's agenda, Chancellor Scholz and finance minister Lindner among the speakers at VCI Chemical & Pharmaceutical Summit 2024, the Chancellor also speaking at Annual Congress of the Federal Association of Digital Publishers and Newspaper Publishers (BDZV). Then co-hosts with President of Namibia Mbumba a preparatory summit for the UN Future Summit. In the UK, its last day of business in parliament before it adjourns and goes into recess, ahead of the political party conf. season. MPs return on 7-Oct. EU's Vestager delivers a keynote speech and participates in a conversation at the Danish Chamber of Commerce. Lebanese PM Mikati hosts EU's Borrell. FT hosts event at 17:00BST in conjunction with the fifth edition of the Made in Italy Summit. Handelsblatt hosts event title decarbonisation of industry 2024 and separately, Energizing Real Estate.

    • Macroeconomic releases include: Spain Aug final CPI, Sweden Aug CPI, UK Aug house price balance - RICS and Ireland Aug CPI.

    • In corporate news, Baloise (BALN.SW) reports H1 net income CHF219.8M, +7% y/y, launches refocusing strategy, raises payout rate and aims for return on equity of between 12-15%. Also in the DACH region, Flughafen Wien (FLU.AV) reports Aug Group total passenger traffic +8.7% to ~4.44M. Out of the Nordics, Puuilo (PUUILO.FH) reports Q2 EPS €0.22 in line with FactSet and specifies FY24 outlook. In the UK, Renishaw (RSW.LN), Spire Healthcare (SPI.LN) and Trainline (TRN.LN) are among companies in the region expected to issue earnings/trading updates.

    • On the speculation front, EQT AB (EQT.SS) reportedly exploring sale of its majority stake in Banking Circle. Commerzbank (CBK.GR) is said is preparing defense strategy for possible UniCredit (UNI.IM) takeover. In other corporate developments, Dutch government confirmed reduction in stake in ABN AMRO Bank (ABN.NA) to 40.5% from prior 49.5%.

  • Macro/Politics/World News

    • Brussels explores Draghi option of extending up to €350bn in EU debt - FT

    • Brussels questions whether Starmer really wants a Brexit reset - Politico

    • Europe at peak lng heightens risk of stranded assets, IEEFA says - Bloomberg

    • Baltics urge bolstered NATO air defense against Russia threat - Bloomberg

    • China trade chief set for talks on trade in Italy next week - Reuters

  • Top company news

    • Earnings/updates

      • France

        • IPH.FP (Innate Pharma) -- reports H1 net income (€24.8M) vs year-ago €1.7M

      • DACHs

        • FRA.GR (Fraport) -- reports Aug Frankfurt Airport traffic statistics: passengers 6.08M, +3.7% y/y

        • SANN.SW (Santhera Pharmaceuticals Holding) -- reports H1 net income (CHF15.3M) vs year-ago (CHF23.3M); cash balance expected to provide for cash runway into 2026

        • FHZN.SW (Flughafen Zuerich) -- reports Aug traffic statistics

        • BALN.SW (Baloise) -- launches refocusing strategy, raises payout rate and aims for return on equity of between 12-15%

      • Nordics

        • BOL.SS (Boliden) -- updates on Odda zinc smelter project; increase in cost of the project of €100M, total 2024 capital expenditures still estimated at SEK 15.5B and for 2025 capital expenditures are estimated at SEK 13.5B

        • CHEMM.DC (ChemoMetec) -- reports FY EBITDA DKK186.2M vs FactSet DKK188.2M [3 est, DKK186.6-191M]

        • PUUILO.FH (Puuilo) -- reports Q2 EPS €0.22 vs FactSet €0.22 [5 est, €0.21-0.23]; specifies FY24 outlook

      • Benelux

        • VVY.NA (Vivoryon Therapeutics) -- reports H1 net loss (€13.6M) vs year-ago (€10.7M); cash and cash equivalents will be sufficient to fund operating plans into Q2 of 2025

    • M&A

      • DSV.DC (DSV A/S) -- DSV in advanced talks to purchase Deutsche Bahn's Schenker business in potential €14B transaction -- Bloomberg

      • TLGO.SM (Talgo) -- Spain rejected Ganz-Mavag Europe's bid for Talgo due to Ukraine concerns - FT

      • CBK.GR (Commerzbank) -- preps defense strategy for possible UniCredit takeover -- Bloomberg, citing sources

      • EQT.SS (EQT AB ) -- exploring sale of its majority stake in Banking Circle -- Reuters, citing sources

    • Healthcare

      • GSK.LN (GSK Plc) -- confirms settlement in IL Zantac (ranitidine) litigation - Dixon case

      • SAN.FP (Sanofi) -- Sanofi, RadioMedix, and Orano Med announce licensing agreement on next-generation radioligand medicine for rare cancers

      • ROG.SW (Roche Holding) -- Roche discloses reported weight-loss reduction in ph1 obesity pill trial was from only 6 patients -- Reuters

      • CHEMM.DC (ChemoMetec) -- reports FY results; board proposes DKK 4.00 per share dividend

    • Other

      • AIR.FP (Airbus SE) -- CDB Leasing enters agreement for purchase of 80 Airbus A320 NEO family aircraft; terms undisclosed

      • SAF.FP (Safran) -- initiated Outperform at RBC Capital Markets:

      • HSBA.LN (HSBC Holdings) -- issues perpetual subordinated contingent convertible securities

      • ABN.NA (ABN AMRO Bank) -- Dutch government confirms reduction in stake in ABN AMRO Bank to 40.5% from prior 49.5%

      • NEOEN.FP (Neoen) -- signs PPA with SmartestEnergy for 50% of the output from Culcairn Solar Farm in New South Wales

      • ARCAD.NA (ARCADIS) -- secures renewed framework contract for Zuidasdok program; total contract value of €105M with continued involvement of IBZ jv

      • NDX1.GR (Nordex) -- Ørsted places its maiden order with the Irish entity of the Nordex Group

  • Key rating changes

    • Upgrades

      • ATE.FP (Alten) -- to outperform from neutral at BNP Paribas Exane

      • SGE.LN (Sage Group) -- to outperform from neutral at BNP Paribas Exane

      • EQNR.NO (Equinor) -- to hold from sell at Berenberg

      • LR.FP (Legrand) -- to outperform at Bernstein

      • TMV.GR (TeamViewer) -- to neutral at BNP Paribas Exane

    • Downgrades

      • PLNW.FP (Planisware) -- to underperform from neutral at BNP Paribas Exane

      • IOS.GR (IONOS Group) -- to neutral from outperform at BNP Paribas Exane

    • Initiations

      • SAF.FP (Safran) -- outperform at RBC Capital Markets

  • Data

    • Nikkei +3.46% to 36853.50

    • Hang Seng +1.12% to 17300.81

    • Shanghai Composite +0.18% to 2726.78

    • S&P futures +8.5 vs prior close of 5561.3

    • €-$ +0.0005 or +0.04% to 1.1018

    • $-¥ +0.53 or +0.37% to 142.90

    • €-¥ +0.68 or +0.43% to 157.45

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