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StreetAccount Summary - EU Market Recap: FTSE 100 +0.46% to 8316.23, DAX +0.52% to 18730.69, CAC40 +0.58% to 7492.41, STOXX 600 +0.44% to 517.36

Sep 17 ,2024

  • Synopsis:

    • European indices ended in positive territory, except for Belgium, Norway and Denmark. On the macro-front, the ZEW Institute reported that investor confidence in Germany's economy has plummeted to its lowest level in nearly a year. Expectations gauge declined to 3.6 in September from 19.2 in August. Current Situation declined to (84.5) vs (80) expected and (77.3) prior, the lowest since May 2020. Sharp decline, which was much steeper than economists anticipated, reflects growing pessimism about country's economic outlook. Comes after August survey already posted significant misses on both current situation and expectations. Slump attributed to a weakening manufacturing sector, hesitant consumer spending, and a series of setbacks for major German companies like Volkswagen and BMW. Structural challenges such as unfavorable demographics, high energy costs, and increased competition from China also contributing to the economic malaise. While ECB's recent interest rate cuts may offer some relief, economists revising growth forecasts downward, with some predicting stagnation or even another slight downturn for Germany in the coming year

    • In politics, EU experiencing unprecedented crisis Franco-German relations, with EU Commission President von der Leyen forcing French President Macron to replace his nominee for commissioner, Breton, with Stéphane Séjourné. Move perceived as Germany asserting dominance over France, sparking outrage in French media and political circles. Eurointelligence highlighted incident marks departure from traditional mutual respect and diplomatic restraint between the two countries. Underlying reasons for Breton's removal cited as personal rivalry and power politics, rather than policy disagreements. Situation may lead to difficulties in securing majorities for Commission's agenda and could potentially push Séjourné into an oppositional role. Meanwhile, French President Macron negotiating powerful, wide-ranging competitiveness portfolio for Séjourné. Also, Bloomberg reported that German CDU head Friedrich Merz is set to become the conservative candidate for chancellor for the September 2025 federal election. Sources said Merz sealed nomination to challenge Social Democrat Chancellor Scholz ahead of Bavaria Premier and CSU leader Markus Soeder. Timing of decision, which still needs official approval from both CDU and CSU, had come as a surprise because Merz signaled it would name candidate after Brandenburg election on Sunday

    • On the earnings front, Kingfisher (KGF.LN) posted better-than-expected H1 numbers and also narrowed its FY adjusted PBT guidance; Still in the UK, McBride (MCB.LN) released its FY report, whilst THG Plc (THG.LN) released H1 numbers and updated on the ESCC transfer & Ingenuity demerger. In France, Euronext (ENX.FP) announced completion of expansion of Euronext Clearing activities to all Euronext financial derivatives markets and is on track to reach its target of €115M run-rate annual EBITDA synergies by the end of 2024. On the CMDs front, RUBIS (RUI.FP) presented new 2027 ambitions and Universal Music Group (UMG.NA) released new financial targets through FY 2028 ahead of its 2024 CMD today. In M&A news, Playtech PLC (PTEC.LN) sold Snaitech to Flutter Entertainment (FLTR.LN) for €2.30B and - in the banking sector - local Italian press wrote that UniCredit (UCG.IM) could ask the ECB the authorization to increase its stake in Commerzbank (CBK.GR) from the current 9.9% to 30%; in another deal, IONOS (IOS.GR) ended lower after Warburg Pincus placed ~7M shares; still in Germany. Cinven sold a 15% minority stake in SYNLAB (SYAB.GR) to strategic investor Labcorp for ~€140M

    • Looking ahead to tomorrow's calendars, LNA Sant (R) SA (LNA.FP), Solutions 30 (S30.FP), Advicenne (ALDVI.FP), MFE-MEDIAFOREUROPE (MFEA.IM), Advanced Medical Solutions Group (AMS.LN), PZ Cussons (PZC.LN), MJ Gleeson (GLE.LN), M&C Saatchi (SAA.LN) and Pharos Energy (PHAR.LN) will be among other names updating investors, whilst Wacker Chemie (WCH.GR), Borregaard (BRG.NO), AutoStore Holdings (AUTO.NO) and mobilezone holding (MOZN.SW) are holding their CMDs. Macro-rleases will include UK Aug CPI/RPI/PPI input/output, Eurozone Aug final CPI and the Jul construction output

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers: Retail +2.86%, Travel & Leisure +2.30%, Construct & Mtls +1.55%, Banks +1.06%, Basic Resources +1.02%, Technology +0.98%, Autos & Parts +0.96%, Chemicals +0.94%, Ind Goods & Svcs +0.88%, Oil & Gas +0.83%, Utilities +0.69%, Financial Svcs +0.46%

      • Underperformers: Real Estate (0.88%), Health Care (0.62%), Telecom (0.38%), Food & Beverage (0.06%), Insurance +0.02%, Persnl & HHold Goods +0.19%, Media +0.22%

    • Macro:

      • Germany's Habeck Says Trade Conflict With China Must Be Averted (BBG )

      • Europe risks losing freedom says Draghi (Ansa )

      • 5 takeaways on Ursula von der Leyen's new Commission (Politico )

      • Britain 'will not turn migrant boats back to France' (Telegraph )

      • Traders step up bets on Bank of England interest rate cut (FT )

      • How has Italy sought to cut irregular migration and could UK copy the policy? (Guardian )

    • Company news:

      • Notable Gainers

        • +22.7% M0YN.GR (Mynaric €3.57, +0.66) -- advances production of CONDOR Mk3

        • +10.6% KGF.LN (Kingfisher £3.21, +0.31) -- H1 earnings

        • +7.0% TM17.LN (Team17 Group £2.30, +0.15) -- H1 earnings

        • +6.8% W7L.LN (Warpaint London £5.51, +0.35) -- H1 earnings

        • +5.8% SKF.B.SS (SKF SEK197.15, +10.85) -- initiates a separation of its Automotive business

        • +5.7% RYA.ID (Ryanair Holdings €16.15, +0.87) -- has seen better momentum in bookings since August and less need to discount prices -- Reuters

        • +4.9% DPP.LN (DP Poland £0.11, +0.01) -- H1 earnings

        • +3.9% DXRX.LN (Diaceutics £1.33, +0.05) -- H1 earnings

        • +3.1% LTG.LN (Learning Technologies Group £0.72, +0.02) -- H1 earnings

        • +3.0% CMBT.BB (Euronav €14.37, +0.42) -- name change

        • +2.6% KDEV.SS (Karolinska Development SEK1.26, +0.03) -- BOOST Pharma presents top-line results from clinical Phase 1/2 study with potential first-in-class treatment of rare bone disease osteogenesis imperfecta

        • +1.9% OHLA.SM (Obrascon Huarte Lain €0.30, +0.01) -- capital increase update

        • +1.8% SYAB.GR (Synlab €11.04, +0.20) -- Cinven to sell 15% minority stake in SYNLAB to strategic investor Labcorp for ~€140M

        • +1.6% TXGN.SW (TX Group CHF139.60, +2.20) -- reorganises its publishing areas; to affect 30 full-time positions in German-speaking Switzerland and 25 full-time positions in French-speaking Switzerland

        • +1.3% MCB.LN (McBride £1.18, +0.01) -- FY earnings

        • +1.1% IPO.LN (IP Group £0.48, +0.01) -- H1 earnings

        • +0.8% NORVA.SS (Norva24 Group AB SEK32.75, +0.25) -- acquires 100% of Rör & Ledningsinspektion AB; price not dislcosed

        • +0.7% BAMI.IM (Banco BPM €6.02, +0.04) -- is not interested in domestic M&A; will continue as stand-alone bank -- CEO tells Sole24Ore

      • Notable Decliners

        • -24.2% IDEX.NO (IDEX Biometrics NOK0.18, -0.06) -- possible subsequent offering of up to NOK 21M; places 466.7M share at NOK0.15/sh raising gross proceed of NOK70M

        • -15.6% ESNT.LN (Essentra £1.41, -0.26) -- FY trading update

        • -11.9% DOM.SS (Dometic Group SEK55.80, -7.55) -- lowers Q3 organic net sales outlook

        • -7.4% NFG.LN (Next 15 Group £4.50, -0.36) -- H1 earnings

        • -5.8% SIILI.FH (Siili Solutions €7.22, -0.44) -- lowers FY24 financial guidance for revenue and adjusted EBITA

        • -5.3% BMN.LN (Bushveld Minerals £0.00, -0.00) -- H1 earnings

        • -5.3% PTEC.LN (Playtech £7.12, -0.40) -- sells Snaitech to Flutter Entertainment for €2.30B

        • -4.8% JTC.LN (JTC £10.84, -0.54) -- H1 earnings

        • -4.2% FNTL.LN (Fintel £3.03, -0.13) -- H1 earnings

        • -4.2% HEAD.LN (Headlam Group £1.47, -0.06) -- H1 earnings

        • -2.7% HUM.LN (Hummingbird Resources £0.09, -0.00) -- Pasofino enters exclusivity agreement on a purchase price of US$0.66 per share

        • -0.9% CPR.IM (Davide Campari-Milano €7.54, -0.07) -- announces completion of the acquisition from ODC (BidCo) Limited of a 14.6% minority stake in Capevin Holdings Proprietary Limited

        • -0.1% ELO.NO (Elopak NOK42.90, -0.05) -- placement

    • EU companies reporting tomorrow:

      • France: LNA Sant (R) SA (LNA.FP), Solutions 30 (S30.FP), Advicenne (ALDVI.FP)

      • Southern Europe: MFE-MEDIAFOREUROPE (MFEA.IM)

      • UK: Advanced Medical Solutions Group (AMS.LN), PZ Cussons (PZC.LN), MJ Gleeson (GLE.LN), LBG Media (LBG.LN), M&C Saatchi (SAA.LN), Strix Group (KETL.LN), Eagle Eye Solutions Group (EYE.LN), Pharos Energy (PHAR.LN), Argentex Group (AGFX.LN)

      • CMD/events: Wacker Chemie (WCH.GR), Borregaard (BRG.NO), AutoStore Holdings (AUTO.NO), mobilezone holding (MOZN.SW)

  • Data:

    • Economics:

      • Germany Sep ZEW Economic Sentiment Indicator 3.6 vs consensus 17.2 and prior 19.2

    • Markets:

      • WTI Crude (Oct 24): +$1.06 or +1.51% to $71.15

      • €-$ (0.0013) or (0.12%) to 1.1122

      • £-$ (0.0049) or (0.37%) to 1.3165

      • €-£ +0.0022 to 0.8446

      • S&P 500 +0.41%

      • Performance year-to-date

        • FTSE 100: +7.54%

        • DAX: +11.81%

        • CAC: (0.67%)

        • MIB: +11.30%

        • Stoxx 600: +8.01%

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