Oct 15 ,2024
Synopsis
European equity markets are set to open higher amidst Asian equities mostly higher Tuesday. Greater China markets mixed with Hang Seng and Shanghai Comp retreating. Caixin sources said central government may issue an additional CNY6T ($846B) in treasury bonds over three years to fund the stimulus package signaled by the Finance Ministry. Nikkei broke through 40K for first time in two months. Taiex at two-month high with semis taking cues from NVDA's record close. ASX building on gains while Korea has turned positive. S&P 500 futures steady afterhours.
Oil under pressure (WTI down (3.7%)) after Washington Post sources said Israel PM Netanyahu told President Biden that Israel's response to Iran's missile barrage will avoid oil and nuclear facilities. Comes after recent oil rally was attributed in part to concerns an Israel strike on Iranian energy targets would disrupt Middle East supply. Also hopes that limited Israel retaliation will avoid triggering tit-for-tat escalation with Iran.
On today's agenda, International Energy Agency (IEA) Oil Market Report. Finland's President Stubb to visit Norway (through Thu). In UK, parliament's general committee give further consideration to the Great British Energy Bill. Chancellor Scholz will attend the annual conf. of the "Chef:innensache" initiative which aims to promote equal opportunities for women and men in industry and science, the public and media sector. There's EU energy ministers meeting. EU's Borrell speech at the S&D group conf on Peace in the Middle East and the Two-State Solution. The future of agriculture and fertilizer production in the EU is an event at 15:00CET organised by Euractiv
In central banks Riksbank's Thedéen, others before Riksdag Committee on Finance at 9:00CET and Bundesbank's Lienenkämper panellist at 10:00CET at Festival for Financial Education (livestream). ECB bank lending survey published at 10:00CET and Portugal's central bank releases its latest official bulletin.
Macroeconomic releases today include: UK Sep claimant count change, Germany Oct ZEW survey, France Sep final CPI, Spain Sep final CPI, Norway Sep trade balance, Sweden Sep final CPI, Eurozone Aug industrial production
In corporate news, Ericsson (ERIC.B.SS), TF Bank (TFBANK.SS), and Mowi (MOWI.NO) issued Q3 update this morning. In DACHs, DocMorris (DOCM.SW) reported Q3 earnings, whilst Sulzer (SUN.SW) reported 9M order intake and backlog numbers. Also due to report today includes, LVMH Moet Hennessy Louis Vuitton (MC.FP) (after market close), Bellway (BWY.LN), Salvatore Ferragamo (SFER.IM), Integrafin Holdings (IHP.LN), and Reach (RCH.LN).
Politics/Macro/World News
IMF says global public debt to top $100 trillion, growth may accelerate - Reuters
Reeves signals hike in National Insurance for firms - BBC, FT
Netanyahu told US Israel will strike Iranian military targets, sources say - Baha
Georgian president says pro-Russia ruling party 'rigging' election - FT
EU Ministers Hold Talks on Gas Imports as Russia Exerts Pressure - Bloomberg
Europe's Bank Bailout Era Draws to End With States Selling Out - Bloomberg
Top company news
Earnings/updates
DACHs
DOCM.SW (DocMorris) -- reports Q3 external revenue CHF265.7M vs FactSet CHF258.7M [4 est, CHF247.9-280M]; confirms FY24 targets
SUN.SW (Sulzer) -- reports 9M order intake CHF2.93B vs consensus CHF2.96B
CICN.SW (Cicor Technologies) -- -- reports Q3 revenue CHF120.4M, +26.3% vs year-ago CHF95.3M; reaffirms FY24 guidance
Nordics
TFBANK.SS (TF Bank) -- reports Q3 EPS SEK6.53 vs FactSet SEK5.75
ERIC.B.SS (Telefonaktiebolaget LM Ericsson) -- reports Q3 EPS SEK1.14 vs consensus SEK1.01
MOWI.NO (Mowi) -- Q3 trading update: Operational EBIT €173M vs FactSet €182.9M
ETTE.FH (Etteplan) -- guides FY revenue €355-370M vs prior guidance €360-375M and FactSet €367.9M
HMS.SS (HMS Networks) -- changes organization to strengthen customer focus and cross-selling; to start with segment reporting as of Q1 2025
Benelux
ALFEN.NA (Alfen) -- provides update on structural improvement measures to further focus its strategy and reduce costs; anticipates up to 15% reduction in jobs
Also due to report today
Earnings: OEM International (OEM.B.SS), Magnora (MGN.NO), Telekom Austria (TKA.AV), Bellway (BWY.LN), Bytes Technology Group (BYIT.LN), Prodware (ALPRO.FP),
Trading Update:
France: LVMH Moet Hennessy Louis Vuitton (MC.FP), Esker (ALESK.FP), Fnac Darty (FNAC.FP), Thermador Groupe (THEP.FP), Sidetrade (ALBFR.FP), Ekinops (EKI.FP), CATANA Group SA (CATG.FP)
Other: Salvatore Ferragamo (SFER.IM), Fastned (FAST.NA),
UK: Integrafin Holdings (IHP.LN), Reach (RCH.LN), Mitie (MTO.LN), Victorian Plumbing Group (VIC.LN)
Traffic: VINCI (DG.FP), Flughafen Wien (FLU.AV)
CMD/events: Heidelberg Pharma (HPHA.GR) R+D day
M&A
DLAR.LN (De La Rue) -- Crane NXT nearing £300M ($391.9M) acquisition of De La Rue's authentication division - Sky News
STLAM.IM (Stellantis) -- President Elkann rejects any aggregation rumour; would be only a distraction for the company -- Sole24Ore
SAN.FP (Sanofi) -- CD&R working on package of commitments to allay political concerns its acquisition of controlling stake in Opella could damage French interests - Bloomberg
SGO.FP (Compagnie de Saint-Gobain) -- to acquire Kilwaughter in Northern Ireland; terms undisclosed
CEY.LN (Centamin) -- AngloGold Ashanti, Centamin announce that approval of transaction has been received from Egyptian Competition Authority.
BOSN.SW (Bossard Holding) -- to acquire the Ferdinand Gross Group; terms undisclosed
ALBLD.FP (Bilendi) -- acquires UX testers recruitment specialist Tandemz; terms undisclosed
Healthcare
BIM.FP (bioMerieux) -- bioMérieux announces the CE-marking of VIDAS VITAMIN B12 TOTAL, an automated quantitative test for use on the VIDAS immunoassay instruments, for the measurement of total Vitamin B12 concentration in human serum or plasma
Other
FLTR.LN (Flutter Entertainment) -- Flutter urges US states not to impose punitive tax rate on gambling companies to avoid pushing customers towards unlicensed operators - FT, citing CEO
ATO.FP (ATOS) -- appoints Philippe Salle Chairman of the board with immediate effect and CEO from 01-Feb-25
DBK.GR (Deutsche Bank) -- offering of ~ 16M shares via Goldman Sachs - Bloomberg, headlines only
DG.FP (VINCI SA) -- wins rail contract in Australia worth €432M
STERV.FH (Stora Enso) -- issues clarification on Dagens Industri article
TEL2.B.SS (Tele2) -- appoints Jean Marc Harion as President and CEO
KIND.SS (Kindred Group) -- announces Chairman Evert Carlsson to resign effective today; appoints Pascal Chaffard as new Chairman
Blink Charging to support EV charging station hosts affected by Enel X's decision to close N. American operations
Takeovers Panel review declines to make declaration in Zentree appeal of Energy Resources of Australia ruling
Key rating changes
Upgrades
BOY.LN (Bodycote) -- to outperform from sector perform at RBC Capital Markets
PHIA.NA (Koninklijke Philips) -- to outperform from neutral at Oddo
BAMI.IM (Banco BPM) -- to buy from hold at Deutsche Bank
Downgrades
ZAL.GR (Zalando) -- to add from buy at Baader Helvea
TEG.GR (TAG Immobilien) -- to hold from buy at HSBC
NXT.LN (Next) -- to reduce from add at Investec
VWS.DC (Vestas Wind Systems) -- to neutral from buy at Redburn Atlantic
EMG.LN (Man Group) --- to neutral from outperform at BNP Paribas Exane
Initiations
MAERSK.B.DC (Maersk) -- buy at Arctic Securities
BLND.LN (British Land) -- outperform at Oddo
LAND.LN (Land Securities) -- outperform at Oddo
PDX.SS (Paradox Interactive) -- buy at Kepler Cheuvreux
Other Actions
VTY.LN (Vistry Group) -- resumed buy at Peel Hunt; prior rating was buy
BARC.LN (Barclays) -- transferred buy at Jefferies
LLOY.LN (Lloyds Banking Group) -- transferred buy at Jefferies
NWG.LN (NatWest Group) -- transferred buy at Jefferies
OSL.LN (OSB Group) -- transferred buy at Jefferies
PAG.LN (Paragon Banking Group) -- transferred hold at Jefferies
Data
Nikkei +1.08% to 40031.81
Hang Seng (2.43%) to 20580.46
Shanghai Composite (1.32%) to 3240.94
S&P futures +2.0 vs prior close of 5908.3
€-$ (0.0021) or (0.19%) to 1.0890
$-¥ (0.31) or (0.21%) to 149.51
€-¥ (0.55) or (0.34%) to 162.82
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