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StreetAccount Summary - EU Market Recap: FTSE 100 +0.97% to 8329.07, DAX (0.27%) to 19432.81, CAC40 (0.40%) to 7492.00, STOXX 600 (0.19%) to 519.60

Oct 16 ,2024

  • Synopsis:

    • European equity markets closed mixed. The UK +1.0%, Portugal +0.8% and Austria +0.7% lead outperformers, whilst the Netherland (0.7%) and Finland (0.5%) lead underperformers.

    • Macro focus in Europe on UK inflation data. Headline rate fell to 1.7% y/y and services inflation dipped under 5%. First time inflation below BoE target since April 2021. Data on Tuesday also showed UK pay growth at the slowest in two years. BoE widely expected to cut rates by 25 bps in November, as a result. Other macro releases include final Italian inflation.

    • In other news, press reports UK Chancellor Reeves told cabinet she has identified a £40B funding gap ahead of 30-Oct budget, larger than previous communication. IMF warned unless the UK makes rapid efforts to stabilize debt it could face a market backlash. Press reports suggest UK FCA investigating potential overcharging for instalment payments in car and home insurance.

    • In other developments, reports Brussels plans to expand power over merger deals to block firms that generate most of the revenue outside Europe. Trump repeated threat to impose punitive tariffs on Mexico and EU unless foreign auto manufacturers bring production to the US.

    • On the corporate front, focus on luxury names latest updates with LVMH Moet Hennessy (MC.FP) reporting (3%) fall in Q3 sales undershooting estimates in first decline in quarterly sales since the pandemic, Christian Dior (CDI.FP) Q3 revenue down (4%) y/y while Salvatore Ferragamo (SFER.IM) Q3 total revenues down (7.2%) y/y. ASML Holding (ASML.NA) cuts sales forecasts in Q3 earnings published early while Just Eat Takeaway.com (TKWY.NA) Q3 Group GMV missed consensus by 2% with softer trends across most of the regions.

    • In UK, Rio Tinto (RIO.LN) Q3 iron ore shipments rise, Simandou on track for 2025, Antofagasta (ANTO.LN) Q3 Copper production beat, confirms FY25 guidance, Whitbread (WTB.LN) reported H1 numbers and announced a further £100M share buy-back while British American Tobacco (BATS.LN) confirmed to be on track for FY24 guidance at its Capital Markets Day event. In France, Rexel (RXL.FP) Q3 revenue up +2.1% y/y, however lowers FY outlook, Fnac Darty (FNAC.FP) 9M revenues broadly flat y/y while Ipsos (IPS.FP) Q3/9M revenue miss. Elsewhere, Stellantis (STLAM.IM) Q3 consolidated shipment estimates of ~1.15M units, down (20%) y/y and NEL ASA (NEL.NO) Q3 net income, revenue, orders all missed; will reduce investments by ~50% in 2025 compared to 2024.

    • In M&A news, Klarna (+KLARNA.SS) sells UK loans to hedge fund Elliott to fuel £30B growth plan. In the UK, the Ft reported that Advent International prepares takeover bid for Tate & Lyle. Elsewhere

    • Looking ahead to tomorrow's calendar (see - Europe Week Ahead: 14-Oct to 18-Oct attached), in another relative busy day for company earnings, ABB (ABBN.SW), Schindler Holding (SCHN.SW), Nestle (NESN.SW), VAT Group (VACN.SW), HELLA (HLE.GR), Nordea Bank (NDA.FI.FH), EQT AB (EQT.SS), Essilor Luxottica (EL.FP), Pernod Ricard (RI.FP), Publicis Groupe (PUB.FP), Eiffage (FGR.FP), La Francaise des Jeux SA (FDJ.FP), Mondi (MNDI.LN), Schroders (SDR.LN),Deliveroo (ROO.L), and Travis Perkins (TPK.LN), will be among other names to update investors, whilst the macro-calendar releases will include Netherlands Sep unemployment rate, Switzerland Sep trade balance (and watch data), Eurozone Sep final CPI, Aug trade balance, Italy Aug trade balance.

  • Digest:

    • Sectors - STOXX Europe 600:

      • Outperformers:

        • Travel & Leisure +1.51%, Retail +1.10%, Telecom +0.98%, Utilities +0.96%, Real Estate +0.82%, Energy+0.55%, Financial Svcs +0.36%, Ind Goods & Svcs (0.01%), Media (0.07%), Insurance (0.07%), Health Care (0.09%), Autos & Parts (0.12%), Banks (0.12%),

      • Underperformers:

        • Consumer Products and Services (1.88%), Technology (1.53%), Personal Care Drug and Grocery Stores (0.50%), Chemicals (0.26%), Basic Resources (0.19%), Food, Beverage and Tobacco (0.15%),

    • Macro/Peripheral markets:

      • Geopolitics

        • Zelensky presents his victory plan in the Ukrainian parliament - Handelsblatt, Politico

        • US said to expect Israel's Iran attack before Nov. 5 - Baha

        • NATO to make fresh push for common arms standards - Reuters

      • EU

        • Boost EU research spending to €220B or lose against US, China, experts warn - Politico

        • German space chief defends Europe investment model against Mario Draghi's proposal - FT

        • EU markets watchdog pushes for extra cyber defences in new crypto rules - FT

      • France

        • French far-right pressures Barnier with 'counter-budget' proposals - Reuters, Bloomberg

        • Barnier's tax raid to cost France's largest company an extra €800m - The Telegraph

      • UK

        • Surprise fall in inflation paves way for interest rate cuts - BBC, The Guardian

        • Reeves 'must raise taxes by £25bn per year to cover spending plans' - The Telegraph

        • Starmer confirms Britain considering sanctions against Israeli ministers - FT

        • Barclays Sees Risks Ahead For British Stock Market - Bloomberg

      • Germany

      • Italy

        • From pensions to home bonuses: all the measures of the 2025 maneuver - Ilsole24

      • Poland

        • Poland to Focus on 2025 Funding Needs After €3 Billion Bond Sale - Bloomberg

      • Hungary

        • Hungary Wants Banks to 'Voluntarily' Agree to 5% Mortgage Cap - Bloomberg

    • Company news:

      • Trading Higher:

        • +19.1% NA9.GR (Nagarro €94.75, +15.20) -- Warburg Pincus weighing buyout of Nagarro -- Bloomberg, citing sources

        • +13.6% XPS.LN (XPS Pensions Group £3.50, +0.42) -- H1 trading update

        • +11.8% AGY.LN (Allergy Therapeutics £0.05, +0.01) -- provides update on the group's funding and working capital position

        • +11.2% MSLH.LN (Marshalls £3.44, +0.35) -- 9M trading update

        • +11.1% TEP.FP (Teleperformance €99.52, +9.94) -- Kepler Cheuvreux

        • +9.2% TATE.LN (Tate & Lyle £8.14, +0.69) -- Advent International prepares takeover bid for Tate & Lyle -- FT

        • +7.1% VTU.LN (Vertu Motors £0.62, +0.04) -- H1 earnings

        • +7.0% VLX.LN (Volex £3.34, +0.22) -- H1 trading update

        • +6.3% HCM.LN (Hutchmed £3.02, +0.18) -- results from the SAVANNAH Phase ІІ trial

        • +6.0% WTB.LN (Whitbread £32.55, +1.83) -- H1 earnings; further £100M buy-back

        • +5.4% QLT.LN (Quilter £1.49, +0.08) -- Q3 AuMA

        • +4.7% OXIG.LN (Oxford Instruments £20.30, +0.92) -- FY trading update

        • +4.3% ETTE.FH (Etteplan €10.80, +0.45) -- Inderes upgrade

        • +4.2% AUTN.SW (Autoneum Holding CHF118.60, +4.80) -- CMD update

        • +3.7% HMSO.LN (Hammerson £3.20, +0.11) -- commences share repurchase programme of up to £140M

        • +2.9% NDA.GR (Aurubis €64.70, +1.85) -- Dirk Roßmann becomes major shareholder at Aurubis; at the moment it is a financial investment -- Manager magazine

        • +2.8% BCHN.SW (Burckhardt Compression Holding CHF627.00, +17.00) -- initiated buy at Berenberg

        • +2.4% EPR.NO (Europris NOK68.50, +1.60) -- Carnegie Securities upgrade

        • +2.1% NEL.NO (NEL ASA NOK4.29, +0.09) -- Q3 earnings

      • Trading Lower:

        • -16.3% SDG.LN (Sanderson Design Group £0.64, -0.13) -- H1 earnings

        • -14.8% ERA.FP (Eramet €56.20, -9.75) -- lowers 2024 sales volume targets for manganese activities in Gabon and nickel activities in Indonesia

        • -14.5% TECN.SW (Tecan Group CHF228.20, -38.60) -- H1 trading update; lowers FY24 guidance

        • -12.4% IPS.FP (Ipsos €46.98, -6.67) -- prelim. Q3 revenue; lowers FY growth target

        • -9.0% TKWY.NA (Just Eat Takeaway.com €11.24, -1.12) -- Q3 trading update

        • -8.3% KINV.B.SS (Kinnevik SEK74.97, -6.75) -- Q3 earnings

        • -7.3% MONY.LN (MONY Group £1.97, -0.16) -- Q3 trading update

        • -6.3% ADS.GR (Adidas €224.40, -15.20) -- Q3 earnings

        • -5.3% ASML.NA (ASML Holding €632.70, -35.40) -- Q3 earnings

        • -4.5% CHAR.LN (Chariot £0.03, -0.00) -- Chairman retires

        • -4.3% MC.FP (LVMH Moet Hennessy Louis Vuitton €598.60, -27.10) -- Q3 revenue; Equita downgrade

        • -3.8% RXL.FP (Rexel €25.31, -1.01) -- Q3 revenue; lowers FY outlook

        • -2.6% OR.FP (L'Oreal €366.65, -9.65) -- JPMorgan downgrade

        • -2.5% OCI.NA (OCI NV €24.85, -0.65) -- JPMorgan downgrade; HSBC downgrade; CEO resigns

    • EU companies reporting tomorrow:

      • Earnings:

        • Benelux: SIPEF (SIP.BB)

        • DACHs: ABB (ABBN.SW), Schindler Holding (SCHN.SW), 4SC (VSC.GR)

        • France: Sartorius Stedim Biotech (DIM.FP),

        • Nordics: Nordea Bank (NDA.FI.FH), EQT AB (EQT.SS), Industrivärden (INDU.A.SS), FastPartner (FPAR.A.SS), Vitec Software Group (VIT.B.SS), Arjo (ARJO.B.SS), AQ Group (AQ.SS), Plejd (PLEJD.SS), PowerCell Sweden (PCELL.SS), BE Group (BEGR.SS), Nokia (NOKIA.FH), Entra (ENTRA.NO), ABG Sundal Collier Holding ASA (ABG.NO)

        • UK: Rentokil Initial (RTO.LN), Centamin (CEY.LN)

      • Trading Update:

        • Benelux: Barco (BAR.BB), Sligro Food Group (SLIGR.NA), Nedap (NEDAP.NA)

        • DACHs: Nestle (NESN.SW), VAT Group (VACN.SW), HELLA (HLE.GR)

        • France: EssilorLuxottica (EL.FP), Pernod Ricard (RI.FP), Publicis Groupe (PUB.FP), Eiffage (FGR.FP), La Francaise des Jeux SA (FDJ.FP), Virbac (VIRP.FP), STEF (STF.FP), Maurel & Prom (MAU.FP), SRP Groupe (SRP.FP), ATEME (ATEME.FP), Verimatrix (VMX.FP)

        • Nordics: Investor (INVE.B.SS)

        • Southern Europe: Brunello Cucinelli (BC.IM)

        • UK: Mondi (MNDI.LN), Schroders (SDR.LN), St. James's Place (STJ.LN), Dunelm Group (DNLM.LN), Deliveroo (ROO.L), Travis Perkins (TPK.LN), Rathbones Group (RAT.LN), AJ Bell (AJB.LN), GB Group (GBG.LN), Ibstock (IBST.LN), Sabre Insurance Group (SBRE.LN), Entain (ENT.LN), Rank (RNK.LN),

      • Traffic: Getlink (GET.FP)

      • CMD/events: Hannover Re (HNR1.GR), Merck (MRK.GR), Veolia Environnement (VIE.FP)

  • Data:

    • Economics:

      • UK Sep

        • CPI +1.7% y/y vs cons +1.9% and prior +2.2%; 0.0% m/m vs cons +0.1% and prior +0.3%

        • PPI (0.7%) y/y vs cons (0.6%) and prior revised +0.3% from +0.2%; (0.5%) m/m vs cons (0.3%) and prior (0.3%)

      • Italy Sep CPI +0.7% y/y vs prelim +0.7%; (0.2%) m/m vs prelim (0.2%)

        • EU Harmonised: +0.7% y/y vs prelim +0.8%; +1.2% m/m vs prelim +1.2%

    • Markets:

      • WTI Crude (Nov 24): ($0.49) or (0.69%) to $70.09

      • €-$ (0.0017) or (0.16%) to 1.0876

      • £-$ (0.0071) or (0.54%) to 1.3003

      • €-£ +0.0032 to 0.8364

      • S&P 500 +0.15%

      • Performance year-to-date

        • FTSE 100: +7.70%

        • DAX: +16.01%

        • CAC: (0.68%)

        • MIB: +14.25%

        • Stoxx 600: +8.48%

This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
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