Jan 13 ,2025
Synopsis
European equity markets are set for a mixed-to-lower open. Asian equities mostly lower across the region Monday. Region led lower by tech-dominated boards in Taiwan, South Korea and Australia. More losses in Greater China with all the boards now in red, albeit with the Hang Seng off its low. Australia closed near its trough. India lower, Southeast Asia markets all selling off although relative outperformers. Japan closed for a holiday but Nikkei futures trading sharply lower. US futures down again.
In central banks, ECB's Lane told Der Standard the ECB does not want rates to remain too high for too long but needs to ensure interest rates follow a middle path. Said he expects inflation pressure to continue to ease this year but that services inflation needs to cool for overall inflation to return sustainably to the central bank's 2% target. Elsewhere, Asian Financial Forum (through Tue) panels take place today including ECB's Lane, Bank of Finland's Rehn at 4:15CET. EU's Ribera delivers a keynote speech at the Social Democratic Party of Germany (SPD) Economic Forum. Brussels motor show continues (through Sun).
Macro data out includes Portugal and Greece Dec CPI.
In earnings, Porsche (P911.GR) reported 2024 worldwide deliveries 310,718 vehicles, (3%) y/y whilst Molecular Partners (MOLN.SW) outlined clinical expansion plans and strengthens radiopharma strategic focus for 2025. In the Nordics, Swedish Orphan Biovitrum (SOBI.SS) reported FY 2024 revenue ~SEK 26.00B vs FactSet SEK 25.45B.
Also due to release updates today are Brunello Cucinelli (BC.IM), Oxford Nanopore Technologies (ONT.LN) and DFDS (DFDS.DC).
Macro
UK companies plan to invest in AI instead of hiring staff as costs rise - FT
Reeves insists she will act to meet 'non-negotiable' fiscal rules - FT
Reeves back from China with one eye on bonds and the other on economic data - Guardian
UK low- to middle-income families far poorer than OECD counterparts, study - Guardian
Germany's far right seeks electoral legitimacy from Trump administration - politico
ECB's Lane says do not want rates to remain too high for too long - Der Standard; Reuters
Top company news
Earnings/updates
DACHs:
P911.GR (Porsche) -- reports 2024 worldwide deliveries 310,718 vehicles, (3%) y/y
MOLN.SW (Molecular Partners) -- outlines clinical expansion plans and strengthens radiopharma strategic focus for 2025
France:
ALMCP.FP (McPhy Energy) -- lowers 2024 revenue guidance to ~€11M vs prior €18-22M and FactSet €19.6M [4 est, €18.2-20.8M]
Nordics:
SOBI.SS (Swedish Orphan Biovitrum) -- announces FY 2024 revenue ~SEK 26.00B vs FactSet SEK 25.45B
M&A
OLTH.GA (Thessaloniki Port Authority Leonidsport B.V.) -- (owned by members of Louis Dreyfus family) announces tender offer to acquire up to 2.1M Thessaloniki Port Authority shares at €27/share
WHATS.BB (What's Cooking Group) -- completes sale of its Savoury business unit
BIM.FP (bioMerieux) -- announces it has entered an agreement to acquire SpinChip Diagnostics for an undisclosed sum
HOOK (Hookipa Pharma) -- discloses update on potential combination with Poolbeg - 8-K
SAX.GR (Stroeer SE & Co. KGaA) -- Ströer confirms discussions with interested parties regarding Ströer's core assets
ELIS.FP (Elis) -- acquires Wäscherei Bodensee in Switzerland; terms undisclosed
BAMI.IM (Banco BPM) -- Italy preparing formal review of UniCredit's offer for Banco BPM under golden power regulations - La Stampa
PVN.IM (Piovan) -- Automation Systems obtains all authorizations for acquisition of Piovan stake
Healthcare
NOVN.SW (Novartis) -- Appeals Court reverses-in-part, affirms-in-part district court ruling of Novartis' '659 Entresto patent; reverses finding patent invalid for lack of written description
SAN.FP (Sanofi) -- Sanofi's Sarclisa receives first approval in China for the treatment of adult patients with relapsed or refractory multiple myeloma
ROG.SW (Roche Holding) -- Roche receives FDA clearance for new, highly-sensitive test to aid clinicians in diagnosing B-cell lymphoma
BPMC (Blueprint Medicines) -- now estimates peak revenue for systemic mastocytosis franchise is $4B, with $2B in annual revenues expected by AYVAKIT by 2030, reports positive BLU-808 trial data
GLPG.NA (Galapagos) -- SEC filing: SCHEDULE 13D/A (Filed by GILEAD SCIENCES, INC.)
MREO (Mereo BioPharma Group) -- provides update on lead clinical programs
IDIA.SW (Idorsia) -- to call for a bondholder meeting
MOLN.SW (Molecular Partners) -- and Orano Med expand partnership to develop Targeted Alpha Radio-Therapies for cancer
FYB.GR (Formycon) -- Teva becomes strategic commercialization partner for Formycon's biosimilar candidate FYB203 (Eylea/ aflibercept) in major parts of Europe and Israel
Other
NDX1.GR (Nordex) -- receives 247 MW wind turbine orders from Canada
STAN.LN (Standard Chartered) -- faces sanctions from Zambia's SEC over mis-selling of Chinese property bonds - Reuters
GALP.PL (Galp Energia SGPS) -- appoints Maria João Carioca and João Diogo Marques da Silva as interim co-CEOs
NEL.NO (NEL ASA) -- subsidiary awarded up to ~$29M in investment tax credits as part of Qualifying Advanced Energy Project Tax Credit (48C) program
Estimated weekend box office revenues in US, Canada $76.6M, (21.1%) y/y - Box Office Mojo
Key rating changes
Upgrades
BNP Paribas Exane upgrades BIRG.ID; downgrades A5G.ID
AMBU.B.DC (Ambu) -- buy from hold at Danske Bank
GRNG.SS (Gränges) -- buy from hold at ABG Sundal Collier
SVT.LN (Severn Trent) -- outperform from market perform at Bernstein
Autonomous Research upgrades INGA.NA, LLOY.LN; downgrades BKT.SM, BMPS.IM, HSBA.LN
Jefferies upgrades IFCN.SW, NEL.NO, S92.GR, and TPE.GR; downgrades FTK.GR, HUSQ.B.SS, SGL.GR, and VBK.GR; others
CFR.SW (Richemont) -- to buy from hold at TD Cowen
PPC.GA (Public Power Corp.) -- to buy from neutral at Goldman Sachs
YAR.NO (Yara International) -- to buy from neutral at Sparebank 1 Markets
Downgrades
CORE.B.SS (Corem Property Group) -- hold from buy at Nordea
BIOT.SS (Biotage) -- short-term recommendation downgraded to hold from buy at Handelsbanken
Initiations
MRN.FP (Mersen) -- re-initiated neutral at BNP Paribas Exane
CEZ.CP (CEZ) -- reduce at Kepler Cheuvreux
EBS.AV (Erste Group Bank) -- overweight at Morgan Stanley
ELI.BB (Elia Group SA/NV) -- buy at UBS
Other Actions
KEMIRA.FH (Kemira -- resumed buy at Nordea
Data
Nikkei closed
Hang Seng (1.22%) to 18830.95
Shanghai Composite (0.64%) to 3148.31
S&P futures (22.0) vs prior close of 5866.3
€-$ (0.0027) or (0.26%) to 1.0217
$-¥ (0.26) or (0.16%) to 157.56
€-¥ (0.66) or (0.41%) to 160.99
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