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StreetAccount Summary - Europe Pre-Open: Futures: FTSE +0.04%, DAX +0.52%, CAC40 +0.65%

Jan 14 ,2025

  • Synopsis

    • European equity markets are set to open higher whilst Asia equities trade mixed Tuesday: Japan's Nikkei and Topix lower as they catch up with Monday's market downturn. Some modest losses in Singapore and other Southeast Asia markets. Gains elsewhere with mainland China boards leading and Hong Kong also sharply higher. US futures higher.

    • Inflationary implications of Trump tariffs partly attributable for recent bond yield backup. However, Bloomberg sources noted members of his economic team planning gradual implementation of tariffs over several months to boost negotiating leverage and avoid inflation spike. While potential for more targeted approach a positive for market sentiment, there remains great deal of uncertainty with Trump recently denying Washington Post story about tariffs covering only critical imports.

    • On today's agenda, World Bank to release semiannual global economic prospects report and OPEC publishes its latest monthly report. EU's Virkkunen attends (as well as several European leaders and NATO's Rutte) the Summit of the Baltic Sea NATO countries. Together for Catalonia (Junts) leader Turull speech at 9:00CET at event (livestream) hosted by Nueva Economía Fórum, also hosting at the same time event (livestream) with Popular Party's Feijóo. France's PM Bayrou due to announce his government's program; La France Insoumise (LFI) leader Jean-Luc Mélenchon has vowed to table a motion of no confidence. In Germany, Chancellor Scholz due to hold townhall meeting in the evening in Chemnitz. In UK, The Industry and Regulators Parliamentary Committee will begin its inquiry into the energy grid and grid connections by hearing from Energy UK. In Norway, Minister of Energy Aasland speaks ~13:10CET at the Oil and Energy Policy Seminar (through Wed), event sees senior execs from several companies speaking. Elsewhere, there's the Central and Eastern European Forum (through Wed), Fitch Ratings event Credit Outlook 2025 Paris, PIME Energy Storage Summit (through Wed) and Solar Energy Expo (through Thu).

    • In central banks, Riksbank's Bunge participates at 8:00CET in the Stockholm Chamber of Commerce online event "Spaning Samtiden", ECB's Lane speech at 8:35CET at joint ECB/BoF/HKMA conf on "Europe, Asia and the Changing Global Economy" and BOE's Breeden speech at 8:10GMT at Financial Stability Law Forum 'Financial stability and too big too fail'. Austria central bank's Holzmann speech ay 9:00CET at Invisso (through Wed), the banks head of economic analysis and research Birgit Niessner, speech ay 11:30CET at event hosted by OMFIF.

    • Macro data out includes Netherlands Dec CPI +4.1% y/y vs preliminary +4.1% and Finland Dec CPI +0.7% y/y vs consensus +1.0% and prior +1.0%. Also due today, Eurozone ZEW Economic Sentiment.

    • On corporate front, CNBC sources said Cleveland-Cliffs (CLF) partnering with Nucor (NUE) in potential bid for X after White House blocked Nippon Steel acquisition offer. TikTok denied Bloomberg source report China weighing option of allowing Elon Musk to acquire its US operations. NVDA featured in overnight news after Biden administration unveiled new export curbs on its AI chips while The Information also reported Blackwell-equipped racks hampered by overheating and glitches, leading major customers to cut some orders.

    • In European earnings news, Temenos (TEMN.SW) reported preliminary FY24 earnings and indicated that it will publish guidance for FY25 on 18-Feb. Also in Switzerland, Chocoladefabriken Lindt & Spruengli (LISN.SW) issued preliminary FY revenue and guidance for FY24/25, whilst Suedzucker (SZU.GR) released Q3 earnings and confirmed its FY forecast. In Austria, OMV (OMV.AV) release its Q4 trading updated indicating to a total hydrocarbon production of 337 kboe/d vs year-ago 364 kboe/d. In Italy, Brunello Cucinelli (BC.IM) reported preliminary FY/Q4 revenue and indicated to a positive start for 2025. Other notable companies due to update investors today includes: Games Workshop (GAW.LN), Volkswagen (VOW3.GR) 2024 deliveries, Partners Group (PGHN.SW), JD Sports Fashion (JD.LN), Persimmon (PSN.LN), and Ocado (OCDO.LN).

  • Politics/Macro/World News

    • EU reassesses tech probes into Apple, Google and Meta - FT

    • Reeves' Vision for Britain Faces Fresh Peril From Market Fallout - Bloomberg

    • Macron's inner circle in turmoil after top adviser says he's resigning - Politico

    • Gaza ceasefire deal close after 'breakthrough' in Doha - Reuters

  • Top company news

    • Earnings/updates

      • DAHCs

        • SOON.SW (Sonova Holding) -- reaffirms FY guidance

        • TEMN.SW (Temenos) -- reports preliminary FY24 EBIT $354.6M vs FactSet $336.3M; to issue FY25 guidance on 18-Feb

        • LISN.SW (Chocoladefabriken Lindt & Spruengli) -- reports prelim FY revenue CHF5.47B vs consensus CHF5.48B; guides FY24 and FY25

        • UBXN.SW (u-blox Holding) -- reaffirms Q4 guidance; to focus on locate business and phase out cellular, sees related charges

        • TIBN.SW (Bergbahnen Engelberg-Trübsee-Titlis) -- reports preliminary FY net income CHF15.0M vs FactSet CHF16.5M

        • SZU.GR (Suedzucker) -- reports Q3 EPS (€0.62) vs year-ago €0.80; confirms FY forecast

        • OMV.AV (OMV) -- Q4 trading update: total hydrocarbon production of 337 kboe/d vs year-ago 364 kboe/d

        • AGR.AV (Agrana Beteiligungs) -- reports 9M net income €14.5M vs year-ago €78.1M

      • Southern Europe

        • BC.IM (Brunello Cucinelli) -- reports preliminary FY revenue €1.28B vs FactSet €1.27B [13 est, €1.26-1.28B] (post EU close 13-Jan)

        • ALM.SM (Almirall) -- updates on its business strategy and outlook 2025 at the JPMorgan HealthCare Conference

      • Nordics

        • EMGS.NO (Electromagnetic Geoservices) -- provides vessel activity and multi-client sales update for Q4

      • Also due to report today includes:

        • Earnings:

          • Southern Europe: Unieuro (UNIR.IM)

          • UK: Games Workshop (GAW.LN), Knights Group (KGH.LN), Ramsdens (RFX.LN)

        • Trading Update: Volkswagen (VOW3.GR) 2024 deliveries, Partners Group (PGHN.SW), JD Sports Fashion (JD.LN), Persimmon (PSN.LN), Ocado (OCDO.LN), Grafton (GFTU.LN), Esker (ALESK.FP), Cairn Homes (C5H.ID), Integrafin Holdings (IHP.LN), Hunting (HTG.LN), MJ Gleeson (GLE.LN), The Gym Group (GYM.LN), Robert Walters (RWA.LN)

        • Traffic: Flughafen Zurich (FHZN.SW)

    • M&A

      • BATS.LN (British American Tobacco) -- Holder Reinter Investments to place ~2% stake in British American Tobacco -- Bloomberg

      • HHH (Howard Hughes Holdings) -- confirms receipt of unsolicited acquisition proposal from Pershing Square

      • UN0.GR (Uniper) -- German government weighing options with Uniper - Reuters (13-Jan, 10:42 ET/16:42 CET)

      • HUM.LN (Hummingbird Resources) -- publishes document in connection with previously announced offer by Nioko Resources

      • TFBANK.SS (TF Bank) -- notes financial effects as result of transfer of majority stake in subsidiary Rediem Capital AB

      • CNR.LN (Condor Gold Plc) -- Condor Gold announces court sanctions scheme of arrangement to implement acquisition by Metals Exploration

      • China evaluating option that involves Elon Musk acquiring US operations of TikTok if it fails to avoid ban - Bloomberg

      • TikTok denies Bloomberg report that China is evaluating option that involves Elon Musk acquiring US operations of TikTok if it fails to avoid ban - Variety

      • Klarna seeking buyers for US portfolio of "pay in four" loans as it unlocks growth capital ahead of New York IPO - FT

    • Healthcare

      • BAYN.GR (Bayer AG) -- to prioritize deleveraging over pharma dealmaking - Bloomberg

      • 4523.JP (Eisai) -- FDA accepts Eisai's LEQEMB BLA for subcutaneous maintenance dosing for treatment of early Alzheimer's disease

      • 13.HK (Hutchmed) -- NMPA approves supplemental NDA for Hutchmed's ORPATHYS for NSCLC, gives full approval for previously treated patients

      • GALD.SW (Galderma Group) -- Galderma Premieres Positive Interim Results Demonstrating the Efficacy of Its Injectable Aesthetics Portfolio in Addressing Facial Volume Loss as a Result of Medication-driven Weight Loss

      • SANN.SW (Santhera Pharmaceuticals Holding) -- Santhera Receives Positive Recommendation from Scottish Medicines Consortium for the Use of AGAMREE (Vamorolone) in Duchenne Muscular Dystrophy Patients in NHS Scotland

      • ARJO.B.SS (Arjo) -- president & CEO Joacim Lindoff leaving

      • ALBPS.FP (Biophytis) -- enters exclusive negotiations with Chinese pharmaceutical company to license BIO101

      • IRLAB.A.SS (IRLAB Therapeutics) -- The last patient has now completed the full treatment period in IRLAB's Phase IIb study with pirepemat

    • Other

      • CLN.SW (Clariant) -- rejects BASF's allegations against four companies related to the 2020 competition law infringement

      • TEL2.B.SS (Tele2) -- COO Kim Haberg to leave company; effective immediately

      • Anti-DE&I shareholder proposals on the rise; climate still in focus in upcoming AGMs (13-Jan)

  • Key rating changes

    • Upgrades

      • EPI.A.SS (Epiroc) -- to buy from hold at Pareto

      • KRZ.ID (Kerry Group) -- to buy from hold at Jefferies

      • SAF.FP (Safran) -- to buy from hold at Jefferies

      • ATCO.A.SS (Atlas Copco) -- to buy from hold at DnB Markets

      • EPI.A.SS (Epiroc) -- to buy from hold at DnB Markets

      • MBG.GR (Mercedes-Benz Group) -- to buy from neutral at Goldman Sachs

      • INF.LN (Informa) -- to overweight from equal-weight at Morgan Stanley

      • SINCH.SS (Sinch) -- to equal-weight from underweight at Morgan Stanley

      • WLN.FP (Worldline) -- to equal-weight from underweight at Morgan Stanley

      • WKP.LN (Workspace Group) -- to buy from add at Peel Hunt

      • BBOX.LN (Tritax Big Box REIT) -- to add from hold at Peel Hunt

      • HMSO.LN (Hammerson) -- to add from hold at Peel Hunt

      • ENTRA.NO (Entra ASA) -- to buy from neutral at Van Lanschot Kempen

      • MRL.SM (MERLIN Properties SOCIMI) -- to buy from neutral at Van Lanschot Kempen

      • FABG.SS (Fabege) -- to neutral from sell at Van Lanschot Kempen

      • PHP.LN (Primary Health Properties) -- to neutral from sell at Van Lanschot Kempen

    • Downgrades

      • MONC.IM (Moncler) -- to equal weight from overweight at Barclays

      • SAND.SS (Sandvik) -- to hold from buy at DnB Markets

      • TE.FP (Technip Energies) -- to equal-weight from overweight at Morgan Stanley

      • MEL.SM (Melia Hotels International) -- to sell from buy at UBS

      • NCAB.SS (NCAB Group) -- to hold from buy at Pareto

      • PIRC.IM (Pirelli & C.) -- to neutral from buy at Goldman Sachs

      • PAH3.GR (Porsche Automobil Holding SE) -- to sell from buy at Goldman Sachs

      • COP.GR (CompuGroup Medical) -- to equal-weight from overweight at Morgan Stanley

      • TRST.LN (Trustpilot Group) -- to equal-weight from overweight at Morgan Stanley

      • WISE.LN (Wise Plc) -- to equal-weight from overweight at Morgan Stanley

      • NEXI.IM (Nexi SpA) -- to underweight from equal-weight at Morgan Stanley

      • TOWN.LN (Town Centre Securities) -- to add from buy at Peel Hunt

      • CLI.LN (CLS Holdings) -- to hold from add at Peel Hunt

      • COFB.BB (Cofinimmo) -- to neutral from buy at Van Lanschot Kempen

      • ICAD.FP (Icade) -- to neutral from buy at Van Lanschot Kempen

      • LAND.LN (Land Securities Group) -- to neutral from buy at Van Lanschot Kempen

      • RETS.BB (Retail Estates) -- to neutral from buy at Van Lanschot Kempen

      • AGR.LN (Assura) -- to sell from neutral at Van Lanschot Kempen

      • CAI.AV (CA Immobilien Anlagen) -- to sell from neutral at Van Lanschot Kempen

      • LEG.GR (LEG Immobilien) -- to sell from neutral at Van Lanschot Kempen

    • Initiations

      • EVD.GR (CTS Eventim) -- buy at UBS

  • Data

    • Nikkei (1.83%) to 38474.30

    • Hang Seng +1.85% to 19222.79

    • Shanghai Composite +2.11% to 3227.47

    • S&P futures +18.3 vs prior close of 5874.5

    • €-$ +0.0001 or +0.01% to 1.0246

    • $-¥ +0.15 or +0.10% to 157.63

    • €-¥ +0.20 or +0.12% to 161.52

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