Jan 23 ,2025
Synopsis
European equity markets are set to open lower amidst Asia equities mixed Thursday. Greater China markets opened brightly but mainland markets are well off their highs while the Hang Seng is now lower. Australia and South Korea both down, other benchmarks higher, including those in Japan, India and Singapore. Taiwan is closed for a holiday. US futures a tad lower. US dollar flat, little change in Asia currencies. Treasury and other sovereign yields leaning higher. Crude oil futures down, precious metals lower, copper selling off but iron ore maintaining a small gain.
In central banks, Norway's central bank interest rate decision at 10:00CET; decision on the countercyclical capital buffer rate will be published at the same time. The bank is expected to leave its benchmark interest rate unchanged at 4.5%. Turkey's central bank is expected to leave its benchmark interest rate of 46% unchanged when it announces its decision at 12noon CET.
Further on today's agenda, Norway's Minister of Energy Aasland holds digital meeting at 8:00CET with the Danish counterpart Aagaard. UK's FCA Executive Director, Markets and International, speech at 9:00GMT title FCA: promoting UK growth and innovation at event hosted by OMFIF. Mayor of London Khan gets chance to respond to reports Chancellor Reeves would back a 3rd runway at London Heathrow airport before the London Assembly's budget committee (agenda). Finland's PM hosts EU's Fitto, EVP for Cohesion and Reforms, the EU rep meeting with country's President Stubb on Fri. Elsewhere, Fitch Rating hosts fireside chat at 10:00GMT with BOE's Carolyn Wilkins.
Macroeconomic data include France Jan business confidence and Eurozone Jan preliminary consumer confidence.
In corporate news, Puma (PUM.GR) released yesterday after the closed prelim FY results including FY net income €282M vs FactSet €316.1M and announced "nextlevel" efficiency program. In France, Interparfums (ITP.FP) reports Q4 revenue €200.3M vs guidance ~€200-210M and FactSet €214.8M. Out of the Nordics, Swedbank (SWED.A.SS) reports Q4 EPS SEK7.50 vs consensus SEK6.59 and proposes divi corresponding to 70% of the profit. Tryg (TRYG.DC) reports Q4 net income DKK786M vs consensus DKK870M and comments on FY25 outlook. EQT AB (EQT.SS) and (ESSITY.B.SS) are also out with the latest numbers. The latter also announced President and CEO Magnus Groth will leave during 2025.
Politics/Macro/World News
Simplification, not deregulation, is the EU's answer to the Trump revolution - FT
Davos hits 'peak pessimism' on Europe as US exuberance rises - FT
Trump tells Putin to end Ukraine war or face more sanctions - Politico
EU 'could consider' UK joining pan-Europe customs scheme - BBC
China's shot in the arm for markets - Reuters
Top company news
Earnings/updates
DACHs
PUM.GR (Puma) -- announces preliminary 2024 results; FY net income €282M vs FactSet €316.1M
announces "nextlevel" efficiency program
GALE.SW (Galenica) -- reports FY revenue CHF3.92B vs FactSet CHF3.89B [5 est, CHF3.86-3.91B]
HUBN.SW (HUBER+SUHNER) -- reports FY net sales CHF893.9M, +5% vs year-ago CHF851.1M
AUTN.SW (Autoneum Holding) -- reports preliminary FY revenue CHF2.34B vs FactSet CHF2.37B [6 est, CHF2.33-2.44B]
Nordics
ESSITY.B.SS (Essity) -- reports Q4 EPS ex-items SEK4.85 vs FactSet SEK5.01
SWED.A.SS (Swedbank) -- reports Q4 EPS SEK7.50 vs consensus SEK6.59; proposes divi corresponding to 70% of the profit
EQT.SS (EQT AB) -- reports FY EPS from continuing ops €0.94 ex-items vs FactSet €0.93 [15 est, €0.85-1.02]
ADMCM.FH (Admicom) -- reports Q4 EPS €0.19 vs FactSet €0.34 [4 est, €0.24-0.42]
TRYG.DC (Tryg) -- reports Q4 net income DKK786M vs consensus DKK870M; comments on FY25 outlook
Southern Europe
EDPR.PL (EDP Renovaveis) -- provides 2024 operating data preview
EDP.PL (EDP-Energias de Portugal) -- reports FY24/Q4 operating data
France
ITP.FP (Interparfums) -- reports Q4 revenue €200.3M vs guidance ~€200-210M and FactSet €214.8M [2 est, €209.8-219.8M]
M&A
TIT.IM (Telecom Italia) -- provides update on Sparkle negotiations
CBK.GR (Commerzbank) -- describes UniCredit's approach for potential tie-up as "hostile" - Reuters
SK.FP (SEB) -- Groupe SEB acquires La Brigade de Buyer; terms not disclosed
OLTH.GA (Thessaloniki Port Authority) -- shareholder's acceptance period for offer from Leonidsport B.V. starts 23-Jan and ends 20-Feb
NA9.GR (Nagarro SE) -- ends talks regarding potential take-private; will pursue alternative strategic option
Healthcare
VLA.FP (Valneva) -- Valneva's Phase 2 Trial (VLA1553-221) in children for its Chikungunya vaccine met its primary endpoint
IVA.FP (Inventiva) -- announces LEGEND trial results to be presented at EASL SLD Summit 2025
GALD.SW (Galderma Group) -- Galderma's Broad Presence and New Data on Recently Launched Products Restylane SHAYPE and Relfydess Reaffirm Its Category Leadership
IRLAB.A.SS (IRLAB Therapeutics) -- receives EMA waiver for pediatric studies with mesdopetam in Parkinson's Disease
Other
WPP.LN (WPP Group) -- WPP has looked at switching primary listing to New York as it pursues opportunities in US under new Trump administration - FT, citing CEO
HSBA.LN (HSBC Holdings) -- to close its international payments app Zing - Financial News citing sources
SGE.LN (Sage Group) -- Proxy adviser ISS recommends Sage shareholders oppose the company's remuneration policy - Sky News (22-Jan, 15:01 GMT)
AVOL.SW (Avolta) -- announces 10-year contract to open 12 food and beverage locations at Frankfurt Airport
SPM.IM (Saipem) -- informed by Eni and CDP Equity of their tacit renewal of the shareholder agreement for a further three-year period
ESSITY.B.SS (Essity) -- President and CEO Magnus Groth will leave during 2025
SWED.A.SS (Swedbank) -- changes dividend policy; to distribute 60-70% of the annual profit vs prior policy of 50%
FRAS.LN (Frasers Group) -- issues open letter to boohoo shareholders
SZU.GR (Suedzucker) -- successfully priced €500M bond via wholly-owned Dutch subsidiary Südzucker International Finance B.V. on 22-Jan-25
Key rating changes
Upgrades
VCT.FP (Vicat) -- to overweight from equal weight at Barclays
FGP.LN (FirstGroup) -- to buy from hold at HSBC
Downgrades
GLPG.NA (Galapagos) -- to underweight from equal weight at Barclays
INCH.LN (Inchcape) -- to neutral from overweight at JPMorgan
IVSO.SS (INVISIO) -- to hold from buy at SEB
HEI.GR (Heidelberg Materials) -- downgraded to equal weight from overweight at Barclays
Data
Nikkei +0.79% to 39958.87
Hang Seng (0.55%) to 19670.89
Shanghai Composite +0.65% to 3234.47
S&P futures (8.0) vs prior close of 6120.5
€-$ (0.0005) or (0.05%) to 1.0406
$-¥ +0.02 or +0.01% to 156.52
€-¥ (0.07) or (0.04%) to 162.87
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