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StreetAccount Summary - Europe Pre-Open: Futures FTSE +0.06%, DAX +0.40%, CAC40 +0.01%

Jan 29 ,2025

  • Synopsis

    • European equity markets are set for a positive open with higher equity benchmarks in Asia Wednesday in a quiet session. Greater China and other markets offline for LNY holiday. Japan's Nikkei and Topix gapped higher and plateaued into the final hour. New Zealand stocks higher, Australia's ASX led by IT stocks. India also trading higher but is still headed for a fourth consecutive month of losses. US futures higher.

    • UK Chancellor Reeves will give a speech to business leaders later where she is expected to reveal Labour's plans to boost economic growth including plans to create "Europe's Silicon Valley" between Oxford and Cambridge and to expand Heathrow airport.

    • In Germany, Bundesbank's Köhler-Geib speech at 12:00CET at House of Finance, Goethe-Universität Frankfurt, and DIW releases its latest economic forecast ay 9:00CET and also Conf. Future Power Grids 2025 (through Thu). Elsewhere, Chancellor Scholz speech in the evening at event hosted by VdK Germany and Spain's Minister of Economy, Trade and Business Caballero speech at 9:00CET at event hosted by New Economy Forum (livestream). In the UK, there's weekly PMQs ay 12noon GMT, while committee topics include work of NHS England as well as financing of the Scottish Government both beginning at 9:30, BOE Financial Stability Report 14:30 (includes BOE's Bailey and Benjamin). Fitch Rating hosts Credit Outlook 2025 Frankfurt at 8:30CET and Insurance Insights 2025 - IBERIA at 10:30. There's also the European Capital Markets Forum. Norway's sovereign wealth fund issues preliminary figures for 2024

    • In central banks, Riksbank interest rate decision at 9:30CET, with press conf at 11:00. The central bank is expected to cut its benchmark interest rate by (25bps) to 2.25%

    • Macro data due include Germany Feb consumer confidence - GfK, Spain Q4 preliminary GDP, Italy Jan business/consumer confidence, Sweden and Belgium Q4 preliminary GDP, Ireland Dec retail sales, Portugal Dec unemployment rate and Eurozone Dec M3 money supply

    • A busy earnings front kicked off with LVMH Moet Hennessy Louis Vuitton (MC.FP) reporting FY earnings yesterday after market close with net income €12.55B vs FactSet €13.52. Still in France, Remy Cointreau (RCO.FP) reported Q3 revenue €254.1M vs consensus €244.5M and confirmed FY24-25 guidance and FY29-30 strategic plan. In the DACHs region, Logitech International (LOGN.SW) reported Q3 EPS $1.59 ex-items vs FactSet $1.40 and Lonza Group (LONN.SW) released FY core EPS CHF15.01 vs consensus CHF14.02. In the Benelux, Akzo Nobel (AKZA.NA) reported Q4 adj. EPS €0.56 vs consensus €0.56 whilst ASML Holding (ASML.NA) announced Q4 EPS €6.85 vs consensus €6.72 and guides Q1 and hikes divi by ~5%. In the Nordics, SEB (SEB.A.SS) reported Q4 EPS SEK3.69 vs consensus SEK3.71 and Tele2 (TEL2.B.SS) reported Q4 EPS SEK1.39 vs FactSet SEK1.57. Volvo (VOLV.B.SS) is out with Q4 EPS SEK5.28 vs FactSet SEK5.29 whilst SSAB (SSAB.A.SS) reported Q4 EPS SEK0.48 vs consensus SEK0.34.

  • Macro

    • ECB set to cut rates as Europe eyes Trump tariffs - politico

    • EU lets Russian LNG slip in new sanctions package - politico

    • Reeves expected to welcome Heathrow expansion plans - BBC

    • Reeves plans to create 'Silicon Valley' between Oxford and Cambridge - Guardian

Top company news

  • Earnings/updates

    • Benelux:

      • AKZA.NA (Akzo Nobel) -- reports Q4 adj. EPS €0.56 vs consensus €0.56

      • ASML.NA (ASML Holding) -- reports Q4 EPS €6.85 vs consensus €6.72; guides Q1 and hikes divi by ~5%

    • DACHs:

      • LOGN.SW (Logitech International) -- reports Q3 EPS $1.59 ex-items vs FactSet $1.40 [11 est, $1.20-1.65]

      • LONN.SW (Lonza Group) -- reports FY core EPS CHF15.01 vs consensus CHF14.02

      • INRN.SW (Interroll Holding) -- reports preliminary FY sales CHF527.1M vs FactSet CHF526.2M [6 est, CHF516-535.2M]

      • RIEN.SW (Rieter Holding) -- reports prelim. FY revenue CHF859.1M vs guidance CHF900M, FactSet CHF900.2M [5 est, CHF896.4-902.6M]; sees EBIT margin in the upper half of guidance range

      • R3NK.GR (Renk Group) -- reports preliminary FY adjusted EBIT €189M vs FactSet €171.4M [10 est, €123.6-186.9M] and guidance range €175 - 190M

    • France:

      • MC.FP (LVMH Moet Hennessy Louis Vuitton) -- reports FY net income €12.55B vs FactSet €13.52B [24 est, €12.63-14.36B]

      • RCO.FP (Remy Cointreau) -- reports Q3 revenue €254.1M vs consensus €244.5M; FY24-25 guidance and FY29-30 strategic plan confirmed

      • CDI.FP (Christian Dior) -- Christian Dior reports FY net income €5.2B vs year-ago €6.3B

      • FGR.FP (Eiffage) -- Eiffage's APRR reports Q4 revenue ex construction €751.2M vs year-ago €708.0M

    • Nordics:

      • SSAB.A.SS (SSAB) -- reports Q4 EPS SEK0.48 vs consensus SEK0.34

      • VOLV.B.SS (Volvo -- reports Q4 EPS SEK5.28 vs FactSet SEK5.29 [10 est, SEK4.73-6.00]

      • TEL2.B.SS (Tele2) -- reports Q4 EPS SEK1.39 vs FactSet SEK1.57 [9 est, SEK1.33-2.09]

      • SEB.A.SS (Skandinaviska Enskilda Banken) -- reports Q4 EPS SEK3.69 vs consensus SEK3.71

      • TREL.B.SS (Trelleborg) -- reports Q4 EPS from cont. ops. SEK4.24 ex-items vs FactSet SEK3.83 [6 est, SEK3.58-4.14], raises dividend +11% y/y

      • BRG.NO (Borregaard) -- reports Q4 EPS NOK1.30 vs FactSet NOK1.42 [7 est, NOK1.22-1.54]

      • EPR.NO (Europris) -- reports Q4 net income NOK443M vs FactSet NOK406.6M [6 est, NOK365-436.2M]

      • DOM.SS (Dometic Group) -- reports Q4 adjusted EPS (SEK0.35) vs FactSet SEK0.33 [4 est, (SEK0.26)-0.86]

      • CLA.B.SS (Cloetta) -- reports Q4 EPS SEK0.55 vs FactSet SEK0.46 [1 est]

  • M&A

    • TEF.SM (Telefonica) -- weighs sale of Argentine subsidiary - Expansio

    • ARBN.SW (Arbonia) -- sale of the Climate Division to Midea Electrics Netherlands receives EU Commission approval

    • FER.SM (Ferrovial) -- completes the sale of its 50% of AGS Airports Holdings Ltd. to AviAlliance UK for ~ £450M (post EU close 28-Jan)

    • MOH.GA (Motor Oil (Hellas) Corinth Refineries) -- Motor Oil completes the acquisition of 94.44% of Helector

    • DGE.LN (Diageo) -- sells 80.4% shareholding in Guinness Ghana Breweries to Castel Group for $81M (28-Jan, seemingly around 14:15 GMT)

    • SFZN.SW (Siegfried Holding) -- Siegfried wants to target small and medium-sized companies to generate additional growth - FuW

    • CVC.NA (CVC Capital Partners) -- receives offer for its 90% of Ethniki Insurance; terms unreported - Euro2day

    • LTG.LN (Learning Technologies Group) -- Bidco confirms that the cash offer of 100p per LTG share is final and will not be increased

    • AX1.AU (Accent Group) -- guides H1 EBIT ~A$80M

    • VBG.B.SS (VBG Group) -- acquires Italytec for SEK260M

    • PVN.IM (Piovan) -- notes completion of change of control in favour of Automation Systems

    • Indonesian suitors Salim and United Tractors join race for the Ravenswood gold mine - The Australian

  • Healthcare

    • ALDVI.FP (Advicenne) -- US FDA accepts Advicenne proposition of biological primary endpoint for evaluation of ADV7103 in cystinuria

    • NOVN.SW (Novartis) -- Follow-up: FDA cancels February Adcom for Fabhalta sNDA

    • NOVO.B.DC (Novo Nordisk) -- FDA approves Ozempic to reduce the risk of worsening kidney disease and cardiovascular death in adults with T2D and CKD

    • IPN.FP (Ipsen) -- FDA grants orphan drug designation to satoreotide for SCLC

  • Other

    • KEMIRA.FH (Kemira) -- appoints Simon Bloem as Chief Operations Officer

    • ONWD.BB (Onward Medical) -- ARC-EX System for spinal cord injury is now available for purchase through VA Federal Supply Schedule and GSA Advantage platforms

    • SKA.B.SS (Skanska) -- awarded contract to rebuild the Lindsay C. Warren Bridge in Columbia, NC, USA, for $450M, ~ SEK 4.9B

    • SVITZR.DC (Svitzer) -- signs terminal towage contract with Oman LNG

    • KOA.NO (Kongsberg Automotive) -- President and CEO Linda Nyquist-Evenrud to step down effective immediately; appoints Trond Fiskum as new President and CEO

    • TGS.NO (TGS-NOPEC Geophysical Co.) -- wins offshore wind site characterization contract for a repeat customer

    • VOW.GR (Volkswagen) -- considering setting up production for Audi and Porsche brands in the US amid tariffs on car imports - Handelsblatt

    • BBVA.SM (Banco Bilbao Vizcaya Argentaria) -- to redeem contingent convertible perpetual preferred tier 1 securities issued in Sep-19

    • NXT.LN (Next) -- announces non-discretionary share repurchase program

    • BAER.SW (Julius Baer Group) -- reportedly set to cut hundreds of jobs, reduce executive board - Bloomberg

    • PTEC.LN (Playtech) -- Chairman Brian Mattingley to retire this year - Sky News

    • SEB.A.SS (Skandinaviska Enskilda Banken) -- completes SEK 2.5B share buyback; initiates new SEK 2.5B program

    • SOP.FP (Sopra Steria Group) -- announces end of the €150M share buyback programme announced in October 2024

    • ARCAD.NA (ARCADIS) -- awarded shared $150M Architect-Engineer (A/E) multiple-award task order contract with the US Army Corps of Engineers, Tulsa District

    • DEME Group announces contract to build access channel linking port of Le Havre with Seine River

    • Floor & Decor appoints Bradley Paulsen as President, effective 28-Apr-25

    • UK water companies give commitment to Environment Agency as part of the PR24 process to clean up the environment and invest in new infrastructure

Key rating changes

  • Upgrades

    • NETC.DC (Netcompany Group) -- buy from hold at SEB

    • BRK.LN (Brooks MacDonald Group) -- buy from hold at Shore Capital Stockbrokers

    • IDL.FP (ID Logistics Group) -- buy from hold at Stifel

    • EL.FP (EssilorLuxottica) -- outperform from sector perform at RBC Capital Markets

    • HLUN.B.DC (H. Lundbeck) -- buy from hold at Danske Bank

    • SVT.LN (Severn Trent) -- to buy from hold at Kepler Cheuvreux

    • Bernstein upgrades COLO.B.DC, EKTA.B.SS

    • AFX.GR (Carl Zeiss Meditec) -- to neutral from sell at Goldman Sachs

    • DEMANT.DC (Demant) -- to neutral from underperform at BNP Paribas Exane

    • ELISA.FH (Elisa Oyj) -- to accumulate from reduce at Inderes

  • Downgrades

    • MC.FP (LVMH Moet Hennessy Louis Vuitton) -- neutral from outperform at Santander

    • ATCO.A.SS Atlas Copco downgraded to hold from buy at Nordea

    • ZEAL.DC (Zealand Pharma) -- to hold from buy at SEB

    • GETI.B.SS (Getinge) -- Getinge long-term recommendation downgraded to market perform from outperform at Handelsbanken

  • Initiations

    • VITR.SS (Vitrolife) -- buy at Nordea

    • FHZN.SW (Flughafen Zuerich) -- hold at Jefferies

    • SCATC.NO (Scatec) -- outperform at Oddo

Data

  • Nikkei +1.02% to 39414.78

  • Hang Seng closed

  • Shanghai Composite closed

  • S&P futures +13.0 vs prior close of 6097.0

  • €-$ +0.0009 or +0.09% to 1.0442

  • $-¥ (0.30) or (0.19%) to 155.23

  • €-¥ (0.16) or (0.10%) to 162.07

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