Live Markets: On the radar: virus damages, Credit Suisse, Novartis
24/11/2020 07:44
* European stock futures up 0.5%
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ON THE RADAR: VIRUS DAMAGES, CREDIT SUISSE, NOVARTIS (0744
GMT)
European stocks are set to open higher, still wary but
willing to look at the bright side after vaccine progress which
allows to hope in a strong economic recovery in 2021.
While the outlook is improving, several companies still
have to strengthen their balance sheets to repair damages from
the coronavirus crisis.
Greencore GNC.L plans to raise cash by issuing new shares,
after it reported an 81% plunge in annual profit. urn:newsml:reuters.com:*:nL4N2I92X5
JD Sports JD.L is in exclusive talks with British
department store chain Debenhams over a potential rescue
takeover, The Times reported. urn:newsml:reuters.com:*:nL4N2I92ZW
Compass Group CPG.L reported a 75.5% slump in annual
pretax profit. urn:newsml:reuters.com:*:nL4N2IA1U4
Deutz DEZG.DE stocks are down 9.6% in pre-market trade
after the company postponed its medium-term targets of achieving
revenue of 2 billion euros and operating profit margin of 7%-8%
to 2023/24 from 2022. urn:newsml:reuters.com:*:nFWN2I90TZ
Shares in Sixt SIXG.DE are down 4.4% trade after the
company announced its new 2020 financial outlook. urn:newsml:reuters.com:*:nFWN2I90TZ
It is a whole different story on the pharma front. Novartis
NOVN.S is initiating a previously announced share buyback
worth up to $2.5 billion, while it increased its target for a
technical operations productivity programme starting in 2021 to
$2 billion from $1.5 billion and said it was committed to
driving constant margin expansion. urn:newsml:reuters.com:*:nFWN2I9141
Shares in Idorsia IDIA.S are up 3.6% in pre-market trade,
after the company announced positive results of two Japanese
registration studies with clazosentan. urn:newsml:reuters.com:*:nFWN2I90L9
Eyes also on Credit Suisse CSGN.S after the Swiss bank
said it expects to take a roughly $450 million impairment on its
stake in alternative investment firm York Capital Management.
urn:newsml:reuters.com:*:nL8N2IA0RG
Telcos are still busy with their network, with KPN KPN.AS
accelerating investment to 3.5 billion euros over the next three
years urn:newsml:reuters.com:*:nL8N2IA11Q, while Italy told top utility Enel ENEI.MI
it must bear in mind in any sale of its stake in broadband group
Open Fiber that plans to create a national ultra-fast network
are a matter of urgency and cannot be delayed. urn:newsml:reuters.com:*:nL8N2I95DQ
Meanwhile Aryzta ARYN.S said that Elliott Capitol Advisors
had amended its potential takeover offer for an indicative price
of 0.80 Swiss francs per share. urn:newsml:reuters.com:*:nL8N2IA110
(Stefano Rebaudo)
*****
EUROPE IN THE BLACK, LOOKS AT THE BRIGHT SIDE (0628 GMT)
European stocks are in positive territory as markets today
seem willing to look at the bright side on progress made on the
coronavirus vaccine while Joe Biden is about to start the
hand-over process with the White House.
Worries about the impact of lockdowns on the economy
continue to weigh in the continent after data showing business
activity contracted sharply in November, while in the U.S. IHS
Markit's indexes topped forecast staying comfortably above
water. urn:newsml:reuters.com:*:nZON000PR3
Rotation was under way as the Dow Jones outperformed the
tech-heavy Nasdaq.
Reports that Biden’s pick for the U.S. Treasury Secretary
role was former Fed Chair Janet Yellen was well-received as it
confirms fiscal stimulus will definitely be on the table of the
new administration.
(Stefano Rebaudo)
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