European markets opened slightly lower Thursday, struggling to regain momentum following a dip in yesterday’s session as investors digest a fresh set of earnings.
The pan-European benchmark Stoxx 600 index was down 0.07% at the open, with most sectors in negative territory. Food and beverage stocks fell 1.3%, while health care rose 0.6%
Mining stocks jumped 2.3% after Anglo American said it had received an “unsolicited, non-binding and highly conditional combination proposal” for an all-share takeover by Australia’s BHP Group. Anglo American shares jumped 13% at the open.
Markets lost momentum and shifted lower on Wednesday, with the U.K.’s FTSE 100 snapping a five-day winning streak.
Miner Anglo American said it received a buyout offer from BHP Group
Mining firm Anglo American on Thursday said it had received an “unsolicited, non-binding and highly conditional combination proposal” for an all-share takeover by Australia’s BHP Group.
The proposal values Anglo American’s share capital at £31.1 billion ($38.87 billion). It would entail demergers of Anglo American’s shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.
Anglo American said it was reviewing the proposal.
CNBC has reached out to BHP Group for comment.
— Jenni Reid
Nestle sales slow
Cheerios, Nescafe, Nesquik, KitKat, Milkybar and Purina products, manufactured by Nestle SA, arranged in London, U.K., on Monday, July 26, 2021.
Bloomberg | Bloomberg | Getty Images
Food and drinks giant Nestle reported a 5.9% fall in reported sales for the first quarter to 22.1 billion Swiss francs ($24.18 billion), with a significant drag from the North American market.
Organic sales growth was 1.4%, below analyst expectations.
North America reported sales growth dropped 7.7%, while Europe fell 5%.
By product, prepared dishes and cooking aids had the sharpest declines, while pet care and confectionary saw solid growth.
The company reiterated its 2024 outlook for organic sales growth of around 4% and a “moderate increase” in its operating profit margin.
Nestle share price.
— Jenni Reid
Barclays returns to profit in first quarter
16 September 2023, USA, New York: The Barclays Bank logo, taken in Manhattan.
Michael Kappeler | Picture Alliance | Getty Images
Barclays on Thursday reported first-quarter net income attributable to shareholders of £1.55 billion ($1.93 billion), beating expectations and returning the British lender to profit following a major strategic overhaul.
Analysts polled by Reuters had expected net profit attributable to shareholders of £1.29 billion for the quarter, according to LSEG data.
Net income for the first quarter 2023 was $1.78 billion.
Read more here.
— Karen Gilchrist
Deutsche Bank reports 10% profit rise in first quarter
Bloomberg | Bloomberg | Getty Images
Deutsche Bank on Thursday reported 1.275 billion euros ($1.365 billion) in net profit attributable to shareholders in the first quarter, marking a 10% annual increase.
Analysts had forecast a result of 1.23 billion euros for the period, according to LSEG data.
Revenue rose 1% year on year to 7.8 billion euros, which the bank attributed to growth in commissions and fee income, along with strength in fixed income and currencies. The revenue print also came in ahead of an analyst forecast of 7.73 billion euros, according to LSEG.
— Jenni Reid
CNBC Pro: ‘Greater tailwind than the U.S.’: Morningstar strategist is betting on these 7 stocks in Europe
Attractive returns and the breadth of opportunities are among the many reasons why investors have historically preferred to invest in the U.S. over Europe.
One strategist, however is looking keenly at European equities, and notes that “Europe isn’t a boring market.”
There’s a huge element of growth, [and investors] just have to dig a little bit deeper than in the U.S. where it’s extremely easy to find the growth names at the moment,” Michael Field, Morningstar’s Europe Market Strategist said.
“Europe is structuring. If you look at the macroeconomic environment at the moment, there could potentially be a greater tailwind for European equities than those in the U.S.” he added, naming stocks he likes right now.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: Standard Chartered doubles down on its prediction that bitcoin will reach $150,000 by the end of the year
Bitcoin is set for more price gains later this year, even after a recent retreat in prices, according to Standard Chartered’s top crypto analyst.
Geoffrey Kendrick, head of foreign exchange research, West, and digital assets research at Standard Chartered, said in a research note this week that he sees bitcoin rising to $150,000 per coin, and ether hitting $8,000 by the end of 2024 — doubling down on a bullish prediction from the bank earlier this year.
CNBC Pro subscribers can read more here.
— Ryan Browne
