Europe First to Market

J.P. Morgan's daily briefing maintains a bullish outlook on Emerging Markets relative to Developed Markets and emphasizes a tactical preference for Heavyside building materials and utility transitions.

Key Takeaways

• 1.Maintain an Overweight (OW) stance on Emerging Markets (EM) relative to Developed Markets (DM), driven by AI trade potential and expected USD softening.
• 2.Preference for Heavyside building materials over Lightside due to stronger pricing power and margin delivery; Holcim is added as a top pick.
• 3.Engie's acquisition of UK Power Networks is viewed as a game-changer, pivoting the company towards a power networks pure-play utility.

Table of Contents

• Today's Morning Meeting
• Stay bullish on EM vs DM
• Heavyside remains preferred; add Holcim to AFL and place on Positive Catalyst Watch; Sika on Negative Catalyst Watch
• Engie (Javier Garrido) (ENGI FP, OW)
• AFL | IAG (Harry J Gowers) (IAG SM, OW)
• Also published
• Key Changes
• JPM Events
• Upcoming Earnings

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