Newsquawk Daily European Equity Opening News

10th November 2023

ASIA

APAC stocks traded lower across the board as the downbeat sentiment from Wall Street reverberated to the region following the poor 30-year US auction coupled with Powell’s hawkish lean, whilst the APAC region itself digested earnings and China’s ongoing woes. ASX 200 initially saw the shallowest losses among the majors as the RBA’s SoMP suggested the economy had been a bit stronger than previously thought, while sectoral losses were led by Tech, Financials, and Energy although Metal and Mining bucked the trend. Nikkei 225 was dragged lower by hefty post-earnings losses in Nissan, Sony, and Softbank, which were all lower by 3-6%, although the index later clambered off worst levels and rose back above 32,500. Hang Seng and Shanghai Comp conformed to the tone but Hong Kong was the regional underperformer with Tech and Financials, among the biggest losers.

Auto Names - China Oct vehicle sales +13.8% Y/Y (prev. +9.5%); new energy vehicle sales +33.5% Y/Y, according to the Industry Association. Jan-Oct vehicle sales +9.1% Y/Y (prev. +4.6%). Jan-Oct new energy vehicle sales +37.8% Y/Y. (Newswires)

Country Garden Holdings (2007 HK) - Reportedly aims to inform key bondholders of its cash flow projections by year-end, according to Reuters sources; aims for a tentative plan to restructure offshore debt by year-end Aims to start formal negotiations with offshore bondholders by February or March next year, sources added. (Newswires)

TSMC (2330 TT) - October (TWD): Sales 243.2bln (prev. 180.4bln in September). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.81% at 15,352.54, FTSE 100 +0.73% at 7,455.67, CAC 40 +1.11% at 7,112.46, Euro Stoxx 50 +1.24% at 4,230.25, IBEX 35 +1.31% at 9,405.20, FTSE MIB +0.74% at 28,644.09, SMI +0.52% at 10,650.00.

SECTORS: Industrials 1.82%, Utilities 1.39%, Materials 1.12%, Telecoms 0.96%, Financials 0.91%, IT 0.88%, Consumer Stpl 0.83%, Energy 0.62%, Consumer Disc 0.50%, Healthcare -0.39%

FTSE 100

NatWest (NWG LN) – Reportedly to scrap the majority of a possible GBP 10mln payout to former CEO Rose, sources add the announcement is expected on Friday. (Sky News)

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - Q3 (EUR): Operating Profit 3.468bln (exp. 3.22bln), Net 2.13bln (prev. 3.00bln Y/Y); still sees FY operating profit between EUR 13.2-15.2bln. (Newswires)

OTHER GERMAN COMPANIES

1&1 AG (1U1 GY) – 9-month (EUR): Revenue 3.03bln (prev. 2.95bln), Service Revenue 2.4bln (prev. 2.38bln), EBITDA 511mln (prev. 549mln), EBIT 363mln (prev. 428mln), EPS 1.44 (prev. 1.68), Customer Contracts 16.1mln (prev. 15.65mln). Confirms FY23 guidance. (EQS)

Bechtle (BC8 GY) - Q3 (EUR): EBT 93.9mln (prev. 88.2mln Y/Y), Revenue 1.48bln (prev. 1.46bln Y/Y). (Newswires)

Stabilus (STM GY) – FY23 (EUR): Revenue 1.2bln (exp. 1.2bln), adj. EBIT 158mln (exp. 152mln). FY24 Guidance: Revenue 1.4-1.5bln (exp. 1.32bln). (Newswires)

United Internet (UTDI GY) - 9M (EUR): EPS 1.23 (prev. 1.59 Y/Y), EBITDA 995.5mln (prev. 986.5mln Y/Y), Revenue 4.59bln (prev. 4.59bln Y/Y). (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

JC Decaux (DEC FP) - Q3 (EUR): Revenue 855mln (prev. 808mln Y/Y). (Newswires)

Scor (SCR FP) - Q3 (EUR): Net 147mln (prev. -752mln Y/Y), Insurance Revenue 4.23bln (prev. 4.11bln Y/Y), GWP 4.87bln (prev. 5.14bln Y/Y) (Newswires)

Valneva (VLS FP) – The FDA has approved IXCHIQ®, Valneva’s single-dose, live-attenuated vaccine indicated for the prevention of disease caused by chikungunya virus (CHIKV) in individuals 18 years of age and older who are at increased risk of exposure to CHIKV. (Valneva)

BROKER MOVES

PAN EUROPE

bpost (BPOST BB) - Q3 (EUR): adj. Net -19.5mln (prev. 27.1mln Y/Y), Revenue 979mln (exp. 988mln), Reinstates FY EBIT guidance. (Newswires)

Pirelli (PIRC IM) - Q3 (EUR): Net 168.4mln (exp. 134mln), Revenue 1.72bln (exp. 1.73bln). To postpone the Industrial Plan Update to 2024. CEO says in the high tire segment we expect flattish results in Q4. Sees no opportunities for further prices. Co. sees tyre sales volumes falling to around 2% this year; 2024 is covered in terms of funding, for 2025 Co. has different options and it will wait for next year to decide as the market is volatile (Newswires)

IMCD (IMCD NA) - 9M (EUR): Net 214mln (prev. 264mln Y/Y), Revenue 3.38bln (prev. 3.51bln Y/Y). (Newswires)

Leonardo (LDO IM) - Q3 (EUR): Net 93mln (exp. 105.5mln), EBITA 214mln (exp. 219mln), Revenue 3.38bln (exp. 3.5bln). CEO says successfully managing inflation and price pressures. In other news, Co. wants to renegotiate supply contracts with Boeing (BA), hopefully, the parties can finalise the deal in early 2024. Co. is considering selling some assets "in a moderate way". On Co. joining the Leopard tank programme, says, "This could be a very very important business.. can confirm we are working in this direction". (Newswires)

UCB (UCB BB) - Long-term data on bimekizumab in the treatment of adults with ankylosing spondylitis showed sustained improvements for up to five years with the safety profile consistent with previous observations. (UCB)

BROKER MOVES

SMI

Richemont (CFR SW) - H1 (EUR): Revenue 10.2bln (exp. 10.3bln). Revenue growth 12% (exp. 12.8%), Asia-Pac revenue (at cc) +23% (exp. 22.9%). OUTLOOK: Growth eased in the second quarter as inflationary pressure, slowing economic growth and geopolitical tensions began to affect customer sentiment, compounded by strong comparatives. Consequently, we have seen a broad-based normalisation of market growth expectations across the industry. The positive news is that a soft-landing scenario seems to be prevailing in major economies with still higher growth expected from China, which should benefit from stimulus measures. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Holcim (HOLN SW) upgraded to Hold from Sell at Berenberg

SCANDINAVIA

GN Store Nord (GN DC) – Q3 (DKK): Revenue 4.4bln (exp. 4.44bln), Net Income 227mln (exp. 183mln), EBIT 391mln (exp. 372mln), EBITDA 430mln (exp. 652mln). FY Guidance: Revenue growth -2% to 0% (prev. guided -4% to 2%). (Newswires)

Novo Nordisk (NOVOB DC) – Investing over DKK 42bln to expand existing manufacturing facilities in Kalundborg, Denmark, for the current and future product portfolio within serious chronic diseases. (Novo Nordisk)

SBB (SBBB SS) - Co. rejects purported and ineffective acceleration notice from a bondholder regarding Eurobonds issued under its EMTN program. (Newswires)

BROKER MOVES

Carlsberg (CARLB DC) upgraded to Outperform from Market Perform at Bernstein

Genmab (GMAB DC) upgraded to Buy from Hold at Deutsche Bank

FLSmidth (FLS DC) upgraded to Add from Reduce at AlphaValue

US

CLOSES: SPX -0.81% at 4,347, NDX -0.82% at 15,188, DJI -0.65% at 33,892, RUT -1.57% at 1,687

SECTORS: Health -2.1%, Consumer Discretionary -1.82%, Real Estate -1.51%, Utilities -1.38%, Materials -0.85%, Financials -0.41%, Consumer Staples -0.4%, Technology -0.4%, Communication Services -0.3%, Energy -0.27%, Industrials -0.24%.

Netflix (NFLX) and Warner's Max (WBD) - Team up with Verizon (VZ) to offer discounted streaming bundles, according to WSJ. VZ to offer ad-supported versions of NFLX and MAX for about USD 10/month, instead of USD 17. (WSJ)

Meta (META) - Has reportedly struck a preliminary deal to sell a new, lower-priced version of its virtual-reality headset in China; the deal was struck with Tencent (700 HK), according to WSJ sources. (WSJ)

10 Nov 2023 - 06:50- Research Sheet- Source: Newsquawk