Newsquawk Daily European Equity Opening News - 10th March 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0200EST recapping all of the overnight equity news.

From 0700GMT/0200EST all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0215EST.

There will be an additional audio rundown at 0750GMT/0250EST recapping any company news which has hit the wires since 0715GMT/0215EST ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

APAC stocks traded with firm gains following a rally in global peers alongside an aggressive pullback in oil prices and with some optimism ahead of Russia-Ukraine talks after Ukrainian President Zelensky voiced a willingness for compromises. ASX 200 was lifted by strength across most industries aside from the commodity sectors following the cooling in underlying prices. Nikkei 225 surged with the gains magnified by a weaker currency and with Japan to raise the daily cap of foreign arrivals to 10k from 3k. Hang Seng and Shanghai Comp. conformed to the heightened risk environment in which the former attempted to reclaim the 21k level but with further upside restricted by weakness in some developers and blue-chip energy stocks.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +7.4% at 3,766, FTSE 100 +3.3% at 7,190, DAX 40 +7.9% at 13,847, CAC 40 +7.1% at 6,387, FTSE MIB +7.0% at 23,889, IBEX 35 +4.9% at 8,163, SMI +4.6% at 11,569.

SECTORS: Consumer Disc 8.69%, IT 7.02%, Financials 6.34%, Industrials 5.36%, Utilities 4.22%, Consumer Stpl 3.94%, Telecoms 3.89%, Healthcare 2.63%, Materials 2.43%, Energy -2.03%

FTSE 100

Rio Tinto (RIO LN) - Co. is to end commercial business with Russian companies. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - Co's Pimco risks losing billions in the event of a default by Russia with the fund manager exposed to a derivative bet of at least USD 1.1bln and holds USD 1.5bln of sovereign bonds, according to FT. (FT)

Bayer (BAYN GY) - Bayer sells its Environmental Science Unit for USD 2.6bln to Cinven. (Newswires)

Deutsche Bank (DBK GY) - Deutsche Bank reports very limited Russia exposure. Deutsche Bank has reduced its Russian exposure and local footprint significantly since 2014, with further reductions in the past two weeks. Credit exposures to Russia and Ukraine account for a very small portion of the bank’s overall loan portfolio and are protected by a number of risk mitigates. (Deutsche Bank)

Hugo Boss (BOSS GY) - FY21 (EUR): Revenue 2.79bln (exp. 2.73bln). EBIT 228mln (exp. 204.1mln). Co. declares an annual dividend of 0.70/shr (prev. 0.04/shr). Co. sees 2022 sales growth at a record level of +10-15%. Russian and Ukrainian markets accounted for around 3% of group sales in FY21. It is difficult to currently assess the impact from the war. (Newswires)

Volkswagen (VOW3 GY) - CEO Diess says that an extended war in Ukraine has the risk of being "very much worse" for the regions economy than COVID. (FT)

OTHER GERMAN COMPANIES

DP World (2DW GY) - FY21 (EUR): Revenue USD 10.8bln (prev. 8.5bln Y/Y). Adj. net USD 896mln (prev. 846mln). (Newswires)

K+S (SDF GY) - FY21 (EUR): Revenue EUR 3.20bln (prev. 2.4bln Y/Y). EBITDA 969mln (prev. 267mln). (Newswires)

Leg Immobilien (LEG GY) - FY21 (EUR): Rental revenue 683.9mln (prev. 627.3mln Y/Y). Adj. EBITDA 512.2mln (prev. 466.9mln). FFO 423.1mln (prev. 383.2mln). (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Co. partnered with Spirit Aerosystems (SPR) to develop the next generation "Wings of CityAirbus". (Newswires)

Alstom (ALO FP) - Co. has signed a 20yr contract worth EUR 355mln. (Newswires)

JC Decaux (DEC FP) - FY21 (EUR): Revenue 2.74bln (prev. 2.31blb Y/Y). Adj. EBIT +16.3mln (prev. -352.9mln). Proposed not to pay a dividend in 2022. (Newswires)

Vivendi (VIV FP) - FY21 (EUR): Revenue 9.57bln (exp. 9.47bln). EBITA 690mln (exp. 556mln). Adj. net 649mln (exp. 545mln). Co. declares a USD 0.25/shr dividend. Co's financial exposure in Ukraine and Russia is very low, but the group remains very vigilant. Co. said it is not possible to analyse consequences Russian invasion of Ukraine will have. (Newswires)

OTHER FRENCH COMPANIES

Eurazeo (RF FP) - FY21 (EUR): Total group AUM 30.9bln (prev. 21.8bln). NAV/shr +38% Y/Y. Ordinary dividend +17% Y/Y to EUR 1.75/shr. Co. proposes an exceptional dividend of EUR 1.25/shr. (Newswires)

Somfy (SO FP) - FY21 (EUR): Revenue 1.48bln (prev. 1.26bln Y/Y). Operating profit EUR 301.1mln (prev. 260.7mln). Net 259.4mln (prev. 213mln). (Newswires)

BROKER MOVES

PAN EUROPE

Eni (ENI IM) - Co. has suspended the stipulation of new contracts related to the procurement of oil and oil products from Russia. (Newswires)

Royal Boskalis Westminster (BOKA NA) - Co. has been offered to be acquired in a EUR 4.2bln cash deal. (Newswires)

BROKER MOVES

Prosus (PRX NA) upgraded to Buy from Hold at Investec

SMI

Credit Suisse (CSGN SW) - Co. says net credit exposure to Russia was CHF 848mln. Country credit risk exposures to Ukraine or to Belarus were not material as of December 31, 2021. In the short term, the resultant increase in trading and hedging business activity is expected to be offset by a reduction in capital market issuances due to the rise in volatility as well as by higher credit provisions. (Credit Suisse)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Carlsberg (CARLB DC) - Co. suspended earnings guidance for the year and is reviewing a full range of strategic options for its Russian business and will donate any profits generated by the Russian business to relief organisations throughout the crisis. (Newswires)

BROKER MOVES

US

CLOSES: S&P 500 +2.6% at 4,278, Nasdaq 100 +3.6% at 13,742, Dow Jones +2.0% at 33,285, Russell 2000 +2.3% at 2,016.

SECTORS: Technology +4.0%, Financials +3.6%, Communication Services +3.5%, Materials +3.0%, Consumer Discretionary +2.9%, Health +1.9%, Industrials +1.8%, Real Estate +1.5%, Consumer Staples +0.7%, Utilities -0.8%, Real Estate -3.2%.

Amazon (AMZN) approves a 20 for 1 stock split and is to buy back up to USD 10bln of company stock. Stock split effective from June 6th. Amazon shares rose 6.6% after-market; Co-owned Rivian (RIVN) rose 3.0%

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

10 Mar 2022 - 06:50- MetalsResearch Sheet- Source: Newsquawk