Newsquawk Daily European Equity Opening News - 10th May 2023

10th May 2023

ASIA

APAC stocks were mostly lower as the region digested a slew of earnings updates and following the weak handover from Wall St where the major indices were cautious after hawkish central bank rhetoric and ahead of US inflation data, while there was also very little progress from US debt ceiling talks. ASX 200 was subdued amid underperformance in financials, energy and telecoms but with losses stemmed by the defensives and as participants mulled over the details of the recent federal budget.Nikkei 225 weakened with the focus in Japan centred on a deluge of earnings releases. Hang Seng and Shanghai Comp. conformed to the global downbeat mood amid weakness in China’s largest banks and with several property names also pressured, while a report that Chinese GDP growth is likely to pick up in Q2 due to policy support, did little to spur risk appetite.

Toyota (7203 JT/TM) - Q4 (JPY) Net Profit -14% to JPY 2.45tln, oper. profit fell 9% Y/Y to 2.73tln, will buyback up to 0.88% of own shares worth JPY 150bln. Net Income JPY 552.3bln (exp. 534.8bln). Oper Income JPY 626.9bln (exp. 535.9bln). Sees FY23/24 global group-wide retail sales of 11.38mln vehicles. Sees FY23/24 net JPY 2.58tln (exp, 2.76tln). Sees FY23/24 oper. income JPY 3.0tln (exp. 3.0tln). (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.59% at 4,323, FTSE 100 -0.18% at 7,764, DAX 40 +0.02% at 15,955, CAC 40 -0.59% at 7,397, FTSE MIB -0.16% at 27,383, IBEX 35 -0.31% at 9,183, SMI -0.36% at 11,553.

SECTORS: Utilities 0.18%, Industrials 0.12%, Telecoms -0.08%, Consumer Stpl -0.13%, Healthcare -0.16%, Materials -0.25%, Financials -0.27%, Energy -0.80%, Consumer Disc -0.81%, IT -0.89%

FTSE 100

BP (BP/ LN)/ Shell (SHEL LN) - UK's Unite union announced that 1,200 offshore workers will conduct a 48-hour strike in a dispute over jobs, pay and conditions with the strike action to hit various operators including Apache, BP, Shell, Repsol (REP SM) and others. (Newswires)

Banking Names – Banking start-ups/building societies are having to allocate hundreds of millions of pounds of customers money to potential extra costs in order to guarantee depositors can be paid quickly if a lender goes under; under rules the BoE is considering. (Times)

Glencore (GLEN LN) – A consortium led by Pierre Lassonde has proposed purchasing Teck Resources’ metallurgical coal unit, with Lassonde saying Teck wants to move forward and have something done in 8-12 weeks. (Times) Glencore’s USD 23bln offer was rejected in April, though the Co. has continued to express an interest in the unit

UK Airliners - Uber (UBER) is to launch flight bookings in UK travel 'super app' push, according to the FT. (FT)

OTHER UK COMPANIES

Asos (ASC LN) – Several employees reportedly left the Co. after an investigation uncovered incidents of workplace misconduct which led to disciplinary action but stopped short of properly addressing “bullying male managers”. (Times)

BROKER MOVES

DAX

E.ON (EOAN GY) - Q1 2023 (EUR): Adj. EBIT 2.0bln (exp. 1.9bln). Sales 33.5bln (+14% Y/Y). Co. sees FY Adj. Net at the high end of the EUR 2.3-2.5bln range (exp. 2.4bln), and sees Adj. EBITDA between EUR 7.8-8.0bln (exp. 7.8bln). Co. said it invested over EUR 1bln in Q1 on energy transition. (Newswires)

Siemens Healthineers (SHL GY) - Q2 2023 (EUR): Revenue 5.35bln (exp. 5.29bln). Adj. EBIT 681mln (prev. 980mln Y/Y). Adj. EPS 0.43 (prev. 0.67). Co. affirms FY23 guidance. (Newswires)

OTHER GERMAN COMPANIES

Brenntag (BNR GY) - Q1 2023 (EUR): Revenue 4.53bln (exp. 4.63bln). Operating EBITDA 420.4mln (exp. 400mln). Co. confirms its FY guidance. Co. expects 2023 to remain a continuously tough operating environment. (Newswires)

Evotec (EVT GY) - Novartis' (NOVN SW) Sandoz to partner with Just-Evotec Biologics to Develop Biosimilar Medicines. (Newswires)

LEG Immobilien (LEG GY) - Q1 2023 (EUR): Adj. EBITDA 157mln (exp. 150mln). Rental Revenue 206mln (prev. 154.7mln Y/Y). Co. affirms its FY23 guidance. (Newswires)

Software AG (SOW GY) - Confirmed the receipt of another non-binding offer from Bain's Rocket Software, but said it is not a superior offer. Co. supports Silver Lake's offer from May 4th as it is in the best interest of all Co. stakeholders. Earlier reports suggested Bain Capital may reportedly increase its bid for Software AG to EUR 36/shr in certain conditions, according to Bloomberg. There were also reports that Rocket Software announced it intends to offer Software EUR 34/shr, adding that this reflects a 73.6% premium vs the undisturbed April 20th share closing price. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Net orders at 144 during Jan-Apr (vs 190 in Jan-Apr 2022); 54 April deliveries (vs 48 in April 2022) and 5 April new orders. (Newswires) Separately, Philippine Airlines is to buy nine Airbus A350-1000 wide-body jets. (Newswires)

Alstom (ALO FP) - FY (EUR): Sales 16.5bln (exp. 16.5bln), adj. EBIT 852mln (exp. 848mln), Orders 20.6bln (exp. 19.8bln), adj. Net 292mln (exp. 300mln). FY23/24 outlook: significantly positive free cash flow, sales growth consistent with mid-term guidance, book-to-bill ratio over 1. Proposing a 0.25/shr dividend (exp. 0.29/shr). (Newswires)

Credit Agricole (ACA FP) - Q1 2023 (EUR): Revenue 6.12bln (Exp. 5.85bln). Net Income 1.23bln (exp. 723mln). CIB revenue 2.05bln (+19% Y/Y). Operating Expenses 3.84bln (+1.9% Y/Y). "The Group recorded a strong commercial activity over the quarter across all business lines." (Newswires/Credit Agricole IR)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ABN AMRO (ABN NA) - Q1 2023 (EUR): Profit 523mln (exp. 372.3mln). Loan-loss provisions 14mln (exp. 143mln). "Net interest income increased significantly as deposit margins went up and volumes grew compared with Q1 2022 and Q4 2022." (Newswires/ ABN AMRO)

Fincantieri (FCT IM) - Q1 2023 (EUR): Revenue 1.76bln, +4.9% Y/Y, EBITDA margin 4.9%, +3.0% Q/Q; total backlog at March-end 22.7bln. (Newswires)

Leonardo (LDO IM) - Leonardo names Roberto Cingolani as CEO. (Newswires)

BROKER MOVES

SMI

Lonza Group (LON SW) - Q1 update: performance in-line with FY trajectory. FY23 guidance reiterated. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.46% at 4,119, NDX -0.68% at 13,201, DJIA -0.17% at 33,561, RUT -0.27% at 1,749.

SECTORS: Materials -0.93%, Technology -0.85%, Health -0.69%, Communication Services -0.52%, Real Estate -0.4%, Financials -0.37%, Consumer Staples -0.3%, Utilities -0.2%, Consumer Discretionary +0.02%, Energy +0.04%, Industrials +0.17%.

Airbnb Inc (ABNB) - Q1 2023 (USD): Adj. EPS 0.18 (exp. 0.09), Revenue 1.80bln (exp. 1.79bln), approves new share repurchase of up to USD 2.5bln. Gross booking value USD 20.4bln(exp. 20.1bln). Nights and experiences booked 121.1mln (exp. 122.3mln). Gross booking value per nights and experiences booked USD 168.43 (exp. 164.50). Sees Q2 revenue USD 2.35bln-2.45bln (exp. 2.42bln). Sees Q2 Adj. EBITDA similar to Q2 2022 on a nominal basis but lower on a margin basis. Sees Q2 ADR slightly lower Y/Y. (Airbnb) Shares fell 11.9% after market.

10 May 2023 - 06:47- Research Sheet- Source: Newsquawk