Newsquawk Daily European Equity Opening News - 11th May 2021

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

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

There will be an additional audio rundown at 0750BST/0250EDT recapping any company news which has hit the wires since 0715BST/0215EDT 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

Asia-Pac bourses traded with firm losses on spillover selling from the tech-led declines on Wall St, where all major indices were dragged into the red amid higher yields and inflationary concerns, although the downside in the DJIA was contained after it briefly breached the 35k level for the first time ever. ASX 200 (-1.1%) was pressured amid underperformance in tech and with the commodity-related sectors subdued by a pullback in copper and iron ore futures from record levels which was not helped by reports of tougher supervision by China’s exchange. Nikkei 225 (-3.2%) was the biggest decliner after Japanese Governors warned that a nationwide state of emergency cannot be ruled out and as participants digested a slew of earnings updates, with better-than-expected Household Spending data doing little to stem the losses in Japan, while the KOSPI (-1.4%) succumbed to the broad risk aversion which overshadowed the strong early trade data for May which showed Exports jumped 81.2% Y/Y during the first 10 days of the month. Hang Seng (-2.4%) and Shanghai Comp. (-0.3%) weakened as the large Chinese tech stocks were impacted by the industry sell-off which resulted to losses of around 4% for the Hang Seng TECH Index, while a pullback for commodity prices and mixed inflation data in which Chinese CPI printed below forecast but PPI rose by its fastest pace since 2017, added to the uninspired mood. In addition, China released its latest Census which showed population growth in 2010-2020 slowed to 5.38% from 5.84% the decade before and the NBS chief noted that China’s population is declining, ageing is deepening and that steps must be taken to ensure a balanced population growth.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.23% AT 4,025; FTSE 100 -0.07% AT 7,125; DAX +0.07% AT 15,410; CAC 40 +0.01% AT 6,386; IBEX 35 +0.89% AT 9,140; FTSE MIB +0.62% AT 24,765; SMI -0.47% AT 11,121

SECTORS: Financials +1.16%, Materials +1.15%, Telecoms +0.85%, Energy +0.71%, Consumer Stpl +0.47%, Consumer Disc -0.18%, Industrials -0.18%, Utilities -0.20%, Healthcare -0.24%, IT -2.35%

FTSE 100

UK Housing Names - UK is said to be seeking restrictions on bulk property purchases in property developments below a certain density by summer. (The Times)

UK Travel Names - British Virgin Islands and several Caribbean countries are among the limited destinations likely to be added to the UK "green list" for holidays, although a major expansion including popular destinations in France, Spain, Greece or Italy is unlikely, according to reports. (Telegraph)

OTHER UK COMPANIES

THG (THG LN) – Co. is to raise USD 1bln in equity from investors led by Softbank (9984 JT) who will provide USD 730mln of that, giving Softbank a 10% stake in total. Funds will be utilised to implement an advanced pipeline of strategic M&A. (FT)

BROKER MOVES

BRITISH LAND (BLND LN) UPGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC

FRESNILLO (FRES LN) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC

DAX

Deutsche Bank (DBK GY) – US DoJ has reportedly informed the Co. it has closed their investigation into their role in the 1MDB scandal, date of correspondence is not known. (Newswires) As a reminder, 1MDB commenced a lawsuit against the Co. and others seeking damages

E.ON (EOAN GY) - Q1 revenue EUR 18.40bln vs exp. EUR 18.984bln. Net EUR 801mln vs exp. EUR 779mln. Adj. EBIT EUR 1.66bln vs exp. EUR 1.556bln. Adj. EBITDA EUR 2.45bln vs exp. EUR 2.33bln. Co. confirms dividend policy and guidance through to 2023. (Newswires)

OTHER GERMAN COMPANIES

Brenntag (BNR GY) - Q1 sales EUR 3.132bln vs exp. EUR 3.252bln. Operating EBITDA EUR 300.3mln vs exp. EUR 300mln. Co. confirms its operating EBITDA guidance. (Newswires)

Evotec (EVT GY) - Q1 revenue EUR 133mln vs exp. EUR 130mln. Adj. EBITDA EUR 21.1mln vs exp. EUR 23mln. Co affirms its FY adj. EBITDA and revenue targets. (Newswires)

K+S (SDF GY) - Q1 revenue EUR 733mln vs exp. EUR 693.3mln. EBITDA EUR 126mln vs prev. EUR 113mln. Co. raises its FY21 EBITDA target range to EUR 500-600mln vs prev. EUR 440-540mln. (Newswires)

Lufthansa (LHA GY) - Commenced preparations for a EUR 3.0bln rights issuance as early as June according to reports, with an executive noting the actual increase will be lower than this figure and dependent on needs at the time of issuance. Funds will be used to repay state aid received during the pandemic, according to sources. (Newswires)

Nordex (NDX GY) - Q1 revenue EUR 1.251bln vs exp. EUR 1.008bln. EBITDA EUR 10.4mln vs exp. EUR 5mln. Co. confirms 2021 guidance. (Newswires)

Thyssenkrupp (TKA GY) - Q2 revenue EUR 8.58bln vs exp. EUR 8.264bln. Adj. EBIT EUR 220mln vs exp. EUR 170mln. Order intake EUR 8.646bln, +14% Y/Y. Steel Europe division adj. operating profit EUR 220mln vs prev. EUR -279mln. Co. raises its FY outlook again, due to the economic recovery and structural improvements within the group. (Newswires)

United Internet (UTDI GY) - Q1 revenue EUR 1.392bln vs exp. EUR 1.373bln. EBIT EUR 230.6mln vs exp. EUR 214mln. EPS EUR 0.68 vs exp. EUR 0.56. Co. confirms its 2021 guidance. (Newswires)

BROKER MOVES

CAC

Alstom (ALO FP) - FY sales EUR 8.79bln vs exp. EUR 8.549bln. Adj. EBIT EUR 645mln vs exp. EUR 500mln. Net EUR 247mln vs exp. EUR 416mln. Co. notes of EUR 632mln in additional provisions for risks on Bombardier Transportation contracts on top of the EUR 451mln already on Co's balance sheet. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Edison (EDNR IM) - Co. is reportedly nearing a deal to sell up to 40% of its renewable energy generation unit, according to reports. (Newswires)

Chip names - US President Biden administration is to increases chip-crisis response with a summit with Commerce Secretary Raimondo; Intel (INTC), TSMC (TSM), Samsung, Google (GOOG), Amazon (AMZN) are among those invited. (Newswires)

KBC (KBC BB) - Q1 net EUR 557mln vs exp. EUR 398mln. Revenue EUR 1.93bln vs exp. EUR 1.878bln. NII EUR 1.07bln vs exp. EUR 1.063bln. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Co. announced that new data from clinical trials of 19 approved and investigational medicines across 20 cancer types will be presented at the 2021 ASCO Annual Meeting, which will be held 4-8 June, 2021. (Roche)

Swiss Life (SLGN SW) - Q1 Fee income +14% Y/Y. Premiums -14% Y/Y in local currency. Co. confirmed its financial targets for the year. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Lundbeck (LUN DC) - Q1 revenue DKK 4.273bln vs exp. DKK 4.251bln. EBIT DKK 882mln vs exp. DKK 672mln. Co. maintains its FY guidance. (Newswires)

SSAB (SSABA SS) - Industrivarden is looking into a potential divestment of their 4.3% shareholding in the Co. (Newswires)

BROKER MOVES

US

Apple (AAPL) – A legal claim has been filed with the UK Competition Appeal Tribunal arguing that UK customers, up to 20mln, are entitled to compensation for competition law violations. Claim could total up to GBP 1.5bln. (BBC)

Amazon (AMZN) - Co. has launched USD 18.5bln in its eight-part deal - upsized from USD 15bln - 2s, 3s, 5s, 7s, 10s, 20s, 30s & 40s. (Newswires)

CLOSES: SPX -1.03% AT 4,189, NDX -2.63% AT 13,359, DJIA -0.10% AT 34,742, R2K -2.69% AT 2,208

SECTORS: TECHNOLOGY -2.53%, CONSUMER DISCRETIONARY -1.95%, COMMUNICATION SVS. -1.91%, MATERIALS -0.41%, FINANCIALS -0.12%, ENERGY -0.05%, INDUSTRIALS +0.08%, HEALTH +0.1%, REAL ESTATE +0.35%, CONSUMER STAPLES +0.77%, UTILITIES +1.02%

11 May 2021 - 06:53- Research Sheet- Source: Newsquawk