Newsquawk Daily European Equity Opening News - 12th July 2023

12th July 2023

ASIA

Asia-Pac stocks were mixed with the region cautious heading into today’s key-risk US inflation data. ASX 200 (+0.3%) was positive with the index led by commodity-related sectors after the recent gains in underlying prices. Nikkei 225 (-0.7%) underperformed and fell beneath the 32,000 level amid headwinds from a firmer currency in which USD/JPY retreated below 140.00 and following disappointing Machinery Orders data. Hang Seng (+1.2%) and Shanghai Comp. (-0.1%) saw mixed fortunes with the Hong Kong benchmark boosted by tech strength, while the mainland was subdued amid cautiousness ahead of key events and despite the stronger-than-expected loans and aggregate financing data from China.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.71% at 4,286, FTSE 100 +0.12% at 7,282, DAX 40 +0.75% at 15,790, CAC 40 +1.07% at 7,220, FTSE MIB +0.68% at 28,061, IBEX 35 +0.85% at 9,331, SMI +0.35% at 10,960.

Sectors: Materials 1.58%, Consumer Disc 1.46%, Energy 1.39%, Industrials 1.04%, Financials 0.87%, Utilities 0.47%, Telecoms 0.33%, Consumer Stpl 0.27%, Healthcare -0.11%, IT -0.39%

FTSE 100

Pearson (PSON LN) - Citi expects positive results from Pearson's first half earnings report, which could boost the company's shares. They have opened a "30-day positive catalyst watch" and maintain a Buy rating on the stock. (Newswires) Results due on July 31st

Smurfit Kappa Group (SKG LN) - CEO says Morocco investment is the start of a "real presence" in North Africa. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

AstraZeneca (AZN LN) upgraded to Buy from Neutral at UBS

DAX

Deutsche Post (DHL GY) - Invests EUR 500mln in Latin America as the Co. seeks to capitalise on growing demand to expand supply chains beyond China, according to the FT. (FT)

SAP (SAP GY) - According to BofA, Salesforce's (CRM) recent price hikes could result in a 1-2% boost to cRPO (contracted remaining performance obligations) in H2 2023. BofA notes that Salesforce update marks the first price increase in seven years, and demonstrates its pricing power as a leader in enterprise applications. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Fresenius (FRE GY) initiated with Neutral at Goldman Sachs

Infineon Technologies (IFX GY) upgraded to Hold from Underperform at Jefferies

Siemens Healthineers (SHL GY) initiated with Neutral at Goldman Sachs

CAC

Axa (CS FP) - Reportedly considering the sale or IPO of its reinsurance unit XL Re in an effort to reduce disaster risk, according to Reuters citing sources. (Reuters)

Stellantis (STLAP FP/ STLAM IM) - Has warned 29,000 owners of 2003 Dodge Ram pickups to immediately stop driving pending repairs after one person was killed when a Takata air-bag inflator exploded. In other news, Italian Industry Minister Adolfo Urso expects the Co. to more than double the number of cars it produces in the country. (Newswires)

Vinci (DG FP) - Wins 4-year EUR 330mln road contract in Slovakia. (Newswires)

OTHER FRENCH COMPANIES

Bollore (BOL FP) - Signs share purchase agreement to sell 100% of Bollore Logistics to CMA CGM Group. (Newswires)

Casino (CO FP) - Reportedly both Kretinsky group and Niel/Pigasse/Zouari consortium intend to raise their offers for the Co., according to Reuters citing sources. (Reuters)

Thales (HO FP) - To acquire Cobham Aerospace Communications for USD 1.1bln and are expected to generate approximately USD 200mln in 2023 revenue and be immediately EPS accretive. Will finance the acquisition through its available cash resources. (Newswires)

BROKER MOVES

Eiffage (FGR FP) reiterated with Overweight at JP Morgan Chase

STMicroelectronics (STM FP) upgraded to Hold from Underperform at Jefferies

Teleperformance (TEP FP) reiterated with Overweight at JP Morgan Chase

PAN EUROPE

Banco BPM (BAMI IM) - Has granted exclusivity to FSI to negotiate a potential partnership that would create the country's second-largest payment business, with a total valuation of EUR 2bln. (Newswires)

Intesa Sanpaolo (ISP IM) - The CEO says thanks to cost-saving investments in technology, the Co. expects to grow its market share in wealth management without having to make any acquisitions. (Newswires)

BROKER MOVES

Aena Aeropeurtos (AENA SM) reiterated with Overweight at JP Morgan Chase

Cofinimmo (COFB BB) upgraded to Neutral from Sell at Kempen

SMI

Holcim (HOLN SW) - Invests in Suffolk Technologies Fund, with USD 110mln venture capital fund. (Newswires)

Swiss Re (SREN SW) - Board of Directors proposes Jacques de Vaucleroy for election as Chairman at the next AGM in April 2024. (Newswires)

OTHER SWISS COMPANIES

GAM (GAM SW) - Investor Group, which owns 9.5% of Co. shares, reaffirms it will not accept the Liontrust offer; Investor Group values Gam at over twice the Liontrust offer, outlines a clear restructuring plan to achieve a turnaround. (Newswires)

BROKER MOVES

SCANDINAVIA

Carlsberg (CARLB DC) - Cuts the alcohol % in beer ahead of an expected duty increase on beer with an ABV above 3.5% as the government prepares to raise taxes on alcohol by more than 10%. (The Telegraph)

DNB (DNB NO) – Q2 (NOK): EPS 5.93 (exp. 5.79), NII 15.23bln (exp. 15.04bln), Total Income 20.2bln, CET1 18.9% (prev. 18.0%). All product areas contributed to solid income growth. High demand for financing of sustainable initiatives is continuing. Good momentum in large parts of the Norwegian business sector. (Newswires)

BROKER MOVES

Elekta (EKTABB SS) initiated with Sell at Goldman Sachs

US

CLOSES: SPX +0.67% at 4,439, NDX +0.49% at 15,119, DJIA +0.93% at 34,261, RUT +0.96% at 1,913.

SECTORS: Energy +2.2%, Utilities +1.24%, Industrials +1.2%, Financials +1.19%, Real Estate +1.17%, Communication Services +1.06%, Materials +0.97%, Consumer Discretionary +0.86%, Technology +0.19%, Consumer Staples +0.14%, Health unch.

Nvidia (NVDA) - Is in talks to be an anchor investor in the IPO of SoftBank's (9984 JT) Arm unit, according to FT. (FT)

12 Jul 2023 - 06:53- Research Sheet- Source: Newsquawk