Newsquawk Daily European Equity Opening News - 13th June 2023

13th June 2023

ASIA

APAC stocks eventually traded mostly higher following the gains on Wall St where the S&P 500 and Nasdaq 100 rose to their best levels in a year with big tech supported as yields softened ahead of the upcoming risk events, while the region also digested the PBoC’s cut to its 7-day reverse repo rate. ASX 200 just about kept afloat but with upside capped after mixed data in which Westpac Consumer Confidence improved but remained near recession lows and NAB Business Confidence deteriorated. Nikkei 225 resumed its outperformance and breached the 33,000 level for the first time in over three decades amid strength in automakers and with SoftBank spearheading the advances on news that Intel is to discuss being an anchor investor in the Arm IPO. Hang Seng and Shanghai Comp. were both initially subdued despite the PBoC’s cut to its short-term interbank funding rate which raises the prospects of a cut to the MLF rate and benchmark LPR, with sentiment dampened by ongoing growth concerns and lingering frictions after the US added 43 entities to its export control list.

SoftBank (9984 JT) - Co. plans more layoffs at its Vision Fund and may layoff 30% of Vision Fund employees, according to sources. (Newswires)

Toyota (7203 JT/TM) reportedly aims to release an EV powered by an all-solid-state battery as early as 2027, according to Nikkei

EUROPEAN CLOSES

CLOSES: EUROPEAN CLOSES: Euro Stoxx 50 +0.62% at 4,316, FTSE 100 +0.11% at 7,570, DAX 40 +0.93% at 16,097, CAC 40 +0.52% at 7,250, FTSE MIB +0.91% at 27,410, IBEX 35 +0.37% at 9,344, SMI +0.46% at 11,306.

SECTORS: Consumer Disc 1.44%, IT 0.97%, Industrials 0.59%, Utilities -0.04%, Materials -0.05%, Healthcare -0.23%, Consumer Stpl -0.25%, Financials -0.25%, Telecoms -0.79%, Energy -1.51%

FTSE 100

Barclays (BARC LN) - CEO Venkatakrishnan said it has tightened retail credit standards marginally. CEO added that they are seeing US delinquencies rising slightly on the margins, and the bank is focused on scaling profitable units, via Bloomberg TV. (Newswires)

Battery Names - UK’s AMTE Power CEO Hollis says the UK Government needs to offer more financial support in response to the US IRA and subsequent EU incentives. (FT)

Glencore (GLEN LN) - Nippon Steel (5401 JT) said it is still in talks with Teck Resources (TECK) and remains interested in investing in the Co's coal business. (Newswires) This comes after Glencore made a new cash proposal for Teck's coal business.

HSBC (HSBA LN) - Co. has decided to wind down its wealth and personal banking business in New Zealand. (Newswires)

Just Eat Takeaway (JET LN) - Co's Grubhub is to cut around 15% of its workforce in a bid to cut rising costs. (Newswires)

Rio Tinto (RIO LN) - Co. has partnered with Gemco Rail to bring local iron ore rail car manufacturing and bearing maintenance to the Pilbara region which involves an investment of around AUD 150mln. Separately, aluminium executive Ivan Vella is to leave in December 2023. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

BAE Systems (BA/ LN) initiated with Overweight at Morgan Stanley

DAX

Continental (CON GY) - Co. guides FY23 automotive EBIT margin between 2-3% and targets FY25/26 automotive EBIT margin between 6-8%, according to the CFO. (Newswires)

Infineon (IFX GY) - Green Division Head Wawer says they are considering moving more manufacturing to the US, in order to comply with the US IRA; though, Wawer makes clear the Co. is happy with its current US footprint. (FT)

SAP (SAP GY) - US peer Oracle's (ORCL) shares rose 3.6% after-market as the Co. beat on top and bottom lines while raising its dividend and guiding Q1 revenue growth above forecasts. However, Cloud license and on-premise license revenue and hardware revenue fell Y/Y and Q1 EPS guidance missed forecasts.

OTHER GERMAN COMPANIES

Commerzbank (CBK GY) - CFO says they will “certainly contemplate” announcing a second larger buyback after HY results in August, adding that buybacks make perfect sense. (FT)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Enel (ENEL IM) - Co. has appointed Stefano De Angelis as CFO effective immediately. (Newswires)

Media/Streaming Names - EU MEP del Blanco, a member of the Culture Committee, is drafting a report which would call on the Commission to better distribute streaming platform revenue to creators. (Politico)

Telecom Names - EU Commission is reportedly not planning a "full-on" ban against Huawei, but instead may push for national governments that have not applied 5G security principles to come in-line and impose restrictions, via Politico citing a senior official. (Politico)

Unibail-Rodamco-Westfield (URW NA) - Westfield San Francisco Centre mall is to be turned over to lenders, citing challenging operating conditions. The mall is co-owned by Unibail-Rodamco-Westfield and Brookfield (BAM) and has just over USD 550mln in outstanding mortgage debt. (Seattle Times)

BROKER MOVES

SMI

Roche (ROG SW) - Co. has been awarded WHO prequalification for the cobas® HPV test, increasing access to cervical cancer screening tools in low and lower-middle income countries. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.93% at 4,339, NDX +1.76% at 14,784, DJI +0.56% at 34,066, RUT +0.4% at 1,873.

SECTORS: Technology +2.07%, Consumer Discretionary +1.74%, Communication Services +1.2%, Industrials +0.7%, Health Care +0.46%, Materials +0.44%, Real Estate +0.03%, Consumer Staples +0.01%, Financials -0.09%, Utilities -0.17%, Energy -0.97%.

Alphabet (GOOG) - EU antitrust regulators are considering pursuing a breakup of Google's advertising-technology business and EU Commission is expected to file a formal antitrust complaint against Google on Wednesday, according to WSJ. (WSJ)

AMD (AMD) - To host the "AMD Data Centre and AI Tech. Premiere" on June 13th from 13:00ET/18:00BST.

Bank of America (BAC) - CEO Moynihan said the economy is slowing down and the Fed should take a pause, but cannot say we are done yet. He sees the current rate environment holding then cutting next year. He added inflation is still too high relative to the 2% target, and capital markets will get back on track and open. CEO said he is seeing credit line usage flatten out, and the middle market line-usage is flat. He said the bank would consider a bank deal through the FDIC process, and added banks are in great shape, and are "out there making money". (CNBC)

Intel (INTC) - Co. is said to discuss being an anchor investor in SoftBank (9984 JT) unit Arm IPO, while Arm is said to be in talks with others too, according to Nikkei. (Nikkei)

Meta (META)/ Tesla (TSLA) - Ark's Cathie Woods sold 400k shares of Tesla and bought Meta shares. (Newswires)

Microsoft (MSFT)/Activision (ATVI) - FTC will seek to keep Microsoft's Activision deal from closing; FTC to file in federal court in California as soon as Monday with the court filing seeking a pause until August FTC trial resolution. (Newswires)

Oracle Corp (ORCL) - Q4 2023 (USD): Adj. EPS 1.67 (exp. 1.58), Revenue 13.84bln (exp. 13.73bln), raised quarterly dividend to USD 0.40/shr from 0.32/shr. Cloud services and license support revenue rose 23% Y/Y to USD 9.37 (exp. 9.1bln). Cloud license and on-premise license revenue fell 15% Y/Y to USD 2.15bln (exp. 2.33bln). Hardware revenue fell 0.7% Y/Y to USD 850mln (exp. 840.9mln). Service revenue rose 76% Y/Y to USD 1.47bln (exp. 1.45bln). Co. guides Q1 EPS USD 1.12-1.16 (exp. 1.17), guides Q1 rev. growth of 8%-10% (exp. 8.8% growth), adds FX will have a positive 0%-1% impact on rev. and + USD 0.01 on EPS. (PR Newswire/Newswires) Shares rose 3.6% after-market

Truist (TFC) - CFO said top-line revenue decline is anticipated for the quarter (prev. saw it "relatively stable"), and sees 3% revenue growth for the FY (exp. 5.9%, prev. 5-7%). Sees "good pipeline" of investment banking business. Wealth hiring slowed a bit this year. (Newswires)

13 Jun 2023 - 06:32- Research Sheet- Source: Newsquawk