Newsquawk Daily European Equity Opening News - 14th August 2023

14th August 2023

ASIA

Asia-Pac stocks were pressured as ongoing Chinese economic woes and developer default concerns sapped risk appetite ahead of upcoming notable events including several key data releases worldwide and the latest FOMC minutes. ASX 200 (-0.9%) was lower amid headwinds from Australia’s largest trading partner and with participants inundated by a slew of earnings releases. Nikkei 225 (-1.3%) initially swung between gains and losses in which early advances on the back of a weaker currency were wiped out as the index succumbed to the broad risk-off mood. Hang Seng (-2.5%) and Shanghai Comp. (-1.0%) declined with the Hong Kong benchmark the worst hit amid heavy losses in tech and the property industry owing to default concerns after Country Garden Holdings suspended trading of 11 onshore bonds and Sino-Ocean Group announced the suspension of trading of 6% guaranteed notes due 2024. China’s recent lending data also added to the ongoing slowdown fears after New Yuan Loans slumped by nearly 90% to the lowest since 2009, while participants are also bracing for tomorrow’s Chinese activity data and this week’s upcoming earnings releases from large tech names including Tencent and JD.com.

EUROPEAN CLOSES

Bourses: DAX -1.03% at 15,832, FTSE 100 -1.24% at 7,524, CAC 40 -1.26% at 7,340, Euro Stoxx 50 -1.45% at 4,321, IBEX 35 -0.71% at 9,434, FTSE MIB -1.05% at 28,275, SMI -0.61% at 11,082.

Sectors: Utilities -0.53%, Healthcare -0.57%, Energy -0.58%, Telecoms -0.61%, Financials -0.81%, Industrials -1.03%, Consumer Stpl -1.04%, Materials -1.34%, Consumer Disc -1.92%, IT -2.12%

FTSE 100

British Land (BLND LN) - Co. is considering selling a number of its assets to Realty Income, worth around GBP 300mln, according to reports, according to City AM. (CityAM)

Entain (ENT LN) - Looks at clawing back tens of millions in bonuses paid to former bosses after Turkish bribery claims, according to City AM. (CityAM)

St James Place (STJ LN) - Co. has seen four of its vehicles labelled as the biggest "dogs" in the industry, according to BestInvest cited by City AM. (CityAM)

Unilever (ULVR LN) - New CEO of the Co. has pledged to look at its decision to continue its operation in Russia, as the company faces criticism from a Ukrainian war veteran, according to The Times. (The Times)

Unite (UTG LN) - Delays account filing for 2 years as financial probe continues, according to the FT. (FT)

OTHER UK COMPANIES

Bridgepoint (BPT LN) - The Co. and Restaurant Brands International (QSR) are in advanced talks about a new master franchise deal that will cut the number of new restaurants obliged to open each year, according to Sky News. (Sky News)

Capita (CPI LN) - Threatened with an injunction after allegedly providing software it sold to private equity for GBP 400mln, without a license. (The Telegraph)

BROKER MOVES

Watches of Switzerland (WOSG LN) upgraded to Buy from Hold at Kepler Cheuvreux

DAX

OTHER GERMAN COMPANIES

Talanx (TLX GY) - Q2 (EUR): EBIT 915mln (prev. 730mln YY), Insurance Revenue 10.2bln (prev. 9.08bln YY). Raises FY23 Net to >1.4bln (prev. 1.4bln), Insurance Rev >42bln (prev. 42bln). (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Auto Names - Tesla (TSLA) cut Model Y Performance and Model Y Long Range prices in China. (Newswires)

European Engine makers - Airlines in the US and Europe are rushing to find spare parts and engines after Pratt & Whitney (RTX) issued product recalls last month. (FT)

Exor (EXO NA)/Philips (PHIA NA) - Buys 15% stake in Philips, no terms disclosed. (Bloomberg TV)

Italian Banks - Italian PM Meloni on the windfall tax on banks, says it was a "sensitive matter" and "I take full responsibility for it", in an interview with local press. (Newswires)

BROKER MOVES

SMI

UBS (UBSG SW) - Retail investors plan a lawsuit challenging the UBS takeover of Credit Suisse, according to FT. (FT)

OTHER SWISS COMPANIES

Gam (GAM SW) - Cancels the EGM scheduled for 18 August 2023. Board is disappointed that Rock has not been willing to have the proposals decided upon by Gam shareholders. The only viable option in the interest of all stakeholders remains the public tender offer from Liontrust (LIO LN). (Newswires)

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - July (EUR): SSS, -2.1% YY. Sales 908.8mln, -1.3% YY, Sales in Grocery division 515.1mln, +1.7% YY. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.11% at 4,464, NDX -0.67% at 15,028, DJIA +0.3% at 35,281, RUT +0.13% at 1,925.

SECTORS: Technology -0.88%, Communication Svcs -0.48%, Consumer Disc -0.28%, Materials -0.27%, Industrials +0.10%, Consumer Staples +0.19%, Real Estate +0.19%, Financials +0.21%, Utilities +0.51%, Health +0.57%, Energy +1.56%.

Tesla (TSLA) - Cuts Model Y Performance and Model Y Long Range prices in China. (Newswires)

Cleveland-Cliffs (CLF) - Proposed to acquire US Steel (X) for USD 17.50/share in cash and 1.023 shares in Cliffs although the offer was rejected as being unreasonable by US Steel’s board, according to Reuters. (Reuters)

14 Aug 2023 - 06:55- Research Sheet- Source: Newsquawk