Newsquawk Daily European Equity Opening News - 14th February 2023

14th February 2023

ASIA

Asia-Pac stocks eventually traded mixed with only a slight positive bias following the firm handover from Wall Street where the major indices gained and the Treasury curve flattened amid positioning ahead of the upcoming US inflation data. ASX 200 (+0.2%) was led higher by tech and telecoms following similar outperformance of their counterparts in the US but with gains in the index capped as the improved NAB business survey is offset by a deterioration in Westpac consumer confidence. Nikkei 225 (+0.6%) was marginally firmer as participants digested the latest GDP data which showed Japan’s economy returned to growth in Q4 albeit at a slower-than-expected pace, while the government nominated academic Ueda as the next BoJ Governor, as well as Executive Director Uchida and former FSA chief Himino for Deputy Governors, as expected. Hang Seng (-0.3%) and Shanghai Comp. (-0.1%) were indecisive after the PBoC’s operations resulted in a substantial liquidity drain and amid the current surveillance balloon-related frictions, although there were also reports that US Secretary of State Blinken is considering meeting with China's Foreign Minister Wang Yi later this week which could provide an opportunity to diffuse the tensions.

Toshiba (6502 JP) - Q3 2022 (JPY): Net -16.65bln (exp. +25.31bln). Operating income 5.33bln (exp. 36.6bln). Cuts FY Operating Income 95bln (prev. 125bln). Maintains FY dividend 290bln (prev. 290bln)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.03% at 4,241, FTSE 100 +0.83% at 7,947, DAX 40 +0.58% at 15,397, CAC 40 +1.11% at 7,208, FTSE MIB +0.63% at 27,438, IBEX 35 +1.02% at 9,210, SMI +0.72% at 11,211.

SECTORS: Consumer Stpl 1.66%, Industrials 1.36%, Consumer Disc 1.15%, IT 1.01%, Materials 0.95%, Healthcare 0.67%, Financials 0.67%, Telecoms 0.57%, Utilities 0.56%, Energy 0.06%

FTSE 100

Vodafone (VOD LN) - Liberty Global (LBTYA) acquires a 4.92% interest in Vodafone for GBP 225mln but confirmed it is not considering an offer for Vodafone. (Newswires)

OTHER UK COMPANIES

TUI (TUI LN) - Q1 2023 (EUR): Revenue 3.75bln (prev. 3.27bln Y/Y). Net -231.8mln (prev. -386.5mln). Underlying EBIT -153mln (prev. -274mln). Co. affirms FY23 revenue guidance. "Encouraging booking momentum for current Winter and Summer 2023 – latest booking figures for the last four weeks above pre-crisis level with higher average prices". Co. noted that "Average prices for Winter 2022/23 are currently 8 per cent higher than last year. Compared to the pre-pandemic winter, prices are 29 per cent higher." (Newswires/TUI IR)

BROKER MOVES

Drax (DRAX LN) reiterated with Overweight at JPMorgan Chase

easyJet (EZJ LN) upgraded to Buy from Sell at Deutsche Bank

Intertek (ITRK LN) initiated with Buy at SocGen

InterContinental Hotels (IHG LN) downgraded to Neutral from Buy at UBS

DAX

Allianz (ALV GY) - Co. is reportedly to opt for a shift towards bonds vs alternative investments, in a major portfolio shift, via Reuters citing sources. (Newswires)

Delivery Hero (DHER GY) - Co. is to issue convertible bonds and launch a subsequent tender offer for outstanding convertible bonds. (Newswires) Shares seen opening -5.0%

Merck (MRK GY) - New analyses reinforce survival benefit of BAVENCIO First-Line Maintenance Treatment in patients with Advanced Urothelial Carcinoma. (Merck)

OTHER GERMAN COMPANIES

Ceconomy (CEC GY) - Q1 2023 (EUR): Revenue 7.07bln (exp. 7.01bln). Adj. EBIT 224mln (exp. 236.3mln). Net 127mln (prev. 122mln). LFL revenue +4.5% Y/Y. Gross margin 16.9% (prev. 17.3%). Online sales -4.7% Y/Y. (Newswires)

Thyssenkrupp (TKA GY) - Q1 2023 (EUR): Revenue 9.02bln (exp. 9.11bln). Adj. EBIT 254mln (exp. 176.4mln). Net 98mln (prev. 122mln). Adj. EBIT margin 2.8% (prev. 4.2% Y/Y). "The primary reason for this decline were falling margins as a result of lower material prices." (Newswires/Thyssenkrupp)

BROKER MOVES

CAC

Michelin (ML FP) - FY 2022 (EUR): EPS 2.81 (exp. 2.92), Sales 28.59bln (exp. 28.1bln), Net 2.01bln (exp. 2.10bln, prev. 1.85bln Y/Y); dividend of EUR 1.25 to be proposed at GM in 2023. Guides initial FY23 segment operating income > 3.2bln and adj. FCF > 1.6bln (exp. 1.72bln). CFO sees no major slowdown in demand and sees inflation lifting 2023 costs by as much as EUR 1.2bln. Co. sees no reason for price cuts at this time. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

SocGen (GLE FP) downgraded to Hold from Buy at Deutsche Bank

PAN EUROPE

Randstad (RAND NA) - Q4 2022 (EUR): Revenue 7.01bln (exp. 7.03bln). Ne 294mln (prev. 240mln Y/Y). Organic revenue +2.4% Y/Y. Operating profit 364mln (prev. 335mln). CEO notes of robust levels of demand from clients. (Newswires)

Monte dei Paschi (BMPS IM) - Co. will not be constrained by an Italian government salary cap when Rome decides on a new Chief Executive later this year, according to Reuters citing sources. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Nokia (NOKIA FH) - Nokia and Kyndryl expand global network and edge computing alliance. (Nokia)

Norsk Hydro (NHY NO) - Q4 2022 (NOK): Revenue 44.1bln (exp. 46.5bln). Adj. Net 2.37bln (exp. 3.18bln). (Newswires)

BROKER MOVES

Neste (NESTE FH) downgraded to Neutral from Buy at UBS

US

CLOSES: SPX +1.15% at 4,137, NDX +1.60% at 12,502, DJI +1.11% at 34,246, RUT +1.16% at 1,941.

SECTORS: Technology +1.77%, Consumer Discretionary +1.46%, Consumer Staples +1.17%, Communication Svs +1.10%, Financials +1.10%, Industrials +0.88%, Health Care +0.83%, Real Estate +0.82%, Utilities +0.58%, Materials +0.51%, Energy -0.6%.

Ford (F) - Michigan approved up to USD 210mln in grants and other incentives for the Ford's (F) USD 3.5bln battery plant, which will create 2500 jobs. (Newswires)

14 Feb 2023 - 06:46- Research Sheet- Source: Newsquawk