Newsquawk Daily European Equity Opening News - 14th July 2023

14th July 2023

ASIA

Asia-Pac stocks traded mostly higher after the positive lead from Wall St where yields continued to decline as PPI data followed suit to the softer consumer inflation and supported the case for just one more Fed rate hike. ASX 200 (+0.8%) was firmer with gains in the index led by the tech sector after similar outperformance of US counterparts amid a decline in yields, while the announcement that RBA Deputy Governor Bullock will take over from Governor Lowe in September had little effect on markets and was largely seen as policy continuation. Nikkei 225 (Flat) swung between gains and losses with headwinds from JPY strength and speculation that the BoJ could raise its inflation forecast above the 2% target at its meeting this month, which could pave the way for policy normalisation, while former BoJ Director Hayakawa expects the BoJ to tweak yield curve control at the upcoming meeting by potentially raising the 10yr yield ceiling to 1.0%. Hang Seng (+0.2%) and Shanghai Comp. (+0.3%) were positive albeit with gains capped despite the renewed support pledges by the PBoC to keep credit growth appropriate, as well as step up counter-cyclical adjustments and support for key sectors.

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.72% at 4,391, FTSE 100 +0.32% at 7,440, DAX 40 +0.74% at 16,141, CAC 40 +0.50% at 7,369, FTSE MIB +0.78% at 28,774, IBEX 35 +0.26% at 9,478, SMI +0.03% at 11,022.

Sectors: IT 1.59%, Utilities 1.04%, Consumer Disc 0.85%, Materials 0.80%, Financials 0.75%, Telecoms 0.57%, Healthcare 0.43%, Industrials 0.37%, Consumer Stpl 0.34%, Energy 0.02%

FTSE 100

Shell (SHEL LN) - Is exploring selling a stake in its green energy business to focus on investments in oil and gas, according to The Telegraph (The Telegraph)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) reiterated with Overweight at JP Morgan Chase

GSK (GSK LN) initiated with Reduce at HSBC

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

Bayer (BAYN GY) initiated with Reduce at HSBC

Brenntag (BNR GY) downgraded to Underweight from Neutral at JP Morgan Chase -2.9% in pre-market trade

Knorr Bremse (KBX GY) upgraded to Buy from Hold at Berenberg

Merck (MRK GY) initiated with Buy at HSBC

Telefonica Deutschland (O2D GY) upgraded to Equal weight from Underweight at Morgan Stanley

CAC

Airbus (AIR FP) - Pegasus Airlines orders 36 more A321 NEOs. (Newswires)

OTHER FRENCH COMPANIES

Kering (KER FP) – CAA is in advanced talks to a sell a majority stake to Kering Co-Owner Pinault, for a valuation of over USD 7bln, according to Bloomberg News. (Bloomberg)

Renault (RNO FP) - Co. and Nissan (7201 JT) have agreed that Nissan will invest JPY 100bln in the EV unit Ampere, according to Yomiuri cited by Reuters. (Reuters)

BROKER MOVES

Sanofi (SAN FP) initiated with Buy at HSBC

Scor (SCR FP) reiterated with Underweight at JP Morgan Chase

PAN EUROPE

Brunello Cucinelli (BC IM) - H1 Revenue EUR 544mln (Prev. 415.2mln YY). Raises FY23 Revenue 17-19% (Prev. +15%). Affirms FY24 Revenue +10%. (Newswires)

Colruyt (COLR BB) – Canal It Up has determined the Co. produces 86% of plastic waster found in the Brussels canal, overtaking Coca-Cola (KO). (Politico)

Media/Streaming Names – Hollywood actors have joined screenwriters in strike action, a negotiators failed to come to an agreement over issues including remuneration for AI “digital doubles”. Action is the first joint strike between writers and actors since 1960. (FT)

BROKER MOVES

Heineken (HEIA NA) upgraded to Buy from Neutral at Goldman Sachs

SMI

Holcim (HOLN SW) - Three clean tech projects in Belgium, France and Croatia have been selected for EU innovation fund grants to decarbonise Europe, with a commitment of CHF 2bln. (Newswires)

Roche (ROG SW) - Roivant Sciences (ROIV is in discussions with Roche to sell an experimental drug for ulcerative colitis and Crohn's disease, WSJ reports. The deal, potentially valued at over USD 7bln, may be announced soon, but there is a possibility of other bidders, the report added. (WSJ)

OTHER SWISS COMPANIES

BROKER MOVES

Lonza (LONN SW) initiated with Buy at HSBC

Novartis (NOVN SW) initiated with Buy at HSBC

Roche (ROG SW) initiated with Buy at HSBC

The Swatch Group (UHR SW) reiterated with Neutral at JP Morgan Chase

SCANDINAVIA

Ericsson (ERICB SS) - Q2 (SEK): Networks 42.2bln (Prev. 46bln). Saw strong execution with a speedy build-out in India, now has leading market share. Expects Q3 to show similar trends as Q2, thus expecting Q3 EBITA margin to be in-line or slightly higher than in Q2, followed by a seasonally strong Q4. Remains focused on reaching the lower end of the 15-18% EBIT margin long-term range in 2024. (Newswires)

Elisa (ELISA FH) – Q2 (EUR): EBITDA 183mln (Exp. 183.3mln), Revenue 522mln (Exp. 534.2mln), Prex-tax profit 110mln (Exp. 111mln), EBIT 116mln (Exp. 115.3mln), EPS 0.56. (Newswires)

Kesko (KESKOB FH) - Reports June Revenue EUR 1.1bln, SSS +1.3% YY. (Newswires)

Mowi (MOWI NO) - Reports prelim. Q2 EBIT EUR 300mln (Exp. 296mln). (Newswires)

Nokia (NOKIA FH) - Q2 (EUR): Revenue 5.7bln (exp. 6.03bln), adj. EBIT Margin 11%. Cuts FY23 sales outlook to EUR 23.2-24.6bln (exp. 25.57bln, prev. 24.6-26.2bln). (Newswires)

SBB (SBBB SS) - Enters into LOIs with tenants to sell properties with a property value exceeding SEK 3bln. (Newswires)

Storebrand (STB NO) – Q2 (NOK): Profit 942mln (Exp. 1.08bln), Pre-tax profit 720mln (Exp. 809mln), Operating Profit 513mln (Exp. 628mln), Solvency Ratio 196%. Initiated 500mln share buyback program, equivalent to approximately 1.2% of share capital to be completed by end of 2023. The minimum price that can be paid is NOK 5/shr and max is NOK 150/shr.

Toma Systems (TOM NO) - Reports Q2 (NOK): EBITDA 536mln (Exp. 516mln), Revenue 3.88bln (Exp. 3.61bln). CEO says the Co. is delivering all-time high revenues in all three divisions. (Newswires)

BROKER MOVES

Beijer (BEIJB SS) initiated with Buy at Berenberg

Boliden (BOL SS) reiterated with Underweight at JP Morgan Chase

Genmab (GMAB DC) initiated with Buy at HSBC

Novo Nordisk (NOVOB DC) initiated with Buy at HSBC

US

CLOSES: SPX +0.85% at 4,510, NDX +1.73% at 15,571, DJIA +0.14% at 34,395, RUT +0.91% at 1,950.

SECTORS: Communication Services +2.32%, Technology +1.49%, Consumer Discretionary +1.08%, Materials +0.79%, Real Estate +0.67%, Consumer Staples +0.44%, Utilities +0.38%, Financials +0.37%, Industrials +0.15%, Health -0.01%, Energy -0.45%.

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