Newsquawk Daily European Equity Opening News - 14th March 2023

14th March 2023

ASIA

Asia-Pac stock markets declined across the board amid a continuation of the selling in financials and with risk appetite severely constricted in the fallout from the recent US bank collapses. ASX 200 (-1.4%) spent most of the session beneath the 7,000 level with the index pressured by substantial losses in nearly all sectors and amid headwinds from weak data releases in which Westpac consumer sentiment remained near historic lows and NAB business surveys deteriorated. Nikkei 225 (-2.4%) slumped owing to the heavy losses in financial stocks which occupied each spot on the list of the 10 worst performers and with the Tokyo Stock Exchange banking index suffering its worst day in more than 3 years. Hang Seng (-2.2%) and Shanghai Comp. (-0.9%) also retreated albeit with less aggressive selling in the mainland on reopening news as China is to resume the issuance of all types of visas for foreigners from March 15th.

BYD (1211 HK) - Tesla (TSLA) CEO Musk says relations between Tesla and BYD are positive. BYD said the report that Tesla (TSLA) is giving up cooperation with BYD on battery supplies is false. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -3.14% at 4,096, FTSE 100 -2.58% at 7,548, DAX 40 -3.04% at 14,959, CAC 40 -2.90% at 7,011, FTSE MIB -4.03% at 26,183, IBEX 35 -3.51% at 8,958, SMI -1.47% at 10,606.

SECTORS: Utilities -0.22%, Consumer Stpl -0.48%, Healthcare -0.57%, Telecoms -1.52%, Materials -2.08%, IT -2.49%, Industrials -2.57%, Consumer Disc -2.67%, Energy -4.29%, Financials -4.84%

FTSE 100

BAE Systems (BA/ LN) - BAE Systems is to play a key role in the delivery of AUKUS submarines. (BAE Systems)

HSBC (HSBA LN) - Co. is planning to inject GBP 2bln of liquidity into SVB's (SIVB) UK arm. (Newswires) Reminder, HSBC purchased SVB UK for GBP 1 on 13th March

UK Banks - UK PM Sunak says UK banks are well capitalised and liquidity is strong. (Newswires)

OTHER UK COMPANIES

International Distributions Services (IDS LN) - Royal Mail and CWU union have agreed to extend talks to try to reach an agreement over pay. (Newswires)

BROKER MOVES

HSBC (HSBA LN) reiterated with Overweight at JPMorgan Chase

Ferguson (FERG LN) downgraded to Hold from Buy at SocGen

Rio Tinto (RIO LN) upgraded to Outperform from Underperform at CLSA

DAX

Siemens (SIE GY) - CEO Wiese said south-east Asia has opportunities from a market and manufacturing perspective, describing the region as “very interesting”. (FT)

Volkswagen (VOW3 GY) - Group is planning to invest EUR 180bln between 2023 to 2027 in the most attractive profit pools and regions, with more than two-thirds allotted for electrification and digitalization. BEV deliveries rose 26% in 2022, with further significant models to be released in 2023. The Group maintains a strong position and expects supply chain bottlenecks should gradually ease in 2023. (Volkswagen)

OTHER GERMAN COMPANIES

BROKER MOVES

Brenntag (BNR GY) downgraded to Neutral from Overweight at JPMorgan Chase

Heidelberg Material (HEI GY) upgraded to Hold from Sell at SocGen

Porsche (P911 GY) reiterated with Overweight at JPMorgan Chase

Telefonica Deutschland (O2D GY) downgraded to Neutral from Outperform at Credit Suisse

CAC

OTHER FRENCH COMPANIES

AB Science (AB FP) - AB Science reports a first complete bone marrow response in a relapsed refractory acute myeloid leukemia patient from the very low dose arm of its AB8939 Phase I/II clinical trial (AB18001). (AB Science)

BROKER MOVES

Engie (ENGI FP) reiterated with Overweight at JPMorgan Chase

Michelin (ML FP) reiterated with Underweight at JPMorgan Chase

Saint-Gobain (SGO FP) downgraded to Hold from Buy at SocGen

PAN EUROPE

Generali (G IM) – FY 2022 (EUR): Gross Written Premiums (GWP) 81bln (prev. 75.8bln). Operating Profit 6.19bln (prev. 5.85bln). Net 2.91bln (prev. 2.85bln). Combined ratio 93.2% (prev. 90.8%). Regulatory Solvency Ratio 221% (prev. 227%). (Newswires)

Tech Names - EU seeks new controls to limit China from acquiring high-tech and is exploring ways to police how European companies invest in production facilities overseas, according to FT. (FT) White House says the Treasury is working with bank regulators on the next steps; regulators have tools to deal with disruptions and supervise banks and this is not a bailout. (Newswires)

Tod's (TOD IM) - FY 2022 (EUR): Revenue 1.01bln (prev. 884mln)/ Net 23.1mln (prev. -5.9mln). EBIT 58.2mln (prev. 24.2mln). CFO said the current consensus for FY23 sales and EBIT is fair enough. (Newswires)

BROKER MOVES

Red Electrica (REE SM) downgraded to Sector Perform from Outperform

SMI

Credit Suisse (CSGN SW) - Credit Suisse found material weakness in financial reporting. Co. at its AGM is to discuss the proposal for a distribution of a dividend to shareholders of CHF 0.05 gross per registered share for the financial year 2022. Co. will also discuss the proposal for the re-election of Axel P. Lehmann as Chairman of the Board as well as the re-election of all current members of the Board. (Credit Suisse/Newswires) Separately, the Swiss Department of Finance said its Supervisory Authority FINMA is closely monitoring Credit Suisse. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Geberit (GEBN SW) downgraded to Sell from Hold at SocGen

Holcim (HOLN SW) upgraded to Buy from Hold at SocGen

SCANDINAVIA

BROKER MOVES

Orsted (ORSTED DC) initiated with Sell at DNB Markets

US

CLOSES: SPX -0.15% at 3,855, NDX +0.79% at 11,923, DJIA -0.28% at 31,819, RUT -1.60% at 1,744.

SECTORS: Financials -3.78%, Energy -1.96%, Materials -1.09%, Industrials -0.61%, Consumer Discretionary +0.23%, Communication Services +0.24%, Consumer Staples +0.47%, Technology +0.55%, Health +0.92%, Utilities +1.54%, Real Estate +.61%.

Banking Sector - Moody's placed multiple US banks under review for downgrade including Zions Bancorporation (ZION), Comerica (CMA), UMB (UMBF), Western Alliance (WAL), First Republic (FRC), Signature Bank (SBNY) and Intrust. (Newswires)

Health Sector - US President Biden is to discuss plan to lower prescription drug costs on March 15th. (Newswires)

United Airlines (UAL) - Cuts Q1 EPS view to between -0.60 to -1.00 (exp. +0.69/shr); raises Q1 revenue view to +51% Y/Y (prev. +50%) as it continues to see a strong demand environment. Q1 '23 TRASM seen to increase between 22-23% Y/Y (prev. +25%). For Q1 EPS view, co. determined it appropriate to accrue expense in Q1 '23 related to potential new collective bargaining agreement with employees represented by Air Line Pilots association. (Newswires) Shares fell 6.8% after-hours.

14 Mar 2023 - 06:47- Research Sheet- Source: Newsquawk