Newsquawk Daily European Equity Opening News - 14th November 2023

14th November 2023

ASIA

Asia-Pac stocks eventually traded mixed with gains capped as markets await incoming US CPI data. ASX 200 (+0.8%) was led by strength in the commodity-related sectors with outperformance in energy after the recent rebound in oil prices although further upside, which helped participants shrug off weak Consumer and Business Confidence data, while financials lacked conviction after Australian’s largest lender CBA posted flat cash profit for Q1. Nikkei 225 (+0.5%) advanced amid earnings releases and with Japan’s government said to consider corporate tax breaks as an incentive for companies that implement an 8% wage increase. Hang Seng (-0.3%) and Shanghai Comp. (+0.1%) were indecisive following mixed New Yuan Loans and Aggregate Financing data which both weakened from the prior month, while price action was also kept rangebound ahead of the Biden-Xi meeting with the leaders said to announce a deal on a fentanyl crackdown by China.

BYD (1211 HK) - BYD-backed Chinese battery firm Gellec mulls a Hong Kong IPO, according to Bloomberg. (Bloomberg)

Foxconn (2317 TT) - Q3 (TWD): Net 43.1bln (exp. 34.0bln). Operating profit 46.2bln (exp. 39.5bln). Revenue 1.54tln (exp. 1.55tln). Q4 Revenue Guidance: Headline to slightly decline Y/Y, Computing products decline Y/Y, Components/other products to see significant growth Y/Y, Smart consumer electronic products to slightly decline Y/Y, Cloud/Networking to slightly decline Y/Y, Computing products to slightly decline Y/Y, 2023 Guidance: Revenue to slightly decline Y/Y (prev. guided slightly decline). (Newswires)

Panasonic (6752 JT) - Is to launch a power supply and demand management demonstration project for decarbonisation at a UK factory in 2024. (Newswires)

Semiconductor Names - Chinese imports of semiconductor manufacturing equipment rose 93% on the year last quarter to CNY 63.4bln (USD 8.7bln), according to Nikkei citing Chinese customs data

EUROPEAN CLOSES

CLOSES: DAX +0.73% at 15,345, FTSE 100 +0.89% at 7,426, CAC 40 +0.60% at 7,087, Euro Stoxx 50 +0.81% at 4,232, IBEX 35 +0.96% at 9,462, FTSE MIB +1.48% at 28,925, SMI +0.33% at 10,591, PSI +0.79% at 6,301.

SECTORS: Energy 1.39%, Financials 1.09%, Healthcare 0.86%, Telecoms 0.71%, Industrials 0.69%, Materials 0.68%, Consumer Disc 0.63%, IT 0.60%, Consumer Stpl 0.51%, Utilities 0.07%

FTSE 100

Glencore (GLEN LN) - Teck Resources (TECK) is said to be nearing a deal to sell coal business to Glencore, Japan’s Nippon Steel (5401 JT), and South Korea’s Posco (047050 KS) in a deal that would value the coal assets close to USD 9bln, Bloomberg reported. Sources via Bloomberg added that Glencore would take 77% of Teck’s coal business for USD 6.9bln, Nippon would have 20% for USD 1.7bln and Posco 3%. (Bloomberg). Separately, to take steps in Q1 2024 for a potential restart of Nordenham Zinc smelter, according to Reuters sources. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

BAE Systems (BA/ LN) upgraded to Hold from Sell at Center for Financial Research & Analysis

Britvic (BVT LN) initiated with Hold at Panmure Gordon

Entain (ENT LN) downgraded to Hold from Buy at Jefferies

Reckitt Benckiser (RKT LN) downgraded to Equal Weight from Overweight at Morgan Stanley

DAX

Daimler Trucks (DTG GY) - Mercedes-Benz Trucks CEO said the intake of fresh orders and its existing backlog remains at very strong levels, although the order backlog and intake compared to the last two years is slightly lower, according to Bloomberg. (Bloomberg)

Delivery Hero (DHER GY) - Q3 (EUR): Revenue 2.71bln (prev. 2.50bln Y/Y), Gross Merchandise Value (GMV) 11.7bln (prev. 11.5bln Y/Y). Confirms Adj. EBITDA/GMV Margin outlook and raises previous GMV guidance to "upper range" of 5-7%. (Newswires)

RWE (RWE GY) - 9M (EUR): Net 3.38bln (exp. 3.14bln), Adj. EBITDA 6.15bln (exp. 5.94bln). (Newswires)

OTHER GERMAN COMPANIES

Encavis (ECV GY) - 9M (EUR): Net 88.6mln (prev. 88.9mln Y/Y), EBITDA 246mln (prev. 271mln Y/Y), Revenue 356mln (prev. 355mln Y/Y). (Newswires)

K+S (SDF GY) - 9M (EUR): Q3 (EUR): EBITDA 72mln (prev. 633mln Y/Y), Revenue 881mln (prev. 1.47bln Y/Y). Co. noted of a payout of 30% to 50% of the annual adjusted free cash flow generated by dividend which can be combined with a share buyback, if applicable. Co. confirms its 2023 outlook. (K+S) Shares seen +3.4% in pre-market

Nordex (NDX GY) – 9-month (EUR): Sales 4.47bln (prev. 3.87bln), EBITDA -66mln (prev. -199mln), Net -334mln (prev. -372mln), FCF -283mln (prev. -458mln). (EQS)

TAG Immobilien (TEG GY) - 9M (EUR): FFO 0.76 (prev. 0.91 Y/Y), EBITDA 182mln (prev. 158mln Y/Y), Net Rent 261.8mln (prev. 254.1mln Y/Y). Co. is to suspend dividend. Co. expects FFO to remain constant in 2024 compared to 2023. (Newswires) Shares seen -6.6% in pre-market

BROKER MOVES

Continental (CON GY) upgraded to Buy from Neutral at Citi

CAC

Airbus (AIR FP) – Co. is said to be nearing its first order for widebody aircrafts with EgyptAir reportedly set to buy 10 A350-900 jets on the second day of the Dubai Air Show, according to Bloomberg sources. The deal is likely to be announced on Tuesday morning, the sources added. (Bloomberg) Separately, the Emirates Airlines President said he is not purchasing Airbus’ A350-1000 until engine performance issues have been fixed, as the engines built exclusively by Rolls-Royce (RR/ LN) do not meet some requirements. The President said Emirates would be in the market for 35-50 A350s. (Bloomberg) Furthermore, DHL Group (DHL GY) is said to be mulling a large Freighter order from Airbus or Boeing (BA) and is said to be in preliminary stages of choosing between the A350F or Boeing 777-8F, although any deal would be two or three years away, according to Bloomberg (Bloomberg)

OTHER FRENCH COMPANIES

Ipsen (IPN FP) - Results from Ipsen’s ELATIVE® pivotal Phase III trial of elafibranor in PBC presented as late-breaking data at the AASLD congress and published in New England Journal of Medicine. (Ipsen)

Technip Energies (TE FP) – Creates Reju, an innovative polyester textile regeneration Co., building on its partnership with IBM (IBM) and Under Armour (UA). (Newswires)

BROKER MOVES

L'Oreal (OR FP) upgraded to Overweight from Equal Weight at Morgan Stanley

Technip Energies (TE FP) downgraded to Underweight from Overweight at Barclays

PAN EUROPE

ACS (ACS SM) - 9M (EUR): Net 576mln (prev. 480mln Y/Y), Revenue 26.4bln Y/Y (prev. 24.5bln Y/Y), EBITDA 1.43bln (prev. 1.26bln Y/Y). (Newswires)

Raw Materials - EU countries and lawmakers are set to reach a deal on Monday on rules to secure the supply of critical raw materials, according to Reuters citing an EU official. (Reuters)

Stellantis (STLAM IM/ STLAP FP) - Is reportedly preparing to offer a new round of buyouts to roughly half of its US white-collar employees as it continues to cut expenses, according to WSJ. (WSJ)

BROKER MOVES

OMV (OMV AV) downgraded to Add from Buy at AlphaValue

SMI

Roche (ROG SW) - Subcutaneous injection of Tecentriq recommended by the EU’s CHMP for multiple cancer types; if approved, Tecentriq subcutaneous (SC) would be the first injectable PD-(L)1 cancer immunotherapy in the EU, cutting treatment time by approx. 80%. (Roche)

OTHER SWISS COMPANIES

Barry Callebaut (BARN SW) – Amr Arafa appointed CDO. (Newswires)

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) – October (EUR): Sales 1.059bln, +1.9% Y/Y; Grocery Trade 554mln, +5.9% Y/Y; Building/Technical trade 392mln, -6.0% Y/Y; Car Trade 114mln, +13.5% Y/Y. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.08% at 4,412, NDX -0.30% at 15,483, DJI +0.16% at 34,338, RUT +0.01% at 1,706.

SECTORS: Utilities -1.24%, Real Estate -0.82%, Technology -0.54%, Communication Services -0.2%, Financials -0.16%, Materials -0.14%, Industrials +0.09%, Consumer Discretionary +0.29%, Consumer Staples +0.37%, Health +0.57%, Energy +0.71%.

Arm (ARM) - Announces appointment of Nvidia's (NVDA) Ami Badani as its CMO. (Newswires)

Tesla (TSLA) - Raises prices for Model 3 RWD vehicles in China by CNY 1,500 and price of Model Y RWD vehicles in China by CNY 2,500 beginning from November 14th. (Newswires)

14 Nov 2023 - 06:53- Research Sheet- Source: Newsquawk