Newsquawk Daily European Equity Opening News - 16th February 2023

16th February 2023

ASIA

Asia-Pac stocks were positive as the region followed suit to the gains in the US where the major indices edged higher as participants digested a slew of data releases including stronger-than-expected retail sales and with NY Fed Manufacturing better-than-feared. ASX 200 (+0.8%) was firmer after several key earnings releases although gains were capped by disappointing jobs data which showed a surprise contraction in Employment Change and a higher Unemployment Rate. Nikkei 225 (+0.8%) was led by strength in auto manufacturers including Toyota which plans to boost output next month, while data releases were varied in which machinery orders disappointed and trade data was mixed. Hang Seng (+2.0%) and Shanghai Comp. (+0.6%) conformed to the improved risk tone with the tech sector front running the outperformance in Hong Kong and with the mainland also underpinned after the PBoC and NDRC pledged support measures.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.97% at 4,280, FTSE 100 +0.55% at 7,997, DAX 40 +0.82% at 15,506, CAC 40 +1.2% at 7,300, FTSE MIB +0.13% at 27,533, IBEX 35 +0.34% at 9,294, SMI +0.36% at 11,272.

SECTORS: Industrials 1.44%, Consumer Disc 1.35%, IT 0.96%, Telecoms 0.62%, Consumer Stpl 0.53%, Materials 0.39%, Utilities 0.19%, Healthcare 0.04%, Financials -0.10%, Energy -0.41%

FTSE 100

Rio Tinto (RIO LN) - Co. and Marubeni (8002 JT) partner on creating stronger and more responsible supply chains. (Newswires)

Standard Chartered (STAN LN) - FY22 (USD): Adj. Operating Revenue 16.3bln (exp. 16.3bln). Adj. Pretax 4.76bn (exp. 4.80bln). Co. announces a USD 1bln share buyback programme. NII 8.0bln (prev. 6.8bln Y/Y). NIM +20bps to 1.41%. Statutory ROTE 6.8% (prev. 4.8%). Co. said it is confident it can deliver on targets. Co. said its loan loss rate remains well below the historic range. Revenue outlook going into 2023 is positive. (Newswires)

Vodafone (VOD LN) - Co. is reportedly exploring options for African business Vodacom, according to Bloomberg - options include a merger or selling assets. Vodafone is working with advisers on options for its 65% Vodacom stake. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Lufthansa (LHA GY) - Lufthansa (LHA GY) said all systems are back up after the IT fault and Frankfurt airport flights are expected to be back to normal on Thursday. (Newswires)

OTHER GERMAN COMPANIES

Commerzbank (CBK GY) - Q4 2022 (EUR): Revenue 2.36bln (exp. 2.45bln). NII 1.96bln (exp. 1.70bln). Operating margin 528mln (exp. 598.3mln). Net Income 472mln (exp. 411.9mln). CET1 ratio 14.1% (exp. 13.8%). In 2023, Co. expects a net result well above 2022 expectations and a pay-out ratio of 50% is targeted. "For the introduced so-called 'credit holiday' scheme in Poland alone, negative revenue of EUR 278mln plus a further EUR 650mln in additional provisions for legal risks related to Swiss franc loans were incurred." (Newswires/Commerzbank IR) Note: the ECJ Provisional Mortgage Opinion on Poland is expected from 08:30GMT.

BROKER MOVES

CAC

Airbus (AIR FP) - Q4 2022 (EUR): Revenue 20.6bln (exp. 20.0bln). Adj. EBIT 2.15bln (exp. 1.95bln). Adj. FCF 4.68bln (exp. 4.52bln). Adj. Net 1.68bln (prev. 1.58bln). Implied Adj. EBIT 9.0% (prev. 9.3% Y/Y). FY22 net commercial aircraft orders 820 (prev. 507 Y/Y). Co. proposes a dividend of 1.80/shr (prev. 1.73/shr). Co. sees 2023 adj. EBIT around 6.0bln (exp. 6.2bln). Targets 720 commercial craft deliveries in 2023. Co. has delayed A320 production target of 75 per month to 2026. Co. has named former Covestro CFO Thomas Toepfer as its new CFO, effective September 1st. (Newswires) Co. holds around a 4.1% weighting in the CAC 40.

Renault (RNO FP) - FY22 (EUR): Revenue 46.39bln (exp. 45.11bln). Net loss 338mln (exp. loss 441.1mln). Operating margin 5.6% (exp. 5.3%). Automotive operating cash flow 2.12bln (exp. 1.76bln). Dividend 0.25/shr (exp. 0.33/shr). Co. guides 2023 operating margin of at least 6% (exp. 5.7%). (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) - FY22 (EUR): Revenue 4.68bln (exp. 4.46bln), EBITDA 1.7bln (exp. 1.58bln), Net Income 516mln (exp. 368mln), propose a dividend distribution of 60% of 2022 NRAG i.e. 3.13/shr. (GlobeNewswire)

Klepierre (LI FP) - FY22 (EUR): Revenue 1.23bln (prev. 1.07bln). EBITDA 955mln (prev. 806.8mln). Rental Income from shopping centers +24.8% Y/Y. (Newswires)

Lagardere (MMB FP) - FY22 (EUR): Revenue 6.93bln (prev. 5.13bln Y/Y), recurring EBIT 438mln (prev. 249mln), adj. Net 265mln (prev. 62mln). (Newswires)

BROKER MOVES

PAN EUROPE

Heineken (HEIA NA) - Acknowledges the announcement by FEMSA on the outcome of its strategic review, FEMSA intends to divest its full shareholding in Heineken and representatives will be resigning from the board with immediate effect; terms undisclosed. (GlobeNewswire)

Stellantis (STLA) - Recalls 340k RAM trucks to replace an electrical connector after reports of six fires. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) - FY22 (CHF): Revenue 94.4bln (exp. 94.9bln). Organic revenue 8.3% (exp. 8.7%). Pricing +8.20% (exp. 8.05%) Real Internal Growth +0.1% (exp. +0.7%). Co. sees 2023 organic revenue between +6-8% (exp. +5.5%). Underlying Trading Operating Profit Margin 17-17.5% (exp. 16.9%). Guides 2023 Underlying EPS growth 6-10% (exp. 7.9%). EPS decreased by 43.5% to CHF 3.42 on a reported basis, mainly reflecting the 2021 gain on the disposal of L’Oréal (OR FP) shares. Dividend 2.95/shr (prev. 2.80). "Looking to 2023, we expect another year of robust organic growth, with a focus on restoring our gross margin, stepping up marketing investments and increasing free cash flow. Nestlé’s value creation model puts us in a strong position to achieve our 2025 targets and to generate reliable, sustainable shareholder returns.” 2025 targets are fully confirmed. (Newswires/Nestle IR). Co. holds around a 3.1% weighting in the Stoxx 600.

Credit Suisse (CSGN SW) - Co. is reportedly exiting distressed-debt trading with an asset sale, according to Bloomberg. Separately, Co. reportedly paid USD 210mln to billionaire Ivanishvili, according to Bloomberg. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.28% at 4,147, NDX +0.77% at 12,687, DJI +0.11% at 34,128, RUT +1.09% at 1,960.

SECTORS: Communication Services +1.17%, Consumer Discretionary +1.17%, Utilities +0.64%, Industrials +0.63%, Materials +0.45%, Technology +0.38%, Real Estate +0.26%, Consumer Staples +0.19%, Financials +0.16%, Health -0.51%, Energy -1.78%.

Apple (AAPL) - US DoJ has reportedly ramped up work in recent months on drafting a potential antitrust complaint against Apple (AAPL), according to WSJ citing sources. DoJ is adding litigators, seeking more data and studying Kanter’s possible role in its investigation. (WSJ) Elsewhere, Apple reportedly postpones the debut of new headset by two months until June, according to Bloomberg; delays headset after testing showed lingering issues. (Newswires)

Cisco Systems Inc (CSCO) - Q2 2023 (USD): Adj. EPS 0.88 (exp. 0.86), Revenue 13.60bln (exp. 13.43bln). Product revenue USD 10.16bln (exp. 10.02bln). Secure, Agile Networks revenue 6.75bln (exp. 6.47bln). Internet for the Future revenue 1.31bln (exp. 1.32bln). Service revenue 3.44bln (exp. 3.43bln). Sees Q3 adjusted EPS USD 0.96-0.98 (exp. 0.89). Increased quarterly dividend by 3% to USD 0.39/shr. Raised FY adjusted EPS forecast to USD 3.73-3.78 from 3.51-3.58 (exp. 3.55). Raised FY revenue growth forecast to 9%-10.5% from 4.5%-6.5% (exp. 5.7%). (PR Newswire)

Shopify Inc (SHOP) - Q4 2022 (USD): Adj. EPS 0.07 (exp. -0.01), Revenue 1.73bln (exp. 1.65bln). GMV 61bln (exp. 59.2bln)Q1 gross margin view to be slightly higher than Q4 '22. For Q1 '23, expect revenue growth in high-teen percentages on Y/Y basis. For Q1 '23, expect CapEx to be in-line with capital spend of FY22. (Newswires)

16 Feb 2023 - 06:47- Fixed IncomeData- Source: Newsquawk