Newsquawk Daily European Equity Opening News - 16th March 2022

16th March 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0300EDT recapping all of the overnight equity news.

From 0700GMT/0300EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0315EDT.

There will be an additional audio rundown at 0750GMT/0350EDT recapping any company news which has hit the wires since 0715GMT/0215EDT ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asia-Pac equity markets traded higher with the region taking impetus from the gains in the US where the major indices finished at session highs amid a rally in growth stocks as oil prices retreated below USD 100/bbl, while a pledge by China to keep stock markets stable magnified gains in the latter part of trade. ASX 200 (+1.1%) gained with all sectors in the green and the index led by tech following the duration bias seen stateside. Nikkei 225 (+1.6%) was underpinned amid expectations for Japanese PM Kishida to order the compilation of additional stimulus and with Japan planning to raise the cap on foreign visitor arrivals from next month, as well as widen local initiatives to boost tourism. Hang Seng (+7.8%) and Shanghai Comp. (+3.3%) were positive amid a rebound from the tech rout and with local press suggesting the continued possibility of a rate cut, while a pledge by China’s State Council to keep stock markets stable and take measures to boost the economy fuelled the rally. Furthermore, Chinese Vice Premier Liu He pledged to continue support for overseas share listings and said talks between China and US regulators regarding Chinese-listed companies in US have made positive progress.

China State Council Financial meeting vowed to keep stock markets stable and China will adopt effective policies to handle developer risks, according to Xinhua. Will continue to support overseas share listings. Talks between China and US regulators on Chinese-listed companies in US have made positive progress. China and US regulators are working on specific cooperation plans.(Newswires)

Hon Hai (2317 TT) - Q4 net TWD 44.4bln vs exp. TWD 42.7bln. (Newswires)

Samsung Electronics (005930 KS) is reportedly planning a flexible investment into memory during this year. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.1% at 3,737, FTSE 100 -0.3% at 7,175, DAX 40 -0.1% at 13,922, CAC 40 -0.2% at 6,355, FTSE MIB +0.3% at 23,496, IBEX 35 +0.0% at 8,238, SMI +0.1% at 11,689.

SECTORS: Utilities 0.87%, Telecoms 0.47%, Energy -0.10%, Healthcare -0.22%, Technology -0.25%, Industrials -0.47%, Financial Services -0.53%, Consumer Goods -1.03%, Consumer Services -1.58%, Basic Materials -2.09%

FTSE 100

Banking Names - UK review into ring-fencing capital rules for retail banks says the rules are, on balance, worth retaining. It is plausible that more significant negative impacts of ring-fencing could occur over time. In the longer-term, a risk that retail banking within the UK ossifies without alterations to ring-fencing rules. (Newswires)

OTHER UK COMPANIES

Foxtons (FOXT LN)- Converium Capital has reportedly acquired a stake of circa. 2.0% over the past six-months, according to sources; has, this week, reportedly urged the Co. to sell itself and command a significant premium over the current depressed share price. (FT)

BROKER MOVES

Deliveroo (ROO LN) reiterated with Overweight at JPMorgan Chase

Just Eat Takeaway (JET LN) reiterated with Overweight at JPMorgan Chase

DAX

BMW (BMW GY) - Co. says FY22 deliveries are to be on par with FY21. Pre-tax is to increase significantly Y/Y. BMW Group is monitoring the current development of the situation in eastern Europe. Chip situation is not expected to improve until H2 2022. (BMW/Newswires) Co. and Adobe (ADBE) have expanded their partnership with regards to customer digital experience. (Newswires)

E.ON (EOAN GY) - FY21 (EUR): Revenue 77.4bln (prev. 60.9bln Y/Y). Adj. EBITDA 7.89bln (prev. 6.91bln). Adj. Net 2.50bln (prev. 1.64bln). Dividend is to increase 5% (prev. 5%). Co. affirms guidance. (Newswires)

OTHER GERMAN COMPANIES

MorphoSys (MOR GY) - UN National Comprehensive Cancer Network (NCCN) updated designation of Monjuvi to preferred regiment. (Newswires) Share seen opening higher by 4.8%

BROKER MOVES

Carl Zeiss (AFX GY) initiated with Buy at UBS

Delivery Hero (DHER GY) downgraded to Neutral from Overweight at JPMorgan Chase

CAC

Publicis (PUB FP) - Co. has ceased its operations and investments in Russia effective immediately. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Credit Agricole (ACA FP) downgraded to Hold from Buy at HSBC

PAN EUROPE

Defence Names - Germany is eyeing EUR 15bln for F-35 jets (LMT) and EuroFighters in a wider defense plan while spending on new armaments has reached EUR 44bln to date; Germany is also looking to earmark over EUR 5bln for cargo helicopters. (Newswires)

Generali (G IM) - CEO said the Co. is confident in purchasing a larger stake in its Indian JV. (Newswires)

Inditex (ITX SM) - Q4 (EUR): Revenue 8.39bln (prev. 6.32bln Y/Y). EBITDA 1.75bln (prev. 1.22bln). Net 967mln (prev. 435mln). Online sales +14% in constant currency. Co. says trading is well above pre-pandemic levels. Russia and Ukraine represented 5ppt of sales growth in the period. (Newswires)

OMV (OMV AV) - Co. targets mid-term ROACE at or above 12% and will continue investments in oil and gas until 2026. (Newswires)

Pirelli (PIRC IM) - Co. released its first replacement tyre designed specifically for EVs in North America. (Newswires)

BROKER MOVES

ABN AMRO (ABN NA) upgraded to Buy from Hold at HSBC

Generali (G IM) reiterated with Overweight at JPMorgan Chase

NN Group (NN NA) upgraded to Buy from Hold at Deutsche Bank

SMI

Roche (ROG SW) - Co. plans to continue its operations in Russia for now. (Newswires) Separately, New data for Roche’s Evrysdi demonstrate long-term efficacy and safety in a broad population of people with spinal muscular atrophy (SMA). (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

Nestle (NESN SW) reiterated with Overweight at JPMorgan Chase

SCANDINAVIA

BROKER MOVES

Atlas Copco (ATCOB BB) upgraded to Hold from Underperform at Jefferies

Novo Nordisk (NOVOB DC) upgraded to Buy from Hold at Deutsche Bank

US

CLOSES: S&P 500 +2.2% at 4,263, Nasdaq 100 +3.2% at 13,458, Dow Jones +1.8% at 33,544, Russell 2000 +1.3% at 1,967.

SECTORS: Technology +3.4%, Consumer Discretionary +3.4%, Communication Services +2.3%, Consumer Staples +2.2%, Health +1.9%, Industrials +1.6%, Financials +1.3%, Utilities +1.3%, Materials +1.1%, Real Estate +0.7%, Energy -3.7%.

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

16 Mar 2022 - 06:55- MetalsResearch Sheet- Source: Newsquawk