Newsquawk Daily European Equity Opening News - 17th July 2023

17th July 2023

ASIA

Asia-Pac stocks began the week subdued as participants digested mixed economic growth and activity data from China, with conditions also thinned due to the holiday closure in Japan and typhoon disruption in Hong Kong. ASX 200 (Flat) was rangebound with gains in healthcare and tech counterbalanced by losses in consumer and commodity-related industries, while Australian Treasurer Chalmers provided a glum outlook in which he expects a substantial economic slowdown and unemployment to increase as inflation eases. KOSPI (-0.4%) was constrained by a sombre mood after the deadly floods in South Korea and lingering US concerns that North Korea will move forward with another intercontinental ballistic missile test. Shanghai Comp. (-1.2%) underperformed in the absence of Stock Connect flows owing to the unscheduled closure in Hong Kong and as participants reflected on the mixed bag of tier-1 releases from China. The data showed economic growth was firmer than expected QQ (0.8% vs exp. 0.5%) but disappointed on the YY reading (6.3% vs exp. 7.3%), while Chinese Industrial Production topped estimates in June (4.4% vs Exp. 2.7%) and Retail Sales missed (3.1% vs exp. 3.2%). Furthermore, the data was seen to be distorted by the effects of the lockdowns in China last year and attention was also on the PBoC which maintained its 1-year MLF rate unchanged at 2.65% and rolled over the maturing loan amount.

TSMC (2330 TT) - May reportedly cut FY23 guidance to a decline of 10% Y/Y from a previous low-to-mid-single digit decline Y/Y, citing weaker than expected demand for traditional servers, high chip inventories and slow demand for non-Apple (AAPL) smartphones. (money.udn)

EUROPEAN CLOSES

Bourses: Euro Stoxx 50 +0.20% at 4,400, FTSE 100 -0.07% at 7,435, DAX 40 -0.22% at 16,105, CAC 40 +0.06% at 7,374, FTSE MIB -0.31% at 28,686, IBEX 35 -0.44% at 9,436, SMI +0.82% at 11,112.

Sectors: IT 1.02%, Healthcare 0.44%, Consumer Disc 0.32%, Telecoms 0.18%, Consumer Stpl 0.08%, Industrials -0.16%, Financials -0.35%, Utilities -0.35%, Materials -0.44%, Energy -2.08%

FTSE 100

Betting Names - Betting company logos appear as often as 3500 times during a televised football match, prompting renewed scepticism about the Premier League plan to give up front-of-t-shirt betting ads only, according to The Guardian. (The Guardian)

OTHER UK COMPANIES

Gresham House (GHE LN) - Searchlight Capital is reportedly in talks to take over the Co., which managed nearly GBP 8bln of assets at the end of last year. (Sky News)

BROKER MOVES

Ashtead (AHT LN) reiterated with Overweight at JPMorgan Chase

Halma (HLMA LN) reiterated with Underweight at JPMorgan Chase

Rotork (ROR LN) downgraded to Neutral from Overweight at JPMorgan Chase

Smiths Group (SMIN LN) reiterated with Overweight at JPMorgan Chase

Spectris (SXS LN) downgraded to Underweight from Neutral at JPMorgan Chase

Spirax-Sarco (SPX LN) upgraded to Overweight from Neutral at JPMorgan Chase

Victrex (VCT LN) upgraded to Buy from Hold at Berenberg

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Casino (CO FP) - Kretinsky is set to win the battle for the Co. after rivals drop out, in an interview with FT he says a revised offer was submitted on Saturday to Casino as part of the Co's voluntary debt restructuring negotiations with creditors. (FT)

BROKER MOVES

Euronext (ENX FP) upgraded to Neutral from Underperform at BNP Paribas

PAN EUROPE

Carlsberg (CARLB DC)/ Danone (BN FP) - The Russian government has taken control of Danone's Russian subsidiary and Carlsberg's stake in a local brewer, Reuters reports citing a decree signed by Russia President Putin. The stakes are now under the management of a government agency. (Newswires)

Proximus (PROX BB) - Enters into a definite agreement to acquire a majority stake in Route Mobile, for an initial cash consideration of EUR 634mln. (Newswires)

TomTom (TOM2 NA) – Q2 (EUR): Revenue 157mln (exp. 143mln), EBIT -3.6mln (exp. -18mln), Net -4.5mln (exp. -13mln). FY23 guidance: upgrading FCF view to +5% of revenue, look for Revenue between 570-600mln (exp. 568mln). (Newswires)

BROKER MOVES

Amadeus (AMS SM) upgraded to Outperform from Neutral at BNP Paribas

SMI

Richemont (CFR SW) – Q1 (CHF): Sales 5.3bln; Europe 1.13bln (prev. 1.03bln), APAC 2.2bln (prev. 1.7bln); Retail 3.6bln (prev. 3.05bln), Online Retail 0.29bln (prev. 0.3bln); Jewellery Maisons 3.59bln (pre. 3.02bln). (Richemont)

OTHER SWISS COMPANIES

Gam Holdings (GAM SW) - H1 (CHF): Net Income -71mln, Pre-tax Profit -23mln (prev. -15.4mln), Total assets under management 68bln (prev. 75bln), Assets under management 21.9bln, fund management services at 46bln. IFRS net loss after tax expected 71mln (prev. 275.2mln). Chairman says "today I have written to shareholders explaining the importance of them accepting the Liontrust offer and tendering their shares." (Newswires/Gam)

Straumann Holdings (STMN SW) - Names Yang Xu as CFO. (Newswires)

Swiss Prime Site (SPSN SW) - Property sales of CHF 148mln and with around 10% gain over the latest appraisals. (Newswires)

BROKER MOVES

SCANDINAVIA

DNB (DNB NO) – To repurchase up to 1.5% of own shares. (Newswires)

Nordea Bank (NRD SS) - Q2 (EUR): EPS 0.37 (Prev. 0.28), Op 1.72bln (Prev. 1.36bln YY), NII 1.83bln (exp. 1.80bln), ROE 18.4%. Despite the economy slowing, individual net loan losses remained low at EUR 25mln. The economic slowdown and interest rate increases have hurt our business volume growth, mainly in mortgages. "In Q2 our net income grew by 22%, despite significant negative effects from weak NOK and SEK". Upgraded outlook for 2023, ROE increased to above 15% (Prev. 13%). (Newswires)

BROKER MOVES

Ericsson (ERICB SS) downgraded to Equal Weight from Overweight at Barclays

Elisa (ELISA FH) upgraded to Hold from Sell at DNB Markets

US

CLOSES: SPX -0.1% at 4,506, NDX -0.04% at 15,566, DJIA +0.33% at 34,510, RUT -1.01% at 1,931

SECTORS: Energy -2.74%, Financials -0.67%, Communication Svs -0.61%, Materials -0.57%, Utilities -0.41%, Industrials -0.32%, Technology -0.15%, Real Estate -0.01%, Cons Disc +0.27%, Cons Stpl +0.35%, Health +1.51%.

17 Jul 2023 - 06:54- Research Sheet- Source: Newsquawk