Newsquawk Daily European Equity Opening News - 17th May 2023

17th May 2023


APAC stocks were mixed with the region cautious after the weak handover from the US where risk appetite was clouded amid debt ceiling concerns, while the meeting between US President Biden and congressional leaders achieved no major breakthroughs although was said to be productive and has set the stage to carry on further conversations. ASX 200 was subdued amid losses across nearly all sectors and following mixed wage price index data. Nikkei 225 outperformed and climbed above the 30,000 level for the first time since September 2021 with sentiment also underpinned by stronger-than-expected Japanese GDP data. Hang Seng and Shanghai Comp. were lower with price action contained amid a lack of fresh macro catalysts to detract from the recent streak of disappointing data releases from China.

Honda (7267 JT)/ Yamaha (7272 JT)/ Suzuki (7269 JT)/ Kawasaki (7012 JT) - Cos are to set up a joint research group to develop hydrogen-powered engines for motorcycles, marine vessels and drones. (Newswires)


CLOSES: Euro Stoxx 50 -0.02% at 4,315, FTSE 100 -0.34% at 7,751, DAX 40 -0.12% at 15,897, CAC 40 -0.16% at 7,406, FTSE MIB -0.17% at 27,198, IBEX 35 -0.11% at 9,191, SMI -0.50% at 11,520.

SECTORS: IT 0.88%, Utilities -0.18%, Consumer Stpl -0.29%, Industrials -0.31%, Healthcare -0.46%, Consumer Disc -0.52%, Financials -0.70%, Materials -0.71%, Telecoms -1.00%, Energy -1.25%

FTSE 100

Barclays (BARC LN) - Co. and JPMorgan (JPM) reportedly backed USD 4.5bln insurance tech giant Wefox, German digital insurer Wefox said it raised USD 110mln of fresh funding from backers. (CNBC)

Capita (CPI LN) - Colchester Council has accused the Co. of “unsafe storage of personal data” following revelations of a “serious data breach”. (FT)

Housing Names - UK landlords could be banned from no-fault evictions as part of a private rental overhaul, the proposed Renters Reform Bill would also make it easier for landlords to repossess properties from anti-social tenants. (BBC)

HSBC (HSBA LN) - Co. has reportedly abandoned plans for a UK pensions business, according to the FT. (FT)




Munich Re (MUV2 GY) - Q1 (EUR): Operating Result 1.76bln (exp. 1.72bln), Net 1.27bln (exp. 1.30bln). Due to the Turkey earthquake, Co. posts nominal losses of EUR 0.6bln. FY23 guidance unchanged, aiming to generate net of EUR 4bln (exp. 4.05bln). (Newswires)

SAP (SAP GY) - Co. updated its guidance following the Qualtrics (XM) sale, and announced a EUR 5bln share buyback programme. FY25 Cloud revenue view >EUR 21.5bln (prev. >22bln; exp. 21.48bln), total revenue view >37.5bln (prev. 36bln; exp. 37.14bln). FY25 non-IFRS Op view of EUR 11.5bln (unchanged). FY25 FCF view of EUR 7.5bln (prev. 8bln; exp. 7.54bln). Forecasts are based on a EUR/USD exchange rate of 1.10. (SAP IR) Co. holds a 9.4% weighting in the DAX 40, and a 3.5% weighting in the Euro Stoxx 50. Shares seen opening +1.1%

Siemens (SIE GY) - Q2 2023 (EUR): Revenue 19.4bln (exp. 18.75bln), Net 3.6bln (exp. 3.25bln), Orders 23.6bln (exp. 22.95bln), Industrial Profit 2.61bln (exp. 2.70bln). Raises FY Guidance: Comparable Revenue Growth 9-11% (prev. 7-10%). EPS 9.60-9.90 (prev. 8.90-9.40). Lifts outlook for Digital Industries, Smart Infrastructure & Mobility. (Newswires) Co. holds a 9.3% weighting in the DAX 40, and a 3.5% weighting in the Euro Stoxx 50. Shares seen opening +1.3%

Volkswagen (VOW3 GY) - Co. has reportedly been in discussions regarding the use of Huawei software within its vehicles in China, via FT citing sources; adding, discussions have also been held with other Chinese Cos. (FT) Subsequently denied by Volkswagen


Commerzbank (CBK GY) - Q1 2023 (EUR): Revenue 2.67bln (exp. 2.63bln). Net Income 580mln (exp. 571.4mln). CET1 14.2% (exp. 13.8%). Co. raises NII guidance to EUR 7bln (prev >EUR 6.5bln). ECB and the Finance Agency have approved Commerzbank’s first share buyback programme of EUR 122mln. Corporate Clients segment continued its growth course driven by the positive development of net interest income from deposits. (Commerbank IR) Shares seen opening +2.5%

Software AG (SOW GY) - Minority investor associations oppose Silver Lake's planned delisting. (Newswires)

Thyssenkrupp (TKA GY) - Incoming CEO Miguel Angel Lopez Borrego, set to take the position on June 1st, warned of 'tough, far-reaching' decisions, according to a statement cited by Reuters. (Newswires)


Mercedes-Benz Group (MBG GY) reiterated with Overweight at JPMorgan Chase

SAP (SAP GY) reiterated with Overweight at JPMorgan Chase


Thales (HO FP) - Co. has won a USD 160mln contract with the Australian Defence Ministry. (Newswires)

Vinci (DG FP) - April autoroutes traffic +4.5% Y/Y; airports +26.5% vs 2019. (Newswires)


Euronext (ENX FP) - Q1 2023 (EUR): Adj. EPS 1.37 (exp. 1.29), Revenue 372.3mln (exp. 371mln), Adj. EBITDA margin 58.7% (exp. 57.9%), Adj. EBITDA 218.5mln (exp. 215mln). (Newswires)

Ipsen (IPN FP) - To present new Bylvay® (odevixibat) data at annual ESPGHAN congress, showcasing commitment to furthering treatment for rare cholestatic liver diseases. (Ipsen)

Nexity (NXI FP) - Co. launched a share buyback of up to EUR 300mln. (Newswires)

Vallourec (VK FP) - Q1 (EUR): Revenue 1.34bln (exp. 1.36bln), EBITDA 320mln (exp. 384mln), Net 156mln (exp. 128mln). Q2 guidance: EBITDA similar to Q1 (exp. 284mln); reiterates FY guidance. (Newswires)

Ubisoft (UBI FP) - FY 2023 (EUR): Sales 1.81bln (exp. 1.96bln; prev. 2.13bln), Op. Income -500mln (exp. -359mln; prev. 408mln). Reaffirms FY23/24 Op view of 400mln. Q1 bookings view 240mln (exp. 332mln). (Newswires)


Edenred (EDEN FP) reiterated with Overweight at JPMorgan Chase

Euronext (ENX FP) reiterated with Overweight at JPMorgan Chase

Vinci (DG FP) reiterated with Overweight at JPMorgan Chase


Stellantis (STLAM IM/STALP FP) - Co. said it is no longer able to meet Brexit trade rules on where parts are sourced, according to BBC. (BBC)


InPost (INPST NA) downgraded to Neutral from Overweight at JPMorgan Chase

Repsol (REP SM) downgraded to Hold from Buy at Jefferies


Nestlé (NESN SW) - Nestlé Waters announced on Tuesday the elimination "of 171 jobs on its Vosges site by the end of the year", a quarter of the 721 jobs on the site. (France24)

Roche (ROG SW) - BTK inhibitor fenebrutinib significantly reduced brain lesions in people with relapsing forms of multiple sclerosis; the only reversible BTK inhibitor currently in Phase III multiple sclerosis (MS) trials . Phase II study met its primary and secondary endpoints. (Roche)

UBS (UBSG SW)/ Credit Suisse (CSGN SW) - UBS is reportedly set to win unconditional EU antitrust approval for the Credit Suisse takeover, according to Reuters sources. Separately, Co. said it sees mark-down of USD 9.9bln in fair value adjustments on financial assets related to the Credit Suisse deal. Co. said a reduction in AUM and deposits at Credit Suisse will likely lead to a substantial loss in Credit Suisse's wealth management division in Q2. Credit Suisse would also expect its investment bank and Credit Suisse Group to report a substantial loss before taxes in Q2 and for 2023. Fair value of net assets acquired in Credit Suisse deal is USD 38.24bln. Co. said in the scenario of a termination fee event Credit Suisse may pay UBS a termination fee of CHF 100mln, according to Reuters. (Newswires)

Zurich Insurance (ZURN SW) - Q1 2023 (EUR): Property & Casualty Gross Premiums 12.0bln (prev. 11.3bln Y/Y). Commercial insurance margins improve as a result of higher prices and higher interest rates, partially offset by continued elevated loss cost trends in retail. Capital position: Swiss Solvency Test (SST) ratio 258% (prev. 267%), "The reduction was driven by unfavorable market movements, mainly due to lower interest rates, and a modest negative impact from model and assumption updates." (Zurich Insurance IR)


GAM Holding (GAM SW) - Rebel investors, who oppose the potential sale to Liontrust, intend to notify the Swiss Financial Regulator that they will increase their shareholding to over 10% (currently 8.4%). A level which would increase the regulatory requirements for the Liontrust acquisition to go ahead. (Times)


Sonova Holdings (SOON SW) downgraded to Neutral from Overweight at JPMorgan Chase




CLOSES: SPX -0.64% at 4,109, NDX +0.09% at 13,426, DJIA -1.01% at 33,012, RUT -1.44% at 1,736.

SECTORS: Real Estate -2.61%, Energy -2.54%, Utilities -2.3%, Materials -1.64%, Industrials -1.36%, Financials -0.97%, Consumer Staples -0.88%, Health -0.82%, Consumer Discretionary -0.25%, Technology +0.16%, Communication Services +0.59%.

Republic First Bancorp (FRBK) - Co. said has adequate capital and does not need to enter into transaction proposed by Norcross-Braca Group. (Newswires)

Western Alliance (WAL) - Co. said Q2 deposit growth is USD 2bln+ as of May 12th. (Newswires)

Tesla (TSLA) - CEO Musk said will devote more time to Tesla especially on AI development. Musk warned Tesla shareholders to expect “challenging” year. Musk said hopefully will begin roadster production next year and said he has no plans of stepping down as CEO. Musk said best guess is the economy turns around in roughly 12 months and Co is not immune to the global economic environment. He added Model Y is on track to become the best-selling vehicle globally this year. Tesla is developing two new products and his best guess is to make an excess of 5mln units of the two models per year. Musk said Twitter is now in a stable place. Tesla shareholders voted to elect former CTO JB Straubel and Elon Musk to the board. (Newswires)

17 May 2023 - 06:48- Research Sheet- Source: Newsquawk

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