Newsquawk Daily European Equity Opening News - 18th 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

APAC stocks eventually traded mostly positive following on from Wall St's best 3-day gain since 2020. ASX 200 was underpinned by commodity-related sectors including energy after oil rallied over 9% yesterday. Nikkei 225 eked marginal gains amid the lack of fireworks at the BoJ policy announcement. Hang Seng and Shanghai Comp. were mixed as tech stocks in Hong Kong faded their mid-week surges and with China said to weigh a Tencent overhaul by separating WeChat Pay from the core business and a new licence requirement. Conversely, the mainland was indecisive with downside cushioned amid further efforts by Chinese press to instill confidence in the equity market and with participants awaiting the Biden-Xi call.

Toyota (7203 JT) - Co. reportedly halted 11 factories with a total of 18 lines after recent earthquake. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.15% at 3,884, FTSE 100 +1.30% at 7,387, DAX 40 -0.43% at 14,378, CAC 40 +0.36% at 6,613, FTSE MIB -0.65% at 24,126, IBEX 35 +0.33% at 8,408, SMI +1.44% at 12,072.

SECTORS: Energy 2.17%, Healthcare 1.11%, Telecoms 0.97%, Utilities 0.97%, Basic Materials 0.74%, Industrials 0.38%, Technology 0.36%, Consumer Goods 0.28%, Financial Services -0.65%, Consumer Services -1.45%

FTSE 100

Sainsbury’s (SBRY LN) - FT’s Elder writes, in the context of Kretinsky continuing to build his stake and Co. hiring Shore Capital, such action has “kept alive perennial hopes of buyout interest. Corporate advisory reshuffles have never proved a useful lead indicator, however.”. (FT)

OTHER UK COMPANIES

BROKER MOVES

Babcock (BAB LN) reiterated with Overweight at JPMorgan Chase

Johnson Matthey (JMAT LN) upgraded to Hold from Underperform at Jefferies

DAX

Vonovia (VNA GY) - FY21 (EUR): Rental revenue 5.18bln (prev. 4.37bln Y/Y). Adj. EBITDA 2.27bln (prev. 1.91bln). FFO 1.67bln (prev. 1.35bln). Integration of Deutsche Wohnen (DWNI GY) at the start of 2023. (Newswires)

OTHER GERMAN COMPANIES

Fuchs Petrolub (FPE GY) - Q4 (EUR): Revenue 2.87bln (prev. 2.38bln Y/Y). EBIT 363mln (prev. 3131mln). Revenue 2.87bln (prev. 2.38bln). Co. raises dividend by 4%. (Newswires)

BROKER MOVES

Fraport (FRA GY) upgraded to Buy from Hold at HSBC

ProsiebenSat.1 (PSM GY) reiterated with Overweight at JPMorgan Chase

Siemens (SIE GY) upgraded to Overweight from Equal Weight at Morgan Stanley

CAC

Airbus (AIR FP) - Unite union members at Airbus have rejected the company's improved pay offer. (The Leader)

EDF (EDF FP) - Announced the launch of a share capital increase for over EUR 3.1bln. (Newswires)

OTHER FRENCH COMPANIES

bioMérieux (BIM FP) - Receives FDA clearance for its VITEK microbial identifier. (Newswires)

Wendel (MF FP) - FY21 (EUR): Revenue 7.50bln (prev. 6.83bln Y/Y). Organic revenue growth 94% Y/Y. (Newswires)

BROKER MOVES

PAN EUROPE

Enel (ENEL IM) - FY21 (EUR): Net profit 5.59bln (exp. 5.60bln). Revenue 88bln (prev. 66bln Y/Y). EBITDA 19.2bln (prelim. 19.2bln). Investments +27.5% Y/Y. Co raises dividend to EUR 0.38/shr, +6.1%. Co. says it gets no supplies from Russia and is currently exploring scenarios for its Russian assets. (Newswires)

Pirelli (PIRC IM) - Co. plans to progressively halt its factory activities in Russia. Co. has affirmed its outlook. (Newswires)

Recordati (REC IM) - Final FY21 (EUR): Revenue 1.58bln (prelim. 1.58bln). EBITDA 602.3mln (prelim. 602.3mln). Net 386mln (prelim. 386mln). (Newswires)

Ryanair (RYA ID) - Which? is calling on the UK CAA to investigate Co’s refund policy, which has refunds paid into a wallet attached to their account, withdrawals are the initiated by the customer requesting this from Ryanair. (City AM)

BROKER MOVES

Akzo Nobel (AKZA NA) upgraded to Hold from Underperform at Jefferies

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Neste (NESTE FH) - Co. still has contracts for Russia that expire at the end of the year, but Co. is not making any new supply agreements with Russia. (Newswires)

BROKER MOVES

US

CLOSES: S&P 500 +1.2% at 4,410, Nasdaq 100 +1.2% at 14,118, Dow Jones +1.2% at 34,480, Russell 2000 +2.0% at 2,061.

SECTORS: Energy +3.5%, Materials +2.0%, Consumer Discretionary +1.9%, Health +1.6%, Real Estate +1.4%, Industrials +1.3%, Financials +1.2%, Communication Services +0.9%, Technology +0.7%, Consumer Staples +0.6%, Utilities +0.5%.

FedEx Corp (FDX) - Q3 2022 (USD): Adj. EPS 4.59 (exp. 4.64), Revenue 23.60bln (exp. 23.44bln). Q3 oper. income improved due to higher revenue per shipments and a net fuel benefit at all transportation segments. (Newswires) Shares fell 3.8% after-market

GameStop (GME) - Q4 2022 (USD): EPS -1.86 (exp. 0.76), Revenue 2.25bln (exp. 2.22bln). (Newswires) Shares fell 8% after-market

Tesla (TSLA) restarts output at Shanghai plant following temporary halt and nots the easing of COVID-related movement controls. (Newswires)

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%

18 Mar 2022 - 06:52- EnergyResearch Sheet- Source: Newsquawk