Newsquawk Daily European Equity Opening News - 19th April 2023

19th April 2023

ASIA

APAC stocks were lacklustre in the absence of any major positive macro drivers and following the flat handover from Wall St where risk sentiment was clouded amid mixed data releases and earnings results. ASX 200 was kept afloat amid outperformance in the mining and materials sectors although gains were limited by weakness in energy and consumer stocks, as well as uninspiring data with Westpac Leading Index flat. Nikkei 225 declined after the latest Reuters Tankan survey for April showed Japanese manufacturers remained glum with the Large Manufacturing Index stuck in negative territory. Hang Seng and Shanghai Comp were subdued with underperformance in Hong Kong amid losses in autos, property and tech, while the mainland was also cautious ahead of US Treasury Secretary Yellen’s major speech on Thursday regarding US-China Economic ties where she will outline US economic priorities on China.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.60% at 4,394, FTSE 100 +0.38% at 7,909, DAX 40 +0.59% at 15,883, CAC 40 +0.47% at 7,534, FTSE MIB +0.69% at 27,891, IBEX 35 +0.46% at 9,422, SMI +0.40% at 11,357.

SECTORS: Materials 1.29%, Financials 1.10%, Consumer Disc 0.82%, Industrials 0.48%, Telecoms 0.45%, IT 0.44%, Energy -0.03%, Utilities -0.03%, Consumer Stpl -0.15%, Healthcare -0.28%

FTSE 100

Glencore (GLEN LN) - Co. is reportedly facing increasing pressure from institutional investors to clarify how it will manage its climate change commitments, according to Reuters. (Newswires)

Just Eat Takeaway (JET LN) – Q1 2023 (EUR): Gross transaction value (GTV) 6.665bln (prev. 7.223bln). Total Order 227.8mln (prev. 231.1mln). Co. initiated a share buyback programme of EUR 150mln to improve future EPS. Co. continues to actively explore the partial or full sale of Grubhub. (Newswires)

SSE (SSE LN) - Co's telecom unit is one of three companies accused of overcharging hundreds of thousands of landline-only customers by nearly GBP 200mln, via The Guardian citing research. The other firms are TalkTalk and Virgin Media. (Guardian)

OTHER UK COMPANIES

BROKER MOVES

DAX

Allianz (ALV GY) - Reportedly looking to sell its 5% stake in N26 at a marked discount, via FT citing sources; would value it at USD 3bln vs the USD 9bln valuation as of the October 2021 funding round. (FT)

Deutsche Bank (DBK GY)/DWS (DWS GY) - Deutsche Bank's Deputy CEO Karl von Rohr will not renew his contract as a board member, but will remain on the DWS board. Deutsche Bank will be providing an update concerning Rohr's succession in the near future, according to a statement. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Auto Names - Tesla (TSLA) cut prices of Model 3 RWD by 7% to USD 39,990, while it cuts the price of Model Y Long-Range AWD by 9.1% to USD 49,990 and cuts the price of Model Y Performance by 8.5% to USD 53,990. (Newswires) Note this comes ahead of earnings after the US close.

ASML (ASML NA) - Q1 2023 (EUR): Revenue 6.75bln (exp. 6.3bln), Net Income 1.95bln (exp. 1.64bln), EPS 4.96 (exp. 4.13), Gross Profit 3.4bln, Gross Margin 50.6% (exp. 49.8%). Total 2022 dividend of 5.80/shr (exp. 6.60/shr). Total demand still exceeds the capacity for the year; currently have a backlog of over EUR 38.9bln. Sales growth expectations for 2023 unchanged. Q2 net sales seen between 6.5b-7.0bln (exp. 6.42bln) and Gross Margin between 50-51%. CEO said "We continue to see mixed signals on demand from the different end-market segments as the industry works to bring inventory to more healthy levels." (Newswires/ASML) Co. is the largest Euro Stoxx 50 component with a 7.8% weighting, alongside a 16.6% weighting in the AEX.

Telecom Italia (TIT IM) - KKR said to bid EUR 21bln for Telecom Italia's (TIT IM) grid, whilst CDP-Macquarie reportedly offered EUR 19.3bln, according to Reuters sources. Telecom Italia confirmed it received two offers with no further details. (Newswires) 

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - US senators have criticized the bank and suggested it sought to hamper an investigation into Nazi assets last year. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.09% at 4,154, NDX +0.03% at 13,091, DJIA -0.03% at 33,987, RUT -0.40% at 1,795.

SECTORS: Industrials +0.46%, Energy +0.45%, Technology +0.41%, Materials +0.4%, Consumer Staples +0.33%, Financials +0.31%, Consumer Discretionary +0.12%, Real Estate -0.15%, Utilities -0.51%, Communication Services -0.65%, Health -0.66%.

Meta (META) is expected to begin its next round of layoffs on Wednesday with a source noting that cuts could be in the range of 4,000 jobs, according to Vox. (Newswires)

Netflix Inc (NFLX) - Q1 2023 (USD): EPS 2.88 (exp. 2.86), Revenue 8.16bln (exp. 8.18bln), Net subscriber additions 1.75mln (exp. 2.062mln). Sees Q2 EPS USD 2.84 (exp. 3.05). Sees Q2 rev. 8.24bln (exp. 8.48bln). Sees Q2 paid net adds that are roughly similar to 1Q 2023. Sees FY free cash flow at least USD 3.5bln prev. saw at least USD 3bln (exp. 3.41bln). Sees FY operating margin 18%-20% (exp. 19.2%) and it is in track to meet full year 2023 financial objectives. Co. is launching a programmatic private marketplace to enable more buying options for Netflix ad inventory using Microsoft's sales platform. For 2024, it still expects cash content spend to be in the range of roughly USD 17bln which is consistent with prior expectations for the 2022-2024 period. Anticipates returning cash to stockholders through share repurchases and currently expects to accelerate share repurchases over the course of 2023. Will stage a “broad rollout” of its paid-sharing plan in Q2 vs. prev. plan of Q1. "Given current healthy performance and trajectory of our per-member advertising economics, particularly in the US, Co. is upgrading the ads experience with more streams and improved video quality to attract a broader range of consumers." It is still very early days, but continues to be pleased with progress across all key dimensions including member experience, value to advertisers and incremental contribution to their business. (PR Newswires) Shares stabilised -0.1% after falling as much as 10% post-earnings

United Airlines Holdings Inc (UAL) - Q1 2023 (USD): Adj. EPS -0.63 (exp. -0.73), Revenue 11.43bln (exp. 11.42bln); reiterates FY adj. EPS view. Passenger 10.27bln (exp. 10.27bln), +62% Y/Y. Cargo 398mln (exp. 477mln), -37% Y/Y. Other 757mln (exp. 694.3mln), +28% Y/Y. (Newswires)

19 Apr 2023 - 06:47- EquitiesEconomic Commentary- Source: Newsquawk