Newsquawk Daily European Equity Opening News - 19th October 2022

19th October 2022

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

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

There will be an additional audio rundown at 0750BST/0350EDT recapping any company news which has hit the wires since 0715BST/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 stocks were mixed following the choppy performance stateside where the major indices wobbled on news that Apple cut iPhone 14 Plus production less than two weeks after its debut, but then recovered heading into the close and with futures underpinned after-hours after strong earnings and subscriber additions from Netflix which also boosted its streaming peers. ASX 200 (+0.4%) was positive with outperformance seen in the defensive sectors although upside is contained by a lacklustre mood in miners after BHP’s quarterly output updates which included higher iron output but also a severe drop in coal production. Nikkei 225 (+0.6%) was led higher by notable strength in blue-chip names including SoftBank and Fast Retailing and with firm gains also in utilities and power stocks, while the latest commentary from BoJ board member Adachi echoed the central bank’s dovish message as he warned against a shift towards tightening and pushed back on the idea of responding to short-term FX moves with monetary policy. Hang Seng (-1.4%) and Shanghai Comp. (-0.7%) remained pressured amid COVID concerns and data uncertainty, while Hong Kong Chief Executive John Lee’s first annual Policy Address failed to inspire a turnaround despite the announcement of measures to support property, tech start-ups and attract foreign talent.

Hong Kong Chief Executive John Lee says HKEX (3888 HK) will revise main board listing rules next year to facilitate fundraising of advanced tech enterprises that have yet to meet the profit and trading record requirements.

POSCO Holdings (005490 KS) prelim. Q3 prelim. (KRW) oper. profit fell 71% Y/Y to KRW 900bln (exp. 1.31tln), rev. 21.2tln (exp. 21.7tln). (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.64% at 3,463, FTSE 100 +0.24% at 6,936, DAX 40 +0.92% at 12,765, CAC 40 +0.44% at 6,067, FTSE MIB +0.93% at 21,518, IBEX 35 +0.72% at 7,611, SMI +0.64% at 10,566.

SECTORS: Industrials 1.46%, IT 0.87%, Consumer Disc 0.70%, Financials 0.69%, Materials 0.50%, Telecoms 0.24%, Healthcare 0.11%, Utilities -0.04%, Consumer Stpl -0.06%, Energy -1.61%

FTSE 100

AstraZeneca (AZN LN) - AstraZeneca's Evusheld received Health Canada approval for the treatment of COVID-19. (Newswires)

British American Tobacco (BATS LN)/ Imperial Brands (IMB LN) - US FDA and DoJ are seeking permanent injunctions against six e-cigarette manufacturers. (Newswires)

BHP (BHP AT) - Q1 Western Australia Iron Ore (WAIO) iron ore output 72.1mln tons vs prev. 70.6mln tons Y/Y, copper output 410.1k tons vs prev. 376.5k tons Y/Y, nickel production 20.7k tons vs prev. 17.8k tons Y/Y. Quarterly NSW energy coal production 2.6mln tons vs prev. 4.3mln tons Y/Y. All production and unit cost guidance remains unchanged for the financial year. Shares fell 0.9% in Australian trade

BT (BT/A LN) - Co. said its pension scheme has lost around GBP 11bln in assets in recent weeks, around a fifth of its total. (Newswires)

Glencore (GLEN LN) - Co. reportedly delivered Russian origin aluminium into the LME system, according to Reuters citing sources. (Newswires)

IAG (IAG LN) – British Airways’ SA unit has come to an agreement in principle with Balpa, a union, the agreement will now be put to members; Balpa says the agreement removes a pay reduction imposed during COVID and will lead to a 2022 rise. (Newswires)

Ithaca Energy – Co. intends to IPO in the UK, declined to specify what valuation it would seek. Earlier reporting via Bloomberg indicated that the valuation could be up to USD 6bln, which would make it a FTSE 100 contender. (Times)

UK Energy - UK Chancellor is lining up taxes on energy companies and banks to fill a GBP 40bln UK fiscal hole, according to FT. (FT)

UK Pension/Insurance - Bank of England confirms APF gilt sales operation will take place on November 1st 2022; for Q4 2022, these APF gilt sales operations will be distributed evenly across the short and medium-maturity sectors only. (BoE)

OTHER UK COMPANIES

Just Eat Takeaway (JET LN) - Q3 orders 253.3mln (exp. 235.3mln Y/Y). Gross Transaction Value (GTV) 6.92bln (prev. 6.8bln). Northern Europe orders -3% Y/Y. North America orders -13% Y/Y. Co. continues to explore a sale of Grubhub. Affirms FY outlook. (Newswires)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Ubisoft (UBI FP) - Electronic Arts (EA) is developing a new 'Sims' game, according to Bloomberg. (Newswires)

BROKER MOVES

PAN EUROPE

ASML (ASML NA) - Q3 2022 (EUR): Revenue 5.778bln (exp. 5.32bln), EPS 4.29 (prev. 3.54 Q/Q), Net 1.7bln (prev. 1.74bln Y/Y). Co sees Q4 sales EUR 6.1-6.6bln (exp. 6.13bln); sees Q4 gross margin around 49% (exp. 50.3%). Co. sees limited impact on 2023 shipments from new US rules. "While we are starting to see diverging demand dynamics per market segment, the overall demand for our systems continues to be strong." (Newswires/ASML) ASML holds an 8.1% weighting Euro Stoxx 50 (the largest), a 2.3% weighting in Stoxx 600, and a 15.6% weighting in the AEX.

Enagas (ENG SM) – CEO says they Co. may need to sell assets to fund its EUR 1.3bln capital expenditure under the current strategic plan. (Newswires)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) – MUFG is reportedly looking into the acquisition of some loan portfolios from Credit Suisse, as part of plans to expand its US business, via Bloomberg citing sources. (Newswires) CIBC and TD are said to be likely bidders for the Co’s investment arm. (Fox Business)

Nestle (NESN SW) - 9-month (CHF): Sales 69.1bln (exp. 68.91bln), organic sales growth of 8.5%. Increases FY organic growth outlook to circa. 8% (exp. 8.26%, prev. 7-8%), confirms margin goal. Pricing was 7.5%, reflecting significant cost inflation. North America: 19.09bln (prev. 17.17bln), Europe: 13.96bln (prev. 13.7bln), AOA: 13.89bln (prev. 13.34bln), Greater China: 3.84bln (prev. 3.59bln), Latin America: 8.6bln (prev. 7.4bln). Underlying EPS in constant currency and capital efficiency are expected to increase. Underlying trading operating profit margin is expected around 17.0%. Nestle is to buy Seattle's best coffee brand from Starbucks (SBUX); terms confidential. (GlobeNewswire) Nestle holds a 3.5% weighting in the Stoxx 600 (the largest), and around a 19.4% weighting in the SMI.

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.14% at 3,720, NDX +0.77% at 11,148, DJIA +1.12% at 30,524, RUT +1.16% at 1,756

SECTORS: Industrials +2.36%, Materials +1.91%, Utilities +1.79%, Financials +1.64%, Consumer Discretionary +1.42%, Consumer Staples +1.31%, Real Estate +1.27%, Technology +00.83%, Energy +0.75%, Health Care +0.57%, Communication Svs. +0.54%.

Adobe (ADBE) - preliminary FY23 EPS guidance at 15.15-15.45 (exp. 15.46), revenue view 19.1-19.3bln (exp. 19.8bln). FY23 Media Net new ARR about USD 1.65bln. (Businesswire) Shares rose 3.1% after-market

Apple (AAPL) reportedly cuts iPhone 14 Plus production less than two weeks after its debut, according to The Information. "Apple has told at least one manufacturer in China to immediately halt production of iPhone 14 Plus components while its procurement team reevaluates demand for the product". (The Information)

Kroger (KR) and Albertsons (ACI) merger expected to see US Senate antitrust panel announce a hearing, according to a Reuters source. (Newswires)

Johnson & Johnson (JNJ) - CFO said it is likely to make some cuts to workforce despite higher sales and profit; comes due to economic pressures and planned separation of consumer-health business next year, according to WSJ. (WSJ)

Netflix Inc (NFLX) - Q3 2022 (USD): EPS 3.10 (exp. 2.13), Revenue 7.93bln (exp. 7.84bln). Q3 Net subscriber additions 2.41mln (exp. 1.07mln). Sees Q4 EPS USD 0.36 (exp. 1.20). Sees Q4 revenue USD 7.78bln (exp. 7.98bln). Sees Q4 streaming paid net change +4.5mln (exp. +3.9mln). Won't provide paid membership forecasts from Q4. (PR Newswire) Shares rose 14.3% after-market

Twitter (TWTR) locks employee stock accounts in 'anticipation' of a deal, according to Bloomberg. (Newswires)

United Airlines Holdings Inc (UAL) - Q3 2022 (USD): Adj. EPS 2.81 (exp. 2.28), Revenue 12.88bln (exp. 12.75bln). Sees Q4 adj. diluted EPS USD 2.00-2.25. Now expects Q4 adj. operating margin to be above 2019 for the first time. (PR Newswire) Shares rose 6.3% after-market

19 Oct 2022 - 06:48- Research Sheet- Source: Newsquawk