Newsquawk Daily European Equity Opening News - 1st August 2023

1st August 2023

ASIA

Asia-Pac stocks were mostly higher following the positive lead from Wall St where the S&P 500 notched its 5th consecutive monthly gain, while participants also digested disappointing Chinese Caixin Manufacturing PMI data and the RBA rate decision. ASX 200 (+0.6%) traded positive amid strength in tech and the commodity-related sectors with further upside after the RBA kept rates unchanged. Nikkei 225 (+0.7%) was underpinned by a weaker currency and with headlines in Japan dominated by earnings releases, while a recent poll by Bloomberg also showed that BoJ watchers don’t expect a further policy shift from the central bank this year with April now seen as the likely timing for a policy change. Hang Seng (+1.2%) and Shanghai Comp. (+0.1%) managed to shrug off the disappointing Chinese Caixin Manufacturing PMI data which slipped into contraction territory for the first time in 3 months with Hong Kong lifted by tech strength and the mainland kept afloat by further support efforts from China.

Toyota (7203 JT) - Q1 2023 (JPY): net 1.31tln (prev. 736.8bln Y/Y), rev. 10.6tln (prev. 8.49tln Y/Y), maintains FY 23/24 group-wide retail sales forecast at 11.38mln vehicles. (Newswires)

Rio Tinto (RIO AT) - Says looking at a number of possible lithium interests. CEO says focusing on small bolt on buys and not big acquisitions. Adds that steel production in China has reached "saturation point". (Newswires)

EUROPEAN CLOSES

Bourses: DAX -0.14% at 16,446, FTSE 100 +0.07% at 7,699, CAC 40 +0.29% at 7,498, Euro Stoxx 50 +0.06% at 4,470, IBEX 35 -0.45% at 9,641, FTSE MIB +0.49% at 29,645, SMI -0.12% at 11,304.

Sectors: Energy 1.39%, Healthcare 1.34%, IT 0.14%, Industrials 0.12%, Consumer Disc 0.00%, Materials -0.04%, Utilities -0.10%, Financials -0.25%, Telecoms -0.79%, Consumer Stpl -0.90%

FTSE 100

BP (BP/ LN) - Shell (SHEL LN) and other energy company leaders to meet UK Ministers. (Newswires)

British American Tobacco (BATS LN) - Chief Executive calls for government to subject vaping and other tobacco alternatives to "better regulations", according to FT. (FT)

GSK (GSK LN) - Had the FDA approve new use for jemperli plus chemo; safety and tolerability profile for jemperli plus carboplatin and paclitaxel was generally consistent with known safety profiles of individual agents. Marketing authorisation application is also under review by EMA. (Newswires)

HSBC (HSBA HK) - Q2 2023 (USD): Pre-tax profit 8.8bln (exp. 7.96bln), Revenue 16.7bln (exp. 15.9bln), announces up to USD 2bln share buyback. Says continues to expect to have substantial distribution capacity going forward. Agreed on revised terms for the sale of French retail banking operations which it now expects to complete in early 2024. CEO said they are investing equally across China. UK is a good environment to operate a global bank. CEO said they have moved on from the debate on restructuring. (Newswires) Shares were +1.7% in Hong Kong.

NatWest Group (NWG LN) - Nigel Farage has said Coutts has offered to reinstate his personal and business accounts. (Newswires)

Shell (SHEL LN) - Said to resume Nigeria oil field sale talks to local firm, according to Bloomberg sources. (Bloomberg)

OTHER UK COMPANIES

Aston Martin (AML LN) - Announces intention to undertake share placing, providing gross proceeds of roughly GBP 210mln; to facilitate early redemption of group's existing second line split coupon notes due 2026. Expects to invest GBP 2bln over next five years (2023-2027) as it invests in long-term growth and its transition to electrification. (Newswires)

BROKER MOVES

DAX

Daimler Truck (DTG GY) - Q2 (EUR): adj. EBIT 1.43bln (prev. 1.43bln), Revenue 13.9bln (prev. 12.1bln YY). (Newswires)

Deutsche Post (DPW GY) - Q2 (EUR): Net 978mln (prev. 1.45bln YY), EBIT 827mln (prev. 1.49bln YY), Revenue 20.1bln (prev. 24.0bln YY). Raises FY23 EBIT 6.2-7.0bln (prev. 6-7bln YY). (Newswires)

OTHER GERMAN COMPANIES

Covestro (1COV GY) - Q2 (EUR): EBITDA 385mln (prev. 547mln YY), Revenue 3.72bln (exp. 3.9bln). Currently does not anticipate an economic recovery in the remainder of the year. Affirms FY23 Guidance. (Newswires)

Krones (KRN GY) - Q2 (EUR): EBITDA 106.5mln (prev. 88.1mln YY), Revenue 1.12bln (prev. 997.6mln YY), Net 57.9mln. Affirms FY23 guidance. (Newswires)

BROKER MOVES

BASF (BAS GY) upgraded to Add from Hold at Baader Helvea

CAC

BROKER MOVES

Teleperformance (TEP FP) downgraded to Hold from Buy at Kepler Cheuvreux

PAN EUROPE

Aalberts (AALB NL) – Reached an agreement to divest 100% of the shares of Disptek Group, financial terms not agreed. (Newswires)

Melia Hotels International (MEL SM) - H1 (EUR): Net 42.5mln (prev. 3mln YY), Revenue 910mln (prev. 742mln YY), EBITDA 218mln (prev. 163mln YY). (Newswires)

Nexi (NEXI IM) - Q2 (EUR): EBITDA 436.1mln (exp. 434.7mln), Op Revenue 835.3mln (exp. 835.3mln). Affirms FY23 guidance. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Getinge (GETIB SS) upgraded to Buy from Hold at Kepler Cheuvreux

Telia (TELIA SS) downgraded to Hold from Buy at Berenberg

US

CLOSES: SPX +0.15% at 4,589, NDX +0.04% at 15,757, DJIA +0.28% at 35,560, RUT +1.09% at 2,003.

SECTORS: Energy +2.00%, Real Estate +0.70%, Consumer Discretionary +0.56%, Materials +0.52%, Financials +0.44%, Industrials +0.23%, Technology +0.13%, Utilities +0.03%, Communication Services -0.03%, Consumer Staples -0.46%, Health -0.79%.

Meta (META) - To launch a range of AI chatbots in an attempt to boost engagement with its social media platforms, according to the FT. (FT)

01 Aug 2023 - 06:45- Fixed IncomeData- Source: Newsquawk