Newsquawk Daily European Equity Opening News - 1st June 2023

1st June 2023

ASIA

APAC stocks were mostly positive after the US House passed the debt ceiling bill to avert a default which now moves to the Senate and with sentiment helped by the surprise expansion in Chinese Caixin Manufacturing PMI. ASX 200 was choppy in early trade but ultimately gained after stronger-than-expected capital expenditure and the improvement in Chinese Caixin PMI. Nikkei 225 was marginally supported by data releases including business capex which grew at its fastest pace since Q3 2016 and with Japanese firms logging their largest recurring profits for Q1. Hang Seng and Shanghai Comp. shrugged off the early indecision and were boosted after the Chinese Caixin Manufacturing PMI data partially atoned for yesterday’s weak official PMI readings.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -1.71% at 4,218, FTSE 100 -1.01% at 7,446, DAX 40 -1.54% at 15,664, CAC 40 -1.54% at 7,098, FTSE MIB -1.97% at 26,051, IBEX 35 -1.28% at 9,050, SMI -0.57% at 11,217.

SECTORS: Healthcare -0.16%, Telecoms -0.22%, Utilities -0.29%, IT -0.44%, Consumer Stpl -0.71%, Industrials -1.14%, Financials -1.35%, Materials -1.48%, Energy -1.99%, Consumer Disc -2.18%

FTSE 100

AstraZeneca (AZN LN) - US FDA has approved Lynparza for BRCA+ Metastatic Castration-Resistant Prostate Cancer. (Newswires)

FTSE 100 Ex-Divs - Informa (INF LN), Associated British Foods (ABF LN), Sage Group (SGE LN), Scottish Mortgage Investment Trust (SMT LN), National Grid (NG/ LN), and Severn Trent (SVT LN) will trade without entitlement to their latest dividend payouts. (dividenddata)

FTSE 100 Reshuffle – IMI (IMI LN) will join the index, British Land (BLND LN) to leave. Effective from the commencement of trading on June 19th. (FTSE Russell)

Johnson Matthey (JMAT LN) - Co. is said to be looking to sell its medical devices unit, according to Bloomberg sources. (Newswires) No value is mentioned in the article.

OTHER UK COMPANIES

FTSE 250 Reshuffle – Additions: British Land (BLND LN), Capita (CPI LN), Empiric Student Property (ESP LN), Me Group (MEGP LN), North Atlantic (NAS LN) & Tyman (TYMN LN). Deletions: ASOS (ASC LN), Capricorn Energy (CNE LN), Hunting (HTG LN), IMI (IMI LN), Tullow Oil (TLW LN) and Videndum (VID LN). Effective from the commencement of trading on June 19th. (FTSE Russell)

BROKER MOVES

DAX

SAP (SAP GY) - Salesforce (CRM) shares fell 5.8% after-hours despite beating on the top and bottom line and raising guidance, with some citing concerns surrounding costs whilst others flagged the slowest quarterly revenue growth since 2010. (CNBC/Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

L'Oreal (OR FP) - CEO said the Co. is mulling expansion in China through acquisitions. Co. said Chinese consumers are choosing high-quality goods. (Newswires)

Remy Cointreau (RCO FP) - Final FY22 (EUR): Current Operating Income 429.6mln (exp. 426.5mln). Revenue 1.55bln (prev. 1.31bln y/Y). Operating profit 430mln (prev. 334mln). Net 294mln (prev. 213mln). Co. is to pay a FY dividend of EUR 2/shr (prev. EUR 1.85) and an exceptional dividend of EUR 1/shr. Sales breakdown: Americas +2.5% Y/Y, EMEA +11.0% Y/Y, APAC +22.7% Y/Y. (Remy Cointreau IR/Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Banca Monte dei Paschi (BMPS IM) - Moody's raises outlook to "Positive" from "Stable". (Newswires)

BP (BP/ LN)/Equinor (EQNR NO) - Cos postpone the Bay du Nord Canadian deep water oil project for three years due to rising costs, according to CBC. (Newswires)

BASF (BAS GY)/Arkema (AKE FP) - US peer Dow Inc (DOW) cut its Q2 Revenue guidance to USD 11.0-11.5bln from 11.8-12.3bln (exp. 12.2bln). Dow Inc said the overall macro conditions are expected to remain challenging as high inflation continues to pressure input costs and demand, particularly in Europe and the US, while China continues to experience a steady but uneven recovery. (Dow IR)

FTSE MIB Reshuffle – No changes. (FTSE Russell)

Italian firms - Italian PM Meloni to create a EUR 1bln sovereign fund, according to Bloomberg. (Newswires)

Leonardo (LDO IM) – Italian gov’t removed an arms embargo on Saudi Arabia, saying this is now no longer necessary given the improved situation in Yemen. (Newswires)

Telecom Italia (TIT IM) – CDP is to hold a board meeting on Thursday and will not discuss the offer for the landline grid, via Reuters citing sources. (Newswires)

BROKER MOVES

Buzzi Unicem (BZU IM) reiterated with Underweight at JPMorgan Chase

MedioBanca (MB IM) upgraded to Buy from Hold at Jefferies

Recordati (REC IM) reiterated with Overweight at JPMorgan Chase

SMI

Lonza Group (LONN SW) - Co. is to purchase biotech firm Synaffix for EUR 100mln cash. (Newswires)

Roche (ROGN SW) - Co. is reportedly looking to divest its Vacaville, California drug manufacturing plant, if no buyer is found it will be ramped down and closed in 2028-2029, according to Reuters citing an email to employees. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Ericsson (ERICB SS) - Co. and Intel (INTC) will collaborate to show how 5G adoption can be accelerated. (Newswires)

Equinor (EQNR NO) - Co. said the gas leak that occurred at Hammerfest LNG plant at Melkoya on May 31st has been stopped and normalisation is under way; leak occurred in connection with a valve in one of the plant's cooling circuits. (Newswires)

BROKER MOVES

Coloplast (COLOB DC) downgraded to Equal Weight from Overweight at Morgan Stanley

Elisa (ELISA FH) resumed with Buy at Berenberg

Fortum (FORTUM FH) downgraded to Neutral from Buy at JPMorgan Chase

Telia (TELIA SS) resumed with Buy at Berenberg

US

CLOSES: SPX -0.61% at 4,180, NDX -0.7% at 14,254, DJIA -0.41% at 32,908, RUT -1.00% at 1,750

SECTORS: Energy -1.88%, Industrials -1.4%, Financials -1.14%, Materials -1.12%, Technology -1.09%, Consumer Discretionary -0.92%, Communication Services -0.05%, Consumer Staples +0.07%, Real Estate +0.65%, Health Care +0.85%, Utilities +0.96%.

Dow Inc (DOW) - Co. cut it Q2 Revenue guidance to USD 11.0-11.5bln from 11.8-12.3bln (exp. 12.2bln). Co. said the overall macro conditions expected to remain challenging as high inflation continues to pressure input costs and demand, particularly in Europe and the US; China continues to experience a steady but uneven recovery. Co. said Healthy oil-to-gas spreads expected to support pricing and margins; diverse portfolio enables volume capture in sectors where demand is more resilient. Executing on our previously outlined targeted actions to deliver USD 1bln in cost savings in 2023, with 35% expected to be achieved in 1H23 and 65% in 2H23. (Dow IR)

Salesforce Inc (CRM) - Q1 2024 (USD): Adj. EPS 1.69 (exp. 1.61), Revenue 8.25bln (exp. 8.18bln). Sees Q2 Adj. EPS USD 1.89-1.90 (exp. 1.70). Sees Q2 revenue USD 8.51bln-8.53bln (exp. 8.49bln). Sees FY Adj. EPS USD 7.41-7.43 (exp. 7.14). Sees FY revenue USD 34.5bln-34.7bln (exp. 34.7bln). (buinesswire) Shares fell 5.8% after-market *some cited concerns surrounding costs whilst others flagged the slowest quarterly revenue growth since 2010. *

Tesla (TSLA) - Co. reportedly doubles discounts on Model 3 cars in its US inventory, according to Reuters.

01 Jun 2023 - 06:41- Research Sheet- Source: Newsquawk