Newsquawk Daily European Equity Opening News - 1st March 2023

1st March 2023

ASIA

Asia-Pac stocks were mostly positive as the region digested a slew of data releases including weaker GDP growth and softer CPI in Australia, as well as the fastest pace of expansion for Chinese Manufacturing PMI in over a decade. ASX 200 (-0.1%) was initially pressured by weakness in telecoms and financials, but later pared the losses as the miss on Q/Q GDP for Q4 and softer-than-expected monthly CPI data effectively eased some of the hawkish pressure on the RBA. Nikkei 225 (+0.3%) lacked firm direction with price action confined to a narrow range around the 27,500 level. Hang Seng (+3.3%) and Shanghai Comp. (+0.7%) were supported by the blockbuster official Chinese PMI data which printed its highest since April 2012 and Caixin Manufacturing PMI also returned to expansion territory. Furthermore, a surge in tech spearheaded the outperformance in Hong Kong, while advances in the mainland were somewhat moderated by US-China frictions as the Biden administration considers revoking export licenses issued to US suppliers for sales to Huawei and with the US also barring chipmakers from expanding capacity in China for 10 years if they are to receive some of the federal funding from the CHIPS Act.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.23% at 4,238, FTSE 100 -0.74% at 7,876, DAX 40 -0.11% at 15,365, CAC 40 -0.38% at 7,267, FTSE MIB +0.12% at 27,478, IBEX 35 +0.86% at 9,394, SMI -1.10% at 11,096.

SECTORS: Financials 0.95%, Materials 0.26%, Consumer Disc -0.20%, Industrials -0.21%, Energy -0.46%, Telecoms -0.62%, Utilities -0.73%, IT -0.89%, Consumer Stpl -1.30%, Healthcare -1.60%

FTSE 100

Energy Names - UK Treasury is looking at a U-turn on planned cut to UK energy subsidies, according to FT. (FT)

Just Eat Takeaway (JET LN) - FY 2022 (EUR): Revenue 5.56bln (exp. 5.60bln). Net -5.67bln (exp. -3.65bln). "net loss on disposal of EUR 275mln [was] recognised as part of other gains and losses." Orders 0.984bln (prev. 1.086bln), -9% Y/Y. "Growth in 2023 is expected to be skewed towards the end of the year, given the lower absolute Order level of H2 2022 versus H1 2022." (Newswires/Just Eat Takeaway IR)

Glencore (GLEN LN) - US judge ordered the Co. to pay USD 700mln amid its guilty plea over a scheme to bribe foreign officials. (Newswires)

OTHER UK COMPANIES

Moonpig (MOON LN)/ 888 (888 LN) - Moonpig and 888 are likely to be demoted from the FTSE 250 at the next quarterly reshuffle, taking place at the close on Friday 17th March. (Times)

BROKER MOVES

DAX

Porsche (P911 GY) - Co. will recall around 51k Panamera models in China from April 1, according to market regulator SAMR, amid a risk of electrical short-circuits and fire. (Newswires)

OTHER GERMAN COMPANIES

Linde (LIN GY) - Raises quarterly dividend 9% to USD 1.275/shr (prev. 1.17). (Newswires)

ProSiebenSat.1 (PSM GY) - Co. "postpones the date for the publication of the Annual and Consolidated Financial Statements for the financial year 2022 in light of regulatory matters in connection with the business of Jochen Schweizer mydays, which belongs to the Commerce & Ventures segment. This was decided by the Executive Board...The Company will inform about revised dates as soon as possible." (ProSiebenSat.1) Shares are seen opening lower by 3.1%.

BROKER MOVES

CAC

Airbus (AIR FP) - CEO said the Co. sees global demand for freighters, even after the pandemic. (Newswires)

Atos (ATO FP) - FY 22 (EUR): Revenue 11.34bln (prev. 10.84bln Y/Y). Operating income 356mln (exp. 325mln). Net income -1.01bln (prev. -2.96bln Y/Y). Operating margin 3.1% (prev. 3.5%). (Newswires)

BNP Paribas (BNP FP) - Belgian government-owned investment company SFPI-FPIM plans to sell 33.3mln shares (~2.7% stake) at price guidance of EUR 64.96 (vs EUR 66.15 close on Tuesday) - equivalent to some EUR 2.2bln, according to Bloomberg. (Newswires)

Sanofi (SAN FP) - US FDA has approved Sanofi/Regeneron's (REGN) Kevzara for the treatment of polymyalgia rheumatica (PMR), an inflammatory rheumatic disease, in adult patients who have had an inadequate response to corticosteroids or who cannot tolerate corticosteroid taper. (Globenewswire)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ASM International (ASM NA) - Q4 2022 (EUR): Net income 236.6mln (prev. 134.9mln Y/Y), Operating result 181.9mln (exp. 181mln), Gross margin 46.4% (exp. 47.5%). Co. expects Q1 revenue between EUR 660-700mln. Co. said based on current visibility, expects revenue in H2 '23 to remain at a healthy level, albeit somewhat lower than H1 '23. Co. said the reduction in memory spending is expected to continue in 2023, while demand for trailing-edge nodes in logic/foundry, especially consumer related is expected to soften. Co. said it needs to further expand capacity around the world, including the recently announced expansion of innovation and manufacturing infrastructure in South Korea. (Newswires)

Euronext (ENX FP)/ Allfunds (ALLFG NA) - Euronext has withdrawn its indicative takeover offer for Allfunds. (Newswires)

Ferrovial (FER SM) - FY 2022 (EUR): Revenue 7.55bn (exp. 7.30bln). EBITDA 728mln (prev. 610mln Y/Y). Net 185.7mln (prev. 1.2bln). Co. has announced a reverse merger into Ferrovial International (FISE). Co. is to repurchase EUR 500mln in shares. (Newswires)

Indra Sistemas (IDR SM) - Q4 2022 (EUR): Revenue 1.16bln (exp. 1.10bln). Net 56mln (prev. 29mln Y/Y). EBITDA 118mln (prev. 92mln). (Newswires)

Moncler (MONC IM) - FY 2022 (EUR): Revenue 2.60bln (exp. 2.53bln), Net income 606.7mln (exp. 581mln), EBIT 774.5mln (exp. 748mln); to pay a dividend of 1.12/shr. Q4 Moncler brand revenue 949.3mln (prev. 803.3mln Y/Y). Q4 Stone Island revenue 97mln (prev. 65.6mln Y/Y). Co. said 2023 started very well with strong demand in EMEA and double digit growth in the US; Co. applied a 10% price hike at the beginning of the winter season and has seen no adverse effect in demand. (Newswires)

Stellantis (STLAM IM/STLAP FP) - CEO said the potential to take the Ram truck brand global is "very, very high"; battery materials shortage may drive inflation. Co. is looking for a solution at the Belvidere assembly plant, and said the status quo cannot continue, EVs cost 40% more than conventional vehicles, "we cannot sell at a loss". CEO said Ram will offer fully electric pickup and combustion-hybrid "range extender" models. (Newswires)

BROKER MOVES

Amadeus IT Holdings (AMS SM) upgraded to Neutral from Underperform at Exane BNP

Amadeus IT Holdings (AMS SM) reiterated with Overweight at JPMorgan Chase

Pirelli (PIRC IM) upgraded to Neutral from Sell at Goldman Sachs

SMI

Swiss Life (SLGN SW) - FY 2022 (CHF): Gross Written Premiums 19.6bln (prev. 20.2bln Y/Y). Net 1.46bln (prev. 1.26bln). Adj. Operating profit 2.06bln (prev. 1.81bln). Adj. ROE 12.8% (prev. 11.0% Y/Y). (Newswires)

OTHER SWISS COMPANIES

Kuehne + Nagel International (KNIN SW) - FY 2022 (CHF): Revenue 39.4bln (exp. 39.1bln). EBIT 3.76bln (exp. 3.80bln). Dividend 14/shr (prev. 10/shr). (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.30% at 3,970, NDX -0.13% at 12,042, DJI -0.71% at 32,656, RUT +0.04% at 1,896.

SECTORS: Utilities -1.72%, Energy -1.44%, Consumer Staples -0.75%, Health -0.73%, Industrials -0.25%, Technology -0.19%, Consumer Discretionary -0.05%, Real Estate -0.04%, Financials +0.17%, Communication Services +0.24%, Materials +0.45%.

General Motors (GM) - Co. is cutting several hundred salaried jobs, with most in the US, as it looks to launch several new EVs this year in a bid to gain new market share, according to Freep.com; also plans to cut USD 2bln from its costs over the next two years. (Newswires)

Goldman Sachs (GS) - CEO said he doesn't rule out wealth and asset management strategic opportunities but focus is on execution. CEO sees capital-markets activity improvement in H2. (Newswires)

HP Inc (HPQ) - Q1 2023 (USD): Adj. EPS 0.75 (exp. 0.74), Revenue 13.8bln (exp. 14.12bln). Sees Q2 adjusted EPS USD 0.73-0.83 (exp. 0.76)Sees FY EPS USD 3.20-3.60 (exp. 3.29). Maintains FY free cash flow view at USD 3.0bln-3.5bln (exp. 3.09bln). (Newswires) Shares rose 3% after-market.

Monster Beverage Corp (MNST) - Q4 2022 (USD): EPS 0.57 (exp. 0.63), Revenue 1.51bln (exp. 1.6bln); declares 2-for-1 split. Average net sales per case 8.91 (exp. 9.37), -3.7% Y/Y. (Newswires) Shares fell 3.7% after-market.

NVIDIA (NVDA) - Co. filed for mixed shelf of up to USD 10bln, according to SEC filing. (Newswires)

Rivian Automotive Inc (RIVN) - Q4 2022 (USD): EPS -1.73 (exp. -1.94), Revenue 663mln (exp. 714mln); vehicle production 10,020 (exp. 10,423). 2023 production vehicles view 50k (exp. 62,797). Shares fell 10% after-market.

01 Mar 2023 - 06:46- Research Sheet- Source: Newsquawk