Newsquawk Daily European Equity Opening News - 1st November 2023

1st November 2023

ASIA

Asia-Pac stocks traded predominantly higher albeit with upside capped for most indices heading into the FOMC announcement and as the region digested another deluge of data releases including disappointing Chinese Caixin Manufacturing PMI which printed its first contraction in three months. ASX 200 (+0.9%) was positive as outperformance in the mining and real estate sectors picked up the slack from defensives and helped shrug off the surprise contraction in building approvals data. Nikkei 225 (+2.2%) was the biggest gainer amid reports that Japan’s new economic package is to total around JPY 17tln after recent currency weakness in the aftermath of the BoJ’s modest YCC tweak. Hang Seng (-0.2%) and Shanghai Comp. (+0.2%) were choppy as Chinese Caixin Manufacturing PMI data followed suit to the recent deterioration seen in the official release and amid some disappointment after the PBoC’s open market operations resulted in a net daily drain despite prior reports that the central bank is likely to add further liquidity and that money market rates were seen falling from today.

Evergrande (3333 HK) - Proposes to swap offshore debts with a 30% equity stake in two Hong Kong-listed subsidiaries. (Newswires)

Toyota (7203 JT) - H1 (JPY) net rose 121.1% Y/Y to 2.59tln, oper. profit rose 124.2% Y/Y to 2.56tln, Co. is to buyback 0.44% of shares for JPY 100bln. Raises FY net guidance to JPY 3.95tln from 2.58tln and oper, profit guidance to 4.50tln from 3.00tln. Windfall from weaker yen accounts for JPY 1.18tln in FY operating profit revision. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX +0.64% at 14,810.34, FTSE 100 -0.08% at 7,321.72, CAC 40 +0.87% at 6,884.51, Euro Stoxx 50 +0.82% at 4,061.35, IBEX 35 +0.04% at 9,017.30, FTSE MIB +1.47% at 27,741.91, SMI +0.12% at 10,394.90.

SECTORS: IT 1.70%, Industrials 1.07%, Utilities 0.89%, Materials 0.83%, Consumer Stpl 0.66%, Consumer Disc 0.57%, Telecoms 0.35%, Financials 0.30%, Healthcare 0.03%, Energy -1.16%

FTSE 100

UK Banks/Firms – The UK Government has scrapped guarantees on circa. GBP 1bln of bank loans from the COVID period, as such some of the borrowing will likely not be repaid to lenders, via Reuters citing figures. (Reuters)

OTHER UK COMPANIES

BROKER MOVES

BP (BP/ LN) downgraded to Underweight from Neutral at JP Morgan

DAX

Bayer (BAYN GY) – Monsanto unit has been ordered to pay USD 332mln to a former land surveyor by a California jury after the individual claimed Roundup weedkiller resulted in him getting cancer. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Renault (RNO FP) - Is unlikely to proceed with the IPO of Ampere if the EV unit's valuation is less than EUR 7bln, according to Reuters sources. Sources say Ampere deserves to trade at multiples closer to peers given its low-risk exponential growth. New financial metrics for Amepere will be disclosed gradually as the IPO nears. (Reuters)

OTHER FRENCH COMPANIES

Casino (CO FP) - Details of the backstopped capital increase of EUR 275mln to be implemented as part of its financial restructuring and will not launch a rights issue as part of restructuring. (Newswires)

Valeo (FR FP) - Announces sale of thermal systems in Russia to NPK Avtopriobor. (Newswires)

BROKER MOVES

Danone (BN FP) upgraded to Overweight from Underweight at Morgan Stanley

STMicroelectronics (STM FP) upgraded to Overweight from Equal Weight at Morgan Stanley

Valeo (FR FP) upgraded to Neutral from Sell at Goldman Sachs

PAN EUROPE

Telefonica (TEF SM) - UK's Virgin Media O2 sells a stake in the mobile tower JV to GLIL Infrastructure, who has bought a 16.67% stake in Cornerstone for approximately GBP 360mln; Virgin Media O2 will retain a 33.33% stake in Cornerstone post-completion, according to Reuters. STC Group’s intention to increase its stake in Telefonica to 9.9% has not changed, via Reuters citing sources. Since, Bloomberg reports that the Spanish government is considering a stake in the Co. to shield it from foreign takeovers. (Reuters/Bloomberg) Follows a report in El Economista on Monday that the Co. intended to remain at its current 4.9% stake

UCB (UCB BB) - UCB presents the latest data from the generalized myasthenia gravis portfolio at the 2023 AANEM Annual Meeting and MGFA Scientific Session. (UCB)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Barry Callebaut (BARN SW) – FY (CHF): Revenue 8.5bln (exp. 8.4bln), Net 443mln (exp. 424mln), EBIT 659mln (exp. 649mln), a dividend of 29/shr (exp. 30/shr). Expects to be on a long-term growth objective of low single-digit plus to mid-single-digit volume growth and mid-high single-digit EBIT growth from FY25/26. (Newswires)

BROKER MOVES

SCANDINAVIA

Carlsberg (CARLB DC) - CEO says to the FT that the Co. does not expect an improvement in consumer sentiment in Europe in the short term; says it's a dark winter we are going into. Says the beer industry is very resilient. As inflation goes back to normal and salaries catch up, volumes tend to go back to normal in the market, via FT. (FT)

Nokia (NOKIA FH) - Co. sues Amazon (AMZN) and HP (HPQ) after accusing the companies of infringing several Nokia patents in relation to video streaming, via Reuters. (Reuters)

Skanska (SKABB SS) - Q3 (SEK): Op. 0.5bln (prev. 1.5bln YY), Revenue 40.3bln (prev. 38.6bln YY), EPS 1.41 (Newswires)

SBB (SBBB SS) - Announces transition with Brookfield has received competition clearance to be completed by Q4. (Newswires)

BROKER MOVES

Wartsila (WRT1V FH) downgraded to Hold from Buy at SEB

US

CLOSES: SPX +0.65% at 4,193, NDX +0.52% at 14,409, DJIA +0.38% at 33,052, RUT +0.91% at 1,662.

SECTORS: Real Estate +2.03%, Financials +1.09%, Utilities +0.86%, Industrials +0.77%, Consumer Discretionary +0.71%, Health +0.63%, Technology +0.56%, Materials +0.45%, Consumer Staples +0.37%, Energy +0.22%, Communication Services +0.18%.

Advanced Micro Devices Inc (AMD) - Q3 2023 (USD): Adj. EPS 0.70 (exp. 0.68), Revenue 5.8bln (exp. 5.69bln) REVENUE BREAKDOWN: Data center 1.60bln (exp. 1.62bln). Gaming 1.51bln (exp. 1.53bln). Client 1.45bln (exp. 1.23bln). Embedded 1.24bln (exp. 1.31bln). GUIDANCE: Q4 revenue view 5.8-6.4bln (exp. 6.37bln). Q4 gross profit margin approx 51.5% (exp. 52.1%). COMMENTARY: In Q4, expect additional softening of demand in embedded markets. Expect to see strong growth in the data centre and continued momentum in clients. (Newswires) Shares -0.6% in after-hours trade

Paycom Software Inc (PAYC) - Q3 2023 (USD): Adj. EPS 1.77 (exp. 1.61), Revenue 406mln (exp. 411.18mln). Cuts FY Revenue view: Q4 revenue view 420-425mln (exp. 452.27mln). Q4 adj. EBITDA view 169-174mln (exp. 189.06mln). (Newswires)

01 Nov 2023 - 06:45- Research Sheet- Source: Newswires