Newsquawk Daily European Equity Opening News

21st August 2023

ASIA

Asia-Pac stocks traded mixed as the disappointment with the decision on PBoC’s Loan Prime Rates overshadowed China’s recent support efforts. ASX 200 (-0.2%) was lacklustre with price action contained amid a busy week of earnings and as weakness in financials and defensives offset the gains in energy and tech. Nikkei 225 (+0.6%) was underpinned after Japan announced to raise the minimum hourly wage by the most on record, although the index briefly wobbled in reaction to China’s benchmark rates before returning to session highs. Hang Seng (-1.2%) and Shanghai Comp. (-0.4%) were pressured as China’s recent support efforts, including the PBoC and financial regulators’ meeting with bank executives where they told lenders to boost loans to support an economic recovery, were nullified by a narrower-than-expected cut to the PBoC’s 1-year Loan Prime Rates which was reduced by 10bps (exp. 15bps cut) and the 5-year LPR was surprisingly kept unchanged at 4.20% (exp. 15bps cut).

EUROPEAN CLOSES

Bourses: DAX -0.65% at 15,574, FTSE 100 -0.65% at 7,262, CAC 40 -0.38% at 7,164, Euro Stoxx 50 -0.34% at 4,213, IBEX 35 -0.11% at 9,268, FTSE MIB -0.42% at 27,762, SMI -0.46% at 10,835.

Sectors: IT 0.43%, Utilities 0.38%, Telecoms 0.02%, Energy -0.13%, Consumer Stpl -0.15%, Industrials -0.60%, Financials -0.85%, Consumer Disc -0.98%, Materials -1.04%, Healthcare -1.11%

FTSE 100

Chip Names - UK Government is in talks with Nvidia (NVDA), Advanced Micro Devices (AMD) and Intel (INTC) about procuring equipment for AI research, and has allocated GBP 100mln to the project, according to The Telegraph. (The Telegraph)

Direct Line (DLG LN)/Aviva (AV LN) - Direct Line is considering hiring Adam Winslow, a senior executive from rival Aviva, as its new CEO, Sky News reports. The talks are ongoing, and it's uncertain if Winslow will take on the role. (Sky News)

Aviva (AV LN) - CEO says the Government should "definitely" consider bringing down lower-level apartment buildings within the scope of the cap, adding that the current 11m rules feels "slightly arbitrary", according to the FT. (FT)

Housing Names - Asking prices on Rightmove are falling at the fastest rate since 2018, with prices dropping 1.9% this month, according to The Times. (The Times)

Ocado (OCDO LN) - Karakuri, a robotics company, which was backed by Ocado has fallen into administration, according to The Telegraph. (The Telegraph)

Energy Names - Banks to snub a meeting held by the Treasury as the Oil & Gas sector struggles for financing, according to City AM; Treasury has invited major global banks to a meeting, though only a handful are expected to attend amid concerns over the UK's investment climate and ESG obligations. (City AM)

OTHER UK COMPANIES

Polymetal (POLY LN) - Co. is lining up buyers for its Russian assets, saying that while a discount on the assets would be "inevitable", it would not be "catastrophic", according to the FT citing CEO Nesis. (FT)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Covestro (1COV GY) - Appoints Baier as CFO, effective October 1 2023. (Newswires)

BROKER MOVES

CAC

BROKER MOVES

Kering (KER FP) initiated with Outperform at TD Cowen

PAN EUROPE

German Cos - German Deputy Chancellor Habeck has put forward proposals to toughen restrictions on foreign direct investment within critical sectors in Germany. (FT)

Italian Banks - Italy could partly reimburse banks for the new profit tax, according to Corriere. (Corriere)

Ryanair (RYA ID) - Airline baggage and add-on fees have helped to boost the Co's revenue by GBP 18bln, according to The Telegraph. (The Telegraph)

BROKER MOVES

Arcadis (ARCAD NA) initiated with Buy at Jefferies

Adyen (ADYEN NA) downgraded to Add from Buy at AlphaValue

Adyen (ADYEN NA) downgraded to Equal Weight from Overweight at Morgan Stanley

SMI

UBS (UBS SW) - Co-Head of Asia ECM Syndicate, Carlo Agostinelli, is leaving and is to be replaced by Kevin Cui, according to people familiar with the matter cited by Bloomberg. (Bloomberg)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Atlas Copco (ATCOA SS) - To acquire Australian dewatering pump maker Sykes. (Newswires)

SBB (SBBB SS) - CFO Stridh to resign. (Newswires)

Getinge (GETIB SS) - Datascope/Maquet/Getinge is recalling the Cardiosave Hybrid and Rescue Intra-aortic Balloon Pumps (IABPs) because they may shutdown unexpectedly due to failures in the printed circuit board assembly (PCBA) in the charging path. (Getinge)

BROKER MOVES

Demant (DEMANT DC) downgraded to Overweight from Neutral at JP Morgan

US

CLOSES: SPX -0.01% at 4,369, NDX -0.14% at 14,694, DJIA +0.07% at 34,500, RUT +0.51% at 1,859.

SECTORS: Energy +0.94%, Utilities +0.39%, Consumer Staples +0.37%, Real Estate +0.28%, Industrials +0.12%, Technology +0.11%, Health -0.01%, Materials -0.08%, Financials -0.13%, Consumer Discretionary -0.32%, Communication Services -0.98%.

Citi (C) - Is considering an overhaul that would hand more power to CEO Jane Fraser who is considering a plan to disband the bank's biggest division, according to FT. (FT)

21 Aug 2023 - 06:50- Research Sheet- Source: Newsquawk