Newsquawk Daily European Equity Opening News - 22nd February 2022

22nd February 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0200EST recapping all of the overnight equity news.

From 0700GMT/0200EST all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0215EST.

There will be an additional audio rundown at 0750GMT/0250EST recapping any company news which has hit the wires since 0715GMT/0215EST ahead of the European equity open

European equity coverage will only cover companies in the STOXX 600 or companies of systemic importance to particular sectors.

ASIA

Asian equity markets were pressured as focus remained on geopolitics after Russian President Putin announced to recognise Luhansk People’s Republic and Donetsk People’s Republic as independent states and ordered a ‘peacekeeping’ operation in the two breakaway regions. This spurred plenty of condemnation from the west with US President Biden signing an executive order on stopping US economic activity for the two regions recognised as independent by Russia and the US is to also unveil new sanctions on Russia on Tuesday which it will coordinate with allies. ASX 200 (-1.0%) declined as the geopolitical concerns sunk most sectors although energy and gold miners bucked the trend after oil prices advanced on the geopolitical risk premium and with the precious metal underpinned by haven demand, while Consumer Staples also benefitted from gains in supermarket operator Coles shares which were boosted post-earnings. Nikkei 225 (-1.7%) suffered with recent detrimental currency flows adding to the headwinds for the index, while Hang Seng (-3.2%) and Shanghai Comp. (-1.3%) conformed to the glum mood despite the PBoC increasing its liquidity efforts and Chinese press noting expectations for a further reduction in RRR and interest rates. Furthermore, Hong Kong underperformed due to significant weakness in the tech sector with Alibaba shares hit after China told banks and state firms to report their exposure to affiliate Ant and with Tencent also subdued by recent concerns of a crackdown, while Rusal shares dropped nearly 20% on geopolitical tensions and looming Russian sanctions.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -2.2%, FTSE 100 -0.4%, DAX 40 -2.1%, CAC 40 2.0%, FTSE MIB -1.7%, IBEX 35 -1.2%, SMI -1.1%

SECTORS: Basic Materials -0.25%, Healthcare -0.32%, Energy -0.55%, Consumer Services -0.77%, Telecoms -1.24%, Consumer Goods -1.26%, Financial Services -1.35%, Utilities -1.60%, Industrials -1.81%, Tech -2.61%

FTSE 100

HSBC (HSBA LN) - FY21 (USD): adj. Revenue 50.09bln (exp. 50.11bln). adj. Pretax 21.92bln (exp. 22.03bln). CET1 ratio 15.8% (exp. 15.5%). Co. plans a USD 1bln share buyback programme. Co. proposes a dividend of 0.18/shr. (Newswires)

Glencore (GLEN LN) - Co. commenced a previously announced buyback of EUR 550mln shares. (Newswires)

OTHER UK COMPANIES

Rosneft Oil Company (ROSN LN)/Oil Names/ Defence Names- UK sanctions on Russia will include the defence industry, oil and gas companies, banks, financial institutions and chemical companies. (Sky News Arabia) UK will announce Russia sanctions today. (Guardian)

BROKER MOVES

NatWest (NWG LN) upgraded to Outperform from Neutral at Exane BNP

Severn Trent (SVT LN) downgraded to Underperform from Hold at Jefferies

United Utilities (UU/ LN) downgraded to Hold from Buy at Jefferies

DAX

Fresenius SE (FRE GY) - Q4 (EUR): Revenue 9.97bln (exp. 9.84bln), EBIT 1.17bln (exp. 1.09bln), Net Income 521mln (exp. 472mln). Expects further earnings growth in 2022, despite ongoing COVID effects and cost inflation impact. (Fresenius SE)

Fresenius Medical Care (FME GY) - Q4 (EUR): Revenue 4.65bln (exp. 4.60bln), Operating Income 449mln (exp. 435mln), Net Income 229mln (exp. 252mln), EPS 0.78/shr (exp. 0.87/shr). Confirms mid-term targets; business development was significantly impacted by COVID in 2021, expect this to continue into 2022. Proposes a 1.35/shr dividend (exp. 1.19/shr). (Fresenius Medical Care)

OTHER GERMAN COMPANIES

Telefonica Deutschland (O2D GY) - Co. has extended the CEO's contract with Markus Haas for an additional three years. (Newswires)

Thyssenkrupp (TKA GY) - The IPO of the Co's hydrogen unit Nucera is facing headwinds as the valuation is hit amid a steep decline in hydrogen shares, according to investors and financials sources cited by Reuters.

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

Edenred (EDEN FP) - FY21 (EUR): Revenue 1.6bln (exp. 1.6bln), EBITDA 670mln (exp. 658mln), Net Profit 313mln (exp. 320mln). Propose FY21 dividend of 0.90/shr (exp. 0.82/shr). To renew Dumazy’s position as Director and appoint him as Chairman and CEO from May 11th. (Edenred)

Eurofins Scientific (ERF FP) - FY21 (EUR): Revenue 6.7bln (exp. 6.56bln), Net Profit 783mln, +45%, adj. EBITDA 1.9bln (exp. 1.85bln). Upgrades mid-term annual growth objective; FY22 revenue 6.23bln (exp. 6.25bln). (Newswires)

BROKER MOVES

PAN EUROPE

BPER (BPER IM)/ NEXI (NEXI IM) - Nexi is said to be in advanced discussions to buy BPER's payment unit for around EUR 350mln, according to reports. (Newswires)

Enagas (ENG SM) - Board approved the appointment of Arturo Aizpiri as CEO. (Newswires)

BROKER MOVES

Voestalpine (VOW AV) upgraded to Outperform from Neutral at Credit Suisse

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Norsk Hydro (NHY NO) - Q4 2021 (NOK): Revenue 46.4bln (exp. 42.0bln), underlying EBIT 7.0bln (exp. 7.5bln), underlying EBITDA 9.0bln (exp. 9.3bln). Higher all-in metal and alumina prices and improved upstream volume alongside record Hydro Energy results added to the adj. EBITDA figure. To propose an ordinary dividend of 3.40/shr for FY21 and an extraordinary one of 2.0/shr. (Norsk Hydro)

BROKER MOVES

Orsted (ORSTED DC) upgraded to Overweight from Underweight at Barclays

SSAB (SSABA SS) downgraded to Neutral from Outperform at Credit Suisse

US (CLOSED ON MONDAY)

22 Feb 2022 - 06:50- EnergyGeopolitical- Source: Newsquawk