Newsquawk Daily European Equity Opening News

23rd 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 stocks traded positive but with upside capped after the S&P 500 closed in correction territory for the first time in around two years and as the region reflects on the sanctions response to Russia's actions on Ukraine which targeted individuals and banks although the largest Russian banks Sberbank and VTB Bank avoided sanctions. ASX 200 (+0.6%) was led higher by outperformance in tech and with focus also on a slew or earnings results, although gains were limited by disappointing data that showed a surprise contraction in Construction Work done which feeds into next week’s GDP release. Japanese markets remained closed for the Emperor’s Birthday holiday and the KOSPI (+0.4%) traded in the green but off its highs after South Korea’s daily COVID-19 cases surpassed 150k for the first time on Tuesday. Hang Seng (+0.5%) and Shanghai Comp. (+0.7%) rebounded from the prior day’s losses after the PBoC boosted its liquidity efforts heading into month-end and with tech stocks finding reprieve from yesterday’s crackdown fears, while Hong Kong's budget included counter-cyclical measures of over HKD 170bln and HKD 54bln of anti-epidemic measures. Furthermore, certain Chinese banks were said to be planning to issue a total of CNY 20bln in bonds with the proceeds expected to be used for property M&A and Rusal shares also found some relief due to the somewhat restrained nature of Russian sanctions so far.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.01%, FTSE 100 +0.13%, DAX 40 -0.26%, CAC 40 -0.01%, FTSE MIB -0.02%, IBEX 35 +0.05%, SMI +0.57%.

SECTORS: Technology 0.85%, Basic Materials 0.27%, Telecoms 0.27%, Healthcare 0.26%, Industrials 0.21%, Energy -0.07%, Utilities -0.14%, Financial Services -0.28%, Consumer Goods -0.44%, Consumer Services -1.10%.

FTSE 100

HSBC (HSBA LN) - Co. is to close Hong Kong retail branches on Saturdays from March 5th. (Newswires)

Rio Tinto (RIO LN) - FY21 (USD): Net Income 21.09bln (exp. 21.7bln), EBITDA 37.7bln (exp. 37.4bln), EPS 13.21 (exp. 13.39), Total Dividend 10.40/shr (exp. 10.24/shr); a dividend which includes a 2.47/shr special dividend. Production guidance is unchanged from the Q4 update. Brining forward the 15% reduction in emissions goal to 2025 (prev. 2030). US sanctions on Russia could result in disruptions to the aluminium industry. (Rio Tinto)

OTHER UK COMPANIES

BROKER MOVES

Coca-Cola HBC (CCH LN) reiterated with Overweight at JPMorgan Chase

Glencore (GLEN LN) upgraded to Outperform from Market Perform at BMO Capital

DAX

Henkel (HEN3 GY) - FY21 (EUR): Revenue 20.1bln (exp. 20.04bln), EPS 4.56 (exp. 4.55), Dividend 1.85/shr (exp. 1.85/shr), Operating Profit 2.7bln (exp. 1.9bln); adj. for one-time expenses and income, and for restructuring. (Henkel)

OTHER GERMAN COMPANIES

flatexDEGIRO (FTK GY) - The online broker is said to be drawing interest from PE firms, according to Bloomberg sources. (Newswires)

Telefonica Deutschland (O2D GY) - Q4 (EUR): Revenue 2.055bln (exp. 2.06bln), OIBDA 624mln, + 2.3%; upgraded sales guidance and expectations for adj. OIBDA were fulfilled at the upper-end of the range. (Newswires)

Uniper (UN01 GY) - FY21 (EUR): adj. Net Income 906mln (prev. 774mln), adj. EBIT 1.2bln (exp. 1.19bln), dividend 0.07/shr. Confirms there is a default risk for receivable from Nord Stream 2 in the scenario that the project cannot be completed successfully, financing for the pipeline is one of the main sources of potential US sanctions risk; currently reviewing impact of the suspension on operations/financial position. (Newswires)

BROKER MOVES

E.ON (EOAN GY) downgraded to Neutral from Overweight at JPMorgan Chase

Fraport (FRA GY) downgraded to Hold from Buy at HSBC

CAC

LVMH (MC FP) - LVMH has reportedly held exploratory discussions with Ralph Lauren (RL) over the past couple of years about a possible acquisition, according to Axios sources. (Axios)

OTHER FRENCH COMPANIES

AB Science (AB FP) - AB Science announced the publication of the masitinib positive pivotal Phase 3 trial in progressive forms of multiple sclerosis in the journal Neurology Neuroimmunology & Neuroinflammation. (GlobeNewswire)

Remy Cointreau (RCO FP) - Leonardo DiCaprio has acquired a equity stake in Telmont. (Newswires)

Thales (HO FP) - Collaborating with Lantronix and Taoglas for 5G IoT solutions. (Newswires)

BROKER MOVES

Airbus (AIR FP) reiterated with Overweight at JPMorgan Chase

Endenred (EDEN FP) reiterated with Overweight at JPMorgan Chase

PAN EUROPE

Ageas (AGS BB) - FY21 (EUR): Net Income 845mln (exp. 837mln), EPS 4.52 (exp. 4.46), propose a dividend of 2.75/shr (exp. 2.74/shr). (Newswires)

ASM International (ASM NA) - Q4 2021 (EUR): Revenue 491.3mln (prev. 346.6mln Y/Y). Operating profit 131.3mln (prev. 77.5mln). Net 134.9mln (prev. 79.1mln). New orders 644.9mln (prev. 378.7mln). Co. said supply chain conditions are expected to remain tight in H1. (Newswires)

CNH Industrial (CNHI IM) - Three-year outlook: Net sales of Industrial Activities projected to grow to USD 20-22bln by 2024 with CAGR of ~6%. Adjusted 2024 EBIT Margin of Industrial Activities of ~12% to 13%, more than 200bps increase from 2021. Agriculture EBIT Margin to reach 14.5% to 15.5% by 2024. Adjusted EPS of above USD 1.70 by 2024. ROIC of Industrial Activities projected to achieve ~19%, with a 3% growth during the plan period. (CNH Industrial)

Endesa (ELE SM) - FY21 (EUR): EBITDA 4.28bln (exp. 4.0bln). Net 1.44bln (exp. 1.75bln). Revenue 20.9bln (prev. 17.1bln Y/Y). (Newswires)

Solvay (SOLB BB) - Q4 (EUR): Revenue 2.7bln (exp. 2.61bln), EBITDA 572mln (exp. 532mln). Total FY21 proposed dividend of 3.85/shr (exp. 3.83/shr). FY22 guidance: pricing actions in the period are expected to accelerate, FY EBITDA expected to grow organically in the mid-single digits. (Solvay)

Telecom Italia (TIT IM) - Co. is reportedly mulling the sale of its tower unit stake which could fetch around EUR 1.4bln, according to sources; said to be in negotiations with Ardian. Additionally, Co. considers scrapping dividends on ordinary shares, evaluating new extraordinary provisions and an adjustment to the value of assets. Separately, Co. is expected to come to a decision on the KKR takeover proposal in mid-March, unions are concerned about the impact of a potential break-up and strike action is planned for Wednesday. (La Repubblica/Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - FDA has awarded Roche's Genentech Orphan Drug Designation for pralsetinib in the treatment of certain types of solid tumours. Separately, expands COVID PCR tests portfolio to the Cobas 5800 system in areas which accept the CE mark. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Jyske Bank (JYSKE DC) upgraded to Hold from Sell at SEB

US

CLOSES: SPX -1.02% at 4,304, NDX -0.99% at 13,871, DJIA -1.42% at 33,597, RUT -1.45% at 1,980.

SECTORS: Consumer Discretionary -3.04%, Energy -1.53%, Materials -1.38%, Communication Svs -0.98%, Industrials -0.92%, Technology -0.8*%, Consumer Staples -0

23 Feb 2022 - 06:50- Geopolitical- Source: Newsquawk