Newsquawk Daily European Equity Opening News - 23rd March 2022

23rd March 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0300EDT recapping all of the overnight equity news.

From 0700GMT/0300EDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0315EDT.

There will be an additional audio rundown at 0750GMT/0350EDT recapping any company news which has hit the wires since 0715GMT/0215EDT 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

APAC stocks were positive as the regional bourses took impetus from Europe and the US where stocks gained despite the continued upside in yields and lack of fresh developments on the Ukrainian front. ASX 200 was led higher by tech and financials but with upside capped by weakness in miners. Nikkei 225 surged on ongoing currency weakness and reclaimed the 28,000 level. Hang Seng and Shanghai Comp. were underpinned as tech stocks gained including Xiaomi post-earnings and buyback announcement, while ZTE surged as much as 60% on a favourable court ruling.

ZTE (763 HK) shares jumped over 60% in Hong Kong on resumption of trade after it received an order from the court declining to revoke probation or impose any penalties on the Co.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +1.14% at 3,926; FTSE 100 +0.37% at 7,470; DAX +1.04% at 14,475; CAC 40 +1.17% at 6,659; IBEX 35 +1.10% at 8,482; FTSE MIB +0.87% at 26,796; SMI +0.43% at 12,224

SECTORS: Financial Services 2.01%, Consumer Goods 1.58%, Technology 1.49%, Utilities 0.87%, Basic Materials 0.69%, Industrials 0.44%, Telecoms 0.41%, Consumer Services 0.13%, Healthcare 0.08%, Energy -0.08%

FTSE 100

BP (BP/ LN) - On Friday, the Co. is expected to announce an additional GBP 1bln for new EV charging points within the UK, according to sources; part of a strategy UK MPs have been working on. Network, named Pulse, will also include some on-street charges. (FT)

Energy Names - UK Cabinet Minsters are reportedly divided over proposals to ease planning legislation within England to allow for the construction of more onshore wind farms, according to sources; Business Secretary Kwarteng wants to loosen rules while other members oppose this. (BBC)

Rio Tinto (RIO LN) - Macquarie analysts think Rio Tinto will need to raise its offer for Turquoise Hill, according to AFR Street Talk. (AFR)

UK stocks - Dividend taxes are set to rise by 1.25ppts next month and income investors face paying almost GBP 4bln more in tax over the next five years, according to The Telegraph. (Telegraph)

OTHER UK COMPANIES

Ultra Electronics (ULE LN) - UK government is reportedly moving closer to approving a takeover of Ultra Electronics by PE-owned Cobham, in a deal valued at GBP 2.6bln. (Times)

BROKER MOVES

Beazley (BEZ LN) downgraded to Hold from Buy at HSBC

BP (BP/ LN) upgraded to Overweight from Equal Weight at Morgan Stanley

Kingfisher (KGF LN) reiterated with Underweight at JPMorgan Chase

Reckitt Benckiser (RKT LN) downgraded to Underperform from Hold at Jefferies

Segro (SGRO LN) reiterated with Overweight at JPMorgan Chase

DAX

OTHER GERMAN COMPANIES

Morphosys (MOR GY) - MorphoSys and Incyte announce Swissmedic Temporary Approval of Minjuvi in combination with Lenalidomide for the treatment of adults with Relapsed or Refractory Diffuse Large B-Cell Lymphoma. (Morphosys) Shares seen opening +4.5%

BROKER MOVES

Lanxess (LXS GY) downgraded to Neutral from Buy at Goldman Sachs

CAC

Renault (RNO FP) - The French government is reportedly seeing backlash after allowing Renault to continue with its operations in Russia. (Telegraph)

Technip Energies (TE FP) - Co. has launched a 29.9mln share buyback programme. (Newswires)

TotalEnergies (TTE FP) - To stop purchasing Russian oil by end-2022 at the latest, will retain ownership of its minority stakes in two LNG plants as it does not see a way of securing a non-Russian purchaser for the stakes. (Total/FT)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Energy Names - BoE and ECB have been talking with energy trading firms on market strains but are unlikely to provide immediate support, according to FT sources. (FT)

Saipem (SPM IM) - Cornerstone investors and banks are set to agree on a rescue package for Italy's Saipem, according to Reuters sources. (Newswires)

Tech Names - EU will unveil legislation to address big tech with the Digital Markets Act expected to target online platforms with a market cap of at least EUR 75bln. (FT)

Telecom Italia (TIT IM) - CVC is said to be circling Co's Servco assets, according to sources. (Newswires)

Voestalpine (VOE AV) - Co. names Wolfgang Eder as chairman of supervisory board, effective April 1st. (Newswires)

BROKER MOVES

DiaSorin (DIA IM) upgrade to Hold from Underperform at Jefferies

Eni (ENI IM) downgraded to Equal Weight from Overweight at Morgan Stanley

FinecoBank (FBK IM) initiated with Overweight at JPMorgan Chase

SMI

Swiss Life (SLHN SW) - Co. is targeting FY24 fees between CHF 850-900mln. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Clariant (CLN SW) upgraded to Buy from Neutral at Goldman Sachs

SCANDINAVIA

Neste (NESTE FH) - Co. names Matti Lehmus as CEO effective May 1st. (Newswires)

BROKER MOVES

Ambu (AMBUB DC) upgraded to Hold from Sell at Carnegie

Outokumpu (OUT1V FH) downgraded to Equal Weight from Overweight at Morgan Stanley

US

CLOSES: SPX +1.13% at 4,512, NDX +1.94% at 14,654, DJIA +0.74% at 34,807, RUT +1.08% at 2,088.

SECTORS: Consumer Discretionary +2.45%, Communication Svs. +2.01%, Financials +1.6%, Technology +1.42%, Consumer Staples +0.65%, Industrials +0.53%, Materials +0.52%, Utilities +0.09%, Real Estate +0.05%, Health Care +0.02%, Energy -0.66%.

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

23 Mar 2022 - 06:51- EnergyResearch Sheet- Source: Newsquawk