Newsquawk Daily European Equity Opening News

27th October 2023

ASIA

APAC stocks eventually traded firmer across the board as the well-received earnings from Amazon and Intel pushed sentiment into the positive after the mostly lower close on Wall Street. ASX 200 supported by its Consumer Staples sector, while an uptick in M/M PPI had kept the Industrial Sector’s gains capped, and Tech had resided as the laggard. Nikkei 225 saw its gains driven by its Industrial sectors, potentially following the US GDP metrics, while the Pharma sector lagged as Takeda shares slumped over 7% following their earnings. Hang Seng and Shanghai Comp opened mixed with the former firmer as its earnings season picked up and as the Hang Seng Tech index rose over 2%. Sentiment for the Mainland was initially muted but improved, while reports via China’s Securities Journal suggested China was likely to reduce the reserve requirement ratio in Q4 to support government bond issuance.

EUROPEAN CLOSES

CLOSES: DAX -1.08% at 14,731.05, FTSE 100 -0.81% at 7,354.57, CAC 40 -0.37% at 6,889.48, Euro Stoxx 50 -0.59% at 4,049.15, IBEX 35 -0.24% at 8,962.80, FTSE MIB +0.29% at 27,507.90, SMI -0.34% at 10,366.00.

SECTORS: Materials 0.76%, IT 0.39%, Utilities 0.34%, Energy -0.07%, Financials -0.29%, Telecoms -0.40%, Consumer Stpl -0.45%, Industrials -0.66%, Healthcare -1.28%, Consumer Disc -1.67%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Covestro (1COV GY) - Q3 (EUR): Sales 3.6bln (exp. 3.7bln), EBITDA 277mln (exp. 282mln), Net -31mln (exp. 15mln). FY Guidance: EBITDA 1.1bln (exp. 1.16bln), FCF 0-0.2bln; FY guidance narrowed at lower-end of ranges. (Newswires)

OTHER GERMAN COMPANIES

Fuchs Petrolub (FPE GY) – 9M (EUR): Revenue 2.70bln (prev. 2.54bln Y/Y). EBIT 313mmln (prev. 280mln Y/Y). (Newswires)

BROKER MOVES

CAC

Safran (SAF FP) - Q3 (EUR): Revenue 5.8bln (exp. 5.74bln). FY Outlook confirmed: Leap engine deliveries 40-45% increase (prev. guided ~50%). (Newswires)

Sanofi (SAN FP) - Q3 (EUR): Revenue 11.96bln (exp. 12.1bln), Net Income 2.5bln (exp. 3.2bln), Operating 4bln, EPS 2.01 (exp. 2.58). FY23 business EPS guidance reiterated. Looking into the separate listing of its Consumer Healthcare business from Q4-2024, most likely path is via a "... capital markets transaction, by creating a listed entity headquartered in France,". Additionally, to bolster drug development in the core business. (Newswires/Sanofi)

Vinci (DG FP) - Q3 (EUR): Revenue 18.3bln (exp. 18.2bln). Co. upgrades FCF guidance to 4.5bln (prev. 4.0-4.5bln). Affirms FY23 revenue and operating income to further increase. (Newswires)

OTHER FRENCH COMPANIES

Air France (AIR FP) - Q3 (EUR): Revenue 8.7bln (exp. 8.8bln), Net Income 0.9bln (exp. 0.95bln), Operating Income 1.38bln (exp. 1.14bln). FY23 guidance unchanged. (Newswires)

Amundi (AMUN FP) - Q3 (EUR): Revenue 780mln (exp. 793mln), Operating Income 356mln, +3.6% Y/Y; AUM 1.9bln, +4.1% Y/Y. (Newswires)

Groupe SEB (SK FP) - Revenue 5.5bln (prev. 5.6bln Y/Y). Co. affirms its FY23 mid-single LFL revenue growth. FY mid-single LFL revenue growth. (Newswires)

Remy Cointreau (RCO FP) - H1 (EUR): Sales 636mln (prev. 867mln). FY23/24 guidance: Sales -15% to -20% (prev. guided stable), COP margin decrease (prev. guided stable) due to cost cuts. (Newswires)

Sopra Steria (SOP FP) - Q3 (EUR): Revenue 1.35bln, Organic Growth 4.0%. (Newswires)

Ubisoft (UBI FP) - H1 2023 (EUR): Sales 836mln (prev. 731.2mln Y/Y), Net bookings 822.4mln (prev. 699.4mln), Operating income 16.1mln (prev. loss 215.3mln), Net income -34.3mln. (Newswires)

BROKER MOVES

PAN EUROPE

Auto Names - Ford (F) shares fell 3.4% post earnings. CEO said EVs still in high demand; pricing is much lower and there's overcapacity. Meanwhile, Tesla (TSLA) increased the price of Model Y high-performance version in China by CNY 14k and increases US price by around 1%. (Newswires)

Caixabank (CBK SM) - Q3 (EUR): NII 2.7bln (exp. 2.5bln), Net Income 1.5bln (exp. 1.38bln), CET1 12.5% (exp. 12.14%). FY23 guidance: NII at/above/equal to EUR 10bln and targeting it being stable Y/Y. (Newswires)

Eni (ENI IM) - Q3 (EUR): adj. Net 1.8bln (exp. 1.6bln), Operating 3bln (exp. 2.9bln). FY23 guidance: hydrocarbons narrowed to 1.64-1.66mln BOEPD (prev. guided 1.63-1.67). (Newswires)

Moncler (MONC IM) - Q3 2023 (EUR): Revenue 670mln (exp. 672mln). Executive said slow down in the second half of September and continued in the first half of October. (Newswires)

Proximus (PROXB BB) - Q3 (EUR): Revenue 1.53bln (exp. 1.55bln), Net 79mln (exp. 107mln), EBITDA 458mln (exp. 447mln). Interim dividend of 0.50/shr approved. Raising FY23 domestic revenue guidance and EBITDA for both domestic and group metrics, moderating international direct margin growth forecasts. (Newswires)

Signify (LIGHT NA) – Q3 (EUR): Revenue 1.65bln (exp. 1.70bln). Net 83mln (prev. 112mln Y/Y). Affirms FY23 adj. EBITDA margin and raises mid-point FCF margin. (Newswires)

Universal Music Group (UMG NA) - Q3 (EUR): Revenue 2.75bln (exp. 2.7bln). adj. EBTIDA 478mln (exp. 485mln). Adj. EBITDA margin 21.1% (prev. 20.8%). Streaming revenue +5% Y/Y. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Q3 (CHF): Revenue 7.34bln (exp. 7.33bln), Net 7.3BLN, +4.3%. Upgrading FY guidance for recurring EBIT margin to >17%. (Newswires)

Roche (ROG SW) – US FDA approves Roche’s Vabysmo for the treatment of retinal vein occlusion (RVO). (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Aker BP (AKRBP NO) - Q3 (EUR): Revenue 3.5bln (exp. 3.5bln), EBITDA 3.2bln (exp. 3.1bln), EBIT 2.6bln (exp. 2.8bln). (Newswires)

Danske Bank (DANSKEB DC) - Q3 (DKK): Net Profit 5.3bln (exp. 5.02bln), NII 9.3bln (exp. 9.1bln), Loan Losses 322mln (exp. 383mln). FY23 guidance: narrowed, now expects net profit of 19.5-20.5bln (exp. 19.9bln). (Newswires)

Elis (ELIS FP) - Q3 (EUR): Revenue 1.12bln (exp. 1.13bln). Affirms FY23 organic revenue, EPS, and Net guidance guidance. Organic Revenue +9.5% Y/Y. (Newswires)

Electrolux (ELUXB SS) - Q3 (SEK): Sales 2.75bln (exp. 2.93bln), EBITA 290mln (exp. 331mln), EBITA margin 10.5% (exp. 11.3%). (Newswires)

Equinor (EQNR NO) Q3 (USD): Adj. Net 2.73bln (exp. 2.45bln). Organic Capex guidance unchanged. Co. cuts 2023 production growth guidance to ~1.5% vs 2022 (prev. 3%); due to maintenance. To continue the extraordinary cash dividend of 0.60/shr for Q3. Initiating the fourth and final tranche of the buyback for 2023 of USD 1.67bln. (Newswires)

Fuchs Petrolub (FPE GY) – 9M (EUR): Revenue 2.70bln (prev. 2.54bln Y/Y). EBIT 313mmln (prev. 280mln Y/Y). (Newswires)

Sweco (SWECB SS) - Q3 (SEK): Revenue 6.4bln (exp. 6.3bln)m EBITA 465mln (exp. 432mln). Market situation remains challenging in parts of the UK, note negative growth and EBITA in Q3. (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.18% at 4,137, NDX -1.89% at 14,110, DJI -0.76% at 32,784, RUT +0.34% at 1,657.

SECTORS: Communication Services -2.58%, Technology -2.17%, Consumer Discretionary -1.56%, Health -0.98%, Energy -0.8%, Consumer Staples -0.63%, Industrials -0.44%, Financials -0.22%, Materials +0.72%, Utilities +0.86%, Real Estate +2.15%.

Amazon.com Inc (AMZN) Q3 2023 (USD): EPS 0.94 (exp. 0.58), Revenue 143.1bln (exp. 141.41bln). Q4 23 net sales view 160-167bln (exp. 167bln). Q3 23 Operating income USD 11.19bln (exp. 7.71bln). Online stores net sales USD 57.27bln (exp. 56.82bln). Physical Stores net sales 4.96bln (exp. 4.99bln). Third-Party Seller Services net sales 34.34bln (exp. 33.4bln). Subscription Services net sales 10.17bln (exp. 10.13bln). AWS net sales USD 23.06bln (exp. 23.13bln). North America net sales USD 87.89bln (exp. 87.12bln). International net sales USD 32.14bln (exp. 32.08bln). Operating margin 7.8% (exp. 5.46%). Co. said it is seeing the pace and volume of closed AWS deals pick up. CFO says co. still sees customers being cautious on price, is using AI to show more relevant ads to shoppers. Lower inflation helped it with regard to certain shipping rates. Cost optimisation work in cloud is starting to slow down. (Newswires) Shares rose 5.3% after market.

Ford Motor Co (F) - Q3 2023 (USD): EPS 0.39 (exp. 0.45), Revenue 43.8 (exp. 41.22bln). Withdraws FY guidance with ratification of tentative US labor agreement. Many North American customers interested in buying EVs are unwilling to pay premiums for them over gas/hybrid vehicles, sharply compressing EV prices, profitability. Q3 Ford blue Revenue 25.6bln (exp. 23.76bln). CEO said EVs still in high demand; pricing is much lower and there's overcapacity. Affordability for consumers is an issue. "Demand has been more resilient than we thought this year." (Newswires)

Intel Corp (INTC) Q3 2023 (USD): EPS 0.41 (exp. 0.22), Revenue 14.2bln (exp. 13.53bln); Datacenter & AI revenue 3.8bln (exp. 3.94bln); Guides Q4 revenue between 14.6-15.6bln (exp. 14.35bln); Q4 EPS Non-GAAP 0.44 (exp. 0.32). CEO said, "We see signs of normalization in the server market as we enter Q4". (Newswires) Shares rose 7.7% after market.

GM (GM) -UAW made a new proposal to General Motors (GM) as the sides bargain to end the strike, according to Bloomberg. GM is said to prepare a counteroffer on Thursday or Friday. Unions offer is similar to the tentative deal reached by Ford (F). (Newswires)

Southwest Airlines (LUV) - Co. continues to be 50% hedged on fuel in 2023; demand continues to be healthy; consumer spending trends still favour services, particularly travel experiences - earnings call. (Newswires)

Tesla (TSLA) - Increased the price of Model Y high-performance version in China by CNY 14k and increases US price by around 1%. (Newswires)

27 Oct 2023 - 06:50- Research Sheet- Source: Newsquawk

EURF.USTSLA.USFPE.GYFTSE 100 IndexFUnited StatesIntel CorpStaples IncUSD/SEKDAX 40 IndexAI FPGMTSLAUSDINTC.USLUV.USSWECB.SSMONC.IMENI.IMAMZN.USELUXB.SSSAF.FPSAN.FPDG.FPAIR.FPSK.FPRCO.FPSOP.FPUBI.FPGM.USFranceChinaInflationPPIGross Domestic ProductIT1COVGermanySafran SASAFSanofiSANCapital MarketsVinci SADGAIRSEB SARemy Cointreau SASopra Group SACBKEni SpAUMGHOLNROGFDAS&P 500 IndexNASDAQ 100 IndexAmazon.com IncAMZNFord Motor CoINTCGeneral Motors CoSouthwest Airlines CoLUVCNYUnited KingdomAsian SessionHighlightedResearch SheetEU SessionCOPNorth AmericaDKKCHFEuropeAsia

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