Newsquawk Daily European Equity Opening News

28th July 2022

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

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

There will be an additional audio rundown at 0750BST/0350EDT recapping any company news which has hit the wires since 0715BST/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 eventually traded higher across the board following the firm lead from Wall Street. ASX 200 saw firm gains across its Tech, Gold, and Mining sectors. Nikkei 225 gained in early trade and briefly topped the 28k mark before recoiling as the JPY saw a sudden bout of strength. KOSPI benefited from Samsung Electronics' rise post-earnings, although the firm echoed recent remarks from SK Hynix regarding weaker H2 memory demand. Hang Seng moved on either side of breakeven but later saw an upside bias as Hong Kong Finance Secretary said Hong Kong's H2 economic performance will be better than H1. Shanghai Comp eventually gained despite the recent cautious commentary from Chinese President Xi.

Samsung Electronics (005930 KS) - Q2 2022 (KRW): Revenue 772tln (Co. exp. 77tln); operating profit 14.1tln (exp. 14tln). Net profit 11.1tln (exp. 10.3tln); Chip operating profit 9.98tln (exp. 11.08tln); expects weaker H2 phone/PC memory chip demand. (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.91% at 3,607; FTSE 100 +0.57% at 7,348; DAX +0.53% at 13,166; CAC 40 +0.75% at 6,257; IBEX 35 +0.68% at 8,124; FTSE MIB +1.52% at 21,480; SMI -0.41% at 11,056.

SECTORS: IT 1.56%, Consumer Stpl 0.62%, Energy 0.53%, Materials 0.44%, Industrials 0.29%, Consumer Disc 0.21%, Financials 0.19%, Utilities 0.03%, Healthcare -0.25%, Telecoms -0.26%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

HeidelbergCement (HEI GY) - Q2 2022 (EUR): Revenue 5.5bln (5.3bln), Current Operation Result 817mln, -5.2% YY. In view of the unprecedented increases in energy prices in recent weeks, H2 remains challenging. (Newswires)

Volkswagen (VOW3 GY) - Q2 2022 (EUR): Revenue 69.5bln (exp. 65.06bln), Operating Result 4.5bln (exp. 4.5bln), Aftertax result 3.94bln, -22%. Confirms FY22 forecasts, expects a good H2. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - H1 2022 (EUR): Revenue 24.8bln (exp. 25.94bln); Adj. EBIT 2.65bln (exp. 2.55bln); EPS 2.42; 2022 guidance maintained for adj. EBIT and FCF. Adj. FCF 1.96bln (exp. 839.4mln). Net income 1.9bln (exp. 2.04bln). Cuts FY22 commercial aircraft deliveries to 700 (prev. 720). Pushes back A320 ramp up to rate 65 to early 2024. Airbus (AIR FP) CFO says order interest is increasing in wide-body jets and they are actively studying scenarios for higher wide-body output. (Newswires)

Air Liquide (AI FP) - H1 2022 (EUR): Revenue 14.2bln (exp. 14.2bln), Operating Income 2.29bln, +17%; Net Profit 1.31bln (exp. 1.46bln). Confident in ability to further increase operating margin and deliver net profit growth, assuming no significant economic disruption. (Newswires)

Carrefour (CA FP) - H1 2022 (EUR): Sales 43.4bln; Adj. net income group share 325mln; raises cost savings objective to 1bln for 2022 (prev. 900mln). (Newswires)

EDF (EDF FP) - H1 2022 (EUR): Revenue 66.3bln (exp. 41.6bln), EBITDA 2.7bln (prev. 10.6bln), Net Group Share -5.29bln (prev. 4.17bln). Confirms that domestic nuclear production should be between 280-300TWH. (Newswires)

Ipsen (IPN FP) - H1 2022 (EUR): Sales 1.43bln (exp. 1.46bln), Operating Income 568mln (exp. 487mln), Net Profit 420mln (exp. 374mln). Upgrades FY22 guidance: total sales growth to above 7% (prev. above 2%), Core Operating Margin above 26% (prev. above 35%). (Newswires)

Kering (KER FP) - H1 2022 (EUR): Revenue of 9.93bln (vs 8.05bln Y/Y); net 1.99bln (vs 1.48bln Y/Y); FCF totalled 2.05bln in H1. Increased prices at the Gucci brand in February and in June; CFO says it is in wait and see mode regarding H2 possible price hikes. says luxury house sales in mainland China fell by 30-35% in Q2. Retail sales fell by 15% in APAC excluding Japan. (Newswires)

Safran (SAF FP) - H1 2022 (EUR): Revenue 8.56bln (exp. 8.4bln), adj. Net Income 536mln (exp. 606mln), Operating Income 1.05bln, +59%. FY22 guidance: Revenue 18.2-18.4bln (exp. 18.2bln). CEO sees supply chain problems lasting into 2023, possibly to end-2023. (Newswires)

Sanofi (SAN FP) - Q2 2022 (EUR): Sales 10.12bln (exp. 9.75bln), Net Income 2.17bln (exp. 2.1bln). Dupixent sales 1.96bln, +43%. FY22 EPS revised up to 15% growth. (Newswires)

St Gobain (SGO FP) - H1 2022 (EUR): revenue +15.1%, Operating income 2.791bln, +17%; with record margin of 11%. Reports record net income from recurring operations +20.5% to EUR 1.814bln; robust FCF EUR 1.686bln with conversion rate of 51%. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

AB InBev (ABI BB) - Q2 2022 (EUR): Revenue 14.7bln (exp. 14.6bln), EBITDA 5.09bln (exp. 5.02bln), EBIT 3.8bln (exp. 3.67bln). FY22 outlook: expect EBITDA to grow in-line with medium-term outlook of between 4-8% revenue and for revenue to grow ahead of EBITDA. (Newswires)

Moncler SpA (MONC) - H1 2022 (EUR): EBIT 180.2mln (exp. 152mln); total sales 918.4mln (exp. 894mln); net 211.3mln (vs 58.7mln in H1). Has not seen a negative reaction from consumers to price increases. Sales in China grew double digit in June when all stores reopened. (Newswires)

Poste Italiane (PST IM) - Q2 2022 (EUR): Revenue 2.9bln (exp. 2.85bln), EBIT 698mln (exp. 606mln), NII 436mln, +21% (Newswires)

Sabadell (SAB SM) - Q2 2022 (EUR): NII 899mln (exp. 872mln), Net Profit 179mln (exp. 125mln). End-June CET1 12.48% (exp. 12.45%). (Newswires)

Santander (SAN SM) - Q2 2022 (EUR): NII 9.55bln (exp. 9.3bln), Net 2.35bln (exp. 2.27bln). (Newswires)

STMicroelectronics (STM FP) - Q2 2022 (USD): Revenue 3.8bln (exp. 3.7bln), Net Income 867mln (prev. 412mln), Operating Income 1.0bln (exp. 0.9bln). Q3 guidance: Revenue 4.2bln (exp. 3.9bln). (Newswires)

UCB (UCB BB) - H1 2022 (EUR): Revenue 2.93bln (exp. 2.6bln), adj. EBITDA 814mln (exp. 730mln). Maintains FY22 and FY25 guidance. (Newswires)

BROKER MOVES

SMI

Nestle (NESN SW) - H1 2022 (CHF): Revenue 45.6bln (exp. 45.1bln), Net Profit 5.2bln (exp. 5.8bln). Expects FY22 organic sales growth of 7-8% and underlying trading operating profit margin of circa. 17%. Ukraine war could further affect production/consumer demand or lead to additional impairment charges/asset losses. (Newswires)

OTHER SWISS COMPANIES

Bucher (BUCN SW) - H1 2022 (CHF): Net Sales 1.78bln (exp. 1.6bln). Expects higher sales and a somewhat lower double-digit % operating profit margin for FY22 YY. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Volvo (VOLVB SS) downgraded to Hold from Buy at HSBC

US

CLOSES: SPX +2.54% at 4,020, NDX +4.26% at 12,601, DJIA +1.37% at 32,197, RUT +2.06% at 1,842.

SECTORS: Communication Services +5.11%, Technology +4.29%, Consumer Discretionary +3.85%, Energy +2.2%, Industrials +1.58%, Financials +1.54%, Materials +1.25%, Consumer Staples +0.78%, Health +0.65%, Real Estate +0.54%, Utilities +0.11%.

Ford Motor Co (F) - Q2 2022 (USD): EPS 0.68 (exp. 0.45), Revenue 40.2bln (exp. 34.32bln). Raises quarterly dividend and reiterates guidance

Meta Platforms Inc (META) Q2 2022 (USD): EPS 2.46 (exp. 2.59), Revenue 28.82bln (exp. 28.95bln), Advertising revenue 28.15bln (exp. 28.53bln). Outlook reflects continuation of weak advertising demand environment it experienced throughout Q2. Guidance assumes FX will be about about 6% headwind to Y/Y total revenue growth in Q3. Co. said the economic downturn will have a broad impact on digital advertising business, says the situation seems worse than it did a quarter ago. Shares fell 4.6% after-market

Qualcomm Inc (QCOM) - Q3 2022 (USD): EPS 2.96 (exp. 2.87/2.52 GAAP), Revenue 10.94bln (exp. 10.87bln). (Newswires)

28 Jul 2022 - 06:46- Research Sheet- Source: Newsquawk