Newsquawk Daily European Equity Opening News - 28th April 2021

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

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

There will be an additional audio rundown at 0750BST/0250EDT 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

Asian equity markets traded tentatively following the flat performance of US peers as caution lingered ahead of the FOMC and amid a deluge of earnings. ASX 200 (+0.4%) and Nikkei 225 (+0.4%) were kept afloat owing to their softer currencies although the upside was contained by weakness in Australia’s miners following a pullback in commodity prices and with the tech sector hindered after weakness in US peers, as well as the mixed fortunes of industry heavyweights post-earnings in which Microsoft declined and Google shares surged after-hours despite both beating on top and bottom lines. Meanwhile, stronger than expected Japanese retail sales and earnings releases have supported the risk appetite in Tokyo with Fuji Electric and Osaka Gas among the biggest gainers after both reported a jump in FY net. Hang Seng (+0.3%) and Shanghai Comp. (Unch.) were choppy as focus also centred on corporate results with Chinese participants bracing for an influx of releases that involve over a thousand earnings updates set for today.

SK Hynix (000660 KS) - Q1 net KRW 993bln vs exp. KRW 1.1tln, rev. KRW 8.5tln vs exp. KRW 8.3tln. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.22% AT 4,011; FTSE 100 -0.26% AT 6,944; DAX -0.31% AT 15,249; CAC 40 -0.03% AT 6,273; IBEX 35 +0.63% AT 8,756; FTSE MIB -0.17% AT 24,473; SMI -0.63% AT 11,092

SECTORS: Financials +0.44%, Industrials +0.27%, Consumer Disc +0.22%, Telecoms -0.04%, Consumer Stpl -0.33%, Utilities -0.36%, Materials -0.41%, Energy -0.42%, Healthcare -0.42%, IT -0.45%

FTSE 100

Auto Names – The UK Government has announced that as early as year-end ‘self-driving’ vehicles could be allowed on UK roads, in the form of automated lane-keeping systems; when the system is active, drivers will not need to monitor the road or hold the wheel but must be able to take control within a 10-second window. (BBC)

Insurance Names – 26 names including Aviva (AV/ LN) and Allianz (ALV GY) have signed up to a flexible working campaign for new jobs. (FT)

OTHER UK COMPANIES

BROKER MOVES

DAX

Covestro (1COV GY) - Final Q1 net EUR 393mln vs. prev. EUR 20mln. Revenue EUR 3.3bln vs prev. EUR 2.8bln. Co. affirms Q2 EBITDA guidance. Co. is optimistic for the FY outlook. (Newswires)

Delivery Hero (DHER GY) - Q1 orders +88% Y/Y to EUR 663mln. Gross Merchandise Value (GMV) +83% Y/Y to EUR 7.8bln. Total segment revenue +116% Y/Y to EUR 1.4bln - making it the ninth consecutive quarter with Y/Y revenue growth of around 100%. Co. expects full year GMV at EUR 31-34bln, total segment revenue between EUR 6.1-6.6bln, and an adjusted EBITDA/GMV margin of between -1.5% and -2.0%. (Delivery Hero)

Deutsche Bank (DBK GY) - Q1 revenue EUR 7.23bln vs exp. EUR 6.58bln. Pretax profit EUR 1.59bln vs exp. EUR 989mln. Co, raises its 2021 outlook. Revenue breakdown: Corporate Bank -1% Y/Y, Investment Bank +32%, Private Bank 0%, Asset Management +23%. FIC revenue +34% Y/Y to EUR 2.5bln. Q1 provisions for credit losses EUR 69mln vs EUR 506mln. Total non-interest expenses EUR 5.574bln vs EUR 5.638bln. CET1 ratio 13.7% vs prev. 12.8%. Leverage exposure EUR 81bln vs prev. EUR 72bln Y/Y. CEO said the Co. now expects FY risk provisions to be substantially lower then previously anticipated, whilst regulatory and supervisory changes are expected to negatively impact the CET1 ratio. (Newswires/Deutsche Bank) DWS (DWS GY) asset management arm reports Q1 adj. pretax EUR 249mln vs prev. EUR 179mln. Revenue EUR 634mln vs prev. EUR 605mln Y/Y. AUM EUR 820bln vs prev. EUR 793bln Q/Q. (Newswires) Co. seen opening higher by almost 4%

OTHER GERMAN COMPANIES

BROKER MOVES

PORSCHE (PAH3 GY) DOWNGRADED TO HOLD FROM BUY AT HSBC

CAC

Sanofi (SAN FP) - Q1 revenue EUR 8.59bln vs exp. EUR 8.87bln. Business EPS EUR 1.61 vs exp. EUR 1.38. FCF EUR 1.925bln, +23.6%. R&D expenses -5.5% Y/Y to EUR 1.26bln. Exchange rate movements had a negative effect on sales of 6.7ppts, mainly driven by the decrease of the US dollar, Brazilian real, Russian ruble, Turkish lira, and Argentine peso and Japanese yen. Recombinant COVID-19 vaccine candidate results are expected next month. (Sanofi)

Dassault Systems (DSY FP) - Q1 revenue EUR 1.17bln vs prev. EUR 1.13bln. Net EUR 301.2mln vs prev. EUR 250mln. (Newswires)

OTHER FRENCH COMPANIES

Lagardere (MMB FP)- Co. has proposed the conversion of Lagardere from a partnership limited by shares into a joint-stock company. (Lagardere)

BROKER MOVES

PAN EUROPE

Saipem (SPM IM) - FY20 revenue EUR 1.62bln vs exp. EUR 1.9bln. Adj. net EUR -105mln vs prev. EUR -9mln. Co. affirms FY21 capex at EUR 450mln. (Newswires)

Santander (SAN SM) - Q1 net EUR 1.61bln vs prev. EUR 331mln. Underlying profit EUR 2.138bln vs prev. EUR 377mln. NII EUR 7.956bln vs prev. EUR 8.487bln. Trading and other income EUR 886mln vs prev. EUR 474mln. Co. notes of the positive impact from cost of deposits management and TLTRO contribution. Co. expects activity to increase as vaccination progresses, although at different speeds. Co. forecasts lower cost of credit whilst consumer and individual lending is expected to increase strongly across markets. (Santander)

Stellantis (STLA IM/FP) - Co. states that due to the unprecedented global microchip shortage, production at the Belvidere Assembly Plant will be down for the first week of May. (Newswires)

TeleKom Austria (TKA AT) - Q1 revenue EUR 1.14bln vs exp. EUR 1.12bln. Net EUR 108.9mln vs exp. EUR 99mln. Adj. EBITDA EUR 403mln vs exp. EUR 404mln. (Newswires)

BROKER MOVES

MEDIASET (MS IM) UPGRADED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN CHASE

SMI

Credit Suisse (CSGN SW) – The US Senate Finance Committee has called on the Co. to provide new evidence following allegations from ex-employees that the Co. breached their 2014 tax avoidance settlement terms, according to a letter sent to CEO Gottstein. (FT)

Roche (ROG SW) - US FDA Advisory Committee votes in favour of maintaining accelerated approval of Roche’s Tecentriq for PD-L1-positive, metastatic triple-negative breast cancer. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

ABB (ABBN SW) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN CHASE

SCANDINAVIA

Alfa Laval (ALFA SS) - Co. has launched a share buyback programme of up to SEK 2bln or 5% of shares outstanding. (Newswires)

Aker BP (AKERBP NO) - Q1 revenue USD 1.13bln vs exp. USD 1.15bln. EBITDA USD 878mln vs prev. USD 666mln. (Newswires)

S.E.B (SEBA SS) - Q1 revenue SEK 13.3bln vs prev. SEK 10.1bln Y/Y. Net SEK 6.02bln vs prev. SEK 2.4bln. Adj. operating SEK 7.5bln vs prev. SEK 3.0bln. CEO said net credit losses are expected to normalise this year amid the improved macroeconomic outlook. (Newswires)

BROKER MOVES

EVOLUTION GAMING (EBO SS) DOWNGRADED TO HOLD FROM BUY AT S.E.B

SWEDBANK (SWEDA SS) DOWNGRADED TO NEUTRAL FROM BUY AT CITI

US

Alphabet Inc (GOOGL) - Q1 2021 (USD): EPS 26.29 (exp. 15.70), Revenue 55.31bln (exp. 51.55bln). Announces 50bln share repurchase programme of class C stock. Google Segment: 51.18bln (exp. 51.10bln). Google Cloud: 4.05bln (exp. 4.05bln) Google Network Members Properties: 6.80bln (exp. 6.05bln). Google Other (Inc. Youtube Non-Advertising): 6.49bln (exp. 5.88bln). Other Bets: 198mln (exp. 174.32mln). (Newswires) Shares rose 4.3% after-market

Apple (AAPL) - Co. has cut AirPods output plans by 25%-30% this year, as sales lose steam amid intensifying competition, according to Nikkei. (Nikkei)

Advanced Micro Devices Inc (AMD) - Q1 2021 (USD): Adj. EPS 0.52 (exp. 0.44), Revenue 3.45bln (exp. 3.21bln). Computating And Graphics 2.10bln (exp. 1.85bln). Enterprise, Embedded And Semi-Custom 1.35bln (exp. 1.25bln). (Newswires) Shares rose 3.7% after-market

Microsoft Corp (MSFT) - Q3 2021 (USD): EPS 2.03 (exp. 1.78/1.77 GAAP), Revenue 41.71bln (exp. 41.03bln). Intelligent Cloud: 15.12bln (exp. 14.86bln). More Personal Computing: 13.04bln (exp. 12.47bln). Productivity And Business Processes: 13.55bln (exp. 13.49bln). Operating Income 17.05bln (exp. 15.94bln). Capital Expenditure 5.09bln (exp. 4.72bln). (Newswires) Shares fell 2.6% after-market

Texas Instruments Inc (TXN) - Q1 2021 (USD): EPS 1.87 (exp. 1.58), Revenue 4.29bln (exp. 3.99bln). (Newswires) Shares fell 2.6% after-market

Visa Inc (V) - Q2 2021 (USD): EPS 1.38 (exp. 1.27), Revenue 5.7bln (exp. 5.55bln). Not providing FY outlook. (Newswires) Shares rose 1.0% after-market

CLOSES: SPX -0.10% AT 4,185, NDX -0.47% AT 13,960, DJIA +0.01% AT 33,982, R2K -0.10% AT 2,296

SECTORS: UTILITIES -0.75%, HEALTH -0.51%, COMMUNICATION SVS. -0.45%, TECHNOLOGY -0.27%, MATERIALS -0.22%, CONSUMER DISCRETIONARY -0.1%, CONSUMER STAPLES -0.04%, REAL ESTATE -0.02%, INDUSTRIALS +0.87%, FINANCIALS +0.91%, ENERGY +1.26%

28 Apr 2021 - 06:53- Research Sheet- Source: Newsquawk