Newsquawk Daily European Equity Opening News - 28th July 2023

28th July 2023

ASIA

Asia-Pac stocks traded mixed with the region cautious as all attention was on the BoJ policy decision in which the central bank kept monetary policy settings unchanged but announced to guide YCC more flexibly with fixed rate operations for 10yr JGB to be conducted at 1.0% (prev. 50bps). ASX 200 (-1.0%) was pressured amid weakness in the property sector and miners, with sentiment also not helped by the surprise contraction in Retail Sales. Nikkei 225 (-1.7%) underperformed with yields higher and markets spooked by the latest BoJ developments. Hang Seng (+0.9%) and Shanghai Comp. (+1.6%) shrugged off early weakness and gained after further calls and efforts for China to support the housing market and tech industry.

EUROPEAN CLOSES

CLOSES: DAX +1.70% at 16,406.03, FTSE 100: +0.21% at 7,692.76, CAC 40 +2.05% at 7,465.24, Euro Stoxx 50 +2.34% at 4,448.05, IBEX 35 +0.98% at 9,694.70, FTSE MIB +2.13% at 29,597.81, SMI +1.70% at 11,373.21.

SECTORS: IT 4.67%, Consumer Disc 2.66%, Industrials 1.58%, Materials 1.51%, Telecoms 1.39%, Consumer Stpl 1.25%, Healthcare 1.05%, Financials 0.76%, Utilities -0.14%, Energy -0.40%

FTSE 100

Standard Chartered (STAN LN) - HY (USD) underlying profit rose 29% Y/Y to 3.3bln, underlying NII 4.8bln (prev. 3.7bln Y/Y), raises interim ordinary dividend by 50% to USD 0.06/shr and is to return a further USD 1bln through share buyback. (Newswires) Shares rose 0.9% in Hong Kong trade.

OTHER UK COMPANIES

BROKER MOVES

DAX

BASF (BAS GY) – Final Q2 2023 (EUR): Revenue 17.3bln (exp. 19.4bln). Net 499mln (prev. 2.09bln Y/Y). Co. does not expect further weakening in demand at a global level in H2 2023 but assumes only a tentative recovery. Co. affirms its recently lowered FY23 revenue and EBIT guidance. (Newswires) Co. hold a 3.6% weighting in the DAX 40.

Deutsche Telekom (DTE GY) - T-Mobile US (TMUS) shares fell 1.9% after earnings. Deutsche Telekom owns a 50.4% stake in T-Mobile.

E.ON SE (EOAN GY) - H1 23 (EUR): Net 2.3bln (prev. 1.4bln Y/Y), EPS 0.88 (prev. 0.54). Raises FY adj. Net view to 2.7-2.9bln from 2.3-2.5bln, Raises adj. EPS view to 1.03-1.11 from 0.88-0.96. (E.ON)

OTHER GERMAN COMPANIES

Evotec (EVT GY) – Downgrades FY23 outlook due to financial impact of cyber-attack. Cuts FY23 Revenue EUR 750-790mln (prev. 820-840mln), Adj. EBITDA 60-80mln (prev. 115mln-130mln). (Newswires)

BROKER MOVES

Volkswagen (VOW3 GY) reiterated with Overweight at JPMorgan Chase

CAC

Kering (KER FP) - H1 23 (EUR): Net 1.79bln (prev. 1.99bln Y/Y), Revenue 10.14bln (prev. 9.14bln Y/Y). Q2 Gucci SSS +1% (exp. +4.2%). Kering acquires 30% stake in Valentino for EUR 1.7bln from Mayhoola, with option to acquire 100% by 2028. Q2 Revenue 4.96bln (exp. 5.45bln), Q2 SSS +3% (exp. +4.46%).Co. holds a 2.5% weighting in the CAC 40

L'Oreal (OR FP) - H1 23 (EUR): Op Profit 4.26bln (exp. 4.19bln). Q2 sales 10.19bln (exp. 10.03bln), Q2 SSS +13.7% (exp. +11.7%) North Asia SSS +5.9% (exp. +9.5%). Europe SSS +20.8%, North America +9.7%. CEO Nicolas Hieronimus tells FT that the group is on the lookout for further acquisitions. Says Co. will maintain its financial discipline after buying soap maker, Aesop, for USD 2.5bln. Says, "cost increases have slowed down, but they have not disappeared . . . they’ve just leveled off". Input prices are leveling off but if they increased again Co. would have to pass some of that to consumers. (L'Oreal IR/FT) Co. holds a 5.5% weighting in the CAC 40

Vivendi (VIV FP) - H1 2023 (EUR): Revenue 4.7bln, +3.7%, EBITA 444mln, +7.7%, Adj. net income 324mln. H1 earnings attributable to shareowners falls almost 65% citing a lack of positive operations similar to H1 '22. (Newswires)

OTHER FRENCH COMPANIES

Air France (KLM FP) – Reportedly in exclusive talks with Apollo Global for a EUR 1.5bln quasi-equity financing that would be supported by commercial partner contracts of its loyalty program, Flying Blue, according to Reuters. (Reuters)

Alten (ATE FP) – H1 (EUR): Revenue 2.05bln (prev. 1.83bln YY). (Newswires)

Euronext (ENX FP) – Q2 (EUR): EPS 1.34 (prev. 1.34 YY), EBITDA 216mln (prev. 222mln YY), Revenue 368mln (prev. 375mln YY). (Newswires)

Gaztransport & Technigaz (GTT FP) – H1 (EUR): EBITDA 104.2mln (prev. 79.7mln YY), Revenue 177.8mln (prev. 144.2mln YY). (Newswires)

La Francaise des Jeux (FDJ FP) – H1 (EUR): Net 181mln (prev. 160mln YY), adj. EBITDA 300mln (prev. 308mln YY), Revenue 1.29bln (1.21bln YY). Raises FY23 Revenue growth more than +5% YY (prev. +4-5%). (Newswires)

Wendel (MF FP) – H1 (EUR): Net 39.6mln (prev. 479.8mln YY), Revenue 3.44bln (prev. 3.23bln YY). Raises FY23 outlook, mid-to-high single digit organic revenue growth (prev. mid-single digit). (Newswires)

BROKER MOVES

Euronext (ENX FP) reiterated with Overweight at JPMorgan Chase

L’Oreal (OR FP) reiterated with Neutral at JPMorgan Chase

Nexans (NEX FP) reiterated with Neutral at JPMorgan Chase

PAN EUROPE

Auto Names - Ford (F) CEO said pricing pressure for EVs has dramatically increased in the past 60 days, adds EV price premiums vs combustion vehicles fell more than USD 3,000 in Q2. Ford CEO said demand for combustion and hybrid vehicles will be durable. Sees price pressure in combustion vehicle operations in H2. (Newswires)

BBVA (BBVA SM) - Q2 2023 (EUR): Net 2.03bln (exp. 1.83bln), NII 5.77bln (exp. 5.71bln), CET1 ratio 13% (exp. 13.2%), Co. announces a share buyback programme of up to EUR 1.0bln. Appoints Luisa Gomez Bravo as CFO. (Newswires)

Chip Names - Intel (INTC) share rose 8.1% post-earnings, but the Co. noted of slower-than-anticipated server CPU TAM recovery in China and across enterprise markets has delayed a return of CPU TAM growth. (Newswires)

Energias de Portugal (EDP PL) – H1 (EUR): Net 437mln (prev. 306mln YY), EBITDA 2.45bln (prev. 1.99bln YY). (Newswires)

Eni (ENI IM) – Q2 2023 (EUR): Adj. net EUR 1.94bln (exp. 1.63bln). Adjusted profit before tax of EUR 3.7bln (-41% Y/Y) – “represents a highly robust outcome given the 30% fall in crude oil prices and with gas price and refining margin down over 60%.” Co. lowers 2023 Capex guidance to EUR 9.0bln (prev. EUR 9.2bln). (Newswires/ENI)

Ferrovial (FER SM) - H1 2023 (EUR): Revenue 3.94bln (prev. 3.53bln Y/Y), Net profit 114mln (prev. 52mln), Construction order book at June-end 14.86bln, -1.1% Y/Y, EBITDA 401mln (prev. 313mln). (Newswires)

Heineken (HEIA NA) - Reportedly facing Dutch criminal investigation over failure to conform to a new can deposit rule, according to Bloomberg. (Bloomberg)

Inmobiliaria Colonial (COL SM) – H1 (EUR): Recurring Net 87mln (prev. 76mln YY), Rental Revenue 183mln (prev. 170mln YY). (Newswires)

Pirelli (PIRC IM) - Q2 2023 (EUR): Revenue 1.47bln (exp. 1.73bln), Adj. EBIT 269.3mln (exp. 259mln), Net profit 127.6mln (exp. 117mln). H1: Adj. EBIT margin 15.1%, Revenue 3.44bln, Net income 242.6mln, Adj. EBIT 517.4mln.FY23 revenue view 6.5-6.7bln (exp. 6.73bln). FY23 adj. EBIT margin seen around 14.5-15%. Co. said it don't plan to increase prices anymore in H2 but we do not have any plan to reduced them. (Newswires)

Prysmian (PRY IM) - Co. said if there is no M&A, don't want to keep too much money in our pockets so a buyback or other instruments may make sense. (Newswires)

Merlin Properties (MRL SM) – H1 (EUR): Net -47.5mln (prev. +269.9mln YY), Revenue 229.5mln (prev. 213.9mln YY). (Newswires)

BROKER MOVES

asm International (ASM NA) downgraded to Market Perform from Outperform at Bernstein

ASML (ASML NA) downgraded to Market Perform from Outperform at Bernstein

SMI

Dufry (DUFN SW) – Retains all relevant business in Spain, expanding floorspace by more than 30%. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Demant (DEMANT DC) upgraded to Neutral from Underperform at Credit Suisse

Lonza (LONN SW) reiterated with Overweight at JP Morgan Chase

US

CLOSES: SPX -0.64% at 4,537, NDX -0.22% at 15,465, DJIA -0.67% at 35,283, RUT -1.29% at 1,955.

SECTORS: Real Estate -2.12%, Utilities -1.73%, Financials -1.29%, Cons Disc -0.87%, Industrials -0.82%, Cons Stpl -0.81%, Health -0.77%, Materials -0.67%, Energy -0.54%, Technology -0.34%, Communication Svs +0.85%.

Ford Motor Co (F) - Q2 2023 (USD): Adj. EPS 0.72 (exp. 0.55), Revenue 45bln (exp. 40.38bln), Adj. EBIT 3.8bln (exp. 3.15bln). Outlook: Raises FY Adj. EBIT guidance USD 11bln-12bln from 9bln-11bln (exp. 10.66bln). Raises Ford Blue EBIT to about 8bln (exp. 7.39bln, prev. about 7bln). Sees Ford Model EBIT loss of 4.5bln (exp. loss 3.25bln, prev. saw a loss of 3bln). Sees Ford Pro EBIT c. 8bln(exp. 5.82bln, prev. 6bln). Sees ADJ free cash flow 6.5bln-7bln (prev. 6bln). Revenue Breakdown: Ford Blue revenue 25bln (exp. 24.96bln). Ford Model E revenue 1.8bln (exp. 2.07bln). Ford Pro revenue 15.6bln (exp. 14.26bln). EBIT breakdown. Ford Blue EBIT 2.31bln (exp. 2.24bln). Ford Model E EBIT loss 1.08bln (exp. loss 871.9mln). Ford Pro EBIT 2.39bln (exp. 1.74bln). Adj EBIT margin 8.4% (exp. 7.11%). CFO said company "not providing a date" for producing 2mln EVs annually; previously targeted end of 2026. No plans to change capital spending plans for EV business despite slower than expected EV adoption rate. No change to F-150 lightning production plans, still aiming for 150k production rate this year. Sees 2023 EV losses at USD 4.5bln, up from USD 3bln earlier projection. New UAW labor contract will raise costs. Slowdown in EV demand for the industry is because the vehicles are too expensive, not because of demand. (Newswires) Shares fell 1.2% after market

Intel Corp (INTC) - Q2 2023 (USD): adj. EPS 0.13 (exp. -0.03), Revenue 12.90bln (exp. 12.13bln). Client Computing revenue USD 6.78bln (exp. 6.1bln). Datacenter & AI revenue USD 4.0bln (exp. 3.82bln). Network & Edge revenue USD 1.36bln (exp. 1.57bln). ADJ operating margin 3.5% (exp. -1.61%). ADJ gross margin 39.8% (exp. 37.2%). Sees Q3 Adj. EPS USD 0.20 (exp. 0.16). Sees Q3 rev. USD 12.9bln-13.9bln (exp. 13.23bln). Shares rose 8.1% after market

Mondelez International Inc (MDLZ) - Q2 2023 (USD): Adj. EPS 0.76 (exp. 0.69), expects 12%+ organic net revenue growth (exp. 12.3%) and adj. EPS growth of 12%+ (exp. 8%). (Newswires)

T-Mobile US Inc (TMUS) - Q2 2023 (USD): EPS 1.86 (exp. 1.69), Revenue 19.2bln (exp. 19.31bln). Postpaid phone net adds. +37k Y/Y to 760k. Sees postpaid net customers +5.60mln to +5.90mln (exp. +5.75mln). Sees ADJ EBITDA 28.9bln to 29.2bln (exp. 29.33bln, prev. 28.8bln to 29.2bln). Sees capital expenditure 9.5bln to 9.7bln (exp. 9.65bln, prev. 9.4bln to 9.7bln). Still sees free cash flow 13.20bln-13.60bln (exp. 13.5bln). (SEC) Shares fell 1.9% after market

28 Jul 2023 - 06:53- Exclusive- Source: Newsquawk