Newsquawk Daily European Equity Opening News - 29th 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 positively in reaction to the continued dovish tone from the FOMC and beat on earnings amongst the tech giants including Apple, Facebook and Qualcomm. In addition, focus was also on President Biden’s first address to a joint session of Congress where he stated America is on the move again and that the American Jobs Plan is a blue-collar blueprint to build America, while he called on Congress to pass the USD 15/hour minimum wage and extend child tax credit through at least end-2025, as well as outlined the American Families Plan. This facilitated a continued upside in US equity futures to push the E-mini S&P to a record high and briefly above the 4,200 level although gains for Asia bourses were tempered amid a heavy slate of earnings and with Japanese participants absent due to a holiday closure. ASX 200 (+0.2%) was positive with outperformance in gold miners amid a rebound in the precious metal in the aftermath of the dovish FOMC, but with gains in the index capped by losses in consumer stocks after weaker quarterly sales from Woolworths and with Treasury Wine Estates dampened by a 4% decline of Australian wine exports in the year to end-March. KOSPI (+0.1%) benefitted as its top constituent Samsung Electronics remained afloat following its final Q1 earnings results which topped forecasts for net profit and posted a slight increase in revenue from the preliminary. Hang Seng (+0.9%) and Shanghai Comp. (+0.2%) also gained with sentiment encouraged by earnings releases including China’s largest oil company Sinopec and big 4 bank China Construction Bank.

Samsung Electronics (005930 KS) - Q1 net KRW 7.1tln vs exp. KRW 6.9tln, oper. profit KRW 9.4tln vs prelim. KRW 9.3tln, rev. KRW 65.4tln vs prelim. KRW 65.0tln. (Newswires)

Tencent (700 HK) - Co. faces a fine from China's competition regulator which could be valued at least USD 1.54bln and antitrust investigation could force a sale of its music business, according to sources. (Newswires)

EUROPEAN CLOSES

CLOSES: EUROPEAN PRELIM CLOSING LEVELS: EURO STOXX 50 +0.07% AT 4,015; FTSE 100 +0.25% AT 6,962; DAX +0.36% AT 15,304; CAC 40 +0.53% AT 6,307; IBEX 35 +0.47% AT 8,798; FTSE MIB +0.01% AT 24,475; SMI +0.08% AT 11,101

SECTORS: Energy 1.90%, Financials 1.01%, Telecoms 0.42%, Consumer Disc 0.10%, Consumer Stpl 0.04%, Materials -0.11%, Healthcare -0.23%, IT -0.45%, Utilities -0.54%, Industrials -0.83%

FTSE 100

British American Tobacco (BATS LN) - Spring Mountain, the fund managed by Kenneth Dart, has mounted a 7% stake in the Co. after taking a 3% stake in Imperial Brands (IMB LN). (FT)

BT (BT/A LN) - Co. is in talks with Amazon (AMZN), Disney (DIS) and others, including private equity companies, around a potential sale of BT Sport; options include a full disposal, a JV or sale of a stake. (Telegraph/FT)

Standard Chartered (STAN LN) - Q1 adj. pre-tax USD 1.45bln vs prev. EUR 1.22bln Y/Y. Adj. operating revenue USD 3.9bln vs prev. USD 4.3bln. Statutory ROTE 10.8% vs prev. 5.1%. CET1 ratio 14.0% vs prev. 13.4%. NIM 1.22% vs prev. 1.52%. Credit impairment USD 20mln vs prev. USD 451mln. Transaction banking income USD 643mln vs prev. USD 884mln. Financial Market income USD 1.33bln vs prev. USD 1.2bln. Corporate Finance income USD 233mln vs prev. USD 278mln. (Newswires)

UK Co’s - Link Group, an investor services company, predicts a 5.6% increase in underlying dividends excluding special payments for 2021 regarding UK companies. (FT)

OTHER UK COMPANIES

WH Smith (SMWH LN) - H1 revenue GBP 420mln vs exp. GBP 345mln, pre-tax EUR -19mln vs prev. EUR 80mln. High street sales -14.3% YY, travel business -65%. Strong pipeline of store openings. Continue to see encouraging signs in N. America. Expect FY outrun to be slightly above expectations. Under severe, but plausible, conditions it is likely the Co. would not meet the conditions around August 2022 covenant tests. (Newswires)

BROKER MOVES

DAX

BASF (BAS GY) - Q1 revenue EUR 19.4bln vs exp. EUR 17.36bln. Adj. EBIT EUR 2.32bln vs exp. EUR 2.27bln. Co. raises 2021 sales growth guidance to between EUR 68-71bln vs prev. EUR 61-64bln. Co. raises ROCE guidance to between 9.2-11.0% vs prev. 8.0-9.2%. (Newswires)

BMW (BMW GY) - Co. announced it has temporarily reduced output at the Regensburg facility in Germany due to the chip shortage. (Newswires)

Lufthansa (LHA GY) - Q1 revenue EUR 2.56bln vs exp. EUR 2.49bln. Adj. EBIT EUR -1.14bln vs exp. EUR -1.23bln. Co. sees FY capacity at around 40% of pre-pandemic levels. Co. confirms FY adj. EBIT outlook. Average monthly cash burn EUR 235mln vs Co. exp. EUR 300mln. "This positive development is mainly due to the better than expected earnings development in the logistics and MRO segments." Co. expects a significant market recovery in the second half of the year. Co. will be able to offer capacity up to 70 percent of pre-crisis levels in the short term in order to react flexibly to market changes. For H2, Co. expects a monthly cash burn of around EUR 200mln on average. (Newswires/Lufthansa)

OTHER GERMAN COMPANIES

Fuchs Petrolub (FPR GY) - Q1 revenue EUR 697mln vs prev. EUR 616mln. Adj. EBIT EUR 101mln vs prev. EUR 72mln. Co raises FY21 EBIT and revenue outlooks. (Newswires)

BROKER MOVES

KION (KGX GY) DOWNGARDED TO HOLD FROM BUY AT HSBC

CAC

Airbus (AIR FP) - Q1 revenue EUR 10.46bln vs exp. EUR 10.42bln. Adj. FCF EUR 1.20bln vs prev. EUR -8.5bln Y/Y. Adj. EBIT EUR 694mln vs prev. EUR 281mln. EPS EUR 0.46 vs prev. EUR -0.61. Net cash position EUR 5.575bln vs prev. EUR 4.312bln. Gross commercial aircraft orders totalled 39 vs prev. 356 aircrafts Y/Y and included 38 single-aisle aircraft. After cancellations, net commercial aircraft orders were -61 vs prev. 290 aircrafts with the order backlog comprising 6,998 aircraft on 31 March 2021. Co. reaffirms guidance. CEO said the group is accelerating talks with unions and is hopeful regarding a solution but not there yet. Co. is not changing plans for Q3 and Q4 production. (Newswires/Airbus)

Capgemini (CAP FP) - Q1 revenue EUR 4.3mln vs exp. EUR 4.10bln. Sales in constant currency +24.2% Y/Y, bookings +27% Y/Y. Co. affirms its FY21 outlook. (Newswires)

STMicroelectronics (STM FP) - Q1 revenue USD 3.02bln vs exp. USD 2.93bln. Diluted EPS USD 0.39 vs exp. USD 0.39. Co. updates FY21 Capex guidance to USD 2bln vs prev. USD 1.8-2.0bln. Gross margin 39.5% vs exp. 38.3%. Operating margin 14.6% vs prev. 10.4% Y/Y. (Newswires/STM) Co. provides no initial commentary on the chip shortage

OTHER FRENCH COMPANIES

Amundi (AMUN FP) - Q1 adj. net EUR 309mln vs prev. 206mln Y/Y. Adj. EBIT EUR 394mln vs prev. EUR 281mln. Revenue EUR 770mln vs prev. EUR 612mln. AUM EUR +1.5% Q/Q to 1.76tln. (Newswires)

Nexans (NEX FP) - Q1 revenue at constant metal prices EUR 1.05bln vs prev. EUR 1.57bln Y/Y. Organic revenue +1.4% Y/Y. (Newswires)

Nexity (NXI FP) - Q1 revenue EUR 1.12bln vs prev. EUR 0.78bln. Confirms FY21 revenue of at least EUR 4.6bln vs exp. EUR 5.12bln. Commercial real estate order intake of EUR 400mln ex-VAT, in discussion with AG2R around a disposal with an enterprise value of EUR 375mln in total, discussing disposal of a stake in this. (Newswires)

Valeo (VLO FP) – Q1 revenue EUR 4.49bln vs exp. EUR 4.515bln. Confirms guidance for 2021 of revenue EUR 17.6-18.2bln vs exp. EUR 20.18bln, EBITDA EUR 2.25-2.45bln vs exp. EUR 2.77bln. CEO sees additional costs of EUR 80mln due to supply disruptions and raw material pricing, but continued outperformance nonetheless. (Newswires)

BROKER MOVES

PAN EUROPE

Atlantia (ATL IM) - Domestic motorway traffic +204.5% YY last week; Rome airport +261.1% YY, Spain +151.7%, France +164.6% YY. (Newswires)

Euskaltel (EKT SM) - Q1 revenue EUR 174mln vs exp. EUR 187mln, adj. EBITDA EUR 73mln vs prev. EUR 87mln, net EUR -2.1mln vs exp. EUR 16mln. (Newswires)

Unibail-Rodamco (URW NA) - Q1 revenue EUR 566.7mln vs prev. EUR 956mln; FY21 to be significantly impacted by COVID-19. UK footfall at 75% of 2019 levels in first week of reopening. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Equinor (EQNR NO) - Q1 adj. net UD 2.66bln vs exp. USD 2.6bln. Adj. operating profit USD 5.47bln vs exp. USD 4.9bln. Co. affirms Capex at between USD 9-10bln. Co. affirms FY21 guidance. (Newswires)

Nokia (NOKIA FH) - Q1 revenue EUR 5.08bln vs exp. EUR 4.72bln. Adj. operating profit EUR 551mln vs exp. EUR 154.2mln. Net PBT EUR 261mln vs exp. EUR -59mln. Co. maintains its outlook. Co. affirms outlook. Co. targets 4G/5G market share (ex-China) of around 25-27% in FY21 and is on track to meet its target. (Newswires)

BROKER MOVES

US

Apple Inc (AAPL) - Q2 2021 (USD): EPS 1.40 (exp. 0.99/0.98 GAAP), Revenue 85.9bln (exp. 77.35bln); authorises increases of USD 90bln to existing share repurchase programme; saw no material issue with supply chain constraints. iPad: 7.81bln (exp. 5.58bln). iPhone: 47.94bln (exp. 41.43bln). Mac: 9.1bln (exp. 6.86bln). Services: 16.9bln (exp. 15.57bln). Qtrly Dividend: 0.22 (exp. 0.21. Apple hit 660mln paid subscribers in Q2 (prev. 620mln in Q1). Click here for the full report. (Newswires/Apple) Shares rose 2.4% after-market

eBay Inc (EBAY) - Q1 21 (USD): EPS 1.09 (exp. 1.07), Revenue 3.0bln (exp. 2.97bln). (Newswires) Shares fell 6% after-market

Facebook Inc (FB) - Q1 2021 (USD): EPS 3.30 (exp. 2.37/2.34 GAAP), Revenue 26.2bln (exp. 23.67bln). Advertising Revenue: 25.439bln (exp. 23.41bln). Daily Active Users (DAU): 1.88bln (exp. 1.93bln). Monthly Active Users (MAU): 2.85bln (exp. 2.95bln). Click here for the full report. (PR Newswires/Facebook) Shares rose 6% after-market

Ford Motor Co (F) - Q1 21 (USD): Adj. EPS 0.89 (exp. 0.21), Revenue 36.2bln (exp. 32.23bln). Sees 1.1mln units of lost production this year amid semi shortage and Renesas fire. (Ford) Shares fell 3.3% after-market

Qualcomm Inc (QCOM) - Q2 2021 (USD): Adj EPS 1.90 (exp. 1.67/1.39 GAAP), Revenue 7.93bln (exp. 7.62bln); guides above street expectations. CDMA Technologies (QCT): 6.28bln (exp. 6.25bln). Q3 2021 EPS View: 1.55-1.75 (exp. 1.52/1.28 GAAP). Q3 2021 Revenue View: 7.1-7.9bln (exp. 7.11bln). (PR Newswires) Shares rose 5% after-market

CLOSES: SPX -0.05% AT 4,184, NDX -0.42% AT 13,901, DJIA -0.48% AT 33,823, R2K +0.01% AT 2,301

SECTORS: TECHNOLOGY -0.96%, HEALTH -0.35%, REAL ESTATE -0.34%, INDUSTRIALS -0.27%, UTILITIES -0.15%, CONSUMER DISCRETIONARY +0.00%, CONSUMER STAPLES +0.04%, MATERIALS +0.21%, FINANCIALS +0.28%, COMMUNICATION SVS. +1.21%, ENERGY +3.35%

29 Apr 2021 - 06:51- Research Sheet- Source: Newsquawk