Newsquawk Daily European Equity Opening News - 29th June 2023

29th June 2023

ASIA

Asia-Pac stocks traded mixed amid some indecision heading closer towards quarter-end and after the choppy performance stateside as global markets digested the slew of central bank rhetoric from the Sintra Forum where most central bankers including Fed Chair Powell flagged further rate increases. ASX 200 (Flat) was just about kept afloat as strength in the tech and telecom sectors offset the losses in utilities, real estate and miners, with some encouragement also from better-than-expected Australian Retail Sales. Nikkei 225 (+0.4%) extended on gains and briefly climbed back above 33,500 as it coat-tailed on the recent advances in USD/JPY and after Japanese Retail Sales topped forecasts. Hang Seng (-1.4%) and Shanghai Comp. (-0.2%) were subdued amid ongoing frictions and the potential for additional US tech export restrictions on China but with losses in the mainland cushioned by the PBoC’s continued liquidity efforts.

SoftBank (9434 JT) - Plans to develop generative AI, according to Nikkei. (Nikkei)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.92% at 4,344, FTSE 100 +0.52% at 7,500, DAX 40 +0.64% at 15,949, CAC 40 +0.98% at 7,286, FTSE MIB +0.86% at 27,637, IBEX 35 +0.94% at 9,481, SMI +0.42% at 11,190

SECTORS: IT 2.19%, Healthcare 0.93%, Telecoms 0.78%, Industrials 0.75%, Consumer Disc 0.70%, Utilities 0.52%, Financials 0.46%, Materials 0.39%, Consumer Stpl 0.11%, Energy 0.10%

FTSE 100

FTSE 100 Ex-divs - Burberry Group (BRBY LN), B&M European Value Retail (BME LN), F&C Investment Trust (FCIT LN) will trade without entitlement to their latest dividend payouts. (Newswires)

Ocado (OCDO LN) – The fall in Ocado shares on Wednesday was attributed to a CNBC video suggesting Amazon (AMZN) denied recent rumours of a takeover bid for Ocado. CNBC later updated its website and suggested it was an “inaccurate description and video graphic that misrepresented Amazon’s current engagement with Ocado”. Ocado shares fell as much as 9% at one point before trimming the downside to close lower by 5%. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

Siemens (SIE GY) - Transfers 6.8% stake in Siemens Energy (ENR GY) to the Siemens Pension Fund. The move reduces Siemens' consolidated investment in Siemens Energy from 31.9% to 25.1%. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

E.ON (EOAN GY) upgraded to Buy from Neutral at CitiGroup

CAC

BNP Paribas (BNP FP) - The Co. and Orange (ORA FP) open executive talks over Orange Bank clients that aim to bring the bank clients under BNP's umbrella, according to Reuters citing sources. (Newswires)

Sanofi (SAN FP) - Reaffirms ambition to deliver more than EUR 10bln in annual vaccines sales by 2030, intends to start at least 5 innovative Phase 3 vaccine programmes by 2025. Will introduce initial data from its multi-antigen chlamydia vaccine, which will move to Phase 1/2 in early 2024. (Newswires)

OTHER FRENCH COMPANIES

Casino (CO FP) – Co. proposed a restructuring deal for secured and unsecured creditors to swap their holdings for equity, which will leave Rallye (RAL FP) without control of the firm. The deal is necessary “to reach a debt structure compatible with cash flow generation provided in the 2023-2025 business plan…In any event, the current shareholders of Casino will be massively diluted and Rallye will no longer control Casino”, according to the statement. (Newswires/GlobeNewswire)

Imerys (NK FP) - The Co. and British Lithium announcement a strategic partnership to accelerate development of UK's largest lithium deposit. (Newswires)

Ipsen (IPN FP) - Confirms positive outcome of FDA on investigational palvartoene for fibrodysplasia ossificans progressiva, decision anticipated by Aug 16. (Newswires)

Orpea (ORP FP) - Restructuring plan is supported by a majority of the Classes of Parties Affected. (Newswires)

Renault (RNO FP) - Upgrades its FY23 outlook; now sees group operating margin between 7-8% (prev. 6%), sees automotive operational FCF greater than or equal to EUR 2.5bln (prev. EUR 2bln). (Newswires)

SES Imagotag (SESL FP) - Takes action following Gotham City Short Report and asked auditing firms to issue a certificate of recognition which invalidates the "central argument" on which Gotham City's report based its accusations. (Newswires)

BROKER MOVES

Vallourec (VK FP) initiated with Buy at Jefferies

PAN EUROPE

Chip Names - Micron (MU) shares rose 3% after-market following better than expected earnings and as it expects 2024 to be a big banner year for AI, for memory and storage.

Saipem (SPM IM) - Awarded approximately USD 1bln in two new contracts. (Newswires)

BROKER MOVES

Pirelli (PIRC IM) - Are to hire Francesco Tanzi to head Directorate General, according to reports. (Newswires)

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -0.04% at 4,377, NDX +0.12% at 14,965, DJIA -0.22% at 33,853, RUT +0.47% at 1,859

SECTORS: Energy -1.02%, Communication Services +0.8%, Consumer Discretionary +0.25%, Real Estate +0.21%, Technology -0.02%, Industrials -0.04%, Financials -0.18%, Health Care -0.35%, Consumer Staples -0.59%, Materials -0.68%, Utilities -1.48%.

Activision Blizzard (ATVI) - CEO told a judge it will likely abandon the USD 69bln takeover bid by Microsoft (MSFT) if the US FTC wins a ruling pausing the deal, according to Bloomberg. (Bloomberg)

Coinbase (COIN)- Filed an answer to the SEC's lawsuit early Thursday, arguing the regulator violated its due process and is reaching beyond its jurisdiction, according to CoinDesk

Banking names - Fed says 23 banks tested showed projected losses of USD 541bln in stress test but maintain capital ratios well above required level. (Newswires)

Micron Technology Inc (MU) - ; EPS -1.43 (exp. -1.58), Revenue 3.75bln (exp. 3.65bln), Sees Q4 Adj. EPS -1.19 (exp. -1.07), Sees Q4 revenue USD 3.90bln (exp. 3.89bln), Sees sees Q4 Adj. gross margin -8% to -13% (exp. -2.8%), says expects 2024 to be a big banner year for AI, for memory and storage. Co. said recent Cyberspace Administration of China decisions is a significant headwind that is impacting outlook and slowing recovery., Expects margins to improve as industry supply-demand balance is gradually restored., Continues to manage operating expenses and remains on track to exit fiscal year at less than USD 850mln., Continues to expect capex to be about USD 7bln for the fiscal year and near USD 1bln in fiscal Q4., Expects to produce fewer NAND bits in CY 2023 than in CY 2022., Co. said China ruling could affect half of China-based customer revenue., Expects reduced wafer starts to continue well into 2024. (Newswires) Micron shares rose 3% after market.

Microsoft (MSFT) - The Co. and Activision (ATVI) CEOs fight for their USD 75bln deal in court, while judge could decide as soon as next week whether to grant a US regulator's request to put the acquisition on ice, according to FT. (FT)

Nvidia (NVDA) - CFO says it is aware of reports on new China export restrictions; expects no material change to earnings from rules; China accounts for 20-25% of Data Centre sales. (Newswires)

29 Jun 2023 - 06:53- Research Sheet- Source: Newsquawk