Newsquawk Daily European Equity Opening News - 2nd August 2023

2nd August 2023

ASIA

Asia-Pac stocks traded lower following the mostly negative lead from Wall St where sentiment was dampened by higher yields and weak data, while participants also digested Fitch's credit rating downgrade for the US from AAA to AA+. ASX 200 (-1.2%) declined with utilities, real estate and financials leading the broad-based retreat and with weaker AIG Manufacturing and Construction data adding to the glum mood. Nikkei 225 (-2.3%) underperformed and dipped below the 33,000 level as the focus shifted to corporate earnings and despite comments from BoJ’s Deputy Governor Uchida who stuck to a dovish tone and noted that last week's decision was a pre-emptive step at continuing monetary easing without disruptions. Hang Seng (-2.1%) and Shanghai Comp. (-0.8%) conformed to the risk aversion albeit with the downside in the mainland initially cushioned by further policy support and jawboning by agencies including the PBoC which pledged to support the stable and healthy development of the real estate market, maintain reasonable and sufficient liquidity, and promote a steady and moderate decline of financing cost for enterprises and interest rates for residents.

SoftBank (9984 JT/SFTBY) - Co's Arm unit is reportedly targeting a USD +60bln valuation in its September IPO, according to Bloomberg sources. (Bloomberg)

EUROPEAN CLOSES

Bourses: DAX -1.26% at 16,240, FTSE 100 -0.43% at 7,666, CAC 40 -1.22% at 7,406, Euro Stoxx 50 -1.40% at 4,407, IBEX 35 -1.44% at 9,503, FTSE MIB -0.97% at 29,356.

Sectors: Healthcare -0.39%, Consumer Stpl -0.53%, Telecoms -0.63%, IT -0.68%, Materials -0.90%, Energy -0.94%, Utilities -0.97%, Financials -1.02%, Industrials -1.10%, Consumer Disc -1.53%

FTSE 100

Utility Names - The number of people missing payments on essential household bills, is as high as it was over the winter, adding that 700k failed to make mortgage or rent payments, according to Which?. (BBC)

OTHER UK COMPANIES

BROKER MOVES

DAX

Fresenius Medical Care (FME GY) - Q2 (EUR): EPS 0.48 (exp. 0.22), Op 357mln (prev. 341mln YY), Revenue 4.83bln (exp. 4.70bln). Raises FY23 EBIT to "remain flat or decline by low-single-digit" (prev. remain flat or decline by mid-single digit"). (Newswires)

Fresenius SE (FRE GY) - H1 (EUR): Net 375mln (prev. 450mln YY), Revenue 20.6bln (prev. 19.7bln YY). (Newswires)

Siemens Healthineers (SHL GY) - Q3 (EUR): adj. EPS 0.53 (prev. 0.43 YY), adj. EBIT 740mln (prev. 765mln YY), Revenue 5.20bln (prev. 5.19bln YY). (Newswires)

Symrise (SY1 GY) - H1 (EUR): EBITDA 446mln (exp. 478mln), Revenue 2.41bln (exp. 2.47bln). Affirms forward guidance. (Newswires)

OTHER GERMAN COMPANIES

Hugo Boss (BOSS GY) - Q2 (EUR): EBIT 121mln (exp. 113mln), Revenue 1.03bln (exp. 1.00bln). Raises FY23 EBIT 400-420mln (prev. 370-400mln), Revenue 4.1-4.2bln (prev. 4.0bln). Sales to grow between 12-15% and double-digit growth across all brands, regions and channels. (Newswires) Shares +2% in pre-market trade

Kloeckner (KCO GY) - H1 (EUR): Net 4.0mln (prev. 323mln YY), Adj. EBITDA 131mln (prev. 423mln YY), Revenue 4.0bln (prev. 5.0bln YY). Guides Q3 EBITDA 40-60mln. (Newswires)

BROKER MOVES

Nemetschek (NEM GY) upgraded to Add from Reduce at Baader Helvea

CAC

OTHER FRENCH COMPANIES

Klepierre (LI FP) - H1 (EUR): Revenue 484mln (prev. 614mln YY). Co. raised its FY23 net current cash flow guidance. (Newswires)

BROKER MOVES

PAN EUROPE

Aedifica (AED BB) - H1 (EUR): ERPA earnings 110mln (prev. 85.9mln YY), Rental Revenue 154mln (prev. 131mln YY). Raises FY23 ERPA earnings 212mln (prev. 209mln), EPS 4.85 (prev. 4.78). (Newswires)

DSM-Firmenich (DSFIR NA) - H1 (EUR): Adj. EBITDA 929mln (prev. 1.18mln YY), Revenue 6.15bln (prev. 6.50bln YY). Still does not anticipate a material improvement in business conditions in H2'23. (Newswires)

Erste Group Bank (EBS AV) - Gets ECB approval for share buyback of up to EUR 300mln. (Newswires)

Banking Names - Italy Cyber Agency reportedly detected an attack against 5 banks, according to Repubblica. (Repubblica)

Steel Names - The EU and US are not likely to finalise a binding agreement on steel and aluminium this year, according to sources cited by Bloomberg. The sides will likely have to decide whether to impose tariffs on exports or extend the October deadline. (Newswires)

Unicredit (UCG IM) - CEO says the bank's results will be even better in the future. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Acquires Cooper Standard Technical Rubber, financial terms not disclosed. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Nestle (NESN SW) upgraded to Buy from Hold at HSBC

US

CLOSES: SPX -0.27% at 4,576, NDX -0.25% at 15,718, DJIA +0.20% at 35,630, RUT -0.45% at 1,994.

SECTORS: Utilities -1.26%, Consumer Discretionary -1.15%, Consumer Staples -0.51%, Health -0.51%, Energy -0.48%, Materials -0.44%, Communication Services -0.29%, Real Estate -0.12%, Financials -0.03%, Technology +0.09%, Industrials +0.32%.

Advanced Micro Devices Inc (AMD) - Q2 2023 (USD): adj. EPS 0.58 (exp. 0.57), Revenue 5.36bln (exp. 5.31bln). Data centre revenue USD 1.32bln (exp. 1.4B), Gaming revenue USD 1.58bln (exp. 1.62bln), Client revenue USD 998mln (exp. 840.9mln), Embedded revenue USD 1.46bln (exp. 1.46bln), Sees Q3 revenue to be approximately USD 5.7bln +/- USD 300mln (exp. 5.82B), Sees Q3 non-GAAP gross margin to be approximately 51%. CEO says Co. sees an opportunity to develop AI chip products that comply with export controls to sell in China. Says providing early system access and sampling both MI300 products with our lead AI, HPC and cloud customers now. Engagements with top-tier cloud providers, large enterprises and leading AI firms significantly expanded for MI300 chips in Q2. Data center is mixed, customers are cautious with new processor deployments but AI is expanding. (Newswires) Shares seen +2.7% after-market

Starbucks Corp (SBUX) - Q3 2023 (USD): Adj. EPS 1.00 (exp. 0.95), Revenue 9.20bln (exp. 9.29bln). Comparable sales rose 10% (exp. 11.1%), North America comparable sales rose 7% (exp. 8.25%), US comparable sales rose 7% (exp. 7.7%), International comparable sales rose 24% (exp. 24.1%), China comparable sales rose 46% (exp. 41.8%). (Newswires) Shares seen -1.3% after-market

02 Aug 2023 - 06:53- Data- Source: Newsquawk