Newsquawk Daily European Equity Opening News - 2nd February 2023

2nd February 2023

ASIA

Asia-Pac stocks traded mostly higher in the aftermath of the FOMC meeting where the Fed slowed the pace of rate increases and Fed Chair Powell provided a slew of two-sided remarks in which he pointed to a couple more rate hikes to get to an appropriately restrictive stance but noted they are not very far from that level and acknowledged that the disinflationary process had begun. ASX 200 (+0.1%) was led by outperformance in gold miners and tech following the dovish post-FOMC reaction across asset classes but with gains limited by weakness in other commodity-related sectors and after mixed data releases. Nikkei 225 (+0.2%) notched marginal gains with earnings releases driving the best and worst performing stocks and the 27,500 level continued to elude the index. Hang Seng (+0.1%) and Shanghai Comp. (+0.1%) initially gained although price action was then choppy after the HKMA raised rates in lockstep with the Fed and the PBoC continued with its substantial post-holiday liquidity drain.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +0.19% at 4,171, FTSE 100 -0.14% at 7,761, DAX 40 +0.35% at 15,180, CAC 40 -0.07% at 7,077, FTSE MIB +0.39% at 26,703, IBEX 35 +0.71% at 9,098, SMI -0.70% at 11,207.

SECTORS: IT 1.12%, Industrials 0.59%, Financials 0.39%, Consumer Disc -0.15%, Materials -0.25%, Telecoms -0.25%, Utilities -0.34%, Consumer Stpl -0.35%, Energy -1.03%, Healthcare -1.38%

FTSE 100

Barclays (BARC LN) - Co. is reportedly weighing boosting the bonus pot for FICC traders, according to Bloomberg. (Newswires)

Energy Names - British Gas has suspended the use of court warrants to force the installation of prepayment meters, following evidence that agents of the Co. have been ignoring customer vulnerabilities. (Guardian)

NatWest (NWG LN) - CEO Rose is reportedly refusing to attend the Treasury Select Committee next week, where banking execs. will be questioned on a number of consumer issues, including why saving rates haven’t lifted in tandem with the BoE’s hikes. Lindberg, NatWest’s head of retail will attend instead. (Telegraph)

Shell (SHEL LN) - Residents representing communities around the Niger Delta are suing the Co. over oil spills in the region; if successful, Shell could have to pay compensation and undertake the largest ever terrestrial oil clean-up. (Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Bank (DBK GY) - Q4 2022 (EUR): Revenue 6.32bln (exp. 6.50bln). Non-interest expenses 5.19bln (exp. 4.89bln). FIC Sales & Trading Revenue 1.5bln (exp. 1.6bln). Pretax 775mln (exp. 1.25bln). Co. sees 2023 revenue between EUR 28-29bln (prev. "over EUR 28bln"). Provision for credit losses in 2022 at EUR 1.2bln (prev. 515mln in 2021) - Co. said "Credit provisions remain contained in a more challenging credit environment". Asset Management net revenues 2.6bln (-4% Y/Y). (Newswires/Deutsche Bank IR)

Infineon (IFX GY) – Q1 (EUR): Revenue 3.95bln (exp. 3.99bln), adj. Gross Margin 47.2%, Segment Results 1.1bln (prev. 1.05bln). Q2 Guidance: Revenue 3.9bln (exp. 3.8bln). FY Guidance: Revenue 15.5bln (exp. 15.4bln). Infineon concludes a very profitable Q1, very slightly raises FY23 outlook adj. for FX effects. (Newswires)

OTHER GERMAN COMPANIES

DWS (DWS GY) - Q4 2022 (EUR): Revenue 2.68bln (prev. 2.72bln). Pretax 1.06bln (prev. 1.14bln). Assets under Management (AUM) 821bln (exp. 834bln). (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Co. and Qatar Airways reach an amicable settlement in their legal dispute. Airbus said Qatar Airways is to get the first re-instated A321NEO in 2026, and A350 deliveries are to resume in 2023. They are discussing with European and Qatari regulators, as well as Qatar Airways, the best way to return 30 grounded A350s into service. (Newswires)

Casino (CO FP) - Co. and Teract have confirmed they are in discussions to combine their French retail arms. Talks are preliminary. (Newswires)

Publicis (PUB FP) – FY (EUR): Revenue 12.57bln (exp. 12.50bln), EBITDA 2.80bln (exp. 2.75bln), Net Income 1.22bln (exp. 1.56bln), EPS 4.87 (prev. 4.13). proposes a dividend of 2.90/shr (exp. 2.85/shr). FY23: share repurchase plan of circa. EUR 200mln, further deleveraging of circa EUR 100mln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ING (INGA NA) - Q4 2022 (EUR): Net Income 1.09bln (exp. 0.97bln). Loan-loss provisions 269mln (exp. 472.7mln). Revenue 4.87bln (prev. 4.62bln Y/Y). Operating profit 1.98bln (prev. 1.68bln). NII 3.86bln (prev. 3.29bln). CET1 ratio 14.5% (prev. 15.9%). RoE 8.8% (prev. 7.2%). Risk costs declined to 17bps of average customer lending. (Newswires/ING IR)

OMV (OMV AV) - Q4 2022 (EUR): Clean CCS Operating profit 2.10bln (exp. 2.51bln). Clean CCS Net Income 700mln (exp. 823.5mln). Co. guides 2023 organic Capex around 3.70bln (exp. 3.29bln). Co. guides 2023 average production around 360k BOEPD (exp. 376.5k BOEPD). Note: Clean CCS EBIT helps the comparison to previous years and to peers' performance. Separately, OMV is said to be mulling the sale of some international oil and gas assets, according to Bloomberg. (Newswires)

Santander (SAN SM) - Q4 2022 (EUR): Net Income 2.29bln (exp. 2.10bln). NII 10.16bln (exp. 10.11bln). Total Income 13.52bln (exp. 13.32bln). Revenue 13.5bln (prev. 11.8bln Y/Y). RoTE 12.8% (prev. 13.4% Q/Q). CET1 Ratio 12.0% (prev. 12.1% Q/Q). (Newswires)

Tech Names - Meta (META) shares rose 20% after advertising revenue topped forecasts, the Co. cut expenses, and announced a USD 40bln share buyback.

Telecom Italia (TIT IM) - KKR is to present a non-binding offer to buy the Co’s fixed-line Italian business, via FT citing sources; could be presented as soon as Thursday. Bankers cited say it is unlikely that KKR’s offer will be in the range of Vivendi’s (VIV FP) EUR 31bln goal. (FT) Subsequently, confirmation that an offer has been presented - no further details.

SMI

ABB (ABBN SW) - Q4 2022 (USD): Revenue 7.62bln (exp. 7.93bln). Operating EBITA 1.15bln (exp. 1.16bln). EBITA Margin 14.8% (exp. 15.1%). FY dividend CHF 0.84/shr (exp. CHF 0.82/shr). Co. says "Looking into 2023, we currently do not anticipate a major set-back in demand, although the high inflationary environment adds uncertainty." (Newswires/ABB IR)

Credit Suisse (CSGN SW) - Co. is reportedly considering splitting its investment bank in China via the retention of a domestic unit and moving the overseas unit to the new CS First Boston, via Bloomberg citing sources. (Newswires)

Roche (ROG SW) - Q4 2022 (CHF): Revenue 16.24bln (exp. 16.12bln). Diagnostics Sales 3.88bln (exp. 3.79bln). FY Revenue 63.28bln (exp. 63.29bln). FY Core EPS 20.30 (exp. 20.61). Co. guides FY23 sales decline in the low single digits at constant currency (cc). Group sales growth (at cc.) +2% Y/Y, Core EPS growth 5%. Co. expects a sharp decline in COVID product sales in 2023. (Newswires)

Swiss Re (SREN SW) - Swiss Re announced plans to streamline its organisational structure. The reorganisation, which aims to simplify structures, improve efficiency and client experience will be effective from 3rd April 2023, subject to regulatory approvals. (Swiss Re)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Danske Bank (DANSKE DC) - Q4 2022 (DKK): Net Income 4.17bln (exp. 4.03bln). Impairments 774mln (exp. 372.8mln). Pretax 4.88bln (exp. 5.19bln). Guides 2023 net between 15-17bln (exp. 15.4bln). (Newswires)

Evolution AB (EVOG SS) – Q4 (EUR): Revenue 407mln (exp. 404mln), EBITDA 279mln (exp. 280mln), Net Income 223mln (exp. 239mln). Proposes a dividend of 2/shr (exp. 1.96/shr). FY23: intend to release over 100 games, expect EBITDA margin in the range of 68-71%. (Newswires)

Nordea (NDA SW) - Q4 2022 (EUR): Operating profit 1.61bln (exp. 1.45bln). NII 1.64bln (exp. 1.54bln). Revenue 2.90bln (prev. 2.44bln Y/Y). RoE 15.9% (prev. 11.3%). Board proposes a dividend of EUR 0.80/shr (prev. 0.69) Assets under management (AuM) -13% Y/Y, although +5% Q/Q "with continued positive flows from internal channels...The rising cost of living and greater economic uncertainty has had an adverse impact on the Nordic mortgage market, leading to lower transaction volumes and lending margins across the board. On the other hand, lending demand among our corporate customers has remained high." (Newswires)

Telenor (TEL NO) - Q4 2022 (NOK): Revenue 25.4bln (exp. 27.0bln). EBITDA 10.2bln (exp. 9.9bln). Co. proposes a dividend of 9.40 (prev. 9.30). (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.05% at 4,119, NDX +2.16% at 12,363, DJIA +0.02% at 34,092, RUT +1.49% at 1,960.

SECTORS: Technology +2.29%, Consumer Discretionary +1.9%, Communication Services +1.34%, Consumer Staples +0.76%, Real Estate +0.73%, Industrials +0.72%, Materials +0.66%, Health +0.48%, Utilities +0.18%, Financials +0.02%, Energy -1.89%.

Meta Platforms Inc (META) - Q4 2022 (USD): EPS 1.76 (exp. 2.22), Revenue 32.17bln (exp. 31.53bln), announces USD 40bln increase to share buyback. DAUs 2.00bln (exp. 1.98bln). Facebook monthly active users 2.96bln (exp. 2.98bln). Advertising rev. USD 31.25bln (exp. 30.86bln). Sees Q1 rev. USD 26bln-28.5bln (exp. 27.25bln). Co. cut its FY23 Opex guidance to 89-95bln (prev. 94-100bln), and cut its FY23 Capex to 30-33bln (prev. 34-37bln). (PR Newswire) Shares rose by 20% after-market

Microsoft (MSFT) - CEO tweeted the Co. is bringing the power of large language models including OpenAI's GPT to Teams Premium. (Twitter)

02 Feb 2023 - 06:51- Research Sheet- Source: Newsquawk