Newsquawk Daily European Equity Opening News

30 October 2020

The Daily European Equity Opening News is uploaded at 0700BST/0200CDT recapping all the overnight equity news

From 0700GMT/0200CDT all equity news will be covered in real-time over the audio and headline feed and the full audio rundown will be at 0715GMT/0215CDT.

There will be an additional audio rundown at 0750GMT/0250CDT recapping any company news which has hit the wires since 0715GMT/0215CDT ahead of the European equity open.

ASIA

Asian equity markets weakened heading into month-end and after US stock index futures faded the recovery seen on Wall Street amid disappointment from the big tech earnings despite Apple, Alphabet, Amazon, Facebook and Twitter all beating on top and bottom lines. Apple shares declined over 4% in extended trade with investors discouraged by the miss on iPhone sales and lack of guidance, as well as a 29% Y/Y drop in its Chinese revenue which pressured its supply Chain in Asia and Twitter slumped nearly 18% after hours on slower user growth. ASX 200 (-0.6%) and Nikkei 225 (-1.5%) were weaker with industrials and tech frontrunning the declines in Australia although losses in the index were briefly pared by financials as AMP shares surged over 20% following a takeover approach by Ares Management, while the mood in Tokyo was clouded by currency effects and soft inflation data but with Panasonic shares a notable gainer on reports it is working with Tesla to build a new battery cell production line at the Gigafactory. Elsewhere, the Hang Seng (-1.3%) and Shanghai Comp. (-0.7%) remained cautious amid a plethora of large-cap earnings and with participants mulling over the initial details of the 5-year plan which seeks to build the nation into a technological powerhouse and emphasized quality growth over speed but refrained from specifying a targeted pace of growth.

EUROPEAN CLOSES

EUROPEAN CLOSES: EURO STOXX 50 (-0.19%) at 2,958, FTSE 100 (+0.01%) at 5,583, DAX (+0.24%) at 11,588, CAC 40 (-0.03%) at 4,570, IBEX 35 (-0.93%) at 6,414, FTSE MIB (-0.14%) at 17,873, SMI (-0.56%) at 9,565               

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

DAX

Continental (CON GY) - CEO Degenhart is to step down from the Co.; cites health reasons. (Newswires)

Lufthansa (LHA GY) – Co. and Verdi union are looking to discuss a crisis pact for ground staff. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Ubisoft (UBI FP) – H1 revenue EUR 757mln vs. Prev. EUR 697mln, operating income EUR 114.3mln vs. Prev. EUR 6.9mln. Narrows FY operating guidance and cuts booking guidance. (Newswires)

Casino (CO FP) – Q3 revenue EUR 7.43bln vs. Exp. EUR 7.55bln, EBTIDA EUR 599mn vs. Prev. EUR 587mln. (Newswires)

Safran (SAF FP) – Q3 revenue EUR 3.38bln vs. Exp. EUR 3.3bln. Confirm FY20 targets, on track to achieve/exceed cost cutting targets. (Newswires)

Saint Gobain (SGO FP) – Q3 revenue EUR 10.1bln vs. Exp. EUR 9.9bln; targets revised upwards given the strong Q3 performance. (Newswires)

OTHER FRENCH COMPANIES

Air France (AF FP) – Q3 revenue EUR 2.524bln vs. Exp. EUR 2.62bln, operating income EUR -1.046bln vs. Exp. EUR -1.309bln, EBITDA EUR -442mln vs. Exp. EUR -421mln; passenger traffic -69.8%. Downgrades Q4 capacity to below 35% of Prev. level for Air France and slightly higher for KLM. Q4 EBITDA to be substantially lower than Q3. (Newswires)

Amundi (AMUN FP) – Q3 revenue EUR 630mln vs. Exp. EUR 629mln, operating income EUR 307mln vs. Prev. EUR 321mln, net income EUR 235mln vs. Exp. EUR 220mln, AUM EUR 1.6trl

Eutelsat (ETL FP) – Q1 revenue EUR 315mln vs. Prev. EUR 317mln. Confirms FY targets. (Newswires)

BROKER MOVES

PAN EUROPE

Banca Monte dei Paschi di Siena (BMPS IM) - Co. is in prelim discussions with the Italian government regarding a possible EUR 1.5bln capital increase. (Newswires)

Caixabank (CABK SM) – Q3 revenue EUR 2.09bln, net income EUR 522mln vs. Exp. EUR 313mln, net interest income EUR 1.22bln vs. Exp. EUR 1.24bln. (Newswires)

Ferrovial (FER SM) – 9-month: revenue EUR 4.57bln vs Prev. EUR 4.24bln, net income EUR -498mln vs. Prev. EUR -104mln, EBITDA EUR 241mln vs. Prev. EUR 20mln. (Newswires)

Proximus (PROX BB) – Q3 revenue EUR 1.37bln vs. Exp. EUR 1.35bln, EBITDA EUR 469mln vs. Exp. EUR 447mln. Upward revision to FY guidance. (Newswires)

BROKER MOVES

SMI

LafargeHolcim (LHN SW) – Q3 revenue CHF 6.46bln vs. Exp. CHF 6.5bln, recurring EBIT CHF 1.45bln vs. Prev. CHF 1.42bln; LFL sales +2.6% YY. (Newswires)

Swiss Re (SREN SW) – 9-month net income USD -691mln vs. Exp. USD -877mln. Q3 net income USD 444mln. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.2% at 3,309, NDX +1.6% at 11,186, DJI +0.5% at 26.659.

SECTORS: Energy +3.2%, Communication +2.9%, Materials +2.2%, Technology +1.9%, Industrials +1.5%, Real Estate +1.3%, Consumer Discretionary +0.9%, Financials +0.7%, Utilities +0.3%, Consumer Staples flat, Health care -0.7%

Activision Blizzard (ATVI) (Communication Services/Interactive Home Entertainment) Q3 20 (USD): Adj. EPS 0.88 (exp. 0.65), Revenue 1.77bln (exp. 1.69bln). Q4 EPS view 0.63 (exp. 1.08), revenue view 2.73bln (exp. 2.63bln). FY EPS view 3.08 (exp. 3.30), revenue view 8.1bln (exp. 7.94bln). CoD, WoW, Candy Crush to generate over USD 1bln in net bookings.

Alphabet Inc Class C (GOOG) (Communication Services/Interactive Media & Services) EPS 16.40 (exp. 11.29), Revenue 46.2bln (exp. 42.9bln) Advertising revenue: 37.10bln (exp. 34.51bln) Google segment: 46.02bln (exp. 42.48bln) Google cloud segment: 3.44bln (exp. 3.31bln). Q3 growth led by increase in advertiser spend.

Amazon.com Inc. (AMZN) (Consumer Discretionary/Internet & Direct Marketing Retail) Q3 20 (USD): EPS 12.37 (exp. 7.41); Revenue 96.1bln (exp. 92.7bln). REVENUE BREAKDOWN: AWS: 11.6bln (exp. 11.58bln). Online stores:  48.35bln (exp. 47.28bln). Other: 5.4bln (exp. 4.91bln). Physical stores: 3.788bln (exp. 3.96bln). Subscriptions: 6.57bln (exp. 6.27bln). Continues to see strong Prime member engagement, and it also expects Q3 trends to continue into Q4, although it expects a lot of uncertainty, thus providing a wide range of revenue guidance. Q4 EPS view 112-121bln (exp. 112bln); assumes USD 4bln worth of COVID related costs.

Apple Inc. (AAPL) (Information Technology/Technology Hardware, Storage & Peripherals) Q3 20 (USD): EPS 0.73 (exp. 0.70); Revenue 64.70bln (exp. 63.7bln); maintains dividend of USD 0.205/shr iPhone: 26.44bln (exp. 27.93bln) iPad: 6.8bln (exp. 6.12bln) Mac: 9.03bln (exp. 7.93bln) Other: 7.88bln (exp. 7.4bln) Services: 14.55bln (exp. 14.08). Response to new products is tremendously positive. Greater China revenue USD 7.9bln (prev. USD 11.1bln Y/Y, prev. USD 9.33bln Q/Q), although it was better than Apple’s expectation. Maintains dividend of USD 0.205/shr. AAPL states its results were ahead of its expectations. Note, AAPL rallied into the closing bell yesterday ahead of its release.

Facebook, Inc. (FB) (Communication Services/Interactive Media & Services) Q3 20 (USD): Adj. EPS 2.71 (exp. 1.91); Revenue 21.5bln (exp. 19.82bln); Continue to face a significant amount of uncertainty for 2021. DAUs:1.82bln (exp. 1.79bln). MAUs: 2.74bln  (exp. 2.7bln).

Twitter, Inc. (TWTR) (Communication Services/Interactive Media & Services) Adj. EPS 0.19 (exp. 0.06/-0.10 reported); Revenue 936mln (exp. 777mln). MDAUs: 187mln (exp. 195.2mln, prev. 145mln Y/Y), US MDAU’s 36mln (prev. 30mln Y/Y).

30 Oct 2020 - 06:48- EquitiesResearch Sheet- Source: Newsquawk