Newsquawk Daily European Equity Opening News - 30th 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 stocks traded subdued after the momentum from yesterday’s intraday rebound and fresh record highs on Wall Street waned, with the region tentative on month-end and as participants digested an influx of earnings and mixed data releases, while an extended weekend for key markets in which Japan and China will remain closed through to Wednesday also contributed to the paring of risk. ASX 200 (-0.8%) declined with broad early pressure across all sectors. In addition, the recent pullback in copper from a decade high and announcement by ANZ Bank of a substantial impact to its H1 net also added to the sombre mood. Nikkei 225 (-0.7%) was dragged lower by currency inflows and amid an overload of recent earnings releases ahead of its 5-day closure but with losses stemmed following stronger than expected Industrial Production data and after the Japanese cabinet approved the use of JPY 500bln in reserve funds to support businesses impacted by pandemic and curbs. Hang Seng (-1.7%) and Shanghai Comp. (-0.5%) weakened heading into the Labor Day holidays for the mainland and amid a deluge of corporate results including the largest banks which were pressured after relatively tepid earnings growth amongst China’s big four banks although PetroChina was bolstered following a jump in earnings. There were also concerns regarding a crackdown on the tech sector after Chinese regulators warned of tighter oversight for its tech giants and ordered 13 firms to adhere to tighter regulation of data and lending practices, while markets also reflected on the latest Chinese PMI data in which official Manufacturing and Non-Manufacturing PMI disappointed but remained in expansionary territory and Caixin Manufacturing PMI topped estimates.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.49% at 3,995; FTSE 100 -0.07% at 6,959; DAX -0.89% at 15,156; CAC 40 -0.11% at 6,300; IBEX 35 +0.21% at 8,818; FTSE MIB -0.73% at 24,280; SMI -0.23% at 11,078

SECTORS: Consumer Stpl +0.90%, Financials +0.44%, Telecoms +0.10%, Materials -0.29%, Healthcare -0.31%, IT -0.35%, Energy -0.61%, Consumer Disc -0.70%, Industrials -0.96%, Utilities -1.19%

FTSE 100

AstraZeneca (AZN LN) - AstraZeneca executives reportedly struggled to pull together the full data necessary to apply for US approval of its COVID jab further delaying its efforts to secure FDA approval and recently told US officials it might need until mid-May to finish its application for an FDA review, according to a WSJ report citing sources. (WSJ)

ITV (ITV LN) – Co. is said to be one of the parties interested in taking a stake in BT’s (BT/A LN) BT Sport, according to sources. (Telegraph)

Ryanair (RYA LN) – The UK High Court has ruled that it must compensate passengers for flights cancelled due to 2018 pilot strikes. Payouts are likely to be EUR 250 or EUR 400/passenger depending on the flight with over 15,000 customers affected. Ryanair can appeal the ruling. (FT)

OTHER UK COMPANIES

BROKER MOVES

MEGGITT (MGGT LN) UPGRADED TO HOLD FROM SELL AT SOCGEN

DAX

SAP (SAP GY) – Co. is to pay USD 8mln in fines as part of a settlement with the US to resolve allegations that Co. exported some of its software products to Iran, considered a violation of federal law due to sanctions. (Newswires)

Volkswagen (VOW3 GY) - Brand Q1 electric car sales almost doubled Y/Y; Q1 plug-in hybrid sales more than tripled Y/Y. (Newswires)

OTHER GERMAN COMPANIES

Wacker Chemie (WCH GY) - Q1 EBITDA EUR 246mln vs exp. EUR 220mln. Revenue EUR 1.36bln vs exp. EUR 1.30bln. (Newswires)

BROKER MOVES

DWS (DWS GY) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT MORGAN STANLEY

MTU AERO (MTX GY) UPGRADED TO HOLD FROM SELL AT SOCGEN

CAC

BNP Paribas (BNP FP) - Q1 revenue EUR 11.829bln vs exp. EUR 11.17bln. Net income EUR 1.768bln vs exp. EUR 1.203bln. CET1 12.8% vs exp. 12.6%. FICC revenue -15.7% Y/Y to EUR 1.149bln. Cost of risk was down EUR 530mln Y/Y. Operating expenses -5% Y/Y. ROE 9.4% vs prev. 7.0%. CIB revenue +24.3% Y/Y. (Newswires/BNP)

Safran (SAF FP) - Q1 revenue EUR 3.34bln vs exp. EUR 3.5bln. Organic revenue -34.6% Y/Y. Co. affirms its FY21 recurring operating margin. (Newswires)

OTHER FRENCH COMPANIES

Imerys (NK FP) - Q1 revenue EUR 1.06bln vs prev. EUR 1.03bln, net EUR 72mln vs prev. EUR 44mln, operating income EUR 116.3mln vs prev. EUR 82mln. Co. looks for FY21 EBITDA to improve. (Newswires)

Saint Gobain (SGO FP) - Q1 revenue EUR 10.4bln vs prev. EUR 9.36bln, confirms FY21 outlook. Medium/long-term outlook remains robust. (Newswires)

BROKER MOVES

ACCOR (AC FP) DOWNGRADED TO SELL FROM HOLD AT BERENBERG

AIRBUS (AIR FP) UPGRADED TO HOLD FROM SELL AT SOCGEN

DASSAULT AVIATION (AM FP) UPGRADED TO BUY FROM HOLD AT SOCIETE GENERALE

SAFRAN (SAF FP) UPGRADED TO HOLD FROM SELL AT SOCIETE GENERALE

STIMICROELECTRONICS (STM FP) DOWNGRADED TO HOLD FROM BUY AT LIBERUM CAPITAL

PAN EUROPE

Banco Sabadell (SAB SM) - Q1 net EUR 73mln vs exp. EUR 57mln. Revenue -10.3% Y/Y. NII EUR 833mln vs exp. EUR 830mln. CET1 ratio 12% vs prev. 12%. (Newswires)

Proximus (PROX BB) - Q1 adj. EBITDA EUR 446mln vs exp. EUR 442.3mln. Revenue EUR 1.37bln vs exp. 1.361bln. Co. affirms its FY EBTIDA target. (Newswires)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Gottschling, the Head of Risk, will step down from the board and not stand for re-election at the AGM. Separately, Investors are reportedly calling on the Co. to take a tougher stance in relation to coal-financing, believing its current policies are lax, according to sources. (Newswires ) AGM takes place today

Nestle (NESN SW) - KKR is to sell Bountiful to Nestle for USD 5.75bln, the transaction is expected to close in H2 this year. (Newswires)

Swiss Re (SREN SW) - Q1 net USD 333mln vs prev. USD -225mln. ROE 5.2% vs prev. -3.1%. Net premiums earned and fee income USD 10.212bln vs prev. USD 9.586bln. (Swiss Re)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Danske Bank (DANKSE DC) – Danish prosecutors have dropped all charges against former managers, including ex-CEO and CFO, in relation to a historic EUR 200bln money laundering scandal. However, an open investigation into Danske Bank itself is still taking place alongside a criminal investigation in the US. (FT)

BROKER MOVES

HEXAGON (HEXAB SS) DOWNGRADED TO HOLD FROM BUY AT DNB

US

Amazon (AMZN) - Q1 2021 (USD): EPS 15.79 (exp. 9.55), Revenue 108.50bln (exp. 104.46bln). Q2 2021 Revenue view 110-116bln (exp. 108.60bln). AWS 13.50bln (exp. 13.09bln). Online Store 52.9bln (exp. 50.63bln). Click here for the full announcement. (Business Wire) Shares rose 2% after-market

Twitter Inc (TWTR) - Q1 21 (USD): Adj. EPS 0.16 (exp. 0.14), Revenue 1.04bln (exp. 1.03bln). Advertising rev. USD 899mln (exp. USD 897mln). Monetizable DAU 199mln (exp. 198.8mln). Co.sees Q2 rev. USD 980mln-1.08bln (exp. USD 1.05B). Co.noted significant pandemic-related surge we saw last year creates challenging comps and may lead to MDAU growth rates in the low double digits on a year-over-year basis in Q2, Q3, and Q4, with the low point in terms of growth likely in Q2. Click here for the full announcement. (PR Newswire) Shares fell 11% after-market

CLOSES: SPX +0.65% at 4,211, NDX +0.46% at 13,967, DJIA +0.69% at 34,053, RUT -0.57% at 2,295.

SECTORS: COMMUNICATION SVS +2.83%, FINANCIALS +1.8%, CONS STPL +1.17%, ENERGY +1.05%, UTILITIES +0.87%, INDUSTRIALS +0.72%, REAL ESTATE +0.67%, MATERIALS +0.65%, CONS DISC +0.09% TECHNOLOGY +0.03%, HEALTH -0.36%.

30 Apr 2021 - 06:45- Research Sheet- Source: Newsquawk