Newsquawk Daily European Equity Opening News - 31st July 2023

31st July 2023

ASIA

Asia-Pac stocks headed into month-end mostly on the front foot after Friday’s data and tech-led momentum from Wall St and as participants digested the latest support efforts from China and mixed official PMI data. ASX 200 (-0.2%) lagged with strength in the commodity-related sectors offset by weakness in consumer stocks and financials, with the mood cautious ahead of tomorrow’s RBA rate decision where there is a discrepancy between money markets pricing and analysts’ median expectations on whether the central bank will hike or pause. Nikkei 225 (+1.0%) was boosted from the open and rose back above the 33,000 level amid a weaker currency and as markets digested the BoJ’s recent shift to a more flexible approach which provided early tailwinds for financials, while the central bank announced unscheduled bond purchases and participants also shrugged off disappointing Industrial Production data. Hang Seng (+1.5%) and Shanghai Comp. (+0.6%) were higher amid stimulus-related optimism as Chinese officials are set to announce more measures for consumption, recovery and expansion, while the NDRC said it will solidly promote development and reform, as well as stick to the general principle of making economic stability a top priority. Furthermore, mixed official PMI data from China failed to dampen the mood in which headline Manufacturing PMI slightly topped forecasts but remained in contraction territory at 49.3 (exp. 49.2) and Non-Manufacturing PMI disappointed at 51.5 (exp. 53.0) which was the slowest pace of increase since December 2022.

BHP (BHP AT) - Expects India's steelmaking boom to drive its coal business, with around 40% of the Co's coal will be heading to India, according to FT. (FT)

Toyota (7203 JT) - Plans August-October quarter global output increase of 11% Y/Y to 2.68mln, according to Chubu Keizai newspaper. (Chubu Keizai)

EUROPEAN CLOSES

Bourses: DAX +0.39% at 16,469, FTSE 100 +0.02% at 7,694, CAC 40 +0.15% at 7,476, Euro Stoxx 50 +0.44% at 4,467, IBEX 35 -0.10% at 9,685, FTSE MIB -0.33% at 29,500, SMI -0.49% at 11,317.

Sectors: Consumer Disc 0.47%, Financials 0.13%, Consumer Stpl -0.10%, Materials -0.11%, Telecoms -0.25%, Healthcare -0.47%, Industrials -0.50%, IT -0.54%, Energy -0.73%, Utilities -1.14%

FTSE 100

British American Tobacco (BATS LN) - Chief Executive has rejected calls to move its primary listing from London to New York, according to The Times. (The Times)

Energy Names - The UK's Government's ambition to more than triple Britain's Nuclear power generation capacity by 2050, badly lacks a clear plan to achieve it, according to a report. (FT)

Glencore (GLEN LN) - According to reports, Co. is in talks to acquire the remaining stake in Mara copper project from Pan America. (Bloomberg)

Tobacco Names - Tobacco companies are exploiting a legal loophole to promote flavoured Nicotine pouches, using influencers. The marketing has raised concern among health experts, suggesting they are largely unregulated. (Guardian)

UK Banks/Housing – Banks, following talks with Chancellor Hunt, will this week launch a multimillion-pound campaign aimed at illustrating the range of support they are providing to help struggling borrowers, according to Sky News sources. (Sky News)

UK Oil Names - UK PM Sunak will today commit to going ahead with oil and gas exploration and production in the North Sea, according to the Times. (The Times)

OTHER UK COMPANIES

BROKER MOVES

GSK (GSK LN) reiterated with Underweight at JPMorgan Chase

DAX

OTHER GERMAN COMPANIES

Nemetschek (NEM GY) - Q2 (EUR): EBITDA 56.1mln (prev. 68.6mln YY), Revenue 208mln (prev. 204mln YY). Affirms FY23 guidance. (Newswires)

Stabilus (STM GY) - Q3 2023 (EUR): Revenue growth 306.5mln (prev. 271.1mln), adj. EBIT 41.9mln (prev. 37.9mln). Raises FY23 Revenue guidance 1.2bln (prev. 1.1-12.bln), Now sees adj. EBIT Margin 13% (prev. 13-14%) (Newswires)

BROKER MOVES

BASF (BAS GY) downgraded to Neutral from Outperform at Exane BNP

CAC

AXA (CS FP) - Co. partners with Gogox (2246 HK) to co-create technology platform X insurance new model. (Newswires)

Credit Agricole (ACA FP) - The Co. and Worldline (WLN FP) sign a binding agreement to create a major player in merchant service in France. (Newswires)

Legrand (LR FP) - H1 2023 (EUR): Net 651mln (prev. 548mln YY), adj. Op 955mln (prev. 838mln YY), Revenue 4.29bln (prev. 4.09bln YY). Raises Fy23 ad. Op Margin 20.5% (prev. ~20%), Revenue +5-8% (prev. 2-6%). (Newswires)

OTHER FRENCH COMPANIES

Bollore (BOL FP) - H1 2023 (EUR): Net 235mln (prev. 947mln YY), adj. EBITDA 352mln (prev. 436mln YY), Revenue 6.23bln (prev. 6.39bln YY). (Newswires)

Casino (CO FP) - Clarifies it has obtained a waiver from the lenders under the revolving credit facility to declare an early repayment on June 30th, not September 30th. (Newswires)

Rubis (RUI FP) - Names Nils Christian Bergene as Chairman, effective immediately. (Newswires)

BROKER MOVES

Airbus (AIR FP) reiterated with Overweight at JP Morgan Chase

Rexel (RXL FP) reiterated with Overweight at JP Morgan Chase

PAN EUROPE

Automobiles - French Finance Minister Le Maire says the European car industry can withstand cheap Chinese EVs and was "not concerned" about the threats. (FT)

ASML (ASML NA)/Chip Names - Chinese export controls on key chipmaking material are to come into effect on Tuesday 1st August. (Newswires)

Cellnex Telecom (CLNX SM) - CFO Jose Manuel Aisa Mancho is to resign, effective October 31st. (Newswires)

Erste (EBS AT) - Q2 (EUR): Net 896mln (exp. 707mln), Revenue 2.66bln (exp. 2.57bln). (Newswires)

Eni (ENI IM) - Nearing a deal to sell around 10% of its low-carbon unit Plenitude to Switzerland's Energy Infrastructure Partners, according to Reuters sources. (Newswires)

Galp Energia (GALP PL) – Q2 (EUR): Net Income 251mln (exp. 249mln), EBIT 643mln (exp. 613mln), adj. EBITDA 916mln (exp. 842mln). FY23 guidance maintained. (Newswires)

Heineken (HEIA NA) – H1 2023 (EUR): Revenue 17.4bln (exp. 14.83bln), Net 1.16bln (exp. 1.246bln) Organic Revenue +6.6% (exp. +9.4%). Operating profit growth -22.2%Y/Y. Co. cuts FY adjusted operating profit organic growth outlook to “flat to mid-single-digit %” from “mid-to-high single digits”. “In Europe, the region with the highest inflationary impact, volume declined in line with our expectations, yet demand in APAC was considerably softer than foreseen, due to an economic slowdown and our own underperformance in Vietnam.” (Heineken IR/ Newswires)

Leonardo (LDO IM) - H1 23 (EUR): EBITA 430mln (prev. 418mln), Net 208mln (prev. 267mln), Revenue 6.9bln (prev. 6.57bln). Reaffirms FY23 guidance. (Newswires)

BROKER MOVES

Acciona Energias (ANE SM) downgraded to Hold from Buy at Stifel Nicolaus

WDP Warehouses (WDP BB) downgraded to Underweight from Neutral at JP Morgan Chase

SMI

OTHER SWISS COMPANIES

Roche (ROG SW) reiterated with Underweight at JPMorgan Chase

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.99% at 4,582, NDX +1.85% at 15,750, DJIA +0.50% at 35,459, RUT +1.36% at 1,981.

SECTORS: Communication Services +2.3%, Consumer Discretionary +1.85%, Technology +1.48%, Consumer Staples +0.99%, Materials +0.69%, Industrials +0.62%, Health +0.29%, Financials +0.13%, Energy +0.1%, Real Estate -0.25%, Utilities -0.27%.

Coinbase (COIN) - SEC reportedly asked Coinbase (COIN) to halt trading in everything aside from Bitcoin prior to suing the exchange, according to the CEO cited by FT. (FT)

31 Jul 2023 - 06:53- Research Sheet- Source: Newsquawk