Newsquawk Daily European Equity Opening News - 31st October 2023

31st October 2023

ASIA

Asia-Pac stocks traded mixed amid a deluge of data releases at month-end including disappointing Chinese official PMIs, while participants also digested a slew of earnings releases and the conclusion of the BoJ’s live meeting. ASX 200 (+0.1%) was relatively flat as strength in real estate, financials and the consumer sectors was offset by underperformance in mining stocks and after the weak factory activity data from Australia’s largest trading partner. Nikkei 225 (+0.2%) was initially choppy after Industrial Production and Retail Sales missed estimates although the index was later supported following the BoJ policy announcement in which the central bank announced a less aggressive than anticipated tweak to YCC. Hang Seng (-2.0%) and Shanghai Comp. (-0.3%) were pressured following disappointing PMI data which showed China’s factory activity returned into contractionary territory for October, while there were also plenty of earnings releases including from the likes of Bank of China, BYD and PetroChina.

Mitsui & Co (8031 JT) - Is to buyback 12.5mln of shares for JPY 50bln. (Newswires)

Samsung Electronics (005380 KS) - Q3 (KRW) oper. profit 2.4tln (prelim. 2.4tln), net 5.8tln (exp. 2.4tln), rev. 67.4tln (prelim. 67.0tln), the chip display business posted an operating loss of KRW 3.75tln. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX -0.30% at 14,687.41, FTSE 100 -0.86% at 7,291.28, CAC 40 -1.28% at 6,800.47, Euro Stoxx 50 -0.86% at 4,014.65, IBEX 35 -0.50% at 8,918.30, FTSE MIB -0.80% at 27,287.45, SMI -0.45% at 10,321.00.

SECTORS: Consumer Stpl 1.16%, Healthcare 0.68%, Materials 0.47%, Energy 0.47%, IT 0.38%, Consumer Disc 0.38%, Financials 0.37%, Telecoms 0.35%, Utilities -0.42%, Industrials -1.17%

FTSE 100

National Grid (NG/ LN) - Biden-Harris Administration selects Co's Twin States Clean Energy Link as part of USD 1.3bln commitment to build out the nation's transmission infrastructure. (Newswires)

UK Banks – Treasury Select Committee chairwoman said NatWest (NWG LN), Lloyds (LLOY LN), Barclays (BARC LN) and HSBC (HSBA LN) were “far too slow” on raising savings rates for customers. (Times)

OTHER UK COMPANIES

BROKER MOVES

Intercontinental Hotels Group (IHG LN) downgraded to Underweight from Neutral at JP Morgan

Kerry Group (KYGA LN) downgraded to Equal Weight from Overweight at Morgan Stanley

Rolls-Royce (RR/ LN) upgraded to Overweight from Equal Weight at Barclays

Smith & Nephew (SN/ LN) upgraded to Buy from Hold at HSBC

THG (THG LN) upgraded to Buy from Hold at HSBC

WH Smith (SMWH LN) downgraded to Add from Buy at Peel Hunt

DAX

BASF (BAS GY) - Q3 (EUR): Sales 15.7bln (exp. 17.59bln), adj. EBIT 575mln (exp. 525mln), Net -249mln (prev. 909mln), Cash Flows 2.7bln (prev. 2.3bln). FY Guidance: Sales and adj. EBIT at lower-end of respective ranges. (Newswires)

Siemens Energy (ENR GY) - Co. is considering selling a part of its 24% stake in Indian-listed Siemens to former owner Siemens (SIE GY) to shore up its balance sheet, according to two people familiar with the matter cited by Reuters. The stake is currently worth around USD 3.4bln. (Reuters) Reminder, Siemens Energy has been in conversation with the German government around potential loan guarantees.

OTHER GERMAN COMPANIES

Kloecker & Co. (KCO GY) - Q3 (EUR): adj. EBITDA 41mln. Cuts FY23 EBITDA 170-200mln (prev. 220-290mln)

Knorr-Bremse (KBX GY) – Q3 (EUR): Revenue 1.94bln (exp. 1.90bln). EBITDA 304mln (exp. 303mln). Co. affirms FY23 revenue, operating EBIT and FCF guidance. (Newswires)

BROKER MOVES

CAC

Bouygues (EN FP) – 9-month (EUR): Sales 40.9bln (exp. 40.8bln), Current Operating Profit 1.6bln (exp. 1.56bln), Net Income 665mln. (Newswires)

Engie (ENGI FP) - Brail unit to acquire 545 MWAC of solar assets in Brazil for EUR 618mln. (Newswires)

OTHER FRENCH COMPANIES

Casino (CO FP) - Q3 (EUR): Sales 4.56bln (prev. 4.49bln), EBITDA 189mln. Domestic Retail Sales -5.6%, on a same-store basis. (Newswires)

Imerys (NK FP) - Q3 (EUR): Net 53mln (prev. 72mln YY), EBITDA 481mln (prev. 568mln YY), Revenue 918mln (exp. 1.08bln). (Newswires)

Thales (HO FP) - Q3 (EUR): Sales 4.14bln (exp. 4.1bln), Order Intake 3.8bln (exp. 4.5bln). Confirms FY23 targets. (Newswires)

BROKER MOVES

Eurofins Scientific (ERF FP) upgraded to Market Perform from Underperform at Bernstein

Kering (KER FP) downgraded to Neutral from Buy at Goldman Sachs

PAN EUROPE

Aedifica (AED BB) - Q3 (EUR): ERPA EPS 3.95 (prev. 3.58 YY), Rental Revenue 234mln (prev. 200mln YY). Raises FY23 ERPA EPS > 4.95 (prev. 4.85). (Newswires)

AB InBev (ABI BB) - Q3 (USD): Revenue 15.57bln (exp. 15.8bln). Organic Adj. EBITDA +4.1% (exp. +1.1%). EPS 0.86 (prev. 0.84 Y/Y). "Continued global momentum, partially offset by US performance, delivered mid-single digit top- and bottom-line growth". (Newswires)

ams Osram (ASM AV) – Q3 (EUR): Revenue 904mln (exp. 878mln), adj. EBIT margin 7.9% at the upper-end of guidance. Q4 guidance: Revenue 850-950mln (exp. 926mln), adj. EBIT margin 5-8%. Expect to divest or exit some non-core semiconductor businesses with 300-400mln of 2023 revenues during FY24. (Newswires)

BBVA (BBVA SM) - Q3 (EUR): Net Income 2.08bln (exp. 2.02bln). NII 6.43bln (exp. 5.94bln). CET1 ratio 12.7% (exp. 13.0%). ROTE 17.0% (prev. 15.0% Y/Y). "The economic slowdown has continued in recent months, with differences emerging among the main geographic areas. Growth was stronger than expected in the United States, relatively weak in the Eurozone and surprisingly weak in China." (Newswires)

dsm-firmenich (DSFIR NL) - Q3 (EUR): Adj. EBITDA 409mn (prev. 599mln YY), Revenue 3.05bln (prev. 3.45bln YY). Cuts FY23 Adj. EBITDA approx. 1.8bln (prev. 1.8-1.9bln vs 2.28bln YY). (Newswires)

mBank (MBK PW) – Concluded 10.8k CHF settlements in relation to CHF loans, as of October 24th. 21.7k individual cases initiated against the bank as of September 30th. (Newswires)

OMV (OMV AV) - Q3 (EUR): Net Income 431mln (exp. 657mln), Net 1.6bln (pre. 4.5bln), Operating Result 1.3bln (exp. 1.49bln). Falling raw material and energy prices had a significant profit margin impact. Sees demand for gas and power significantly lower vs 2022, total gas sale volumes for 2023 lower Y/Y primarily on lower supply and depressed demand. (Newswires)

Orlen (PKN PW) – Q3 (PLN): Revenue 75.4bln (exp. 77.5bln), EBITDA 9.5bln (exp. 8.7bln), Net Profit 3.46bln (exp. 3.42bln). 9-month: Net Profit 17bln (exp. 16.9bln). (Newswires)

SES (SES LL) 9-month (EUR): Revenue 1.49bn, +.2% Y/Y; adj. EBITDA 792mln, -4.5% Y/Y. FY23 financial outlook re-affirmed. Plans to exercise call for EUR 550mln hybrid (perpetual) bond in January 2024. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - Duchenne muscular dystrophy (DMD) did not reach the primary endpoint but showed positive efficacy outcomes on all timed functional key endpoints. (Roche)

Logitech (LOGN SW) - Appoints Hanneke Faber as CEO, effective December 1st. (Newswires)

OTHER SWISS COMPANIES

Straumann Holding (STMN SW) - Q3 (CHF): Revenue 570.6mln (prev. 550.5mln YY). (Newswires)

BROKER MOVES

SCANDINAVIA

Skanska (SKABB SS) - Builds apartments in Finland for EUR 31mln. (Newswires)

Wartsila (WRT1V FH) Q3 (EUR): Sales 1.45bln (exp. 1.43bln), Orders 1.78bln (1.62bln), EBIT 117mln (exp. 10mln), PBT 107mln (exp. 7mln). Initiated a strategic review of its Energy Storage/Optimisation business. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.20% at 4,166, NDX +1.09% at 14,335, DJIA +1.58% at 32,928, RUT +0.63% at 1,647.

SECTORS: Communication Services +2.06%, Financials +1.71%, Consumer Staples +1.55%, Consumer Discretionary +1.26%, Industrials +1.23%, Technology +1.19%, Materials +0.98%, Utilities +0.68%, Health +0.55%, Real Estate +0.31%, Energy +0.31%.

Apple (AAPL) - Announces in the event that it will introduce a new family of chips with M3, M3 Pro and M3 Max, while M3 chips will use 3-nanometer technology and it also introduces the new Macbook Pro which will have up to 22 hours battery life. (Newswires)

Nvidia's (NVDA) - USD 5bln of China orders are reportedly in limbo following the latest US curbs, according to WSJ. (WSJ)

Pinterest Inc (PINS) - Q3 2023 (USD): Adj. EPS 0.28 (exp. 0.20), Revenue 763.2mln (exp. 744.1mln). (Newswires)

31 Oct 2023 - 06:53- Research Sheet- Source: Newswires