Newsquawk Daily European Equity Opening News - 3rd May 2023

3rd May 2023

ASIA

APAC stocks were mostly negative following the losses on Wall St where the major indices declined ahead of the FOMC rate announcement amid regional bank jitters and with sentiment overnight also hampered by the key market closures in Japan and mainland China. ASX 200 was led lower by underperformance in energy after oil prices dropped more than 5% yesterday and with the mood not helped by mixed data releases including weak AIG Manufacturing and Construction figures. KOSPI declined as the broad risk aversion overshadowed the jump in sales by South Korea’s top automakers. Hang Seng was pressured by weakness in the energy and tech sectors, with participants bracing for the expected rate hike stateside and a similar move by the HKMA in lockstep with the Fed.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -1.48% at 4,294, FTSE 100 -1.24% at 7,773, DAX 40 -1.23% at 15,726, CAC 40 -1.45% at 7,383, FTSE MIB -1.65% at 26,630, IBEX 35 -1.72% at 9,082, SMI -0.16% at 11,418.

SECTORS: IT 0.01%, Consumer Stpl -0.27%, Healthcare -0.28%, Consumer Disc -0.88%, Utilities -1.00%, Industrials -1.32%, Financials -1.54%, Materials -1.77%, Telecoms -1.83%, Energy -5.45%

FTSE 100

Carnival (CCL LN) - CEO said that demand is back. (Newswires)

UK Stocks – UK FCA is on Wednesday to publish a consultation document outlining plans to overhaul and simplify market listing regulations, to make it more attractive to list within the UK. Intends to abolish the stricter “premium” class of listing and make it easier for founders to retain control using “golden shares” or similar, among other measures. (FT/Guardian/Sky News)

OTHER UK COMPANIES

BROKER MOVES

HSBC (HSBA LN) upgraded to Buy from Hold at Berenberg

Tui (TUI LN) upgraded to Buy from Hold at HSBC

DAX

Adidas (ADS GY) - US lawmakers query Shein, Adidas, and Nike over allegations their products use forced Chinese labor, according to AFP. (AFP)

Deutsche Post (DPW GY) - Q1 (EUR): Revenue 20.9bln (exp. 20.57bln), EBIT 1.64bln (exp. 1.46bln), Net Income 911mln (exp. 845mln). (Newswires)

Lufthansa (LHA GY) - Q1 (EUR): Revenue 7.02bln (exp. 7.5bln), Net Income -467mln (exp. -301mln) adj. EBIT -273mln (exp. -279mln). Q1 passengers increased significantly to 22mln. FY outlook confirmed, Q2 results are expected to exceed the 2019 level. (Newswires)

OTHER GERMAN COMPANIES

DWS (DWS GY) - Co. has agreed a strategic partnership with Galaxy Digital, to launch a “comprehensive” range of crypto-focused ETPs in Europe. (FT)

Kloeckner & Co. (KCO GY) - Q1 2023 (EUR): Revenue 2.1bln (exp. 2.24bln). Adj. EBITDA 69mln (prev. 201mln). Net -8mln (prev. +172mln). Co. expects the economic environment to remain challenging. (Newswires)

MorphoSys (MOR GY) - UK NICE makes evidence-based recommendations on tafasitamab (Minjuvi) with lenolidomide for relapsed or refractory diffuse large B-cell lymphoma in adults who cannot have an autologous stem cell transplant. (NICE)

BROKER MOVES

CAC

BNP Paribas (BNP FP) - Q1 2023 (EUR): Revenue 12.0bln (exp. 12.068bln). FICC Sales & Trading Revenue 1.91bln (+9% Y/Y).CIB achieved very good results, driven by strong client activity in all its business lines. Business drive was very strong, leveraging a diversified and integrated model to meet clients’ needs. (Newswires/BNP IR)

Casino (CO FP) - Fitch cuts Co's rating to "CCC-"; places on Rating Watch Negative . (Newswires)

Sanofi (SAN FP) - Eli Lilly (LLY) and Sanofi (SAN FP) to cap insulin at USD 35/month for the uninsured in NY, according to Bloomberg. (Newswires)

OTHER FRENCH COMPANIES

Imerys (NK FP) Q1 2023 (EUR): Revenue 997mln (prev. 1.01bln Y/Y). Adj. EBITDA 151mln (prev. 156lmn). Co. notes of weak demand in certain markets, notably construction and industrial applications, may continue in the coming months. (Newswires)

BROKER MOVES

Biomerieux (BIM FP) upgraded to Hold from Reduce at HSBC

PAN EUROPE

AB InBev (ABI BB) - Co. is pledging to boost its marketing spending on Bud Light, accelerate production of a new slate of ads, and give a case of Bud Light to every employee of an Anheuser-Busch wholesaler, according to WSJ citing distributors. (WSJ)

Auto Names - European investment in China's auto sector reached a record as automakers try to claw back market share, according to FT. (FT) Separately, Ford (F) shares fell 1.4% after market. (Newswires)

Chip Names - AMD shares fell 6.5% after market following earnings after Data Centre Revenue missing expectations.

Saipem (SPM IM) - Sells its KCA onshore drilling activities within Latin America for USD 550mln. (Newswires)

Signify (LIGHT NA) - Q1 (EUR): Sales 1.7bln (exp. 1.73bln, Net Income 28mln (exp. 99mln). Confirms FY23 guidance. (Newswires)

UniCredit (UCG IM) - Q1 2023 (EUR): Revenue 5.93bln (exp. 5.36bln). Net 2.06bln (exp. 1.37bln). Co. raises its FY23 Adj. Net, Revenue, and NII guidance. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Acquires PASA, a leading producer of roofing and waterproofing solutions. Acquisition accelerates Co’s growth in solutions & products to hit 30% of the group’s net sales by 2025. (Newswires)

Novartis (NOVN SW) - UK NICE says it is unable to make a recommendation on capmatinib (Tabrecta) for treating advanced non-small-cell lung cancer with MET exon 14 skipping in adults. This is because Novartis Pharmaceuticals did not provide an evidence submission. (NICE)

OTHER SWISS COMPANIES

Straumann (STMN SW) - Q1 (CHF): Revenue 596mln (exp. 596mln). Confirms FY23 guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

Ambu (AMBUB DC) - Q1 2023 (DKK): Revenue 1.19bln (exp. 1.20bln). EBIT 46mln (exp. 51.5mln). Co. has affirmed its FY23 EBIT margin and organic revenue guidance. (Newswires)

BROKER MOVES

US

CLOSES: SPX -1.16% at 4,119, NDX -0.89% at 13,113, DJIA -1.08% at 33,684, RUT -2.10% at 1,732.

SECTORS: Energy -4.29%, Financials -2.3%, Communication Services -1.78%, Real Estate -1.74%, Utilities -1.22%, Industrials -1.05%, Materials -0.94%, Technology -0.93%, Health -0.49%, Consumer Staples -0.32%, Consumer Discretionary +0.16%.

AMD (AMD) - Q1 2023 (USD): Adj. EPS 0.60 (exp. 0.56), Revenue 5.35bln (exp. 5.3bln). Data centre revenue USD 1.30bln (exp. 1.46bln)Gaming revenue USD 1.76bln (exp. 1.53bln). Client revenue USD 739mln (exp. 908.3mln). Embedded revenue USD 1.56bln (exp. 1.42bln)Adjusted gross margin 50% (exp. 50.1%). Sees Q2 rev. USD 5.0bln-5.6bln (exp. 5.51bln). Expect sequential growth in data centre and client segments offset by modest declined in gaming and embedded segments for Q2. Remain confident in H2 as PC and server markets strengthen and new products ramp, guides initial FY23 data centre and embedded segments to grow Y/Y. CEO said seeing signs of improvements in the Chinese market, adds Q1 was the bottom for AMD business and the overall market. CEO said server demand is expected to remain mixed in Q2, while Co. is well positioned to grow cloud and enterprise footprint in H2. (GlobeNewswire) Shares fell 6.5% after market.

Ford Motor Co (F) - Q1 2023 (USD): Adj. EPS 0.63 (exp. 0.41), Revenue 41.5bln (exp. 36.08bln), reaffirms FY forecast. Still sees FY adj. EBIT USD 9bln-11bln (exp. 9.52bln). Profitability in the quarter was enhanced by favourable mix of products, higher net pricing increased volume and was broadly based geographically. CEO said aggressively lowering product costs for current and next-generation products. Co. expects to see pricing pressures this year as sales volumes normalise. (businesswire) Shares fell 1.4% after market.

Nvidia (NVDA) - Co. has lowered the price of its best graphics card, the RTX 4090, but only in Europe and only the Founders Edition GPU is affected, according to Digital Trends. (Digital Trends)

Starbucks Corp (SBUX) Q2 2023 (USD): Adj. EPS 0.74 (exp. 0.65), Revenue 8.7bln (exp. 8.4bln). Comp. sales +11% (exp. +7.33%). North America comp. sales +12% (exp. +9.03%). US comp. sales +12% (exp. +8.91%). International comp. sales +7% (exp. +1.51%). China comp. sales +3% (exp. -9.86%). Shares fell 5.6% after market.

03 May 2023 - 06:50- Research Sheet- Source: Newsquawk