Newsquawk Daily European Equity Opening News - 4th March 2022

The Daily European Equity Opening News is uploaded at 0700GMT/0200EST recapping all of the overnight equity news.

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

There will be an additional audio rundown at 0750GMT/0250EST recapping any company news which has hit the wires since 0715GMT/0215EST 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

APAC stocks declined amid nuclear catastrophe fears after a fire broke out at the Zaporizhzhia nuclear power plant in Ukraine which is the largest in Europe and was hit by Russian shelling. ASX 200 was dragged lower by cyclicals but moved off worse levels on relief as the safety of the nuclear power plant in Ukraine was eventually reported to be secured. Nikkei 225 fell beneath 26,000 on geopolitical concerns and the extension of quasi-emergency measures. Hang Seng and Shanghai Comp. weakened with losses in Hong Kong exacerbated by a tech rout but the mainland was somewhat cushioned as Chinese press speculated potential lowering of MLF rates this month.

Sony (6758 JT) announced an EV tie-up with Honda (7267 JT), first sales aimed for 2025. (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -2.1% at 3,741, FTSE 100 -2.6% at 7,238, DAX 40 -2.2% at 13,698, CAC 40 -1.8% at 6,378, FTSE MIB -2.4% at 23,958, IBEX 35 -3.7% at 8,011, SMI -1.8% at 11,660.

SECTORS: Basic Materials 0.55%, Healthcare -1.53%, Financial Services -1.59%, Telecoms -1.63%, Industrials -1.88%, Technology -2.07%, Consumer Goods -2.50%, Utilities -3.50%, Energy -3.78%, Consumer Services -4.60%

FTSE 100

Vodafone (VOD LN) - Co's New Zealand unit is reportedly seeking a towers sale worth USD 1bln, according to Bloomberg citing a presentation. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Polymetal (POLY LN) downgraded to Neutral from Overweight at JPMorgan Chase

Rightmove (RMV LN) upgraded to Neutral from Sell at Citigroup

DAX

DAX Reshuffle - Daimler Trucks (DTG GY) and Hannover Rueck (HNR1 GY) will replace Beiersdorf (BEI GY) and Siemens Energy (ENR GY) in the DAX 40. Meanwhile, Sixt (SIX2 GY), Siltronic (WAF GY), RTL Group (RRTL GY) will replace CompuGroup Medical (COP GY), Hella (HLE GY) and AUTO1 (AG1 GY) in the MDAX. (Deutsche Boerse)

Deutsche Bank (DBK GY) - Co’s Russian Technology Centre employs 1.5k individuals, amounting to around a quarter of its investment bank IT specialists, since the Ukraine situation escalated, Co. has been undertaking stress tests and disaster recovery for the scenario that the site can longer be operated, according to sources. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Deutsche Lufthansa (LHA GY) upgraded to Hold from Reduce at HSBC

Zalando (ZAL GY) downgraded to Hold from Buy at HSBC

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Cellnex (CLNX SM) - CMA has provisionally found that the purchase of CK Hutchison's (1 HK) telecoms towers could harm competition. (Newswires)

Gas Names - EU targets to double the quantity of gas storage available by next winter and is to set a target for 80% increase (vs. prev. 29%), according to the FT. (FT)

Moncler (MONC IM) - Announced a buyback of some 1mln shares for a maximum value of EUR 56mln. (Moncler)

Pirelli (PIRC IM) - Co. has no plans to halt any production in reaction to the Russia-Ukraine conflict. (Newswires)

Telecom Italia (TIT IM) - Co. notes the binding offer received from the consortium of institutional investors led by Ardian, in relation to the purchase of the indirect stake in INWIT, has a consideration offered amounts to approximately EUR 1.3bln. (Telecom Italia)

Universal Music Group (UMG NA) - Q4 2021 (EUR): Revenue 2.52bln (prev. 2.12bln Y/Y). Adj. EBITDA 438mln (prev. 457mln). (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

H&M (HMB SS) downgraded to Hold from Buy at HSBC

US

CLOSES: S&P 500 -0.5% at 4,363, Nasdaq 100 -1.5% at 14,035, Dow Jones -0.3% at 33,794, Russell 2000 -1.5% at 2,032.

SECTORS: Consumer Discretionary -2.3%, Technology -1.2%, Communication Services -0.8%, Financials -0.3%, Industrials +0.1%, Materials +0.1%, Energy +0.3%, Health +0.5%, Consumer Staples +0.7%, Real Estate +1.1%, Utilities +1.7%.

Broadcom Inc (AVGO) Q1 2022 (USD): Adj. EPS 8.39 (exp. 8.08), Revenue 7.7bln (exp. 7.60bln). Q2 revenue view 7.9bln (exp. 7.41bln).Semiconductor solutions revenue 5.87bln (exp. 5.76bln), +20% Y/Y. Infrastructure software revenue 1.83bln (exp. 1.85bln), +4.9% Y/Y.Adj. EBITDA 4.82bln (exp. 4.66bln), +22% Y/Y. Adj. operating income 4.66bln (exp. 4.52bln), +23% Y/Y. Results were driven by strong enterprise demand and investments in next generation technology by hyperscale and service providers. (Newswires) Shares +2.8% after-market.

Disney (DIS) is discussing launching a cheaper, ad-supported tier of its Disney+. (The Information)

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field.


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

04 Mar 2022 - 06:50- MetalsResearch Sheet- Source: Newsquawk