Newsquawk Daily European Equity Opening News - 6th February 2023
6th February 2023
ASIA
Asia-Pac stocks began the week mostly on the back foot following on from last Friday’s losses in the US where a blowout jobs report spurred hawkish Fed rate hike bets and was seen to boost the Fed’s resolve of lifting rates further to above 5%. ASX 200 (-0.3%) was subdued heading into tomorrow’s RBA policy decision with the central bank widely expected to continue its hiking cycle and with a jump in the Melbourne Institute Inflation Gauge adding to the elevated inflation narrative, although the downside in the index was limited after quarterly Retail Sales data printed not as bad as feared and amid M&A prospects with Newmont making a USD 16.9bln offer for Newcrest Mining. Nikkei 225 (+0.6%) outperformed after a press report that Japan’s government sounded out BoJ Deputy Governor Amamiya about becoming the next central bank Governor with Amamiya seen to be much more dovish compared to other candidates and is also a key architect in many of the BoJ’s policies including QQE with YCC, although the index came off its highs as the report was later refuted by a senior government official. Hang Seng (-2.6%) and Shanghai Comp. (-1.1%) were lower with Hong Kong heavily pressured by weakness in tech, healthcare and property, while risk sentiment is also clouded by tensions after the US shot down China’s spy balloon.
EUROPEAN CLOSES
CLOSES: EURO STOXX 50 +0.40% at 4,257, FTSE 100 +1.04% at 7,901, DAX 40 -0.21% at 15,476, CAC 40 +0.94% at 7,233, FTSE MIB -0.55% at 26,950, IBEX 35 -0.04% at 9,225, SMI +1.51% at 11,357.
SECTORS: Energy 1.60%, Healthcare 1.57%, Consumer Disc 0.79%, Consumer Stpl 0.76%, IT 0.37%, Materials 0.11%, Industrials 0.07%, Financials -0.16%, Utilities -0.62%, Telecoms -0.93%
FTSE 100
Arm IPO - UK FCA has reportedly offered to ease the rules on “related party transactions” that Arm is said to be concerned about in a bid to ensure the potential USD 40bln IPO occurs as a dual-listing between London and New York. (Guardian/Times)
Centrica (CNA LN) - Energy regulator Ofgem has received new powers to investigate energy firms following the British Gas prepayment meter scandal. (Times)
UK Defense Names - The Treasury has signalled that there is no new money for defence despite recognising the urgent need to rearm, according to sources cited by Sky News. (Sky News)
OTHER UK COMPANIES
BROKER MOVES
Diageo (DGE LN) upgraded to Outperform from Market Perform at Bernstein
Hargreaves Lansdown (HL/ LN) downgraded to Underperform from Neutral at Credit Suisse
DAX
BMW (BMW GY) - Co. is looking to invest EUR 800mln in Mexico to produce high-voltage batteries. Co. set aside EUR 500mln for the construction of a new assembly centre. Elsewhere, Co. is reportedly in discussions with the UK’s Department for Business, Energy and Industrial Strategy (BEIS) regarding a GBP 75mln funding package for electric-Mini’s at the Oxfordshire plant, according to sources. (Newswires/Sky News)
OTHER GERMAN COMPANIES
BROKER MOVES
CAC
Renault (RNO FP) - Nissan's (7201 JT) Board has reportedly approved the planned restructuring with Renault, according to Reuters sources; adding that the new alliance could generate synergies worth as much as several billion EURs between now and 2023. Renault directors are said to have agreed to the deal with Nissan, according to Bloomberg sources. (Newswires)
STMicroelectronics (STM FP) - Foxconn (2354 TT) and Vedanta (VEDL IS) are said to be close to choosing STMicroelectronics as the technology partner in their proposed semiconductor chip manufacturing unit in India, according to sources. (Economic Times)
OTHER FRENCH COMPANIES
Bollore (BOL FP) - CMA-CGM is reportedly interested in purchasing Bollore's logistics arm, according to reports citing Bloomberg. (Newswires)
Eurazeo (RF FP) – Co’s executive board will be led by two chairmen Christophe Baviere and William Kadouch-Chassaing, whilst Sophie Flak and Olivier Millet were also nominated to its executive board. This comes after shareholders ousted CEO Virginie Morgon. (Newswires)
BROKER MOVES
Renault (RNO FP) reiterated with Overweight at JPMorgan Chase
PAN EUROPE
Enel (ENEL IM) - Co. has extended its exclusivity period with Greece's PPC on negotiation for the sale of Enel's Romanian unit, according to Bloomberg. Elsewhere, the CEO has written in the FT, defending the Co’s push towards renewable energy. In the context of reports suggesting the Italian gov’t is looking into alternatives for the position. (Newswires/FT)
Fincantieri (FCT IM) - Shipbuilding Ferretti (9638 HK) is seeking regulatory approval for an Italian listing, according to reports. (Newswires)
Lufthansa (LHA GY)/Air France (AF FP) - Cos are said to be in talks to purchase collapsed airline Flybe, according to sources. (Telegraph)
Telecom Italia (TIT IM) - Thousands of customers across Italy reported internet outages on Sunday. Telecom Italia suggested there were problems with an international interconnection. Italian press suggested there were no indications of a cyberattack. (Newswires)
BROKER MOVES
ASM International (ASM NA) reiterated with Overweight at JPMorgan Chase
Banca Generali (G IM) initiated with Buy at Jefferies
Banca Mediolanum (BMED IM) initiated with Buy at Jefferies
CaixaBank (CABK SM) upgraded to Outperform from Market Perform at Keefe Bruyette
Finecobank (FBK IM) initiated with Underperform at Jefferies
Intesa Sanpaolo (ISP IM) reiterated with Overweight at JPMorgan Chase
SMI
OTHER SWISS COMPANIES
BROKER MOVES
SCANDINAVIA
BROKER MOVES
Wartsila (WRT1V FH) reiterated with Underweight at JPMorgan Chase
US
CLOSES: SPX -1.04% at 4,136, NDX -1.79% at 12,573, DJIA -0.38% at 33,926, RUT -0.78% at 1,985.
SECTORS: Consumer Discretionary -3.11%, Communication Services -2.22%, Utilities -2.07%, Real Estate -2.03%, Materials -1.82%, Technology -0.8%, Industrials -0.52%, Consumer Staples -0.43%, Health -0.26%, Energy -0.23%, Financials -0.1%.
Dell (DELL) will be cutting some 6,650 jobs (~5% of global workforce) in the latest round of tech job cuts, according to Bloomberg. (Newswires)
06 Feb 2023 - 06:48- Research Sheet- Source: Newsquawk
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