Newsquawk Daily European Equity Opening News - 6th November 2023

6th November 2023

ASIA

Alibaba's (9988 HK/BABA) Ant Group has received Chinese government approval to release products powered by its 'Bailing' AI model to the public, according to Reuters. (Reuters)

EUROPEAN CLOSES

CLOSES: DAX +0.30% at 15,189.25, FTSE 100 -0.39% at 7,417.73, CAC 40 -0.16% at 7,049.67, Euro Stoxx 50 +0.16% at 4,176.45, IBEX 35 +0.36% at 9,293.90, FTSE MIB +0.69% at 28,674.83, SMI -0.08% at 10,583.60.

SECTORS: Consumer Disc 1.09%, Telecoms 1.09%, Financials 0.64%, IT 0.59%, Materials 0.50%, Industrials 0.34%, Utilities 0.31%, Consumer Stpl -0.07%, Healthcare -1.01%, Energy -2.79%

FTSE 100

AstraZeneca (AZN LN) - CEO has said that the "panic" over China's anti-corruption investigation into the country's healthcare sector was already subsiding, according to The Times. (The Times)

Aviva (AV/ LN) - UK Secretary of State Defence Shapps has warned the Co. against any "immoral" withdrawal of backing for defence companies. Aviva told its customers last week that it would be selling out of “certain companies that do not meet our Aviva Baseline Exclusion Policy", including names that might be involved in "coal production, weapons/arms and tobacco production", according to a letter seen by The Telegraph. (The Telegraph)

BAE Systems (BA/ LN) - Awarded a USD 211mln US Navy Contract. (Newswires)

Energy Names – North Sea oil and gas licences are to be awarded on an annual basis, as part of a bill in the Kings Speech on November 7th. (BBC) Currently, there is no fixed period between licensing rounds

Prudential (PRU LN) - 9M (USD): New Business Profit 2.14bln, +37% Y/Y, APE Sales 4.42bln, +40% Y/Y. (Newswires)

OTHER UK COMPANIES

Boohoo (BOO LN) – BBC Panorama reports that the Co. has broken pledges to make its clothes fairly and ethically, citing a reporter at the Manchester HQ. (BBC)

BROKER MOVES

JD Sports (JD/ LN) initiated with Buy at Citi

Rentokil (RTO LN) upgraded to Buy from Hold at HSBC

WPP (WPP LN) resumed with Equal weight at Morgan Stanley

DAX

Bayer (BAYN GY) - New Interim, Real-World Data Provides Additional Insights on Hyperkalemia and Safety of Kerendia® (finerenone) for Patients with Chronic Kidney Disease Associated with Type 2 Diabetes. (businesswire)

Merck (MRK GY) - Considering plans to cut costs by up to EUR 90mln, including job cuts, in the electronics unit, via Bloomberg. (Bloomberg)

OTHER GERMAN COMPANIES

BROKER MOVES

BMW (BMW GY) upgraded to Outperform from Market Perform at Bernstein

K+S (SDF GY) downgraded to Sell from Neutral at UBS

CAC

LVMH (MC FP) - Co. has agreed to buy Barton Perreira for approx. value of USD 80mln, as it aims to to bolster the Co's eyewear division, via WSJ citing people familiar with the matter. (WSJ)

OTHER FRENCH COMPANIES

Air France (AF FP) - Co. and Castlelake have increased their planned investment into SAS by USD 25mln to USD 1.2bln. (Newswires)

Orpea (ORP FP) – Q3 (EUR): Revenue 1.3bln, Occupancy Rate +1.8pp Y/Y. All geographic areas contributing to the improvement. FY23 projections: EBITDAR at low-end of 705-750mln guided range (exp. 762mln), Revenue 5.2bln (exp. 5.069bln), Occupancy Rate 84%. Implementation of accelerate safeguarding plan is on schedule, completion expected in the coming weeks. (Newswires)

BROKER MOVES

PAN EUROPE

Airlines – The EU Transport Commission is looking into the details of why air fares have risen by as much as 30% over the summer period. (FT)

Ryanair (RYA ID) - Q3 (EUR): Net 2.18bln (exp. 2.15bln), Revenue 8.58bln (prev. 6.62bln YY), H1 revenue per passenger +17% Y/Y; Passengers 105.3mln, +11% YY, Load Factor 95% (prev. 94% YY). Plans to pay investors a regular dividend for the first time. CFO sees very strong demand into 2024, with capacity to remain constrained next summer. (Newswires)

PostNL (PNL NA) – Q3 (EUR): Revenue 722mln (exp. 741mln), EBIT -11mln (exp. 3mln), FCF -26mln (exp. 2mln), Parcel Volumes +1.6% with strong growth from international customers, Volumes -8.7% at Mail in the Netherlands mainly due to substitution. Expect FY23 key indicators at the low end of guided ranges. Intend to buy back EUR 160mln of the 1.00% Eurobond due November 2024, to optimise the financial position. (Newswires)

Stellantis (STLAP FP/ STLAM IM) - Canada's Unifor said Stellantis locals voted unanimously in favour of the tentative agreement and ratification votes will occur in the coming days. (Newswires)

Telecom Italia (TIT IM) - Board approves KKR's EUR 18.8bln offer to acquire its network grid. Vivendi (VIV FP), a 24% stakeholder in the Co., says this board's decision is unlawful and will use any legal means at its disposal to challenge it. (Newswires)

BROKER MOVES

Dino Polska (DNP PW) upgraded to Neutral from Underweight at JP Morgan

EDP Renovaveis (EDPR PL) upgraded to Sector Perform from Underperform at RBC

EDP Energias de Portugal (EDP PL) upgraded to Outperform from Neutral at BNP Paribas

SMI

OTHER SWISS COMPANIES

Georg Fischer (GF SW) - Final result of cash tender offer for all shares in Uponor. 59.1mln shares tendered representing 81.1% of all shares. (Newswires)

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) – CEO Jorgensen said they will be accelerating their expansion within the US at the expense of the EU unless a plan to reform regulation is altered. (FT)

Volvo (VOLCARB SS) - Said to examine investment related to US expansion, including expanding its South Carolina factory or opening a second US site, via FT. (FT)

BROKER MOVES

Maersk (MAERSKB DC) upgraded to Hold from Sell at SEB

US

CLOSES: SPX +0.94% at 4,358, NDX +1.21% at 15,099, DJI +0.66% at 34,061, RUT +2.71% at 1,760.

SECTORS: Real Estate +2.35%, Materials +1.55%, Communication Services +1.39%, Financials +1.32%, Consumer Discretionary +1.21%, Technology +1.12%, Industrials +0.82%, Utilities +0.6%, Health +0.51%, Consumer Staples +0.09%, Energy -1.01%.

BHP's VP for legal affairs Calluf said the Co. intends to come to an agreement with authorities in Brazil re. the 2015 dam collapse at the Samarco iron ore facility; negotiations regarded as advanced, potential for a deal by year-end. (FT) Also of note for Vale (VALE)

Nio (NIO) reportedly aims to enter the US market by 2025 with China-made premium EVs, according to Nikkei. (Nikkei)

Tesla (TSLA) - Raises wages for German workers amid pressure from an aggressive unionization drive, according to WSJ, raising concerns simmering attempts by workers may be made in the US, via WSJ. (WSJ)

06 Nov 2023 - 06:51- Research Sheet- Source: Newswires