Newsquawk Daily European Equity Opening News - 7th February 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

Asia-Pac markets began the week mixed amid the higher global yield environment after last week's NFP data stoked bets for a more aggressive Fed rate hike in March, while geopolitical concerns also lingered following comments from US National Security Adviser Sullivan who suggested Russia could take military action on Ukraine within days and could even be as early as Monday but also noted that it could choose to pursue diplomacy. ASX 200 (-0.1%) was dragged lower by weakness in real estate, healthcare and financials although finished off its lows amid resilience in the commodity-related sectors and after stronger than expected quarterly Retail Trade data. Nikkei 225 (-0.8%) suffered after recent JPY inflows and with Japan planning an extension of COVID-19 measures for Tokyo and other areas. Hang Seng (-0.4%) and Shanghai Comp. (+1.9%) were varied in which Hong Kong stocks took a back seat to the outperformance in the mainland bourses which re-opened for the first time since the Lunar New Year. Participants also digested the latest Chinese Caixin Services and Composite PMI figures which both slowed from the prior but remained in expansionary territory, while Chinese media also resumed their efforts to soothe investor concerns.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -1.3% at 4,086, FTSE 100 -0.2% at 7,516, DAX 40 -1.8% at 15,099, CAC 40 -0.8% at 6,951, FTSE MIB -1.8% at 26,603, IBEX 35 -1.2% at 8,589, SMI -0.7% at 12,148.

SECTORS: Energy 2.07%, Basic Materials -0.95%, Technology -0.97%, Consumer Goods -1.22%, Telecoms -1.29%, Healthcare -1.49%, Financial Services -1.52%, Utilities -1.77%, Industrials -1.88%, Consumer Services -2.90%

FTSE 100

Abrdn (ABDN LN) - Shareholder ballots on plans to launch a GBP 1.5bln takeover of Interactive Investor have been delayed amid a global paper shortage. The ballot has been delayed until mid-March. (Sky News/ CityAM)

Flutter Entertainment (FLTR LN) - Co. wrote to the UK Gambling Commission about the importance of the National Lottery takeover remaining within the UK. A final decision on the takeover is expected as soon as this month. (CityAM)

Reckitt (RKT LN) - Co. is reportedly considering a sale of its infant nutrition business, may draw interest from private equity funds. (Newswires)

Tesco (TSCO LN) - Chairman Allan believes the “worst is yet to come” regarding food price inflation which, in Tesco, was at 1.0% last quarter a figure Allan believes will soon hit 5% given the knock-on effect of energy prices. (Guardian)

Unilever (ULVR LN) - CIO of Flossbach von Storch said the Co. should consider an overhaul of its structure and seriously considering splitting the Co., adding that cost cutting along is not sufficient. Separately, another “top-20 shareholder” has called for the removal of Chair Anderson, due to concerns he allowed CEO Jope to put forward increasing bids for a GlaxoSmithKline (GSK LN) division. (FT) Flossbach von Storch, as of March 31st 2021 held a 1% stake in Unilever

Vodafone (VOD LN) - Co. is reorganising its global enterprise division as part of an overhaul of its operations in the UK and continental Europe, according to sources. Reports also suggest the Co. overestimated money coming in from some multinational clients at the division. Analysts say the overhaul could make it easier to sell off parts of the group. (ThisIsMoney)

OTHER UK COMPANIES

Darktrace (DARK LN) - Mike Lynch is set to step down from the Co.'s board as he attempts to fight his extradition to the US. (Telegraph)

Renishaw (RWS LN) - Co. expects the semiconductor shortage will continue for two more years, CEO Lee believes strong investment from chipmakers will continue for some time. (FT)

BROKER MOVES

Phoenix Group (PHNX LN) upgraded to Buy from Hold at Berenberg

DAX

Porsche Automobile (PAH3 GY) - Sales Chief suggests sales could top the 2021 record despite the chip challenges. (Automobilwoche)

OTHER GERMAN COMPANIES

Aarel Bank (ARL GY) - Reports suggest Atlantic BidCo's EUR 29/shr bid for the Co. has lapsed. (Newswires)

Aurubis (NDA GY) - Q1 2022 (EUR): Revenue 4.41bln (prev. 3.46bln). Pretax 152mln (prelim. 152mln). (Newswires)

Ceconomy (CEC GY) - Q1 2022 (EUR): Revenue 6.85bln (prev. 7.46bln). Adj. EBIT 274mln (prev. 346mln). Net 122lmn (prev. 153mln). Online sales -16.5% Y/Y. (Newswires)

BROKER MOVES

Fraport (FRA GY) upgraded to Overweight from Equal Weight at Morgan Stanley

CAC

Airbus (AIR FP) - CEO sees A220 programme becoming profitable by the middle of the decade. (Newswires) Separately, CEO said Airbus may make engines for hydrogen fuelled planes. (Welt am Sonntag) Shipping lines are reportedly investing in jets as the pandemic's hit to supply chains enters a third year. (WSJ)

Sanofi (SAN FP) - FDA approves Enjaymo first treatment for use in patients with cold agglutinin disease. (Sanofi)

OTHER FRENCH COMPANIES

BROKER MOVES

ADP (ADP FP) upgraded to Equal Weight from Underweight at Morgan Stanley

Vinci (DG FP) reiterated with Overweight at JPMorgan Chase

PAN EUROPE

Banca Monte dei Paschi (BMPS IM) - Luigi Lovaglio is said to be the front-runner for the CEO job, according to reports. (Newswires)

Enel (ENEL IM) - Fitch downgrades rating to BBB+ from A-; outlook stable. (Newswires)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Co. has reportedly securitised a loan portfolio linked to the yachts, jets and assets of its wealthiest customers; investor presentation reportedly described the main goal as being to create a “positive brand impression of CS…”. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Clas Ohlsen (CLASB SS) - Jan 2022 (Y/Y): Organic revenue +4%. Online Sales +3%. Revenue +7%. (Newswires)

BROKER MOVES

Carlsberg (CARLB DC) upgraded to Buy from Hold at DNB Markets

US

CLOSES: S&P 500 +0.58% at 4,503.60, Nasdaq-100 +1.33% at 14,694.35, Dow Jones +0.00% at 35,110.70.

SECTORS: CONS DISC +3.74%, CONS STPL -1.2%, ENERGY +1.58%, FINANCIALS +1.66%, HEALTH -0.41%, INDUSTRIALS -1.07%, MATERIALS -1.72%, REAL ESTATE -1.27%, TECHNOLOGY +0.47%, COMMUNICATIONs +0.14%, UTILITIES -0.8%

Apple (AAPL) - Co. is making plans for its first 2022 product launch in March which would see the release of a low-cost 5G phone and iPad, according to reports. (Newswires)

Peloton (PTON) - Nike (NKE LN) and Amazon (AMZN) are reportedly considering separate bids for Peloton. The interest is considered opportunistic and preliminary, no talks have been held with Peloton and other buyers are likely to appear, according to sources. (FT)

07 Feb 2022 - 06:50- Data- Source: Newsquawk