Newsquawk Daily European Equity Opening News - 7th February 2023

7th February 2023

ASIA

Asia-Pac stocks eventually traded mixed after the weak lead from global counterparts as markets continued to ramp the hawkish Fed pricing, while the region also digested the RBA rate decision. ASX 200 (-0.5%) was initially kept afloat amid strength in the energy sector after a rebound in oil prices although the index was later pressured after the RBA lifted the Cash Rate by 25bps to a fresh decade-high and signalled further rate increases ahead. Nikkei 225 (-0.1%) was indecisive after mixed data in which household spending disappointed but wages topped forecasts, while the earnings deluge also continued. Hang Seng (+0.4%) and Shanghai Comp. (-0.1%) were varied with Hong Kong led by a rebound in the tech, healthcare and property sectors following yesterday’s underperformance although the mood in the mainland was less decisive owing to the recent spy balloon frictions and with a lack of fresh drivers aside from Wuhan relaxing property buying restrictions.

Baidu Inc (9888 HK) - Co. said its ChatGPT-styled project is called Ernie Bot and it is to complete internal testing in March before launching it publicly. (Newswires)

Nintendo (7974 JT) 9-month (JPY): Net Profit 346mln, -5.8%; Operating Profit 410mln, -13%; Recurring Profit 482mln, -6%; Switch unit sales 14.91mln (prev. 18.95mln). FY22/23: Switch unit sales 18mln (prev. guided 19mln), Op. Income 480bln (exp. 500bln)

SoftBank (9934 JT) - 9-month (JPY) net -912.5bln (prev. 392.6bln), pre-tax -290.0bln (prev. 1.23tln), rev. 4.88tln (prev. 4.58tln Y/Y). (Newswires)

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -1.23% at 4,205, FTSE 100 -0.82% at 7,836, DAX 40 -0.84% at 15,345, CAC 40 -1.34% at 7,137, FTSE MIB +0.27% at 27,022, IBEX 35 -0.72% at 9,159, SMI -0.58% at 11,283.

SECTORS: Healthcare 0.65%, Utilities 0.11%, Consumer Stpl -0.03%, Financials -0.70%, Telecoms -0.84%, Energy -0.89%, Materials -1.14%, Industrials -1.24%, Consumer Disc -1.55%, IT -2.05%

FTSE 100

Retail Sector - Barclaycard UK January consumer spending rose 9.7% Y/Y which was boosted by New Year sales, film releases and holiday bookings, while sales growth was also helped by comparison to January 2022 when COVID restrictions were in force. (Newswires)

OTHER UK COMPANIES

International Distributions Services (IDS LN) - Communication Workers Union (CWU) has been forced to call off a two-day postal strike after Royal Mail bosses challenged the validity of the latest round of strikes. (Telegraph)

BROKER MOVES

Legal & General (LGEN LN) reiterated with Overweight at JPMorgan Chase

DAX

Bayer (BAYN GY) - Shareholder Jeff Ubben has contacted shareholders in an attempt to rally support for big changes at the Co., according to Reuters sources. (Newswires)

Siemens Energy (ENR GY) - Q1 2023 (EUR): Revenue 7.1bln (prev. 6.0bln Y/Y). Net -598mln (prev. -246mln). Co. cuts its FY 2023 net guidance to "loss on a similar level Y/Y" (prev. "reduction in prior loss"). Co. cuts its profit margin guidance +1 to +3% (prev. +2 to +4%). Co. reaffirms its Revenue and FCF guidance. CEO says charges related to Siemens Gamesa have been a serious setback. (Newswires)

OTHER GERMAN COMPANIES

TeamViewer (TMV GY) - Q4 2022 (EUR): Revenue 150.5mln (prev. 132.3mln) EBIT 49.5mln (prev. 41.3mln). Co. is to buy back EUR 150mln shares. (Newswires)

BROKER MOVES

Brenntag (BNR GY) initiated with Hold at Jefferies

Deutsche Telekom (DTE GY) reiterated with Overweight at JPMorgan Chase

CAC

Airbus (AIR FP) - Boeing (BA) said it will cut around 2,000 "white collar jobs", namely in finance and HR. (Newswires)

BNP Paribas (BNP FP) - Q4 2022 (EUR): Revenue 12.11bln (exp. 12.12bln). Net Income 2.15bln (exp. 2.29bln). FICC Sales & Trading Revenue 1.09bln (exp. 855.6mln). Equity & Prime Services Revenue -3.4% Y/Y. CET1 ratio 12.3% (exp. 12.3%). Co. announces a EUR 5bln share buyback programme in two tranches for 2023 - first tranche of EUR 2.5bln submitted for ECB approval. Co. raises its 2025 targets. Board of Directors will propose to pay out a dividend of EUR 3.90/shr in cash, equivalent to a 50% pay-out ratio of 2022 distributable income. "Revenues at Corporate & Institutional Banking (CIB) increased very sharply, driven by the very good performance of Global Markets and Securities Services and by the rise at Global Banking in an unfavourable market." (Newswires/BNP Paribas IR)

OTHER FRENCH COMPANIES

Ubisoft (UBI FP) - US peer Activision Blizzard (ATVI) shares rose 1.2% after-market following earnings. Furthermore, Nintendo cut its FY23 Switch sales guidance to 18mln (prev. 19mln).

BROKER MOVES

Airbus (AIR FP) downgraded to Sell from Hold at Berenberg

Sanofi (SAN FP) reiterated with Overweight at JPMorgan Chase

PAN EUROPE

ams-OSRAM(AMS SW) - Q4 2022 (EUR): Revenue 1.18bn (exp. 1.17bln). Net 29mln (prev. 119mln). Adj. EBIT margin 7.3% (prev. 9.6% Y/Y). Co. "sees muted demand situation in key markets in first quarter". Co. is expecting to achieve mid-term targets within lower half of target ranges for revenues and adj. EBIT margin "given expected business mix with current macro-economic trends and inflation pressures further impacting mid-term volumes." Co. sees lower expected production and shipment volumes in Q1, adverse exchange rate and deconsolidation effects. Last planned disposal signed and Traxon disposal closed in fourth quarter, two remaining closings expected in first half of 2023 marking full completion of planned disposals. (Newswires/ ams-OSRAM IR)

European stocks - German Economy Minister Habeck said he can imagine reaching a de facto free trade status under IRA between Europe and US in the area of critical minerals, and added that the sides should pool resources in the area of critical minerals. (Newswires)

BROKER MOVES

SMI

Credit Suisse (CSGN SW) - Co. is delaying compensation day for some of its bankers, according to Bloomberg. (Newswires)

Holcim (HOLN SW) - Holcim has signed an agreement to acquire Duro-Last in a USD 1.29bln transaction. Holcim roofing systems will exceed USD 4bln in net sales ahead of schedule. "Duro-Last’s systems will complement and strengthen Holcim’s integrated roofing offer, with expected synergies of USD 60mln per year." (Holcim)

Roche (ROG SW) - Roche announces positive data from global phase III programme for crovalimab in PNH, a rare life-threatening blood condition. The COMMODORE 2 study met its co-primary efficacy endpoints. (Roche)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Ambu (AMBUB DC) - Q1 2023 (EUR): Revenue 1.13bln (exp. 1.11bln). EBIT 68mln (exp. 15mln). Co. affirms its FY23 EBIT margin and organic revenue guidance. (Newswires)

BROKER MOVES

Orsted (ORSTED DC) upgraded to Buy from Neutral at Goldman Sachs

US

Activision Blizzard Inc (ATVI) - Q4 adj. EPS 0.78 (exp. 1.51), Q4 GAAP revenue USD 2.33bln, Q4 net bookings 3.57bln (exp. 3.16bln); Q4 monthly active users 389mln (exp. 388.4mln), Q4 Activision Segment monthly active users 111mln (exp. 117.5mln), Q4 King monthly active users 233mln (exp. 238.4mln). No guidance was provided given impending MSFT deal; Activision said it was continuing to engage with regulators reviewing the transaction, working toward closing it in Microsoft’s FY ending June 30th. (Newswires)

Google (GOOGL) - released ChatGPT rival AI ‘Bard' to early testers. (Newswires)

Microsoft (MSFT) - Co. is reportedly holding a news event on Tuesday at its headquarters but did not disclose the content. (Newswires)

US Stocks - White House said US President Biden will say debt limit is not negotiable in state of union address. He is to urge a surcharge on corporate stock buybacks and is to call for a billionaire minimum tax. (Newswires)

CLOSES: SPX -0.62% at 4,110, NDX -0.87% at 12,464, DJIA -0.11% at 33,889, RUT -1.40% at 1,957.

SECTORS: Communication Services -1.31%, Technology -1.22%, Materials -1.08%, Real Estate -0.68%, Health -0.6%, Energy -0.41%, Industrials -0.21%, Consumer Discretionary -0.14%, Financials -0.14%, Consumer Staples +0.02%, Utilities +0.86%.

07 Feb 2023 - 06:45- Research Sheet- Source: Newsquawk