Newsquawk Daily European Equity Opening News - 8th August 2023

8th August 2023

ASIA

Asia-Pac stocks traded mixed after the early optimism following the positive lead from Wall St was soured as Chinese markets entered the fray, while the region also digested disappointing Chinese trade data. ASX 200 (+0.1%) just about kept afloat with price action rangebound after mixed consumer sentiment and business confidence. Nikkei 225 (+0.2%) was initially lifted by a weaker currency and earnings release but then wiped out nearly all of its gains as markets were spooked by selling in Chinese stocks. Hang Seng (-1.3%) and Shanghai Comp. (Flat) spooked markets as they entered the fray with the Hong Kong benchmark heavily pressured as tech and property stocks lead the broad declines across sectors, while sentiment was also not helped by the wider-than-expected contractions in Chinese exports and imports data.

EUROPEAN CLOSES

Bourses: DAX -0.01% at 15,951, FTSE 100 -0.13% at 7,554, CAC 40 +0.06% at 7,320, Euro Stoxx 50 +0.10% at 4,337, IBEX 35 -0.10% at 9,359, FTSE MIB -0.14% at 28,548, SMI +0.08% at 11,107.

Sectors: Healthcare 0.62%, IT 0.50%, Financials 0.43%, Industrials 0.18%, Consumer Stpl 0.05%, Energy -0.29%, Consumer Disc -0.36%, Utilities -0.37%, Materials -0.49%, Telecoms -0.51%

FTSE 100

Energy Names - Ofgem's price cap is preventing customers from accessing lower tariffs, which could be contributing to inflation. The cap has gone "far beyond" its original purpose of protecting the customer, says Centre for Policy Studies, reported by Sky News. (Sky News)

HSBC (HSBA LN) - The bank has been accused of “putting profits before human rights” after an executive at the Co. suggested Britain was too tough on China, according to the Telegraph. (The Telegraph)

OTHER UK COMPANIES

BROKER MOVES

Barclays (BARC LN) downgraded to Neutral from Outperform at BNP Paribas

DS Smith (SMDS LN) initiated with Equal Weight at Barclays

Just Eat Takeaway (JET LN) initiated with Hold at Panmure Gordon

Mondi (MNDI LN) initiated with Equal Weight at Barclays

Smurfit Kappa (SKG LN) initiated with Overweight at Barclays

Smith & Nephew (SN/ LN) upgraded to Neutral from Sell at UBS

Virgin Money (VMUK LN) downgraded to Underperform from Neutral at BNP Paribas

WPP (WPP LN) downgraded to Hold from Buy at Deutsche Bank

DAX

Bayer (BAYN GY) - Q2 (EUR): Revenue 11.04bln (exp. 11.06bln), Adj. EBITDA 2.527bln (exp. 2.622bln). Net Income -1.887bln (exp. +1.128bln) - extraordinary expense of EUR 2.49bln primarily related to an impairment test in the Crop Science division. OTHER METRICS. EBIT -956mln (exp. +1.28bln), Core EPS 1.22 (exp. 1.10), COMMENTARY. Reaffirms the outlook lowered on July 24th. Crop Science down significantly, mainly due to sharply reduced volumes and prices at glyphosate. Pharmaceuticals earnings below the previous year. Consumer Health saw increases in sales (FX & portfolio adj.).(Bayer) Co. holds a 4.2% weighting in the DAX 40.

OTHER GERMAN COMPANIES

Deutsche Wohnen (DWNI GY) – H1 (EUR): FFO 297mln (prev. 295mln), adj. EBITDA Rental 313mln (prev. 289mln), Profit -1.39bln (prev. +0.927bln). As part of a strategic review come to the conclusion that the nursing segment no longer fits to the core business, therefore examining, whether and when a potential sale of individual portfolios of the nursing segment might make economic sense. (Newswires)

Encavis (ECV GY) - Co. and Allego enlarge their 10-year PPA in Germany to supply EV drivers with 100% renewable energy. Financial terms not disclosed. (Newswires)

Fraport (FRA GY) - H1 (EUR): Net 85mln (prev. -54.1mln YY), EBITDA 481.4mln (prev. 408.3mln YY), Revenue 1.80bln (prev. 1.35bln YY). Raises FY23 Net to the "upper end" of its 300-420mln range. (Newswires)

Scout24 (G24 GY) – Q2 (EUR): Revenue 122mln (exp. 122mln), EBITDA 78mln (exp. 71.9mln), EPS 0.59 (exp. 0.54). Upgrades guidance for FY23. (Newswires)

Sixt (SIX GY) – Q2 (EUR): Revenue 925mln (exp. 883mln), PBT 132mln (exp. 132mln), EBITDA 177.6mln (exp. 176mln). Best ever Q2. Strongest HY to date. (Newswires)

Wacker Neuson SE (WAC GY) - Q2 (EUR): EPS 0.94 (prev. 0.55 YY), EBIT 88.9mln (prev. 48.4mln YY), Revenue 699mln (prev. 551mln YY). (Newswires)

BROKER MOVES

Siemens (SIE GY) reiterated with Overweight at JP Morgan Chase

CAC

TotalEnergies (TTE FP) - Port Arthur, Texas refinery (200k BPD) is to shut crude and gasoline units for overhaul on August 18th. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Credit Agricole (ACA FP) reiterated with Underweight at JPMorgan Chase

PAN EUROPE

Italian Banks - PM Meloni's cabinet approved a surprise tax on the "extra profits" of banks this year, according to Italian press. (ANSA)

BROKER MOVES

SMI

GAM (GAM SW) – Investors have demanded that the EGM be moved from August 18th until after August 23rd, when the offer period from Liontrust concludes. (Newswires)

Zurich Insurance (ZURN SW) - Administrator for Greensill Bank to sue Zurich for USD 250mln for unpaid claims, according to the FT. (FT)

OTHER SWISS COMPANIES

Galenica (GALE SW) - H1 (CHF): Net 187mln (prev. 83.1mln YY), EBIT 92.5mln (exp. 97.4mln), Revenue 1.85mln (exp. 1.84mln). (Newswires). Cuts FY23 EBIT around flat (prev. +3-6%). (Newswires)

BROKER MOVES

SIG Combibloc (SIGN SW) initiated with Underweight at Barclays

SCANDINAVIA

Kongsberg Automotive (KOA NO) - Q2 (EUR): adj. EBIT 0.3mln (prev. 4mln YY), Revenue 224.5mln (prev. 225.6mln YY). (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.90% at 4,518, NDX +0.87% at 15,407, DJIA +1.16% at 35,473, RUT +0.08% at 1,958.

SECTORS: Communication Services +1.88%, Financials +1.36%, Industrials +1.26%, Real Estate +1.21%, Health +1.18%, Consumer Discretionary +1.1%, Consumer Staples +0.85%, Materials +0.7%, Technology +0.27%, Energy +0.15%, Utilities -0.02%.

Apple (AAPL) - Tests M3 Max chip, setting the stage for the most powerful MacBook Pro yet, according to Bloomberg. (Bloomberg)

Beyond Meat (BYND) - Q3 2023 (USD): EPS -0.83 (prev. 1.53 Y/Y), Revenue 102.1mln (exp. 108.5mln); FY net revenue view 360-380mln (prev. 375-415mln). (BYND IR) Shares seen -11.9% after-hours.

Lucid Group (LCID) - Q2 2023 (USD): EPS -0.40 (exp. -0.33), Revenue 151mln (exp. 175mln); on track for annual production guidance of more than 10k vehicles. (LCID IR) Shares seen +3.1% after-hours.

Palantir Technologies (PLTR) - Q2 2023 (USD): - EPS 0.05 (exp. 0.05), Revenue 533mln (exp. 534mln). Board approves USD 1mln share buyback programme. Raises FY23 adj. Income "over" 576mln (prev. 506-556mln), Revenue "over" 2.21bln (prev. 2.19-2.24bln). (Newswires) Shares seen +2.2% after-hours

Tech Names - US tech industry groups back Tiktok in lawsuit challenging the Montana state ban. (Newswires)

US Banks - Ratings agency Moody's downgraded some US banks, and warned of possible cuts to others. Downgraded M&T's (MTB), Old National (ONB), Associated Banc-Corp (ASB), BOK Financial (BOKF), Webster (WCFB), Fulton (FULT), Pinnacle Financial Partners (PNFP). Also placed the following banks on review for downgrade: Bank of New York Mellon (BK), US Bancorp (USB), Truist (TFC), State Street (STT), Northern Trust (NTRS). The CRA said that "many banks' Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital," adding that this came "as a mild US recession is on the horizon for early 2024 and asset quality looks set to decline, with particular risks in some banks’ commercial real estate portfolios." (Newswires)

08 Aug 2023 - 06:50- Research Sheet- Source: Newsquawk