Newsquawk Daily European Equity Opening News - 8th November 2023

8th November 2023

ASIA

APAC stocks traded mixed following a similar lead from Wall Street, with the breadth of the markets in early APAC hours particularly narrow. ASX 200 saw the tech sector leading the gains following a similar yield-driven sectoral performance on Wall Street. Nikkei 225 was initially supported by the Electronics sector with Nintendo shares rising over 6% post-earnings, whilst the Oil sector limited gains and the index eventually fell into losses as BoJ governor Ueda said the Bank doesn't necessarily need to wait until real wages actually turn positive in exiting YCC and negative rates, and if the BoJ thinks there is a strong chance real wages will turn positive in the future, that may be sufficient in making a decision on whether to continue with YCC and negative rate. Hang Seng and Shanghai Comp moved between modest gains and losses with little action seen despite a slew of comments from the PBoC governor, while markets braced for next week’s Biden-Xi meeting in San Francisco, although no major breakthrough is expected.

EUROPEAN CLOSES

CLOSES: DAX +0.11% at 15,152.64, FTSE 100 -0.10% at 7,410.04, CAC 40 -0.38% at 6,986.91, Euro Stoxx 50 -0.09% at 4,154.95, IBEX 35 -0.06% at 9,235.90, FTSE MIB -0.69% at 28,395.90, SMI 0.00% at 10,576.40.

SECTORS: IT 1.44%, Consumer Stpl 0.29%, Healthcare 0.09%, Consumer Disc -0.08%, Industrials -0.09%, Financials -0.27%, Utilities -0.36%, Telecoms -0.41%, Materials -0.68%, Energy -2.47%

FTSE 100

HSBC (HSBA LN/5 HK) - CEO Noel Quinn says the bank sees a 70% lift in activity from Chinese clients diversifying business models outside of China. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Hargreaves Lansdown (HL/ LN) initiated with Sell at UBS

Rolls-Royce (RR/ LN) upgraded to Overweight from Equal Weight at Morgan Stanley

DAX

Adidas (ADS GY) – Q3 (EUR): Revenue 6bln (exp. 5.9bln), Inventory Levels -23% Y/Y. Second Yeezy drop generated revenue of circa. 350mln in Q3, slightly lower Q/Q. China revenue +6% or +10% incl. Yeezy, driven by double-digit growth within wholesale. (Newswires)

Bayer (BAYN GY) - Q3 (EUR): EPS 0.38 (exp. 0.80), adj. EBITDA 1.69bln (exp. 1.82bln), Revenue 10.3bln (exp. 10.6bln). (Newswires) Shares seen -1.5% in pre-market

Commerzbank (CBK GY) - Q3 (EUR): Revenue 2.76bln (exp. 2.68bln). Net 684mln (exp. 619mln). Operating profit 1.12bln (exp. 1.01bln). Co. applied a for a EUR 600mln share buyback; raises net profit and NII forecasts. (Newswires)

Continental (CON GY) - Q3 (EUR): Adj. EBIT 637.4mln (exp. 649mln), Revenue 10.2bln (exp. 10.4bln). Cuts mid-point FY23 Revenue 41-43bln (prev. guidance 41.5-44.5bln). (Newswires)

E.ON (EOAN GY) - 9M (EUR): Adj. Net EUR 2.94bln (exp. 2.85bln), Adj. EBITDA 7.79bln (exp. 7.57bln Y/Y), Revenue 69.2bln (prev. 81.6bln YY). (Newswires) Shares seen -2.0% in pre-market

Fresenius SE (FRE GY) – Sells fertility service Eugin to a KKR-led consortium for up to EUR 500mln. (Newswires)

Munich Re (MUV2 GY) – Q3 (EUR): Net 1.16bln (exp. 1.16bln). FY Guidance: Net 4.5bln (exp. 4.46bln), Reinsurance Profit 3.8bln (prev. guided 3.3bln), Lift/Health Business 1.4bln (prev. 1.0bln). (Newswires)

Siemens Healthineers (SHL GY) - Q4 (EUR): EPS 0.58 (prev. 0.65mln Y/Y), Revenue 6.06bln (prev. 6.00 Y/Y). Guides initial FY24 EPS EUR 2.10-2.30, comp-Revenue +4.5-6.5% Y/Y. Expect the market in China to pick up by the end of Q2 of FY24. (Newswires)

OTHER GERMAN COMPANIES

Deutsche Poste (DPW GY) - Q3 (EUR): EBIT 1.37bln (exp. 1.43bln), Revenue 19.4bln (exp. 20.8bln). Trims FY23 EBIT EUR 6.2-6.6 Y/Y (prev. guidance 6.2-7.0bln Y/Y). Trims FY25 EBIT 7.0-8.0bln (prev. guidance 8.0bln). (Newswires)

Evotec (EVT GY) - 9M (EUR): Adj. EBITDA 50.2mln (prev. 44.6mln Y/Y), Revenue 580.1mln (prev. 510.8mln Y/Y). (Newswires) Shares seen +2.4% in pre-market

Lanxess (LXS GY) – Q3 (EUR): Sales 1.6bln (exp. 1.85bln), adj. EBITDA 119mln (exp. 121mln), Net -131mln (exp. -48mln). Further significant reduction of net financial liabilities to 2.557bln. Increasing efficiency will make structural changes to permanently reduce annual costs by circa. 150mln from 2025 onwards; changes incl. the cut of 870 jobs. (Newswires)

BROKER MOVES

Heidelberg Materials (HEI GY) upgraded to Overweight from Equal Weight at Morgan Stanley

Telefonica Deutschland (O2O GY) upgraded to Hold from Reduce at HSBC

CAC

Airbus (AIR FP) - October 2023 deliveries 71 to 42 customers and 119 gross orders; YTD: Booked 1399 gross aircraft orders. Booked 1334 net aircraft orders. Delivered 44 A350 aircrafts. Delivered 186 A320NEO aircraft. Delivered 250 A321NEO aircrafts. (Newswires)

Credit Agricole (ACA FP) - Q3 (EUR): Net Income EUR 1.75bln (exp. 1.38bln). Revenue 6.34bln (exp. 6.02bln). Operating expenses 3.38bln (exp. 3.42bln); Revenue in capital markets +26.8% Y/Y, FICC revenue +25.6% Y/Y. (Newswires)

Legrand (LR FP) - 9M (EUR): Adj. Op 1.36bln (exp. 1.36bln), Revenue 6.31bln (prev. 6.15bln Y/Y). (Newswires)

OTHER FRENCH COMPANIES

Eurazeo (FR FP) – 9-month (EUR): AUM 33.46bln (adj. prev. 30.35bln), Fee-paying AUM 24.2bln, +19%. Confident in ability to attain 3bln of fundraising and grow steadily asset management operating income. (Newswires)

BROKER MOVES

PAN EUROPE

ABN AMRO (ABN NA) – Q3 (EUR): Operating Income 2.21bln (exp. 0.88bln), Net Income 759mln (exp. 583mln), Impairment Charges -21mln, CET1 15.0% (exp. 16.2%). NII is lower compared with Q2 due to deposit migration to higher-yielding products. The impact of the economic slowdown has thus far been limited, buffers remain in place against uncertainties in the economic outlook. (Newswires)

Ahold Delhaize (AD NA) - US unit divests FreshDirect business to Getir. No terms disclosed. (Newswires)

Banco BPM (BAMI IM) - Q3 2023 (EUR): Revenue 1.37bln (exp. 1.34bln), Net 319mln (exp. 287mln). Net interest income 868.7mln (prev. 551.3mln Y/Y). Net fees 460mln (prev. 473.2mln). Net profit 319mln (prev. 136.4mln). Loan writedowns 124.8mln (prev. 193.9mln).

Enel (ENEL IM) - 9-month (EUR): EBITDA 16.40bln (exp. 16.05bln), adj. Net Income 5bln, CapEx 8.76bln, Net income 4.25bln. CFO says they cannot say whether dividend policy will be updated on its capital markets day. (Newswires)

Gea Group (G1A GY) - Announces new EUR 400mln share buyback program. (Newswires)

Pekao (BEO PW) - Q3 (PLN): Net 1.72bln (exp. 1.69bln), NII 3.02bln (exp. 3.02bln). (Newswires)

Voestalpine (VOE AV) – H1 (EUR): EBIT 531mln (prev. 898mln), EBITDA 915mln (prev. 1.4bln); solid H1 results, despite the economic slowdown. Current situation expected to continue into H2, meaning stagnating demand at a subdued level. (Newswires)

BROKER MOVES

Allfunds (ALLFG NA) initiated with Neutral at UBS

SMI

Swiss Life (SLHN SW) – 9-month (CHF): GWP 15.5bln (prev. 14.99bln), Fee Income 1.79bln (prev. 1.75bln), Investment Income 2.99bln (prev. 2.88bln). CEO: “…continue to be well on track to achieve or exceed all of the Group’s financial targets.”. (EQS)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Ambu (AMBUB DC) - Guides initial FY24 Revenue, +7.10%. (Newswires)

Mowi (MOWI NO) - Q3 (EUR): Net 110.6mln (prev. 130.1mln Y/Y), Revenue 1.36bln (exp. 1.45bln). (Newswires)

Nokia (NOKIA FH) - Nokia Bell Labs and Aramco announces R&D collaboration to support priority industries. No terms disclosed. (Newswires)

Pandora (PNDORA DC) - Q3 (DKK): Net 543mln (exp. 520mln), EBITDA 1.45bln (exp. 1.40bln), Revenue 5.57bln (exp. 5.45bln), Says current trading in Q4 is healthy. Raises again FY23 organic revenue +5-6% (prev. guidance +2-5%). (Newswires)

BROKER MOVES

Maersk (MAERSKB DC) upgraded to Overweight from Neutral at JP Morgan

US

CLOSES: SPX +0.28% at 4,378, NDX +0.93% at 15,296, DJIA +0.17% at 34,152, RUT -0.28% at 1,733.

SECTORS: Consumer Discretionary +1.19%, Technology +1.08%, Communication Services +0.55%, Consumer Staples +0.21%, Health +0.05%, Financials -0.12%, Industrials -0.26%, Utilities -0.73%, Real Estate -0.87%, Materials -1.87%, Energy -2.23%.

eBay Inc (EBAY) - Q3 2023 (USD): Adj. EPS 1.03 (exp. 1.00), Revenue 2.5bln (exp. 2.5bln); GMV 18bln (exp. 17.77bln), Active buyers 132mln (exp. 131.3mln). Q4 revenue view 2.47-2.53bln (exp. 2.6bln). FY revenue view 10.02-10.08bln (exp. 10.15bln). (Newswires)

Lucid Group (LCID) - Q3 EPS -0.28 (exp. -0.35), Q3 revenue USD 138mln (exp. 180mln), Q3 EBITDA -624mln (exp. -701mln). Cuts FY production guidance to between 8.0-8.5k (vs previous guidance for 10k+). Will launch Lucid Gravity SUV, will begin production in late 2024. Exec notes it ended Q3 with approximately USD 5.45bln in liquidity, which will help lead it into the Gravity production, and beyond.

Occidental Petroleum Corp (OXY) - Q3 2023 (USD): Adj. EPS 1.18 (exp. 0.84), Oil & gas pre-tax income 2.0bln (exp. 1.63bln). Chemical pre-tax income 373mln (exp. 322.2mln). (Newswires)

Rivian Automotive (RIVN) - Q3 adj. EPS -1.19 (exp. -1.32), Q3 revenue USD 1.34bln (exp. 1.33bln). Sees FY vehicles production of 54k units (prev. 52k, exp. 53.6k); Exec said upgraded production outlook was due to progress on its production lines, ramp of in-house motor line, and the supply chain outlook. Sees reaching gross profitability in 2024. Says Amazon remain focused on bringing 100k Rivian electric delivery vehicles to the road, and RIVN can now sell commercial vans to companies other than Amazon.

Robinhood (HOOD) - Q3 EPS -0.09 (exp. -0.08), Q3 revenue USD 467mln (exp. 478.4mln), MAUs -16% Y/Y to 10.3mln (exp. 10.8mln), Assets Under Custody +34% Y/Y to USD 87bln, ARPU +27% Y/Y to USD 80. Sees FY23 operating expenses between USD 1.44-1.46bln.

08 Nov 2023 - 06:53- Research Sheet- Source: Newswires