Newsquawk Daily European Equity Opening News - 9th March 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

APAC stocks were mostly mixed with the region finding some respite from recent selling despite the weak lead from the US, where the major indices were choppy after the US and UK moved to ban imports of Russian oil. ASX 200 gained with the gains across sectors led by tech, consumer discretionary and financials. Nikkei 225 briefly reclaimed 25k, but with initial upside reversed after downward revisions to the final Q4 GDP data. Hang Seng and Shanghai Comp. bucked the trend with Chinese sports brands underperforming in Hong Kong as Norway's sovereign wealth fund is to offload its stake in Li Ning over suspicions of forced labour, while Goldman Sachs sees China on course to miss its growth target this year by 1ppt due to the oil shock and COVID.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 -0.2% at 3,505, FTSE 100 +0.1% at 6,964, DAX 40 -0.0% at 12,831, CAC 40 -0.3% at 5,962, FTSE MIB +0.8% at 22,336, IBEX 35 +1.8% at 7,783, SMI -1.5% at 11,032.

SECTORS: Energy 3.50%, Consumer Services 2.33%, Utilities 1.46%, Financial Services 1.31%, Industrials -0.70%, Healthcare -1.00%, Telecoms -1.01%, Basic Materials -1.13%, Consumer Goods -1.71%, Technology -2.53%

FTSE 100

Vodafone (VOD LN) - Co. is to sell its 21% stake in Indus Towers, according to reports. (Newswires)

Unilever (ULVR LN) - Suspended all Russian imports and exports. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

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

Rio Tinto (RIO LN) downgraded to Neutral from Buy at Citigroup

DAX

Adidas (ADS GY) - Q4 21 (EUR): Revenue 5.14bln (exp. 5.2bln). Operating profit 66mln (exp. 105mln). EPS 1.05 (prev. 0.77 Y/Y). Co. raises its FY21 dividend by 10%. Guides 2022 sales (at constant FX) between +11-13% (exp. 9.45%). (Newswires)

Continental (CON GY) - FY21 (EUR): Revenue 33.8bln (exp. 33.4bln). Adj. EBIT 1.90bln (exp. 1.94bln). Sees Adj. EBIT margin around 5.5-6.5% (not including potential geopolitics headline) and proposes a dividend of 2.20/shr. (Newswires)

Deutsche Post (DPW GY) - Q4 21 (EUR): Revenue 23.4bln (exp. 21.6bln). EBIT 2.21bln (exp. 2.27bln). Co. raises dividend and announces a EUR 2bln share buyback scheme. (Newswires)

Porsche Automobil (PAH3 GY) - Suspended production of the Taycan model amid a lack of parts, according to reports. (Newswires)

OTHER GERMAN COMPANIES

Brenntag (BNR GY) - FY21 (EUR): EBITDA 1.35bln (prev. 1.06bln Y/Y). Net 461mln (prev. 473.8mln). (Newswires)

Kloeckner & Co (KCO GY) - FY21 (EUR): Revenue 7.4bln (prev. 5.1bln Y/Y). adj. EBITDA 848mln (prev. 111mln). Net 629mln (prev. 114mln). (Newswires)

Siltronic (WAF GY) - FY21 (EUR): Revenue 1.41bnl (prev. 1.21bln Y/Y). EBITDA 466.4mln (prev. 322mln). EBIT 316.9mln (prev. 192.2mln). (Newswires)

BROKER MOVES

CAC

Dassault Systemes (DSY FP) - Co. has suspended operations in Russia. (Newswires)

Sanofi (SAN FP) - Efanesoctocog alfa met primary and key secondary endpoints in pivotal study in hemophilia A, demonstrating superiority to prior factor prophylaxis treatment. (Sanofi)

TotalEnergies (TTE FP) - Libya's NOC and Total Energies spoke about raising production at the Waha Oil Company and return of the Mabrouk oilfield to production in early 2023, according to a statement. (Newswires)

OTHER FRENCH COMPANIES

Elis (ELIS FP) - FY21 (EUR): Revenue 3.05bln (prev. 2.81bln Y/Y). EBITDA 1.05bln (947.5mln). EBIT margin 12.7% (prev. 10.4% Y/Y). (Newswires)

BROKER MOVES

PAN EUROPE

Leonardo (LDO IM) - Co. is said to be planning to put on hold its plans to offload its OTO Melara and Wass units. (Newswires)

Salvatore Ferragamo (SFER IM) - FY21 (EUR): Revenue 1.14bln (prelim. 1.14bln). EBITDA 305mln (exp. 289mln). Net 81mln (exp. 55mln). CEO continues to see the same trend as Q4. (Newswires)

Telecom Italia (TIT IM) - Moody's cut rating to Baa3 from Baa2 (one notch); outlook Negative. (Newswires)

UniCredit (UCG IM) - Co. says it has a current mark-to-market derivative exposure to Russian banks of around EUR 300mln, net of collateral received. The maximum potential loss in the event that the RUB would tend to zero is around EUR 1bln. "In the extreme scenario, where the entirety of our maximum exposure described above is non-recoverable and zeroed, the impact on UniCredit's 2021 year end CET1 ratio (15.03% inclusive of EUR1.2bn accrued dividend) would be around 200bps. Our strong capital position would allow us to absorb such impact without falling below 13% CET1." (UniCredit)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Geberit (GEGN SW) - FY21 (CHF): Revenue 3.46bln (prev. 2.99bln Y/Y). EBITDA 1.07bln (exp. 1.07bln). Net 756mln (exp. 767mln). (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Carlsberg (CARLB DC) downgraded to Equal Weight from Overweight at Morgan Stanley

US

CLOSES: S&P 500 -0.7% at 4,171, Nasdaq 100 -0.4% at 13,267, Dow Jones -0.6% at 32,632, Russell 2000 +0.4% at 1,961.

SECTORS: Consumer Staples -2.6%, Health -2.1%, Utilities -1.6%, Real Estate -0.9%, Industrials -0.6%, Financials -0.6%, Materials -0.5%, Technology -0.4%, Communication Services -0.1%, Consumer Discretionary +0.1%, Energy +1.4%.

US is probing options trade that gained on the Microsoft (MSFT)/Activision (ATVI) deal, according to WSJ. (WSJ)

RUSSIA-EXPOSED EUROPEAN STOCKS

EUROPEAN COMPANIES WITH STAKES IN RUSSIAN FIRMS

Source: Goldman Sachs/GoogleOrder: Descending market cap

• 
  Shell (SHEL LN) - (Energy) Has a stake of around 28% stake in Gazprom-operated Sakhalin-2 LNG project. [Announced the exit of Gazprom entities (Mar 1)]
  


• 
  TotalEnergies (TTE FP) - (Energy) Exposed via its partnerships with Russian nat gas producers Novatek and Yamal LNG. [Holds presence in Russia but announced no further investments (Mar 1)]
  


• 
  Prosus (PRX AV) - (Tech) Co. owns Avito, a Russian classified advertisements website.


• 
  BP (BP/ LN) - (Energy) Exposed via its 20% stake in Rosneft. [Announced sale of stake with potential hit of USD 25bln (Feb 27)]
  


• 
  Equinor (EQNR NO) - (Energy) Owns minority stakes in three oilfields in Russia.


• 
  Glencore (GLEN LN) - (Basic Resources) Owns a 0.6% stake in Rosneft and 10.5% in Anglo-Russian green energy and metals company EN+.


• 
  OMV (OMV AV) - (Energy) Exposed via the Yuzhno-Russkoye oil and gas field. [No longer pursuing investments in Russia (Mar 7)]


• 
  Tenaris (TEN IM) - (Energy) Exposed via a pipeline deal it owns 49% interest in.


• 
  Renault (RNO FP) - (Auto & Parts) 6% of Renault's revenue and 15% of EBIT comes from its ownership of AvtoVAZ - Russian automobile manufacturing company.


• 
  Alstom (ALO FP) - (Industrial) Has a 20% stake in Russia's largest rail manufacturer - Transmasholdings.

EUROPEAN COMPANIES WITH RUSSIAN SALES EXPOSURE ABOVE 20%

• 
  VEON (VEON AV) (Telecom) 48%


• 
  Polymetal (POLY LN) (Basic Materials) 42%


• 
  EVRAZ (EVR LN) (Basic Materials) 38%


• 
  Uniper (UN01 GY) (Utilities) 25%


• 
  Fortum (FORTUM FH) (Utilities) 25%


• 
  NOKIAN (TYRES FH) (Autos) 21%

09 Mar 2022 - 06:52- MetalsResearch Sheet- Source: Newsquawk