Newsquawk Daily European Equity Opening News - 9th May 2023

9th May 2023

ASIA

APAC stocks were mixed following the indecisive performance from Wall St where the focus was on the Fed’s SLOOS which showed banks tightened credit terms and demand for loans declined, while the attention in the region shifted to earnings and data releases including mixed Chinese trade figures. ASX 200 was lower with early pressure seen across nearly all sectors and with the top-weighted financial industry choppy after earnings from Australia’s largest lender CBA which reported a slight increase in Q3 cash profit although NII was lower compared to the quarterly average in H1 and the Co. also noted that many customers are feeling the strain of higher interest rates and rising living costs. Nikkei 225 outperformed and reclaimed the 29,000 status, with the index unfazed by weak household spending data as participants digested earnings. Hang Seng and Shanghai Comp. were varied after the latest Chinese trade figures which showed stronger-than-expected export growth but imports disappointed with a surprise contraction.

CBA (CBA AT) - Quarterly (AUD) unaudited cash NPAT 2.6bln (prev. 2.4bln Y/Y), unaudited statutory NPAT 2.6bln (prev. 2.3bln Y/Y), NII was 2% lower vs H1 quarterly average. Many customers are feeling the strain of higher interest rates and rising cost of living. (Newswires)

EUROPEAN CLOSES

EUROPEAN CLOSES: Euro Stoxx 50 +0.19% at 4,348, DAX 40 -0.05% at 15,952, CAC 40 +0.11% at 7,440, FTSE MIB +0.28% at 27,426, IBEX 35 +0.70% at 9,211, SMI +0.38% at 11,597.

EUROPEAN SECTORS: Healthcare 0.85%, IT 0.52%, Consumer Disc 0.51%, Financials 0.33%, Telecoms 0.22%, Energy 0.21%, Industrials 0.21%, Consumer Stpl 0.19%, Materials 0.17%, Utilities -0.19%

FTSE 100

AstraZeneca (AZN LN) - Koselugo approved in China for paediatric patients with neurofibromatosis type 1 and plexiform neurofibromas. (AZN)

Consumer Names - UK Barclaycard April consumer spending rose 4.3% Y/Y with a hit from an inflation squeeze on disposable incomes and higher food prices. (Newswires) UK BRC Retail Sales Like-For-Like YY (Apr) 5.2% (Prev. 4.9%). (Newswires)

Energy Names/Rolls-Royce (RR/ LN) - Bill Gates is ready to bid and build nuclear power plants in the UK through a government-backed scheme "small modular reactors (SMRs)". (The Times)

HSBC (HSBA LN) - Has reportedly entered into a deal to acquire its partners stake in its Chinese fund management JV, via Reuters citing sources; HSBC's holding will be 100%, subject to approval. (Newswires)

Severn Trent (SVT LN) - UK's opposition Labour Party is working on plans to form a new water regulator, plan would merge most of the existing bodies into a new oversight group, via FT citing sources. (FT)

Shell (SHEL LN) - Awards Worley (WOR AT) a contract to provide services for Sparta in the Gulf of Mexico. (Newswires)

OTHER UK COMPANIES

IDS (IDS LN) - Royal Mail CEO in advanced talks to leave. Could come as early as this week. (Sky News)

BROKER MOVES

DAX

Adidas (ADS GY) - Union Investment, a top-20 shareholder, will reportedly ask the Co. to announce the results of an internal probe into the management of misconduct allegations regarding Kanye West, via FT citing a draft; the request will be presented at Thursday’s AGM. (FT)

OTHER GERMAN COMPANIES

Carl Zeiss (AFX GY) - H1 2023 (EUR): Revenue 975mln (prev. 855mln). EBIT 144mln (prev. 177mln). Co. cuts its FY23 EBIT margin outlook to between 17-20% (prev. 19-21%). Co. says "The reduction of the high order backlog in the equipment business began in the second quarter and is expected to continue in the course of the fiscal year. The proportion of consumables is expected to improve significantly again compared with the first six months of fiscal year 2022/23, due, among other things, to the expected recovery in the Chinese market." (Newswires)

Daimler Truck (DTG GY) - Q1 (EUR): Revenue 13.2bln (exp. 13.1bln), adj. EBIT 1.16bln (exp. 1.17bln), Net Profit 795mlln (exp. 729mln), Unit Sales 125.1k, +15% YY. Outlook remains unchanged from statements made at the annual results conference in March. (Newswires)

Evonik (EVK GY) - Q1 2023 (EUR): Revenue 4.01bln (exp. 4.10bln). Net 47mln (exp. 50mln) Adj. EBIT 472mln (130mln). Co. sees its FY23 adj. EBITDA at the lower end of prior guidance. Co. reaffirms revenue guidance. (Newswires)

Fresenius SE (FRE GY) - Q1 (EUR): Revenue 10.2bln (exp. 10.14bln), EBIT 908mln (exp. 771mln). Confirms outlook. (Newswires)

K+S (SDF GY) - Q1 2023 (EUR): Revenue 1.20bln (prev. 1.21bln). EBITDA 454mln (prev. 524mln). Co. cuts its FY23 EBITDA and FCF outlook. Co. says "In the northern hemisphere, ... some cases in deliveries not being requested from the market in time for spring production. Overseas, the expected moderate recovery in potassium chloride prices compared with the current level should be postponed until the second half of the year. Overall, an average price in the Agriculture customer segment can therefore be expected for the year as a whole that should be tangibly lower than the figure for the first quarter of 2023 (..more than 20% below the figure for 2022 as a whole...). This should be offset by lower than previously expected cost increases." (K+S IR) Shares are seen opening -2.5%

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Banco BPM (BAMI IM) - Q1 23 (EUR): Net 265mln (exp. 213mln; prev. 178mln), Revenue 1.25bln (exp. 1.24bln), NII 743mln (exp. 722mln; prev. 512mln). Raises FY23 EPS view to 0.75 (exp. 0.63; prev. 0.60). CEO said 2024 NII could be slightly better than in 2023 (FY24 NII growth exp. +1%). (Newswires)

Energy/Mining Names - EU Parliament is on Tuesday to vote on a new law to reduce methane emissions; however, Romanian MEP Busoi has put forward a number of amendments which, if approved, would water down the law. (FT)

Ryanair (RYA ID)/Airbus (AIR FP) - Ryanair is reportedly close to placing a significant "multi-billion-Dollar" new 737 MAX aircraft order with Boeing (BA). The deal could be announced as soon as Tuesday, according to Reuters sources. (Newswires)

BROKER MOVES

Aena Aeropeurtos (AENA SM) upgraded to Buy from Hold Jefferies

SMI

UBS (UBSG SW) - Todd Tuckner is to succeed Sarah Youngwood as CFO. CS CEO Ulrich Körner to join UBS Group Executive Board at close. UBS anticipates that the legal close will take place in the next few weeks. At this time, Credit Suisse Group AG (CS) will be merged into UBS Group AG (UBS) and the combined entity will operate as a consolidated banking group. UBS AG and Credit Suisse AG will continue to operate independently for the foreseeable future and UBS will carry out the integration in a phased approach. UBS Group AG will initially manage the two separate parent companies – UBS AG and Credit Suisse AG. Each institution will continue to have its own subsidiaries and branches, serve its clients, and deal with counterparties.(Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Volvo (VOLVB SS) - The Canadian and Quebec governments are to purchase 1,229 electric buses from Volvo's Nova Bus in a deal worth CAD 2.1bln. (Newswires)

US

CLOSES: SPX +0.05% at 4,138, NDX +0.25% at 13,291, DJIA -0.17% at 33,618, RUT -0.31% at 1,754.

SECTORS: Communication Services +1.27%, Consumer Discretionary +0.3%, Financials +0.21%, Energy +0.07%, Technology -0.02%, Health -0.22%, Consumer Staples -0.22%, Materials -0.3%, Utilities -0.32%, Industrials -0.37%, Real Estate -0.69%.

Alphabet (GOOGL) - Co. is to unveil AI updates at Google I/O, "showing off creative writing and coding capabilities", according to CNBC sources. (CNBC)

PayPal Holdings Inc (PYPL) - Q1 2023 (USD): Adj. EPS 1.17 (exp. 1.10), Revenue 7.04bln (exp. 6.98bln). Q2 Adj. EPS USD 1.155-1.17 (exp. 1.17). Sees Q2 rev. to grow about 6.5%-7.0% on spot basis. FY23Adj. EPS USD at about USD 4.95 (exp. 4.88). FY23 share repurchases to reach about USD 4bln. Shares fell 5.8% after market

09 May 2023 - 06:48- Research Sheet- Source: Newsquawk