Aug 01 ,2023
Synopsis:
European equity markets mostly closed lower, with pan-European indices, which flirted with positive territory on the day in early trading, then moved lower through the day
With shares closing around the worst levels of the sessoin Norway +0.1%, Denmark, Finland both +0.0% led outperformers and Spain (1.4%) joined the CAC and DAX in leading underperformers
Markets in Switzerland were closed for a public holiday (National Day)
Manufacturing PMIs for July dominated the economic data with final Eurozone reading unchanged from flash at 38-month low. France and UK both came in slightly ahead of their respective preliminary readings whilst Germany matched preliminary reading. Spain fell short of consensus at 47.8 and Italy was a touch better than consensus and the prior month. Also, UK saw annual shop price inflation decelerating to its lowest level this year according to the British Retail Consortium, whilst the latest Nationwide Building Society's latest data showed annual house prices having weakest outturn since Jul-09, although it is only modestly lower than last month
Elsewhere, new car registrations for July released for France showed a +19.9% increase y/y to 128,947 vehicles, and Spain +10.7% y/y, with ANFAC noting that the number was below the typical 100K+ month, and that the uncertainty marked by the electoral period could have been a determining factor for not reaching this figure
M&A news flow included Atos (ATO.FP) agreeing to sell Tech Foundations to EPEI in deal worth ~€2.0B (EV basis), Fashionette (FSNT.GR) planning to merge activities with The Platform Group, Prosus (PRX.NA) divesting its PayU Global Payment Organisation to Rapyd for $610M and Tokmanni Group (TOKMAN.FH) updates its financial outlook for 2023 following the completion of the acquisition of Dollarstore. Reportedly, Italy's Treasury plans joining KKR's (KKR) offer for Telecom Italia's (TIT.IM) Netco unit along with CDP and F2i with a total 30-35% stake
Among companies with earnings/updates were BP (BP.LN) Q2 underlying RC net profit $2.59B vs consensus $3.50B, raises dividend +10%, announces $1.5B buyback and guides Q3 and FY23, Covestro (1COV.GR) Q2 net income €46M vs FactSet €70.3M [4 est, €57-77.3M], confirms FY23 guidance and guides Q3 and Diageo (DGE.LN) FY EPS 163.5p ex-items vs FactSet 164.1p [22 est, 159.8-167.5p], raises final dividend +5% and announces a new return of capital program of up to $1B. Also, HSBC Holdings (HSBA.LN) Q2 EPS $0.34 vs consensus $0.30; now targeting a RoTE in the mid-teens for 2023 and 2024, Eurobank Ergasias Services & Holdings (EUROB.GA) Q2 adjusted net income €343.2M, raises FY financial goals and Pfeiffer Vacuum Technology (PFV.GR) Q2 EPS €1.72 vs FactSet €1.94 [1 est], reaffirms FY guidance along with Bayerische Motoren Werke, DHL Group, Man Group, Nexi, Raiffeisen Bank International and Uniper.
Aston Martin Lagonda Global Holdings (AML.LN) raises £210.5M through placing of ~56.8M new shares at 371p/share
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Food & Beverage (0.43%), Health Care (0.48%), Construct & Mtls (0.60%), Technology (0.63%), Media (0.64%), Insurance (0.70%), Telecom (0.73%), Oil & Gas (0.79%), Chemicals (0.83%)
Underperformers:
Autos & Parts (1.64%), Retail (1.51%), Financial Svcs (1.43%), Travel & Leisure (1.38%), Basic Resources (1.35%), Real Estate (1.28%), Persnl & HHold Goods (1.24%), Ind Goods & Svcs (1.18%), Utilities (0.99%), Banks (0.96%)
Macro/Politics/Peripheral markets:
France:
Macron's Africa strategy in tatters as his bet on Niger unravels - Bloomberg
Greece:
Jul business expectations in industry 104.6 vs prior 108.6 and year-ago 101.2 - IOBE release
Japanese rating agency Rating and Investment Information (R&I) upgrade Greece's sovereign credit rating to BBB- from BB+, stable prospects, and first to attribute Greece investment grade. with a similar move considered possible by Scope Ratings on 4-Aug - ekathimerini
Italy:
Growth target can still be achieved, economy ministry - Ansa
Netherlands:
PvdA's Henk Nijboer to leave politics out of dissatisfaction with 'United Left - de Volkskrant; De Telegraaf
Spain:
PM Sanchez will try to form a new government - El Pais
CC open to negotiate with both Sanchez and Feijoo - El Confidencial
Sweden:
PM Kristersson and Justice minister Strömmer held press conf after Friday's decision to task several government agencies with strengthening Sweden's ability to prevent, avert and impede terrorism and violent extremism, following the deteriorating security situation after the burning of copies of the Quran
UK:
Company news:
Notable Gainers
+17.1% EAPI.FP (Euroapi) -- H1 EPS €0.66 vs year-ago €0.18, raises FY revenue growth guidance, narrows core EBITDA margin guidance
+16.1% FOUR.LN (4imprint Group) -- FY Group pretax profit is expected to be materially above the current consensus of analysts' forecasts
+13.1% DOM.LN (Domino's Pizza Group) -- H1 EPS 9.5p ex-items vs year-ago 9.5p, guides FY23 underlying EBITDA in a range of £132-138M; to add from buy at Peel Hunt
+9.9% RDC.GR (Redcare Pharmacy) -- Q2 Adjusted EBITDA €13.3M vs FactSet €5.8M [3 est, €4.7-8M], provides FY guidance
+9.3% TMV.GR (TeamViewer) -- Q2 adjusted EPS €0.22 vs FactSet €0.21 [2 est, €0.19-0.24]; on track to reach full year guidance
+8.5% RENEW.SS (Re:NewCell) -- Jul total production output ~3,000 metric tons of dissolving pulp
+8.1% VCP.LN (Victoria) -- Q1 was in line with the board's forecast and consistent with consensus expectations for FY24
+7.1% CHG.LN (Chemring Group) -- £50M share buyback program
+6.6% STORY.B.SS (Storytel) -- Q2 EPS (SEK0.41) vs year-ago (SEK0.80); confirms FY outlook
+6.5% RELAIS.FH (Relais Group) -- acquires the Norwegian workshop equipment business unit of NDS Group AS
+6.1% STAF.LN (Staffline Group) -- H1 EPS (2.0p) vs year-ago (0.4p); Expects FY23 results to be in line with expectations; launches up to £4.0M share buyback program
+5.4% COA.LN (Coats Group) -- H1 adjusted EPS $0.035 vs year-ago $0.043; Expects FY trading to be in line with market expectations albeit towards the lower end
+5.2% VITR.SS (Vitrolife) -- announces new Chairman Jón Sigurdsson and new CEO Bronwyn Brophy take up positions today
+4.7% IPF.LN (International Personal Finance) -- H1 EPS 10.2p ex-items vs FactSet 7.0p [1 est]
+4.1% KAP.LN (National Atomic Company Kazatomprom) -- H1 Group U3O8 sales volume 3,385 Mboe/d vs year-ago 6,241
+3.4% SEM.AV (Semperit Holding) -- completes acquisition of RICO Group
On earnings/updates: GBLB.BB (Groupe Bruxelles Lambert), HSBA.LN (HSBC Holdings), BAG.LN (A.G. BARR), UN01.GR (Uniper), DGE.LN (Diageo), MEL.SM (Melia Hotels International), TPK.LN (Travis Perkins), CSH.GR (CENIT), DBV.FP (DBV Technologies), WEIR.LN (Weir Group), YIT.FH (Yit)
Notable Decliners
-14.5% ONC.LN (Oncimmune Holdings) -- acting CEO Ron Kirschner appointed COO
-14.2% HYQ.GR (Hypoport) -- preliminary Q2 EBIT (€2.5M) vs year-ago €13M; lowers FY guidance including EBIT at least €10M vs FactSet €18.6M [6 est, €14.0-21.0M]
-10.1% KWS.LN (Keywords Studios) -- H1 adjusted operating profit expected to be ~€59M vs year-ago €56.0M
-7.3% GRG.LN (Greggs) -- H1 underlying pre-tax profit £63.7M vs FactSet £62M; reaffirms FY expectations
-6.8% KRN.GR (Krones) -- Q2 EPS €1.83 vs FactSet €1.60 [3 est, €1.36-1.75]; reaffirms FY guidance
-6.2% NEXI.IM (Nexi) -- H1 normalized net income €295.0M vs FactSet €310.9M; confirms FY23 guidance
-5.4% EMG.LN (Man Group) -- H1 Core EPS $c8.9 vs consensus $c8.8
-5.0% DHL.GR (DHL Group) -- Q2 EPS €0.82 vs consensus €0.83; anticipates FY23 EBIT between €6.2-7.0B vs FactSet €6.86B
-4.9% BMW.GR (Bayerische Motoren Werke) -- Q2/H1 pre-earnings; raises FY23 guidance
-4.1% RWA.LN (Robert Walters) -- H1 EPS from cont. ops 7.4p vs year-ago 26.0p; Current trading remains in line with Board expectations
-4.0% FRES.LN (Fresnillo) -- H1 EPS ex-items $0.10 vs year-ago $0.19; confirms 2023 guidance
-3.8% ATO.FP (ATOS) -- sale of Tech Foundations to EPEI for ~€2.0B (EV basis); changes name to Eviden and announces capital increases for a total of €900M; to underperform from buy at BofA
-3.8% NOG.LN (Nostrum Oil & Gas) -- commencement of appraisal programme at the Stepnoy leopard fields; rig operations are expected to start mid-Sep
-3.8% EXAE.GA (Hellenic Exchanges-Athens Stock Exchange) -- H1 net income €6.6M, +22% vs year-ago €5.4M
-3.7% KLR.LN (Keller Group) -- H1 underlying EPS 56.0p vs year-ago 37.9p; full year expectations remain unchanged
-3.3% RBI.AV (Raiffeisen Bank International) -- Q2 consolidated profit €578M vs consensus €584M; updates FY guidance excluding Russia and Belarus
-3.3% BMED.IM (Banca Mediolanum) -- H1 net income €363.3M vs FactSet €361M [1 est]
-3.1% MTRO.LN (Metro Bank Holdings) - H1 underlying EPS 7.8p vs year-ago (2.0p)
-2.8% BIOPOR.DC (BioPorto) -- Q2 EPS (DKK0.06) vs year-ago (DKK0.05); confirms FY guidance
-2.6% DTG.GR (Daimler Truck Holding) -- Q2 EPS €1.11 vs year-ago €1.12; confirms FY outlook
In earnings/updates: ALATA.FP (Atari, Inc.), RCDO.LN (Ricardo), PFV.GR (Pfeiffer Vacuum Technology), ATS.AV (AT & S Austria Technologie & Systemtechnik) and reversing initial gains MEDCL.FP (MedinCell), 1COV.GR (Covestro), BP.LN (BP), EUROB.GA (Eurobank Ergasias Services & Holdings), IPCO.SS (International Petroleum Corp), XPP.LN (XP Power)
EU companies reporting tomorrow:
Earnings:
Benelux: DSM-Firmenich (DSFIR.NA), Wolters Kluwer (WKL.NA), JDE Peet's (JDEP.NA), OCI (OCI.NA), Melexis (MELE.BB), Aedifica (AED.BB)
DACH: Siemens Healthineers (SHL.GR), Schaeffler (SHA.GR), Fresenius Medical Care (FME.GR), Fresenius (FRE.GR), Kloeckner & Co. (KCO.GR), Symrise (SY1.GR), Hugo Boss (BOSS.GR), Auto1 Group (AG1.GR), Interroll Holding (INRN.SW), Lenzing (LNZ.AV)
France: Believe (BLV.FP), Deezer (DEEZR.FP),
Nordics: Xspray Pharma (XSPRAY.SS), RingkjObing Landbobank (RILBA.DC)
Southern Europe: Telecom Italia (TIT.IM), BPER Banca (BPE.IM), Banco BPM (BAMI.IM), Iveco Group (IVG.IM), Safilo Group (SFL.IM), Anima Holding (ANIM.IM), Technogym (TGYM.IM), Tenaris (TEN.IM), doValue (DOV.IM), Tinexta (TNXT.IM), IGD SIIQ (IGD.IM), FNM (FNM.IM), WIIT (WIIT.IM), Corticeira Amorim (COR.PL)
UK/Ireland: BAE Systems (BA.LN), Haleon (HLN.LN), Ferrexpo (FXPO.LN), Ibstock (IBST.LN), Taylor Wimpey (TW.LN), Spirent Communications (SPT.LN), TheWorks.co.uk (WRKS.LN), Convatec Group (CTEC.LN), Genel Energy (GENL.LN), IP Group (IPO.LN), Smurfit Kappa Group (SKG.LN), Kerry Group (KRX.ID)
Trading Update: Claranova (CLA.FP), Neurones (NRO.FP), Catering International & Services (ALCIS.FP), TIE Kinetix (TIE.NA), Moscow Exchange MICEX (MOEX.RU)
Data:
Economics:
Jul manufacturing PMI
Ireland 47.0 vs consensus 46.6, prior 47.3
Netherlands 45.3 vs consensus 43.0, prior 43.8
Russia 52.1 vs consensus 52.0, prior 52.6
Sweden 47.6 vs consensus 44.2, prior revised 45.2 from 44.8
Spain 47.8 vs consensus 48.3, prior 48.0
Italy 44.5 vs consensus 44.2, prior 43.8
France 45.1 vs preliminary 44.5
Germany 38.8 vs preliminary 38.8
Eurozone 42.7 vs preliminary 42.7
Greece 53.5 vs consensus 50.5, prior 51.8
Norway 56.7 vs consensus 46.9, prior 48.7
UK 45.3 vs preliminary 45.0
UK Jul house price index (3.8%) y/y vs consensus (3.8%), prior (3.5%) - Nationwide release
Germany Jul unemployment change (4K) vs consensus +20K, prior +28K
Jun unemployment rate
Italy 7.4% vs consensus 7.7%, prior revised 7.5% from 7.6%
Eurozone 6.4% vs consensus 6.5%, prior revised 6.4% from 6.5%
Greece 11.1% y/y vs consensus 10.7%, prior revised 11.3% from 10.8%
Markets:
WTI Crude (Sep 23): ($0.53) or (0.65%) to $81.27
€-$ (0.0032) or (0.29%) to 1.0965
£-$ (0.0088) or (0.69%) to 1.2747
€-£ +0.0033 to 0.8602
S&P 500 (0.33%)
Performance year-to-date:
FTSE 100: +2.88%
DAX: +16.64%
CAC: +14.40%
MIB: +23.83%
Stoxx 600: +9.95%
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE