>>> Europe : Brokers Upgrades & Downgrades - 5th of November 2024 V2(+)

>>> Up
* Calida Raised to Market Perform at ZKB (+)
* Chevron Raised to Buy at DZ Bank; PT $170
* Flow Traders Raised to Outperform at Oddo BHF; PT 23.40 euros (+)
* Lufthansa Raised to Equal-Weight at Morgan Stanley; PT 7 euros
* Pennon Raised to Overweight at JPMorgan; PT 700 pence
* SCA Raised to Neutral at JPMorgan; PT 146 kronor
* Severn Trent Raised to Neutral at Citi; PT 2,467 pence
* Severn Trent Raised to Overweight at JPMorgan; PT 2,975 pence
* United Utilities Raised to Buy at Citi; PT 1,137 pence

>>> Down
* Aedas Homes SA Cut to Neutral at JB Capital Markets
* Celanese Cut to Equal-Weight at Wells Fargo; PT $115
* Eckoh Cut to Hold at Peel Hunt; PT 55 pence
* Mobileye Cut to Hold at Spin-Off Research; PT $14
* Ryanair Cut to Hold at Peel Hunt; PT 19.50 euros
* Schneider Electric Cut to Hold at DZ Bank; PT 240 euros
* Schneider Electric ADRs Cut to Hold at Berenberg; PT $55.40
* SpareBank 1 Ringerike Hadeland Cut to Hold at Arctic Securities (+)

>>> Initiation
* Alleima Rated New Buy at Nordea; PT 96 kronor
* Kainos Rated New Buy at HSBC; PT 1,000 pence
* Rightmove Resumed Equal-Weight at Morgan Stanley; PT 650 pence
* Scatec Re-Initiated Hold at Kepler Cheuvreux; PT 85 kroner (+)

>>> Call
* Election Has Particularly Bullish Positioning: Citi Strategists (+)
* Harris Win May Spark Rotation Into Europe Stocks From US: RBC (+)
* Air France-KLM Downgraded at Morgan Stanley, Lufthansa Raised
* Prysmian’s Margins Near Their Peak, Morgan Stanley Downgrades
* Schneider Electric CEO Exit Unwelcome, Cut to Hold at Berenberg

FT : German gas importer Uniper starts repaying €13.5bn bailout

German gas importer Uniper starts repaying €13.5bn bailout
Nationalised group prepares for possible sale to return it to private hands

Nationalised German gas importer Uniper has started paying back a €13.5bn government bailout as it prepares for a possible sale to put it back in private hands.

The company, which was Europe’s biggest importer of Russian gas prior to President Vladimir Putin’s full-scale invasion of Ukraine, made a €530mn transfer to the German state in September.

A separate tranche of about €2.5bn will be transferred in early 2025, the company said on Tuesday, as it announced quarterly results.

Uniper became an ill-fated symbol of Germany’s over-reliance on Moscow in the wake of Putin’s 2022 invasion on Ukraine. Before the crisis, Europe’s biggest economy imported more than half of its gas from Russia.

Putin’s decision to cut gas supplies to Europe in 2022 pushed Uniper to the brink of collapse. 

The German government stepped in, injecting €13.5bn in equity for a 99 per cent stake in the company, and granting it €6bn in loans in one of the biggest corporate bailouts in German history.

The company has quickly recovered, reporting “exceptionally good” earnings before interests and taxes of €6.4bn last year thanks to favourable gas market conditions and a successful hedging strategy.

Performance this year has been less strong, but the company is still expecting adjusted earnings before interest, taxes, depreciation and amortisation of between €1.9bn and €2.4bn for its full year, having generated €2.2bn in its first nine months of the year.

The German ministry of finance, which has said it aims to make a profit from its investment, announced in September that it was preparing to return the company to private hands, possibly by floating its shares. 

Chief financial officer Jutta Dönges said Uniper welcomed the announcement, but stressed that any decisions about reprivatisation would be made by the government.

Uniper also used its results announcement on Tuesday to warn of slowing appetite for the hydrogen rollout the German government had placed at the centre of its green transition plans.

Reflecting a broader trend of hydrogen scepticism that has hit the share prices of US and European clean hydrogen companies in recent months, Dönges said the company had observed “a mood of caution” on the fuel among corporate customers.

It said that, as a result, the ramp-up of hydrogen power plants would be slower than the company had assumed 18 months ago.

Uniper — which runs projects that produce, transport and store hydrogen in Germany, Sweden, the UK and the Netherlands — said it would take longer than originally planned to meet its target of investing about €8bn in a green overhaul.

That goal would probably be met in the early 2030s instead of by the end of this decade, it said. The company added: “Uniper will only invest in projects that are based on a viable business case and that are expected to generate an appropriate return on investment.”

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • QNST +29.7%, ALAB +24.2%, SQNS +16.1%, VMEO +15.8%, BOWL +15.6%, PLTR +13%, EVER +10.9%, SBSW +8.8%, HIMS +8.3%, ICHR +7.7%, INTA +7.3%, SLF +6.9%, SUPN +6.6%, LPX +6.5%, PRAA +6%, CLW +5.9%, LBPH +5.1%, VVX +5%, BERY +4.7%, CSTL +4%, DLTR +3.8%, SNBR +3.8%, WOW +3.8%, ACDC +3.8%, SNDX +3.7%, PRMW +3.5%, HHH +3.5%, FTS +3.4%, BTBT +3.3%, HPK +3%, DD +2.7%, PRIM +2.6%, VRTX +2.4%, BWXT +2.2%, PARR +2.1%, CIFR +2%, MTG +2%, ANDE +2%, GUTS +1.9%, CAE +1.9%, BA +1.9%, INSP +1.9%, TECK +1.7%, CSWC +1.6%, WULF +1.5%, GROY +1.4%, IT +1.4%, JXN +1.3%, ADUS +1.2%, CRBG +1.1%, RPRX +1%, GT +1%, ITUB +1%, ACHR +0.9%, BFAM +0.9%
  • Gapping down:
    • MQ -39.7%, JELD -22.2%, NVTS -18%, LSCC -17.3%, CE -15.8%, ATUS -11.6%, SLAB -10.8%, CRUS -10.5%, GKOS -8.7%, MAX -8%, CLF -6.8%, ADM -6.4%, NXPI -5.3%, AZPN -5.3%, RYTM -5%, ST -5%, ABCL -4.8%, AOSL -4.8%, FWRD -4.3%, TDC -4.1%, TEM -3.4%, RRX -3.1%, WYNN -2.8%, WTRG -2.4%, FANG -2.3%, BWIN -2.2%, EGHT -2.2%, SAVE -2.1%, BCC -2.1%, METC -2.1%, SANA -1.9%, BXC -1.8%, OGS -1.7%, FN -1.7%, GXO -1.7%, FLL -1.5%, AHH -1.5%, HUN -1.1%

>>> US After Hours Summary: VMEO +15% and PLTR +12.1% up double-digits on earnin

After Hours Summary: VMEO +15% and PLTR +12.1% up double-digits on earnings; DLTR +6.8% gaining on CEO and Chairman shakeup; MQ -29.9%, JELD -22.2% down big following quarterly numbers

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: QNST +25.2%, ALAB +23.9%, VMEO +15%, PLTR +12.1%, EVER +9.4%, INTA +7.5%, BOWL +7.3%, ICHR +7%, HIMS +6.4%, CLW +5.7%, EGHT +5.6%, PRIM +5.6%, ADUS +5%, ANDE +4.8%, WOW +3.7%, PRAA +3.6%, INSP +3.2%, HHH +3%, HPK +3%, BWXT +2.7% (also to acquire LHX's Aerojet Ordnance Tennessee business), BFAM +2.7%, CRBG +2.6%, CSTL +2.6%, SUPN +2.3%, SLF +2.3%, GT +2.1%, MTG +2%, SANM +1.9%, VRTX +1.7%, GXO +0.7%, TBI +0.4%, METC +0.4%, CDNA +0.3%, CBT +0.3%, VNO +0.2%, CWK +0.1%

Companies trading higher in after hours in reaction to news: DLTR +6.8% (CEO and Chairman steps down; appoints interim CEO and new Chairman; reaffirms guidance), CVAC +3.7% (appoints new CFO), SNDX +3% (enters into royalty funding agreement with Royalty Pharma), PRMW +2.9% (shareholder approval of merger with BlueTriton Brands), BTBT +2.1% (MSA with Boosteroid), GUTS +2% (to present new preclinical data), ACHR +1.7% (enters into MOU with FCA US LLC), CIFR +1.2% (October 2024 operational update), BERY +0.8% (completes merger and will trade under new ticker), RPRX +0.6% ($350 mln funding agreement with SNDX), NDAQ +0.2% (reports October 2024 volumes), OEC +0.1% (raising prices for certain products in Europe and South Korea)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MQ -29.9%, JELD -22.2%, NVTS -14.2%, CE -14%, ATUS -12%, LSCC -11.5%, CRUS -9.2%, TDC -7.9%, GKOS -7.8%, SLAB -6.4%, TEM -6.1%, CLF -5.5%, NXPI -5.5%, ABCL -5.5%, AOSL -5.3%, ST -4.9%, RRX -4.5%, FWRD -3.6%, AZPN -3.6% (also to acquire Open Grid Systems), BWIN -3.6%, WYNN -3.4%, OGS -2.8%, WTRG -2.6%, FANG -2.5% (also issues letter to shareholders), ILMN -2.3%, VOYA -2.2%, HOLX -2.1%, FN -1.9%, PARR -1.6%, AHH -1.5%, VNOM -1.2%, BCC -1%, AIG -0.6%, HUN -0.3%, ES -0.3%, DEI -0.1%, EQH -0.1%

Companies trading lower in after hours in reaction to news: MAX -8.8% (provides FTC matter update), BXC -5% (opens greenfield distribution center), FLL -1.5% (files $500 mln mixed shelf), SAVE -0.8% (binding term sheet with GA Telesis to sell 23 aircraft), WULF -0.2% (October 2024 operational update)

Reuters : Israel's strikes on Iran spark interest in air-launched ballistic miss

Israel's strikes on Iran spark interest in air-launched ballistic missiles

Summary
  • Israel's air-launched ballistic missiles used against heavily defended Iranian targets
  • Air-launched ballistic missiles fast, accurate, complicate defences
  • US, most other major powers do not use the weapons

Nov 4 (Reuters) - Israel's effective use of air-launched ballistic missiles in its airstrikes against Iran is expected to pique interest elsewhere in acquiring the weapons, which most major powers have avoided in favour of cruise missiles and glide bombs.

The Israel Defense Forces said its Oct. 26 raid knocked out Iranian missile factories and air defences in three waves of strikes.

Researchers said that based on satellite imagery, targets included buildings once used in Iran's nuclear programme.

Tehran defends such targets with "a huge variety" of anti-aircraft systems, said Justin Bronk, an airpower and technology expert at London's Royal United Services Institute.

Cruise missiles are easier targets for dense, integrated air defences than ballistic missiles are. But ballistic missiles are often fired from known launch points, and most cannot change course in flight.

Experts say high-speed, highly accurate air-launched ballistic missiles such as the Israel Aerospace Industries Rampage get around problems facing ground-based ballistic missiles and air-launched cruise missiles - weapons that use small wings to fly great distances and maintain altitude.

"The main advantage of an ALBM over an ALCM is speed to penetrate defences," said Jeffrey Lewis, director of the East Asia Nonproliferation Program at the James Martin Centre for Nonproliferation Studies at the Middlebury Institute of International Studies in California. "The downside - accuracy - looks to have been largely solved."

Ground-launched ballistic missiles - which Iran used to attack Israel twice this year, and which both Ukraine and Russia have used since Russia's invasion in 2022 - are common in the arsenals of many countries. So, too, are cruise missiles.

Because ALBMs are carried by aircraft, their launch points are flexible, helping strike planners.

"The advantage is that being air-launched, they can come from any direction, complicating the task of defending against them," said Uzi Rubin, a senior researcher at the Jerusalem Institute for Strategy and Security, one of the architects of Israel's missile defences.

The weapons are not invulnerable to air defences. In Ukraine, Lockheed Martin (LMT.N), opens new tab Patriot PAC-3 missiles have repeatedly intercepted Russia's Khinzhals.

WWD : Mikimoto and Chrome Hearts Partner for a High-end Jewelry Collection

Mikimoto and Chrome Hearts Partner for a High-end Jewelry Collection
The limited-edition collection blends Mikimoto’s pearls with Chrome Hearts’ rebellious spirit.


Mikimoto and Chrome Hearts are joining forces to bring together their distinct design aesthetics for a limited-edition jewelry collection highlighting pearls.

The Japanese fine jewelry brand and the Los Angeles-based luxury label are partnering on a collection launching Friday that leverages Mikimoto’s pearls and merges them with Chrome Hearts’ rebellious aesthetic.

According to the two brands, the collaboration has been many years in the works as they spent years understanding each other’s design processes.

“By combining Mikimoto’s legacy of excellence in pearl cultivation with Chrome Hearts’ innovative design approach, we’ve created pieces that are truly unique in the luxury jewelry landscape,” said Yasuhiko Hashimoto, chief executive officer of Mikimoto. “Every pearl is meticulously selected for its purity and perfection, while Chrome Hearts infuses a rebellious spirit into each design. Together, these elements culminate in jewelry that is as bold as it is timeless, honoring both the traditions of pearl craftsmanship and the cutting-edge sensibilities of modern luxury.”

The collection includes 11 pieces — such as a safety pin brooch, a charm bracelet, drop earrings, stud earrings and a pendant necklace — that are designed with Mikimoto’s Akoya and White South Sea pearls and Chrome Hearts’ 18-karat gold and diamonds.

There are also four exclusive handmade diamond and pearl necklaces. Only two units of each style will be produced.

“My family and I have been forever collectors of Mikimoto and always admired them for their very specific aesthetic and thoughtful approach,” said Jesse Jo Stark, daughter of Chrome Hearts’ founder Richard Stark, the brand’s owner and designer. “In terms of my inspiration for this collaboration, I was very much thinking of my mother and father and wanted to represent both feminine and masculine.”

The Mikimoto Chrome Hearts collection ranges in price from $5,000 to $33,000 for the core collection, with prices for the exclusive styles available upon request. The core collection will be available to purchase at Chrome Hearts’ stores in New York, London and Japan, as well as Mikimoto’s stores in Tokyo, New York and Hong Kong.

TechCrunch : Anduril is considering Arizona, Ohio, or Texas for its massive manu

Anduril is considering Arizona, Ohio, or Texas for its massive manufacturing facility, source says

Anduril, the defense tech company co-founded by Palmer Luckey, is considering building its first major manufacturing plant, a 5-million-square-foot facility known as “Arsenal-1,” in Arizona, Ohio or Texas, according to someone familiar with the matter.

The company, which is developing autonomous drones, planes, and submarines, had announced $1.5 billion at a $14 billion post-money valuation in September.

In conjunction with that round, Anduril announced it plans to use the fresh capital for manufacturing, investing “hundreds of millions” to develop its Arsenal-1 facility. It also said it would use the money for hiring and promised that the facility will employ “thousands of people” and be capable of producing “tens of thousands autonomous military systems annually.”

When TechCrunch asked an Anduril spokesperson if the company was now choosing between these three locations for its factory, she responded “that is incorrect” but would not specify what exactly was incorrect.

Earlier this year, the US Air Force chose Anduril to develop and test small unmanned fighter jets. The company beat out Boeing, Lockheed Martin, and Northrop Grumman for the deal, a significant win for the seven-year-old VC-backed business. (A surveillance aircraft company, General Atomics, was also selected as an awardee to modernize the Air Force fleet.)

Anduril is currently manufacturing its systems in Georgia, Mississippi, Rhode Island, and Australia, according to its website. While these locations are providing the company with “significant manufacturing capacity,” Anduril wants the new facility to become a prototype of a faster, cheaper, software-defined factory for building weapons, one that is able to increase production rapidly and nimbly.

This is in contrast to the kind of typical bespoke defense and aerospace contractor manufacturing today, which makes each part costly to change. Anduril is not the only VC-backed defense tech company working on the manufacturing part of the problem. As TechCrunch previously reported, a group of former Anduril engineers launched a startup called Salient Motion, to do this for the aerospace industry and was promptly sued by Anduril. The suit has since been settled. Others, like Ursa Major, are working on making rocket motors through 3D printing.

Although Anduril’s headquarters are in Costa Mesa, California, and will remain there, our source says, the majority of the company’s staff will likely be based at Arsenal-1. Arizona, Texas, and Ohio are all fairly common sense potential choices, as all are states where defense contractors and other types of manufacturing facilities abound.

Investors in Anduril’s last round include Founders Fund, Sands Capital, Fidelity Management & Research Company, and Baillie Gifford.

WSJ : Nuclear-Power Companies Hit by U.S. Regulator’s Rejection of Amazon-Talen

Nuclear-Power Companies Hit by U.S. Regulator’s Rejection of Amazon-Talen Deal
Analysts said the ruling was a minor setback in the industry’s push to capitalize on the energy source

Shares of nuclear-power producers fell after regulators dealt a blow to an Amazon AMZN -1.05%decrease; red down pointing triangle.com effort to use more nuclear energy, one of several as technology giants turn to the power source to fuel the rapid development of artificial intelligence.

The Federal Energy Regulatory Commission late Friday blocked a request by Amazon and Talen Energy TLN -4.14%decrease; red down pointing triangle to siphon more electricity from a Pennsylvania nuclear plant to one of the internet retail company’s data centers. Shares of Talen fell as much as 9% early Monday before recovering midday to trade down 3.3%, at $168.15.

Talen said it believed FERC had erred, and that the company was evaluating options with a focus on commercial solutions.

The news hit other nuclear-heavy power companies, whose stocks have surged as Amazon, Alphabet’s Google, Microsoft and other tech companies have inked deals to use carbon-free nuclear power to meet increasing AI-fueled demand for electricity.

Shares of Constellation Energy, which plans to restart Pennsylvania’s Three Mile Island power plant to sell electricity to Microsoft, tumbled 11%, despite the company Monday beating market expectations with its quarterly earnings and boosting its outlook. Shares of Vistra, Centrus Energy, NuScale Power and Public Service Enterprise Group also were hit early Monday.

Despite the negative stock reaction, analysts said FERC’s ruling was a minor setback in the overall industry’s push to capitalize on the around-the-clock energy source amid a heated AI race.

Talen can still restructure its expanded deal with Amazon, according to Oppenheimer analysts, and can already supply some power under the existing agreement. Though the setback creates more potential costs and increases uncertainty, the analysts said they still expect the Amazon Web Services data-center deal will go through.

FERC’s rejection appeared to be more about technical issues than broader policy, UBS analysts said in a research note.

We “believe investors should focus on the strong fundamental backdrop…and see through the noise created by the FERC ruling,” the analysts said.

Nevertheless, Constellation was on pace for the stock’s largest percent decrease on record, and was the worst performer of the S&P 500 as of mid-morning. It recently traded down 11%, at $229.61.

Public Service Enterprise Group also was on track for its largest percent drop since March 2020. Shares were down 5.9%, to $84.45.