>>> What to look at today - 1st of August 2024

Japanese stocks sunk by the most since 2020, with the yen rallying as traders braced for further interest rate hikes by the Bank of Japan. Oil climbed for a second day on Middle East tensions. The equity losses in Japan contrasted with gains in Taiwan and South Korea after the Federal Reserve signaled on Wednesday it’s close to cutting rates in September. US index futures rose, adding to advances on Wall Street, as Meta Platforms Inc. reported better-than-expected sales after the close. The diverging fortunes reflected traders’ positioning for the narrowing of US-Japan rates differentials after the two central bank decisions on Wednesday. After raising rates, Bank of Japan Governor Kazuo Ueda said more increases will come if its price forecasts are met. Japan’s Topix index tumbled by almost 4% before paring losses, as the yen touched 148.51 against the dollar, its strongest level since March. The currency has gained almost 8% in the past month. Investors will now be positioning for the third major central bank meeting in two days. The Bank of England is expected to reduce rates by 25 basis points at its policy review, according to consensus forecasts compiled by Bloomberg, which would be the first cut since the start of the pandemic. A Bloomberg index of dollar strength had its worst day since May on Wednesday, supporting a rally in emerging markets and Asian currencies. The Malaysian ringgit strengthened to levels not seen in almost a year against the dollar, while the Thai baht traded at a four-month high. Treasuries fell in Asian trading to partly unwind a Wednesday rally, where yields tumbled some 10 basis points or more across the curve on Fed rate cut hopes. Australia and New Zealand yields fell Thursday, tracking gains for Treasuries in the prior session. Gains for US debt also reflected reports that Iran had ordered retaliation against Israel for the killing of a Hamas leader on its soil.  The report pushed Brent crude to break through $81 a barrel mark after jumping 3.6% in the previous session. Meanwhile, gold steadied just below a record high.  Chinese stocks erased early advances following data showing a surprise July contraction in a key manufacturing gauge. Toyota Motor Corp.’s profit climbed in the latest quarter after a weak yen and robust demand in North America boosted sales.  The changes in the Fed statement solidify a shift in tone among several policymakers, including Powell, recognizing growing risks to the labor market. They are also likely to reinforce expectations among economists and investors for a rate cut at the central bank’s Sept. 17-18 gathering. Interest-rate swaps showed traders are still fully priced in a quarter point cut in September — and a total of almost 70 basis points worth of reductions for the year.  US After Hours Busy earnings session; CDNA +23.2%, CHRW +11%, CVNA +10.1%, META +7.1% higher on earnings; ARM -13.4%, TENB -10.7%, WDC -4.8%, MGM -4.7%, QCOM -1.4% lower on earnings.

Nikkei -2.70% Hang Seng +0.16% CSI -0.33% Shanghai +0.08% Shenzen -0.22%

Eur$ 1.0827 CNH 7.2354 CNY 7.2315 JPY 149.84 GBP 1.2848 CHF 0.8774 RUB 85.9484 TRY 33.1750 WTI$ 78.59 Gold 2,447 BTC 64,235 ETH 3,183

S&P +0.62% Nasdaq +0.86% EuroStoxx +0.35% FTSE +0.31% Dax +0.05% SMI

Macro :
- US Regulators Aim to Force Recall of 51 Million Car Air Bags

Keep an eye on :
- ABI BB : AB InBev 2Q Organic Volume Growth Misses Estimates
- ABN NA : ABN Amro Says CEO Robert Swaak to Step Down in First Half 2025
- AMG NA : AMG Sees FY Ebitda Above $130M, Saw About $130M (1)
- APAM NA : Aperam 2Q Adjusted Ebitda Beats Estimates
- MT NA : ArcelorMittal 2Q Ebitda Beats Estimates
- AKE FP : Arkema 2Q Ebitda Beats Estimates
- ASML NA : ASML, Tokyo Electron Dodge New US Chip Export Rules, For Now
- ATO FP : Atos 1H Negative Free Cash Flow EU1.91B Vs. Negative EU969M Y/y
- AZE BB : Azelis 1H Adjusted Ebita Meets Estimates
- BARC LN : Barclays 2Q Investment Bank Revenue Beats Estimates
- BCP PL : BCP 1H Net Income EU485.3M Vs. EU423.2M Y/y
- BB FP : BIC 2Q Net Sales Misses Estimates
- BMW GY : BMW 2Q Automotive Ebit Margin Misses Estimates
- BMW GY : BMW Earnings Drop on Waning Demand in Key China Market
- COA LN : Coats 1H Revenue $741M Vs. $695M Y/y
- COP GY : CompuGroup Medical Mutually Agrees to Terminate CEO Contract
- ACA FP : Credit Agricole Beats Estimates as Investment Bank Outperforms
- DTG GY : Daimler Truck Cuts FY Revenue Forecast
- DTG GY : Daimler Truck 2Q Adjusted Ebit EU1.17B Vs. EU1.43B Y/y
- DHL GY : Deutsche Post 2Q Ebit Beats Estimates
- DIS GY : Disney Plans a New Round of Job Cuts in Its Television Operation
- ALERS FP : Eurobio Says Consortium to Launch Offer at EU25.30 Per Share
- EVK GY : Evonik 2Q Adjusted Net Income Beats Estimates
- FAGR BB : Fagron FY Revenue Forecast Beats Estimates
- FDR SM : Fluidra 1H Net Income Beats Estimates
- FUR NA : Fugro 2Q Adjusted Ebit Beats Estimates
- GBLB BB : GBL FY Dividend per Share Forecast Beats Estimates
- BOSS GY : Hugo Boss 2Q Sales at Constant Exchange Rates Misses Estimates
- INGA NA : ING Raises Its Revenue Outlook as Profit Beats Estimates
- INGA NA : ING Increases 2024 Total Income Outlook to More Than €22B
- KCO GY : Kloeckner Sees FY Adjusted Ebitda EU120M to EU180M
- SKB GY : Koenig & Bauer 1H Ebit Loss EU33.9M
- LEHTO FH : Troubled Finnish Builder Lehto Has €0.7 Million in Cash
- LSEG LN : LSE Group 1H Total Income Matches Estimates
- MB IM : Mediobanca 4Q Revenue Beats Estimates
- MRK GY : Merck Sees Rebound for Semiconductor Business Amid AI Boom
- MRK GY : Merck KGaA 2Q Healthcare Adjusted Ebitda Beats Estimates
- ME US : 23andMe CEO Offers to Take Company Private for 40c/Shr
- EGP PL : Sonangol Chooses Mota-Engil to Restore Angola’s Shipyard
- MTX GY : MTU Aero 2Q Adjusted Ebit Beats Estimates
- NEXI IM : Nexi 2Q Operating Revenue Meets Estimates
- NEXI IM : Nexi’s Unchanged Outlook May Offer Some Relief: Street Wrap
- PSH NA : Pershing Square USA Withdraws IPO
- PHARM NA : Pharming 2Q Revenue $74.1M Vs. $54.9M Y/y
- PRY IM : Prysmian FY Adjusted Ebitda Forecast Beats Estimates
- PRY IM : Prysmian Awarded Transmission Project to Connect Mallorca, Spain
- RR/ LN : Rolls-Royce 1H Civil Aerospace Adjusted Revenue Beats Estimates
- SAF FP : Safran Margins Poised to Rise as LEAP Deliveries Contract: React
- 005930 KS : Samsung Chips Boss Warns of ‘Vicious Cycle’ If It Doesn’t Change
- SESG FP : SES Sees FY Adjusted Ebitda High End of EU950M to EU1B
- SHEL LN : Shell 2Q Adjusted Profit Beats Estimates
- SN/ LN : Smith & Nephew 1H Revenue Matches Estimates
- GLE FP : SocGen 2Q Net Income Beats Estimates
- SYENS BB : Syensqo Narrows FY Underlying Ebitda Forecast
- SY1 GY : Symrise 1H Ebitda Margin Matches Estimates
- TE FP : Technip Energies 1H Adjusted Recurring Ebit EU227.3M
- TEN IM : Tenaris Outlook Commentary Appears Fairly Cautious: Street Wrap
- TRN IM : Terna Signs €400m ESG-Linked Credit Facility Agreement
- UBSG SW : UBS Enters Debt Swap Market That Was Pioneered by Credit Suisse
- VLA FP : Valneva, LimmaTech Enter Shigella Vaccine Agreement
- VIE FP : Veolia 1H Ebitda Meets Estimates
- VNA GY : Vonovia Confirms FY Guidance at Upper End of Ranges (1)
- VOW GY : VW Cuts FY Automotive Net Cash Flow Forecast, Misses Estimates
- MF FP : Wendel 1H Sales EU3.90B Vs. EU3.44B Y/y
- WIZZ LN : Wizz Air 1Q Revenue Misses Estimates
- WLN FP : Worldline Sees FY Organic Revenue +2% to +3%, Saw at Least +3%

>>> Europe : Brokers Upgrades & Downgrades - 1st of August 2024

>>> Up
* Anglo American Raised to Buy at DZ Bank; PT 2,900 pence
* First Solar Raised to Buy at DZ Bank; PT $280
* GE Vernova Raised to Overweight at Morgan Stanley; PT $220
* Lem Raised to Buy at Bank Vontobel; PT 1,700 Swiss francs
* Meta Platforms Raised to Buy at Punto Casa de Bolsa; PT $571.58
* TeamViewer Raised to Buy at DZ Bank; PT 20 euros

>>> Down
* Crest Nicholson Cut to Hold at Berenberg
* FLSmidth Cut to Hold at SEB Equities; PT 380 kroner
* Heidelberg Materials Cut to Neutral at Goldman; PT 109 euros
* HydrogenOne Capital Growth Cut to Equal-Weight at Barclays
* Seadrill Cut to Hold at SEB Equities; PT 621.81 kroner
* Warner Music PT Cut to $32 from $36 at Macquarie

>>> Initiation
* Norva24 Group Rated New Buy at Berenberg; PT 38 kronor

>>> Call
* AMG’s Guidance Upgrade Probably a Small Positive, Citi Says
* Avolta Lacks Upcoming Catalysts, Morgan Stanley Downgrades

>>> US After Hours Summary: Busy earnings session; CDNA +23.2%, CHRW +11%, CVNA

After Hours Summary: Busy earnings session; CDNA +23.2%, CHRW +11%, CVNA +10.1%, META +7.1% higher on earnings; ARM -13.4%, TENB -10.7%, WDC -4.8%, MGM -4.7%, QCOM -1.4% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CDNA +23.2%, MAX +19.5%, OLO +19.4%, RSI +16.9%, NOVA +14%, ZETA +13.8%, EOLS +12.7%, CHRW +11%, CVNA +10.1%, ENVX +10.1% (also signs deal with EV OEM; also signs collaboration to provide silicon batteries for IoT product category), EXAS +9.5% (also signs license agreement with TwinStrand Biosciences), PPC +7.6%, META +7.1%, TMDX +7%, QDEL +6.9%, RELY +6.2% (CFO to step down, names new CFO), FMC +5.5%, ALKT +5.4%, AGI +5.2%, EVTC +4.6%, TTEK +4.6%, GRBK +4%, CODI +3.8%, ETD +3.5% (also approves special dividend of $0.40/sh), AM +3.3%, SDGR +3.2%, MCW +2.8%, VAL +2.8%, EPR +2.7%, ALGT +2.6%, QTWO +2.6%, COMP +2.3%, KRC +2.2%, ACT +2.2%, APA +2.1%, KD +2%, BBSI +2%, BKH +1.7%, EXPI +1.7%, COHU +1.6%, GT +1.4%, NFG +1.4%, RDN +1.1%, TSLX +1.1% (also supplemental dividend), BV +1%, NMFC +0.9%, MKL +0.9%, ACHC +0.8%, ANSS +0.8%, ERII +0.8% (also names new CFO), ETSY +0.7% (also CFO to retire), AEM +0.6%, MET +0.4%, CAKE +0.3%, EBAY +0.3%, FORM +0.3%, PK +0.3%, CTSH +0.2%, CWAN +0.1%, SUI +0.1%

Companies trading higher in after hours in reaction to news: SNAP +5.1% (in sympathy with META earnings), HWKN +4.3% (increases dividend), ASTL +1.8% (Zekelman Industries discloses 5.02% active stake), HIVE +1.1% (to develop 100 mw hydroelectric data center in Paraguay), PINS +1% (in sympathy with META earnings), MPLX +1% (MPLX, ENB joint venture partners with TRGP to construct pipeline), ENB +0.3% (MPLX, ENB joint venture partners with TRGP to construct pipeline), AVDL +0.1% (first patient has been dosed in REVITALYZ), SSD +0.1% (CFO to retire), KWR +0.1% (increases dividend)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ATEC -20.1%, UDMY -17.2% (also announces cost saving measures), TDOC -15.7% (also withdraws guidance), ARM -13.4%, LAB -13.4% (also CFO to resign), CFLT -11.1%, TENB -10.7%, MDXG -10.5%, NRDS -10.3%, MYRG -7.5%, AUR -7.5% (also commences $350 mln stock offering; also cancels business review conference call), CGNX -6.5%, ACLS -6.4%, SON -6.3%, SNBR -5.9%, CTVA -5.5% (also CFO to retire, names new CFO; also plans to buyback $1 bln of shares in FY24), WDC -4.8%, MGM -4.7%, CCRN -4.6%, VAC -4.2%, PTC -3.3%, PRDO -3.2%, CNMD -3.1%, FICO -3%, IR -2.9%, PGRE -2.8%, GKOS -2.6%, LRCX -2.6%, TS -2.6%, RGR -2.5%, SAGE -2.5%, SCI -2.5%, NGVT -2.1% (also to advance repositioning and improve profitability of its Performance Chemicals segment), INVA -2.1%, VET -1.9%, CWH -1.7%, KGC -1.6%, BALY -1.4%, QCOM -1.4%, MTG -1.3%, ALB -1.2% (also launches review of cost and operating structure; includes announces actions on Kemerton site in Australia), MAA -1.2%, RIOT -1.2%, PTVE -0.8%, HST -0.7% (also acquires hotel), AWK -0.6%, AVB -0.5%, IRT -0.4%, AIG -0.3%, EIG -0.2%, HLF -0.2%, JAZZ -0.2%, PAYC -0.2% (also increases share buyback authorization to $1.5 bln), RIG -0.2%, SRI -0.2%, ALL -0.1%, MUSA -0.1%, RHP -0.1%, VICI -0.1%

Companies trading lower in after hours in reaction to news: ALXO -30.2% (reports topline data from ASPEN-06 Phase 2 Trial), OCGN -8.9% (stock offering), HES -1.8% (CVX and HES remain committed to merger), CVX -1.6% (CVX and HES remain committed to merger), SGH -1.1% ($150 mln convertible notes offering), AVA -0.4% (makes annual price adjustment filings in Idaho), DRS -0.1% (awarded a contract by the U.S. Navy), CACI -0.1% (awarded $319 mln US Army task order)

>>> Europe : Brokers Upgrades & Downgrades - 31st of July 2024 V3(++)

>>> Up
* Ageas Raised to Neutral at UBS (++)
* Campari Raised to Buy at Equita; PT 10 euros (++)
* Ebro Foods Raised to Buy at UBS; PT 19.40 euros (++)
* Fluidra Raised to Buy at Jefferies; PT 26 euros
* Gecina Raised to Buy at Jefferies; PT 120 euros
* L'Oreal Raised to Buy at CIC (++)
* LondonMetric Raised to Buy at Citi; PT 251 pence
* Spectris Raised to Neutral at JPMorgan; PT 2,950 pence
* Volvo Raised to Add at AlphaValue/Baader (++)

>>> Down
* Albemarle Cut to Hold at Berenberg
* DBV Tech Cut to Hold at Portzamparc; PT 3 euros (+)
* Euronext Cut to Sell at Goldman; PT 85 euros
* Faron Pharma Cut to Accumulate at Inderes; PT 210.64 pence
* Great Portland Cut to Sell at UBS; PT 335 pence (++)
* Microsoft PT Cut to $506 from $520 at Morgan Stanley
* Sampo Cut to Reduce at OP Corporate Bank; PT 41 euros (++)
* Thyssenkrupp Nucera Cut to Underperform at Grupo Santander

>>> Initiation
* 1Spatial Rated New Buy at Canaccord; PT 105 pence (+)
* Cinclus Pharma Holding Rated New Buy at ABG; PT 80 kronor

>>> Call
* Barclays’ Cau Says Stocks Exposure Is ‘Cleaner’ But Remains High (+)
* Fluidra Upgraded to Buy at Jefferies Ahead of 2Q Results (++)
* Nestle Upgraded to Hold at Jefferies, Downside Now Limited
* Scor Faces Multiple Uncertainties, Citi Downgrades to Neutral

>>> Europe : Brokers Upgrades & Downgrades - 31st of July 2024 V2(+)

>>> Up
* Fluidra Raised to Buy at Jefferies; PT 26 euros
* Gecina Raised to Buy at Jefferies; PT 120 euros
* LondonMetric Raised to Buy at Citi; PT 251 pence
* Spectris Raised to Neutral at JPMorgan; PT 2,950 pence

>>> Down
* Albemarle Cut to Hold at Berenberg
* DBV Tech Cut to Hold at Portzamparc; PT 3 euros (+)
* Euronext Cut to Sell at Goldman; PT 85 euros
* Faron Pharma Cut to Accumulate at Inderes; PT 210.64 pence
* Microsoft PT Cut to $506 from $520 at Morgan Stanley
* Thyssenkrupp Nucera Cut to Underperform at Grupo Santander

>>> Initiation
* 1Spatial Rated New Buy at Canaccord; PT 105 pence (+)
* Cinclus Pharma Holding Rated New Buy at ABG; PT 80 kronor

>>> Call
* Barclays’ Cau Says Stocks Exposure Is ‘Cleaner’ But Remains High (+)
* Nestle Upgraded to Hold at Jefferies, Downside Now Limited
* Scor Faces Multiple Uncertainties, Citi Downgrades to Neutral

>>> Stoxx 600 Pre-Market Indications

  • ASML (ASME TH) +4.3%
    • Asia Chip Stocks Rally on Report US Allies Exempted From Curbs
  • Just Eat Takeaway (T5W TH) +3%
    • Just Eat Takeaway Earnings Beat Estimates After Cost Controls
  • GSK (GS71 TH) +2.3%
    • GSK Boosts FY Adjusted EPS Forecast
  • ASM Intl (AVS TH) +2.2%
    • Asia Chip Stocks Rally on Report US Allies Exempted From Curbs
  • Man Group (M3N TH) +2%
  • Airbus (AIR TH) +1.8%
    • Airbus Rises After ‘Positive Surprises’ in Quarter: Street Wrap
  • BP (BPE5 TH) +1.6%
    • Watch Oil Stocks as Prices Jump on Rising Geopolitical Tensions
  • Delivery Hero (DHER TH) +1.5%
  • UMG (0VD TH) +1.5%
  • Bawag (0B2 TH) +1.5%
  • Nokia (NOA3 TH) -1.2%
  • Kion (KGX TH) -2.8%
    • Kion Narrows FY Adjusted Ebit Forecast
  • Siemens Healthineers (SHL TH) -6.4%
    • Siemens Healthineers 3Q Adjusted Ebit Misses Estimates

>>> TradeGate Pre-Market Indications

DAX:
  • Airbus (AIR TH) +2.1%
    • Airbus Rises After ‘Positive Surprises’ in Quarter: Street Wrap
  • Infineon (IFX TH) +1.5%
  • Siemens Healthineers (SHL TH) -5.5%
    • Siemens Healthineers 3Q Adjusted Ebit Misses Estimates
MDAX:
  • TeamViewer (TMV TH) +6.6%
    • TeamViewer 2Q Adjusted Ebitda Beats Estimates
  • Delivery Hero (DHER TH) +2.2%
  • Aixtron (AIXA TH) +1.1%
  • Kion (KGX TH) -2.4%
    • Kion Narrows FY Adjusted Ebit Forecast
  • Krones (KRN TH) -2.5%
    • Krones 2Q Ebitda Meets Estimates
SDAX:
  • AUTO1 (AG1 TH) +11%
    • AUTO1 2Q Revenue Beats Estimates
  • SUSS MicroTec (SMHN TH) +1.7%
  • Schaeffler (SHA TH) +1%
  • Duerr (DUE TH) +1%
  • SFC Energy (F3C TH) -1.2%

>>> Europe : Brokers Upgrades & Downgrades - 31st of July 2024

>>> Up
* Fluidra Raised to Buy at Jefferies; PT 26 euros
* Gecina Raised to Buy at Jefferies; PT 120 euros
* LondonMetric Raised to Buy at Citi; PT 251 pence
* Spectris Raised to Neutral at JPMorgan; PT 2,950 pence

>>> Down
* Albemarle Cut to Hold at Berenberg
* Euronext Cut to Sell at Goldman; PT 85 euros
* Faron Pharma Cut to Accumulate at Inderes; PT 210.64 pence
* Microsoft PT Cut to $506 from $520 at Morgan Stanley
* Thyssenkrupp Nucera Cut to Underperform at Grupo Santander

>>> Initiation
* Cinclus Pharma Holding Rated New Buy at ABG; PT 80 kronor

>>> Call
* Nestle Upgraded to Hold at Jefferies, Downside Now Limited
* Scor Faces Multiple Uncertainties, Citi Downgrades to Neutral