FT : Paris bets on giant tank to clean up Seine river in time for Olympics

Paris bets on giant tank to clean up Seine river in time for Olympics
Construction workers rush to finish underground pool that will collect the capital’s wastewater

Samuel Colin-Canivez, lead engineer for the Paris water system, stood in a 30m-deep concrete cavern as hundreds of construction workers were racing to finish the pharaonic project ahead of next year’s Olympic Games.

Their mission: build a 700-metre tunnel and a large storage tank to clean up the Seine so athletes can compete in it in swimming and triathlon events.

“It’s been a marathon, but we are on the last leg,” Colin-Canivez shouted over the noise of workers banging hammers to install a last section of barbed steel to reinforce the concrete below the tank’s floor. Construction started almost four years ago and is due to complete in spring at a cost of €90mn.

Nestled between a 17th century hospital and the busy Austerlitz station, the underground pool will have a capacity equivalent to 20 Olympic-sized swimming pools, and is designed to capture overflow from the French capital’s antique sewer system during heavy rainfall. 

“The goal is to stop untreated water from being dumped in the river,” said Colin-Canivez.

Currently about a dozen times a year the city’s underground sewage tunnels are overwhelmed and to avoid flooding the streets, they release wastewater into the river — including dangerous E Coli bacteria found in toilet discharges.

The new holding tank should help reduce such incidents to only twice a year by holding the water during storms and gradually releasing it afterwards. 

It is one of five engineering projects that the Paris region is undertaking to clean up the Seine and Marne rivers to allow residents to swim in them again. Additional new water treatment plants, pipes and pumps have also been built.

Many residents remain sceptical about swimming in the Seine and there are no guarantees that the Olympics-related clean-up will be effective enough to bring bacteria levels down to levels safe enough for athletes to compete.

Paris was forced to cancel several test events this summer when laboratory monitoring tests showed that there was too much E Coli in the Seine. The excessive pollution was caused by a spell of heavy rains — something the new tank should help prevent. 

But a second set of test events in late August was also scrapped even though there had been little rain in the days leading up to it, leaving organisers perplexed as to why the water quality was so poor. Investigations later found that a faulty valve had been left open, allowing sewage water to escape, and an automatic monitoring system had failed. 

“It was disappointing, but we’re confident we can get it right in time for the games,” said Pierre Rabadan, the deputy mayor of Paris in charge of sports.

If the water quality was not up to standard, Rabadan said, competitions could be delayed by a few days or a week to allow the water quality to improve — but there is no back-up plan for swimming competitions to be held elsewhere.

That has put pressure on Colin-Canivez’s builders toiling underground, as well as others who are working on other parts of the Seine clean-up plan, such as the effort to connect houseboats docked on the Seine to the sewer system.

Another challenge has been convincing homeowners to undertake costly repairs to fix the roughly 20,000 houses and buildings in Paris and surrounding suburbs that are not properly connected to the sewage system. 

“Every little thing we can do will help,” said Colin-Canivez.

Swimming in the Seine was banned in 1923 because of pollution, but politicians have long promised to bring it back. Former president Jacques Chirac vowed to get it done when he was Paris mayor in the 1990s, but failed. Heavy rains regularly brought flows of garbage and plastic into the Seine, marring the historic artery of Paris.

Paris mayor Anne Hidalgo has billed the Olympics as a catalyst for the opening of 20 swimming spots by 2025 in the capital, which has become hotter in summer due to global warming. “It would have taken us 20 years to do the clean-up without the extra boost and budget from the Olympics,” said Rabadan.

In addition to swimming events, the Seine will be at the centre of the Paris games in ways that critics have warned may prove overly ambitious and risky.

A plan to hold the opening ceremony on the river has sparked security concerns, with police and military officials raising concerns about securing a parade of some 150 boats carrying 10,000 athletes, as well as crowds of spectators on the quayside. 

Organisers dismiss those fears and argue that the unique ceremony will showcase the beauty of the capital’s riverside buildings such as the Eiffel tower, Notre-Dame cathedral and Les Invalides.

Rabadan defended both the parade and the Seine clean-up efforts: “There is no plan B, since pulling off plan A will be complicated enough.”

FT : Citadel Securities trains sights on eurozone debt market

Citadel Securities trains sights on eurozone debt market
Miami-based market maker aims to displace banks in €10tn market

Billionaire Ken Griffin’s Citadel Securities plans to start market making in eurozone sovereign bonds next year, challenging investment banks’ dominance of the €10tn market.

The Miami-based high-frequency market-making firm hopes to capitalise on the steady shift to electronic trading in Europe and the most active market for trading the continent’s sovereign debt in almost a decade.

Citadel Securities, which has commanding positions in US stocks, Treasuries and swaps trading, has been at the vanguard of a group of ultrafast firms that have stepped into sovereign debt markets as tougher rules on leverage force banks to curb market-making.

“We have built a leading global franchise in US rates products, and Euro rates is a logical next step,” Peng Zhao, chief executive of Citadel Securities, told the Financial Times on the sidelines of an investment conference in Hong Kong this week.

“Client feedback has been overwhelmingly positive and we expect to enter the market next year,” he added.

The move comes as trading volumes pick up in response to the rapid rise in eurozone interest rates over the past year. Average daily trading volumes in European sovereign bonds in the second quarter hit their highest quarterly level since 2014, according to trade association AFME.

The European bond market has historically been dominated by investment banks that also help governments raise money from investors by pricing and selling new debt.

Since its launch in 2002, Citadel Securities has emerged as one of the biggest winners from the electronic trading that has reshaped global markets over the past 15 years. It handles about $390bn in transactions every day, according to the firm, including one in five US stock trades.

“We are always listening to our clients’ needs and determining how we can best address them,” Zhao added.

The market maker has been expanding into new markets where it sees opportunities to compete with banks and other dominant players. It already provides market making in US Treasuries for clients in Europe, and in June began US investment-grade corporate bond trading.

In October, Citadel Securities took the top spot on Bloomberg for US Treasury trading, beating the largest US banks for the first time. It shows how Griffin’s firm has gained significant share in fixed-income trading and become a formidable rival to the likes of JPMorgan Chase and Goldman Sachs. 

After the UK voted to leave the European Union in 2016, many banks and trading venues moved their European government debt trading operations out of London to Paris, which has become the dominant hub in the eurozone.

Citadel Securities is the market-making business started by Griffin, founder of the hedge fund Citadel. The $62bn-in-assets firm delivered record profits for investors after fees in 2022, making it the most successful hedge fund firm of all time.

Last year, Citadel Securities sold a 5 per cent stake to venture capitalists Sequoia and Paradigm for $1.2bn, valuing the firm at about $22bn and stoking expectations of an eventual public listing.

While the market maker’s net trading revenue in the second quarter fell 29 per cent compared with a year ago, it still paid out dividends of $500mn to shareholders including Griffin. The firm has generated quarterly trading revenue of more than $1bn for the last 14 quarters.

>>> Europe : Brokers Upgrades & Downgrades - 10th of November 2023

>>> Up
* Ashmore Raised to Hold at Numis; PT 170 pence
* Genmab Raised to Buy at Deutsche Bank; PT 2,750 kroner
* Holcim Raised to Hold at Berenberg; PT 54 Swiss francs

>>> Down
* Antin Cut to Equal-Weight at Morgan Stanley; PT 13 euros
* Big Technologies Cut to Hold at Peel Hunt; PT 180 pence
* Coloplast Cut to Sell at ABG; PT 675 kroner
* Novavax PT Cut to $8 from $10 at Cowen
* SIF Cut to Neutral at Oddo BHF; PT 9 euros
* Vontobel Cut to Sell at Citi; PT 48 Swiss francs

>>> Initiation


>>> Call
* Bernstein Strategists See Sluggish Europe Profit Growth in 2024

>>> What to look at today - 10th of November 2023

Shares in Asia fell after Jerome Powell warned interest rates may have to climb further, stunting a rally in stocks and bonds and sending investors back to the dollar. All major equity gauges in the region were in the red, tracking a drop for the S&P 500 on Thursday. Hong Kong’s stocks were among the biggest losers after weak profit reports from chipmaker SMIC and casino operator Wynn Macau. The US benchmark slid 0.8%, ending eight days of gains — its best run since 2021. European futures pointed to a weak start. Treasuries steadied in Asia after tumbling Thursday to undo part of this week’s sharp rally, with the spike in yields the largest for the longer tenors. The selling was sparked by a weak auction of 30-year notes, which led to a significantly higher-than-expected yield and rekindled concerns that investors will struggle to soak up the swelling supply of new debt. Federal Reserve Chair Powell said officials won’t hesitate to tighten policy further if needed. While that’s essentially what several Fed speakers have been saying, it’s the part that drew investors attention Thursday — especially after a rally in both equities and bonds. Traders priced in slightly higher odds of an additional hike, while pushing back the first anticipated 25-basis point rate cut to July from June. Powell’s comments were “clearly more hawkish than traders were positioned for,” said Matt Simpson, senior market analyst at City Index. “As yields have seen a decent pullback these past couple of weeks, their sharp rise on Thursday suggests a cycle low has been seen and that is weighing on risk today.” the Bloomberg dollar index held gains in Asia after rising by the most since early October on Thursday. The Aussie dollar led declines among Group-of-10 peers. The yen traded above 151 per dollar. In China, onshore banks ramped up their borrowing of short-term funds, a sign that fears of a cash crunch still loom large. The country’s latest lending and money supply data may be released as soon as Friday, while Japan’s money stock data for October came in line with the prior month.  SoftBank Group Corp.’s shares tumbled after its flagship Vision Fund reported another loss with the drop in valuations at WeWork Inc. and other portfolio companies on top of foreign exchange losses. Meta Platforms Inc. struck a tentative deal with Tencent Holdings to sell a virtual reality headset in China, The Wall Street Journal reported. Bitcoin edged closer to $37,000, climbing past Terra crash level, in a win for bruised bulls. West Texas Intermediate edged rose to trade at around $76 per barrel. Gold was little changed. US after Hours Busy earnings session headlined by GRPN -30.2%, TTD -29.6%, ILMN -7.6%, WYNN -5.1%; DOCS +20.5%, SYNA +9.6%, BLNK +8.5%, ALRM +7.8% higher on earnings.

Nikkei -0,24%% Hang Seng -1,44% CSI -0,57% Shanghai -0,37% Shenzen -0.28%

Eur$ 1.0668 CNH 7.3005 CNY 7.2926 JPY 151,38 GBP 1.2229 CHF 0.9035 RUB 92,0580 TRY 28.5519 WTI$ 76,04 Gold 1,957 BTC 36,654 ETH 2,113

S&P +0.10% Nasdaq -0.06% EuroStoxx -0,69% FTSE -0.60% Dax -0.59% SMI +0.8%

Macro :
- Bernstein Strategists See Sluggish Europe Profit Growth in 2024
- Europe Must Create Giants in Space Defense, Leonardo’s CEO Says
- Free-Cash-Flow Sustainability Key for EU Energy-Sector Valuation
- Everstone Plans to Raise $1 Billion for Its Largest Asia PE Fund
- Germany on Cusp of €22 Billion Deal for Dutch-Owned Tennet Grid

Keep an eye on :
- 1U1 GY : 1&1 Maintains FY Service Revenue Forecast
- ADE NO : Adevinta Deal Could Come at Low End of 115-125 Kroner: React
- ADYEN NA : Adyen Is Satisfying Investor Demands for Transparency, CFO Says
- ALV GY : Allianz Beat Estimates as Pimco Sees Third Quarter of Inflows
- APAM NA : Aperam 3Q Adjusted Ebitda Misses Estimates
- ALV US : Autoliv Raises Quarterly Dividend 3% to 68 cents/Shr
- BC8 GY : Bechtle 3Q Pretax Profit Margin Beats Estimates
- BPOST BB : Bpost 3Q Adjusted Ebit Beats Estimates
- BWIDL NO : BW Sirocco Launches Voluntary Offer for BW Ideol Shares
- CPRI US : Capri Holdings 2Q Adjusted EPS Misses Estimates
- CPRI US : Capri's Three Brands Lose Share, Cash Flow Target Robust: React
- CWC GY : Cewe Stiftung Sees FY Ebit EU70M to EU82M, Saw up to EU82M
- DAE SW : Daetwyler Maintains FY Ebit Margin Forecast
- GN DC : GN Store Nord Narrows FY Organic Revenue Growth Forecast
- ILTY IM : Illimity Bank 3Q Operating Income Misses Estimates
- IMCD NA : IMCD 9M Revenue EU3.38B Vs. EU3.51B Y/y
- INW IM : INWIT 3Q Ebitda Meets Estimates
- IOS GY : Ionos Sees FY Adjusted Ebitda Margin 27.5%, Saw at Least 27%
- DEC FP : JCDecaux 3Q Adjusted Revenue Misses Estimates
- JUN3 GY : Jungheinrich 3Q Ebit Meets Estimates
- LEHN SW : Lem Sees FY Ebit Margin Above 20%
- LDO IM : Leonardo 3Q Ebita Misses Estimates
- LDO IM : Leonardo Plan to Renegotiate 787 Pricing Could Spark More: React
- META US : Meta in Pact With Tencent to Sell VR Headsets in China: WSJ
- NWG LN : Natwest Set to Cancel Bulk of Ex-CEO’s Possible £10m Payoff: Sky
- NOVN SW : Novartis Reports Positive Data From Phase 3 of Remibrutinib Drug
- PIRC IM : Pirelli Sees FY Revenue About EU6.6B, Est. EU6.62B
- CFR SW : Richemont 1H Operating Profit Misses Estimates
- SBBB SS : SBB Given Acceleration Notice From Bondholder on Eurobonds
- SOP FP : Sopra Steria, Idemia to Install Fingerprint System for France
- SCR FP : Scor 3Q Net Income Misses Estimates
- SSE LN : SSE, Orsted Prospects Buoyed by Potential UK Price Uplift: React
- STM GY : Stabilus Sees 2024 Adjusted Ebit Margin 13% to 14%, Est. 13.6%
- UCB BB : UCB: New Ankylosing Spondylitis Bimzelx Data Shows Improvement
- US IM : UnipolSai 9M Consolidated Net EU586M Vs. EU616M Y/y
- UNI IM : Unipol 9M Direct Insurance Income EU10.57B Vs. EU9.83B Y/y
- UTDI GY : United Internet 9M Sales EU4.59B Vs. EU4.38B Y/y
- U US : Unity Slumps as Lack of Outlook Adds to Uncertainty
- VLN FP : Valneva Announces U.S. FDA Approval of World’s First Chikungunya Vaccine, IXCHIQ®
- VWS DC : Vestas, Peers Face Wind Dilemma as Offshore Costs Risk Margin
- WBD IM : Webuild 9M Orders EU22B

>>> US After Hours Summary: Busy earnings session headlined by GRPN -30.2%, TTD

After Hours Summary: Busy earnings session headlined by GRPN -30.2%, TTD -29.6%, ILMN -7.6%, WYNN -5.1%; DOCS +20.5%, SYNA +9.6%, BLNK +8.5%, ALRM +7.8% higher on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: DOCS +20.5% (also authorizes new $70 mln share repurchase program), SYNA +9.6%, BLNK +8.5%, ALRM +7.8%, ONL +7.3%, VZIO +7.3%, NVTS +7.2%, ORGN +5.6%, INDI +4.3%, RPAY +3.4%, DV +3.2%, HOLX +2.7%, VRRM +2% (also authorizes new $100 mln share repurchase program), RBA +1.4%, AVPT +1.2%, LNW +1.1%, ARLO +0.8%, NWSA +0.8%, LGF.A +0.4%, WPM +0.4%, LGF.A +0.4%, STN +0.2%

Companies trading higher in after hours in reaction to news: OUST +13.1% (announces major software achievements to serve lidar-powered smart infrastructure), TARS +7.6% (files $300 mln mixed shelf securities offering), BRNS +5.2% (ABUS and BRNS announce a late breaking poster presentation), IGT +4.7% (grows sports betting presence in Puerto Rico via deal with Ponce Plaza Hotel), GOL +3.6% (reports October metrics), ABUS +3.3% (ABUS and BRNS announce a late breaking poster presentation), HTGC +1.6% (receives SBA "green light" letter to submit its fourth SBIC license application), HBB +1.5% (authorizes new $25 mln share repurchase program), VCTR +1.3% (reports Oct AUM), AB +0.7% (reports Oct AUM), FENC +0.6% (files $90 mln common stock offering), NVR +0.1% (authorizes new $750 mln share repurchase program), IVZ +0.1% (reports Oct AUM)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: GRPN -30.2% (also Co-Founder Eric Lefkofsky to resign; to raise $100 mln to strengthen liquidity), TTD -29.6%, PLUG -21.1%, WEST -18%, TWOU -17.2%, TMCI -16.6%, U -14.5% (also files for $1.0 bln 2.0% Convertible Senior Notes), BW -13.5% (also announces business realignment plan; considering strategic alternatives related to non-strategic assets), MODN -12.2%, VUZI -11.9%, LAW -9.4%, EVBG -8.4%, ILMN -7.6%, GDOT -6.6%, SVV -5.8% (also authorizes new $50 mln share repurchase program), ADPT -5.6%, MTD -5.3%, WYNN -5.1%, PAR -4.8%, FLO -4.6%, CLNE -3.4%, VYX -2.7%, ONTO -2.6%, BBDC -2.4%, CPRI -2.3%, HE -2.1% (also to delay its 10-Q citing potential lawsuits), MNTK -2%, SOUN -1.2%, CLFD -0.7% (also increases share repurchase program)

Companies trading lower in after hours in reaction to news: NBIX -7.3% (Phase 2 study of NBI-1065846 in patients with anhedonia failed to meet primary endpoint), TKO -5.7% (stock offering by selling shareholder), LMND -4.3% (files mixed shelf securities offering; also files for offering by selling shareholder), IRDM -3.1% (QCOM elects to terminate agreements), SKYW -2.1% (stock offering by selling shareholders), XENE -2% (NBIX partner Phase 2 study of NBI-1065846 in patients with anhedonia failed to meet primary endpoint), EBS -0.7% (to delay 10-Q filing), IONQ -0.5% (files $500 mln mixed shelf securities offering), FOUR -0.5% (stock offering by selling shareholders), HOG -0.5% (files mixed shelf securities offering), INTT -0.2% (files $100 mln mixed shelf securities offering), ASB -0.1% (executing next phase of strategic plan)

>>> Europe : Brokers Upgrades & Downgrades - 9th of November 2023 V2(+)

>>> Up
* Adyen Raised to Overweight at Wells Fargo; PT 1,000 euros
* Adyen Raised to Neutral at Bryan Garnier; PT 850 euros (+)
* Associated British Foods price target raised to 2,290 GBp at Deutsche Bank
* Commerzbank Raised to Outperform at Oddo BHF; PT 15 euros
* Credit Agricole Raised to Neutral at Mediobanca SpA
* GEA Group Raised to Outperform at BNPP Exane; PT 41 euros (+)
* Marks & Spencer Raised to Neutral at JPMorgan; PT 260 pence
* Parker-Hannifin Raised to Buy at Deutsche Bank; PT $506
* Persimmon Raised to Hold at Peel Hunt
* Rational price target raised to EUR 670 from EUR 660 at Deutsche Bank
* Sparebanken Vest Raised to Buy at Arctic Securities
* Voestalpine Raised to Neutral at JPMorgan; PT 24.80 euros

>>> Down
* Arctic Fish Holding Cut to Hold at Pareto Securities
* Domino's Pizza Group Cut to Add at Numis; PT 425 pence (+)
* Energiekontor Cut to Hold at Stifel; PT 86 euros
* Evotec SE ADRs PT Cut to $21 from $28 at Cowen
* Friedrich Vorwerk Group Cut to Hold at Hauck & Aufhaeuser (+)
* Marimekko Cut to Reduce at Inderes; PT 12.50 euros
* Norma Group price target lowered to EUR 16 from EUR 18 at Deutsche Bank
* Orsted Cut to Reduce at AlphaValue/Baader
* Outokumpu price target lowered to EUR 5 from EUR 5.50 at Deutsche Bank
* PVA TePla Cut to Hold at Quirin Privatbank AG; PT 18.52 euros
* Sampo Cut to Reduce at Inderes; PT 39 euros
* Tecan price target lowered to CHF 372 from CHF 434 at Deutsche Bank
* Tigo Energy Cut to Neutral at Roth MKM; PT $2.50
* Vanquis Cut to Hold at Panmure Gordon; PT 150 pence
* XP Power Cut to Add at Peel Hunt; PT 1,400 pence

>>> Initiation
* AbbVie Reinstated Hold at Deutsche Bank; PT $150
* Amgen Reinstated Hold at Deutsche Bank; PT $240
* Axa Rated New Hold at Intesa Sanpaolo; PT 31 euros
* Bristol Myers Reinstated Hold at Deutsche Bank; PT $55
* Eli Lilly Reinstated Hold at Deutsche Bank; PT $535
* ImmunoGen Rated New Buy at Deutsche Bank; PT $25
* Jupiter Reinstated Hold at Investec; PT 83 pence (+)
* Impax Asset Rated New Hold at Investec; PT 450 pence (+)
* Liontrust Reinstated Buy at Investec; PT 794 pence (+)
* Polar Capital Reinstated Hold at Investec; PT 409 pence (+)
* Regeneron Reinstated Hold at Deutsche Bank; PT $800
* Zurich Ins. Rated New Hold at Intesa Sanpaolo

>>> Call
* ArcelorMittal 3Q Ebitda Beats; Morgan Stanley Sees Few Surprises (+)
* Comet’s New Financial Targets Show Upside Potential: Vontobel (+)
* Freenet Results Solid, Guidance Lift Already in Consensus: Citi
* Merck KGaA Earnings Beat Helped by Healthcare: Morgan Stanley (+)
* S4 Capital Headwinds Continue to Hit Growth, Margins: Jefferies (+)

The information : Big Entertainment Has Good and Bad News

Big Entertainment Has Good and Bad News

There’s good news and bad news for Big Entertainment today. Firstly, the actors strike is over, which means film and TV production can finally resume. Yippee! Second, the September-quarter results out Wednesday from Disney and Warner Bros. Discovery showed both are getting streaming losses under control. (In WBD’s case, it’s making money!). The bad news for the industry though is that television advertising is in free fall.

But as CEOs like to do, Disney’s Bob Iger and WBD’s David Zaslav emphasized the positive. On separate calls with analysts—before the strike news—both talked about all the work they’d done over the past year overhauling and cutting costs, and how they’re now able to pivot to expansion. Iger called it moving from “a period of fixing to a new era of building,” while Zaslav talked about WBD having the chance to “fight to grow in the next year.” Still, the overall picture for the two companies remains bleak. WBD eked out top-line growth of just 1%, while Disney’s entertainment businesses did only marginally better with an increase of 1.8%, both due in large part to price increases on streaming. Revenue from the old-school TV business, their biggest source of profits, declined for both, reflecting continued cord cutting and the advertising slump.

As for streaming, the picture is better than it was, although that’s not saying a whole lot. WBD generated $111 million in earnings before various expenses in the quarter, emboldening Zaslav to take thinly veiled shots at his rivals over the money they’re blowing on streaming. Not to rain on his parade, but that profit came as the streaming business lost subscribers for the second quarter in a row. Also, WBD’s streaming segment includes the contribution of its old-fashioned HBO cable business, which undoubtedly makes it look healthier than it would otherwise. Disney, meanwhile, has a reasonable story to tell on this front. Its streaming losses plunged to $387 million in the quarter, down from $1.47 billion a year earlier, even as subscribers continued to grow. That’s arguably a better result than making money off a shrinking subscriber base.

The biggest worry for the industry right now may be the parlous state of TV ad sales, one that is industrywide, as earnings results from CBS parent Paramount Global and NBCUniversal in recent weeks also showed. What’s striking is that the TV folks are struggling even as Meta Platforms and Google reported decent ad growth. Notably, while the TV companies are trying to sell ads on their streaming services to capture some dollars moving to digital, the amount they’re generating doesn’t come close to offsetting what they’re losing. The big beneficiary of the TV ad shift seems to be Google’s YouTube, which gained $881 million in ad dollars in the third quarter, an increase of 12.5% over the year-earlier period. Back-of-the-envelope math suggests the big four TV companies lost around $670 million in ad dollars in the quarter. TV executives sound nervous—WBD’s finance chief, Gunnar Wiedenfels, today called the state of the traditional TV ad market in the second half “disappointing” and added that it was difficult to predict the timing of a recovery. That’s not a picture likely to instill confidence in investors.

Instacart’s Buybacks
The most interesting part of Instacart’s third-quarter results this evening—its first ever as a public company—really weren’t the results at all. Sure, the company said that revenue grew 14% year-over-year and that it expects gross transaction volume to grow up to 6%, the same rate as in this latest quarter. But Instacart also dropped news that it plans to spend $500 million buying back shares.

That’s ironic because it just sold 14.1 million shares, raising $423 million, when it went public less than eight weeks ago. In other words, Instacart is saying it could buy back more than it sold. What gives? Well, Instacart is likely to do the buyback over time, and before too long, more stock will become available as restrictions on longstanding shareholders and employees selling their shares lapse. That should prevent the buyback from soaking up too much of the existing float.

As for the reasons for the buyback, well, the company has a pile of cash totaling more than $2 billion, which is more than one-fifth Instacart’s entire enterprise value, according to S&P Global Market Intelligence, and is getting bigger thanks to the company’s positive cash flow. There is certainly a case to be made that returning some of that to shareholders is a good idea, as Warren Buffett has famously preached.

And in theory, a buyback should increase a company’s stock price by reducing the number of shares outstanding. That couldn’t hurt, given that Instacart’s IPO price was $30 and the stock closed trading today roughly 10% below that (see our story today breaking down that lackluster stock performance).

>>> Stoxx 600 Pre-Market Indications

  • Adyen (1N8 TH) +23%
    • Adyen Set to Rally on Positive Outlook, 3Q Update: Street Wrap
  • BP (BPE5 TH) +3.6%
  • Merck KGaA (MRK TH) +2.7%
    • Merck KGaA Beats on Earnings Amid Demand for Cancer Drugs
  • Henkel (HEN3 TH) +1.7%
    • Henkel Narrows FY Adjusted Ebit Margin Forecast
  • Sartorius (SRT3 TH) +1.6%
  • Vodafone (VODI TH) +1.2%
  • Rheinmetall (RHM TH) +0.8%
    • Germany’s Rheinmetall Backs Guidance After Boost in Ammunition Sales, Orders
  • Zalando (ZAL TH) +0.7%
    • German Holdings Round-Up: Mercedes, Nordex, Zalando
  • Siemens Energy (ENR TH) +0.6%
  • Orsted (D2G TH) -0.8%
  • LEG Immobilien (LEG TH) -0.8%
    • LEG Immobilien Sees FY AFFO High End of EU165M to EU180M
  • Evotec SE (EVT TH) -0.9%
    • GERMANY DAYBOOK: ECB Bulletin, Telekom Earnings, Stoltenberg
  • ArcelorMittal (ARRD TH) -1%
    • ArcelorMittal Result Is Temporary Relief But Outlook Dim: React
  • Air Liquide (AIL TH) -1.2%
  • TotalEnergies (TOTB TH) -1.3%
  • Airbus (AIR TH) -1.4%
    • Airbus Results ‘Relatively Clean,’ But Ebit a Miss: Street Wrap
  • Nel (D7G TH) -1.7%
  • Hannover Re (HNR1 TH) -1.9%
    • Hannover Re 3Q Net Income Misses Estimates
  • Wienerberger (WIB TH) -3.3%
    • Wienerberger Misses 3Q Revenue Estimate; Warns on Profit (1)

>>> TradeGate Pre-Market Indications

DAX:
  • Merck KGaA (MRK TH) +2.7%
    • Merck KGaA Beats on Earnings Amid Demand for Cancer Drugs
  • Henkel (HEN3 TH) +2.2%
    • Henkel Narrows FY Adjusted Ebit Margin Forecast
  • Zalando (ZAL TH) +2%
  • Sartorius (SRT3 TH) +1.5%
  • Rheinmetall (RHM TH) +0.9%
  • Brenntag (BNR TH) -0.1%
    • Brenntag 3Q Profit After Tax Misses Estimates (1)
  • Deutsche Bank (DBK TH) -0.3%
  • SAP (SAP TH) -0.4%
  • Airbus (AIR TH) -1.2%
  • Hannover Re (HNR1 TH) -1.6%
    • Hannover Re 3Q Net Income Misses Estimates
MDAX:
  • SMA Solar (S92 TH) +3.7%
    • SMA Solar 9M Ebitda EU231.2M Vs. EU50.2M Y/y
  • Stroeer (SAX TH) +3.1%
    • Stroeer 3Q Adjusted Ebitda Beats Estimates
  • Jenoptik (JEN TH) +2.4%
    • Jenoptik 3Q Ebitda Misses Estimates
  • Nordex (NDX1 TH) +1.2%
  • CTS Eventim (EVD TH) +1.1%
  • Thyssenkrupp (TKA TH) -0.7%
    • THK to Report Results; Shares Up 10.2% YTD: Preview
    • ArcelorMittal Profit Drops as Steel Market Demand Weakens (1)
SDAX:
  • Grenke (GLJ TH) +6%
    • Grenke Sees FY Net Income High End of EU80M to EU90M
  • VERBIO Vereinigte (VBK TH) +5%
    • *EQS-NEWS: VERBIO 1Q 2023/24: FORECAST CONFIRMED
  • Fielmann (FIE TH) +3.7%
    • Fielmann 3Q Sales Beats Estimates
  • Deutz (DEZ TH) +2.3%
    • Deutz 3Q Adjusted Ebit Beats Estimates
  • Hamborner REIT (HABA TH) +2.3%
    • Hamborner REIT Boosts FY FFO Forecast
  • Deutsche Wohnen (DWNI TH) -0.9%
  • Energiekontor (EKT TH) -3.3%
    • Energiekontor Cut to Hold at Stifel; PT 86 euros
  • GFT (GFT TH) -4.1%
    • GFT Cuts FY Revenue Forecast