>>> Europe : Brokers Upgrades & Downgrades - 27th of February 2024

>>> Up
* Flutter Raised to Overweight at Barclays; PT 20,000 pence
* L'Oreal Raised to Buy at Berenberg; PT 530 euros
* Nestle Raised to Sector Perform at RBC; PT 96 Swiss francs
* Unity Software Raised to Neutral at Piper Sandler; PT $30

>>> Down
* FLEX LNG Cut to Underperform at Jefferies; PT 241.62 kroner
* Unilever Cut to Underweight at Morgan Stanley; PT 3,775 pence
* Unilever ADRs Cut to Underweight at Morgan Stanley; PT $48
* WPP Cut to Hold at HSBC; PT 790 pence

>>> Initiation


>>> Call
* Nestle Raised at RBC, Shares Reflect Qualities and Weaknesses

>>> What to look at today - 27th of February 2024

Asian shares were mixed in cautious trading as investors prepared for a full slate of economic data and remarks from Federal Reserve speakers in coming days that will help determine the outlook for interest rates. Japan’s two-year bond yield climbed to the highest level in more than a decade. Equities dropped in Japan, South Korea and Taiwan, while most Chinese shares rose. The S&P 500 slipped for the first time in four days on Monday as its recent rally ran out of steam before data later this week including the Federal Reserve’s favored inflation gauge on Thursday. US stock futures edged lower. Japan’s two-year yield climbed to the highest since 2011 after stronger-than-expected inflation data boosted bets the central bank will end its negative-interest-rate policy in coming months. Traders increased the probability of Bank of Japan exiting its negative rate policy by April to about 81%, up from 78% on Monday, according to swaps data compiled by Bloomberg. The yen gained versus the dollar. Asia’s equity benchmark is heading for a monthly gain, driven by a rally in Japanese and Chinese markets. There is still plenty of uncertainty in markets though over factors such as the path of potential Fed rate cuts, the likelihood for more support measures from China, and whether shares valuations are attractive enough to underpin further gains. In China, state-backed funds have poured more than 410 billion yuan ($57 billion) into onshore shares this year in a bid to prop up the market, according to estimates by UBS Group AG, which expects further purchases. The Swiss bank based its calculations on “excess” transactions of 54 Chinese exchange-traded funds. Fast-fashion company Shein is considering the possibility of switching its initial public offering to London from New York because of hurdles to the listing in the US, according to people with knowledge of the matter. Shein, which was founded in China, is now headquartered in Singapore.
Samsonite International SA is considering options after receiving takeover interest from suitors including buyout firms, people familiar with the matter said. Elsewhere, Bitcoin briefly climbed back over the $57,000 level for the first time since late 2021, supported by investor demand through exchange-traded funds as well as further purchases by MicroStrategy Inc.
In commodities, global benchmark Brent traded above $82 a barrel after rising on Monday, while gold steadied near a two-week high as the market waited for more clues on when the Fed will start cutting interest rates. US After Hours PUBM +31.9%, HIMS +19%, TREX +8% up big on earnings; AAN -28.2%, U -16.4%, WDAY -8.9% selling off following quarterly results.

Nikkei +0.02% Hang Seng -0.10% CSI +0.53% Shanghai +0.61% Shenzen +1.27%

Eur$ 1.0849 CNH 7.2113 CNY 7.1983 JPY 150.47 GBP 1.2679 CHF 0.8800 RUB 92.4326 TRY 31.1309 WTI$ 77.63 +0.06% Gold 2,033 +0.11% BTC 56,125 +2.69% ETH 3,216 +0.97%

S&P -0.08% Nasdaq -0.18% EuroStoxx -0.23% FTSE -0.18% Dax -0.21% SMI

Macro :
- China Vanke’s Bonds Slide After Report on Talks to Extend Debt
- Ex-Clean Energy Transition Hedge Fund Partner to Launch New Firm
- JPMorgan’s Kolanovic Says Profits Peaking, Earnings Snag Ahead
- Shein Said to Consider London IPO Amid US Resistance to Listing
- Convertibles Notch $5.2 Billion Week, Best in a Year: ECM Watch

Keep an eye on :
- AC FP : Accor, Dubai Holding in Talks to Fund €800m Superyachts: FT
- AIR FP : FAA Releases Report on Boeing Safety Culture
- APGN SW : JCDecaux, Pargesa Seek to Sell 55% Stake in APG/SGA
- ATUS US : Charter-Altice USA Deal Would Add Scale But Pile On Debt: React
- AZN LN : FibroGen, AstraZeneca End Roxadustat Pact for US, Other Areas
- BOBNN SW : Bobst FY Ebit CHF147.2M
- BCP PL : BCP FY Net Income Beats Estimates, Chairman Says Bank is Focused on Organic Growth
- 1211 HK : Italy Reached Out to China’s BYD in Search of Another Carmaker
- CO FP : Casino Restructuring Plan Approved by Paris Commercial Court
- Douglas IPO : Germany’s Douglas Plans to Announce IPO in Coming Days: Reuters
- EDEN FP : Edenred FY Ebitda Beats Estimates
- GSK LN : Aprinoia Files to Offer 2m Shares at $10 to $14/shr in IPO
- GTT FP : GTT Sees 2024 Ebitda EU345M to EU385M, Est. EU346.4M
- HESC LN : Exxon Considers Pre-Emption Rights to Hess Guyana Oil Stake
- IBE SM : Iberdrola closes the sale of 55% of its business in Mexico for $6.2 billion dollars
- ISN SW : Intershop FY Vacancy Rate 7.4% Vs. 10% Y/y
- DEC FP : JCDecaux, Pargesa Seek to Sell 55% Stake in APG/SGA
- MUV2 GY : Munich Re Plans 2023 Dividend of EU15/Shr
- NCOD NO : Norcod Says NOK124.9M Already Fully Covered for Placement
- PARG SW : JCDecaux, Pargesa Seek to Sell 55% Stake in APG/SGA
- PSPN SW : PSP Swiss Sees 2024 Adj. Ebitda Above CHF295M, Est. CHF293.7M
- PEUG FP : SEB Holder Peugeot Invest Offer 2.22m Shares
- PRY IM : Prysmian in ~€1.9b Contract With Eastern Green Link 2 Ltd
- 1910 HK : Samsonite Is Said to Consider Options Amid Takeover Interest (1)
- SHA GY : Schaeffler to Invest Over $230m in Ohio Automotive Facility
- SK FP : SEB Holder Peugeot Invest Offer 2.22m Shares
- SIGN SW : SIG Group FY Adjusted Ebitda Meets Estimates
- GLE FP : Societe Generale Extends Night Shift as US Trading Speeds Up
- STMN SW : Straumann FY Revenue Matches Estimates
- TSLA US : SpaceX Gets List of Starship Upgrades Needed Before Launch
- WPP LN : WPP Creative-Led Strategy Revamp Still Leaves Growth Conundrum
- ZEAL DC : Zealand Pharma FY Revenue Beats Estimates

FT : Spa wars – the race to be the best retreat in the world

Spa wars – the race to be the best retreat in the world
The $5.6tn wellness industry is going all out to get its hands on your body

Imagine a spa where workouts are designed by Hollywood fitness instructor Tracy Anderson, the longevity programme has guru Dr David Sinclair on speed-dial, a top New York plastic surgeon oversees tweakments, the pool broadcasts mind-soothing subaquatic music created with neuroscientists, there’s a global menu of massages, the skincare is personalised, and the green juices bespoke – courtesy of nutritionist Rose Ferguson. At the spa 2.0, even the term “spa” feels outdated. 

“The word ‘spa’ doesn’t work any more,” says Inge Theron, CEO of design agency Itanda (and former HTSI contributor), which has overseen the development of private members’ club Surrenne. The space is due to open next month, offering all the above services – and more – for a cool £5,000 joining fee plus £10,000 annually. It is situated near Hyde Park, beneath the new Emory hotel (part of the Maybourne group that also includes Claridge’s), and its marriage of pampering and peak performance reflects the shifting priorities of the monied elite. Four subterranean floors will feature wet-zone treatment rooms, and tech such as a medical grade 2.0 hyperbaric oxygen chamber and LED light therapy. The club also benefits from the Maybourne group’s partnership with tech platform Virtusan. Overseen by a scientific advisory board that includes longevity and neuroscience professors, including the likes of Sinclair and Dr Andrew Huberman, it ensures their wellness services will be regularly updated with the latest science. “Scientists are the new rock stars,” says Theron of the board. “There’s a massive gap between spas – where you can get a facial for a birthday treat – and being at the doctors when you’re sick.”

The health and wellness market, currently estimated to be worth some $5.6tn, is set to grow to $7.4tn by 2025. Surrenne is one of a number of hotels, retreats and members’ clubs offering new restorative experiences. These include Estelle Manor with its 3,000sq m Roman bath-inspired concept in the Oxfordshire countryside; the Spa House that can be booked out at Amanpuri, Thailand, with its Vichy shower, banya treatments, steam room, infrared sauna, and indoor and outdoor jacuzzi; and The Bothy at Heckfield Place’s array of niche specialists (including “eco-psychologist” and craniosacral therapist). Wellbeing oneupmanship, you could call it. 

“Wellness tourism is growing faster than leisure tourism, with wellness tourists spending 41 per cent more than the typical international tourist,” says Alejandro Bataller. The vice president and CMO of SHA Wellness is quoting from the latest Global Wellness Institute figures. And he should know: Bataller has just snipped the ribbon at the new outpost of SHA Wellness, Mexico. SHA guests are “probably the most demanding audience we can serve”, he says. “The percentage who haven’t been in a wellness property before is minimal. So you cannot give them anything that isn’t ‘the latest’.” There is, he says, “a need for constant evolution”.

Bataller’s knowledge is based on 15 years’ operating the brand’s sister wellness centre in Alicante, where roughly 55 per cent of guests are repeat visitors, and R&R is a vastly evolved prospect. “Their goals are, firstly, about being well in the present; secondly, preventing many conditions that are related to lifestyle [things like chronic fatigue]; and thirdly, to live longer and better, improving not only lifespan but healthspan.” In the new space, about 20 minutes north of Cancún, these priorities are reflected in an extraordinary building designed to resemble the shape of human DNA. Here, state-of-the-art technology is served alongside views of one of the world’s biggest coral reefs. Think beach holiday with biohacking bells. Some 300 health and wellbeing professionals will offer a wide range of treatments, from the regenerative (cognitive stimulation, cell therapy and gene therapy) to those rooted in shamanistic ritual (such as a Temazcal ceremony: an Aztec sweat-lodge treatment administered by a local specialist). “At the key players in the US you don’t see the level of merging integrative medicine with wellbeing that you do in Europe,” says Bataller. 

Not so says Ira Drukier, co-owner of the Hotel Chelsea in New York. Global approaches are just different. “Whether you explore an exceptional onsen in Kyoto or a magnificent spa in the Arizona desert, each offers a distinct experience,” he says. His hotel is pulling out the stops in its own urban chic way. Rather than being tucked away in the basement, the spa is on the penthouse level, next to the fitness centre in the historic steeple. Prime real estate usually reserved for high-ticket guest rooms, the space has epic views of the city skyline. It’s a way of elevating the treatment experience, quite literally, and making it unique, says Drukier (though the programme is reassuringly extensive, mixing therapeutic massages, cupping, reiki, craniosacral therapy and chakra alignment). It’s a design move mirrored at the Dorchester Collection’s latest hotel, The Lana, in Dubai, which has partnered with Dior on the 29th-floor spa, with views of the Burj Khalifa.

The about-to-open spa at Estelle Manor establishes another foothold in the landscape of British countryside escapes with its Eynsham Baths, set in an ancient woodland and designed in the style of Roman baths. A vast tepidarium bathing hall with ornate marbling features 10 treatment rooms and five thermal pools, including a 40ºC caldarium, and 6ºC frigidarium. “It’s the most bonkers building I have ever built,” says Sharan Pasricha, founder and co-CEO of Ennismore, which also owns The Hoxton hotel chain and Gleneagles. Treatments draw from Indian, Tibetan and Chinese rituals and traditions that have “stood the test of time” – like the Marma Chikitsa with Chakra Healing (120 minutes, £320), recommended for the “emotionally drained or disconnected from themselves”. You’ll also find the only Level 3 Wim Hof breathwork master in the UK, Emma Estrela.

For Pasricha, a spa should “be the place you can truly detach and relax – both alone, for some well-deserved solitude, or with friends for a more social experience”. But while this has ever been the case, today, more than ever, “our clients demand results”, says Vladislav Doronin, chairman, owner and CEO of Aman Resorts, which opens a space in Bangkok later this year. “Some are looking for relaxation, others are seeking to improve their fitness, some are struggling with digestion” – but what they increasingly have in common is a desire to live long and live well. “Living to 100 is the new goal,” says one global wellness-trotter when I ask her what she wants from a resort. “You can look at your liver, your body and if you can find the right environment, you can change things.” The spaces keen to lure the wellbeing pound are but rising to the challenge. “They’re all chasing this golden chalice of ‘we are the best in class’,” she says. 

At the soon-to-open Six Senses at The Whiteley in London’s Bayswater, the wellbeing brand strives for a significant point of difference by pairing ancient practices with advanced diagnostics and biohacking equipment. On the one hand, you’ll find “individual and group sound healing, and personalised circadian-rhythm assessments in our offerings”, says Anna Bjurstam, who oversees the brand’s wellness programme. On the other, there’s also cryotherapy, photobiomodulation, sleep science treatments pioneered by Harvard University and Pulsed Electro-Magnetic Field (PEMF) therapy, which uses technology to stimulate and exercise cells to help resolve cellular dysfunction. (A new global programme also means guests can visit as a new client or use the spa and its next-level diagnostics and fitness to follow up on the work done in a more far-flung Six Senses resort.) 

It’s a traditional-meets-medical fusion that destination resorts – in Thailand, Bali and the Maldives – are also adopting to get the competitive edge. Just outside Bangkok, Rakxa wellness retreat has partnered with nearby Bumrungrad International Hospital to up the ante on its holistic offering. Here, each guest now has a multidisciplinary spectrum of seven wellbeing specialists to knit together diagnostics and treatment. “We’ll look at, say, a guest’s lack of sleep, beginning with a hospital-grade sleep test, and assess how it’s affected by stress. We would then incorporate a stomach massage to address the way we hold emotions in our gut,” explains executive vice president Wsinee Sukjaroenkraisri. Likewise, expect a singing-bowl session or an Ayurvedic Shirodhara treatment followed by a hyperbaric oxygen chamber or a brain-boosting IV drip. 

The choice is spoiling. Will a roster of leading longevity scientists seduce you? Skyline views during your massage? A bunker full of state-of-the-art diagnostic tech? Massage sessions with a local shaman? Or mindful architecture? In a world where the resort-hopping client is the expert, the spaces are cherry-picking the “best” bits to create their own super-spa. Just don’t call it a spa, will you? 

FT : Accor in talks with Dubai Holding to fund Orient Express superyachts

Accor in talks with Dubai Holding to fund Orient Express superyachts
French hotel group’s plan for two superyachts underlines growing Middle Eastern interest in luxury travel sector


French hotel group Accor is in talks with investment vehicle Dubai Holding to fund the roughly €800mn development of two upmarket cruise liners under the Orient Express brand, in the latest example of Middle Eastern investor interest in the luxury travel sector, according to multiple people familiar with discussions.

Since announcing plans to launch two Orient Express-branded superyachts early last year, Accor has been seeking a partner to bankroll the majority of the capital expenditure associated with the cruise liners, in line with its “asset-light” strategy, three people said. Accor is also launching luxury hotels and trains under the Orient Express brand.

Talks have been held with several parties but discussions with Emirati ruler Sheikh Mohammed bin Rashid al-Maktoum’s conglomerate Dubai Holding are at a more advanced stage, the people said. Dubai Holding, which has $35bn worth of assets, owns the Jumeirah luxury hotel chain and last year agreed a deal with Accor to launch hotels in the emirate. Talks may yet fall through, the people added.

The two Orient Express-branded yachts are being constructed by French shipbuilder Chantiers de l’Atlantique and are expected to launch in early 2026 and early 2027 respectively. The first vessel — the 220 metre-long Orient Express Silenseas — has just 54 suites onboard, with tickets costing up to €20,000 per voyage.

Dubai Holding would become the majority owner in the property company behind the yachts, if the deal goes ahead, providing Accor with the benefit of moving the assets off its balance sheet, the people said. State-backed funds in the United Arab Emirates and Saudi Arabia have poured billions of dollars into luxury hospitality in recent years.

Accor and Dubai Holding declined to comment.

Any possible partnership could extend to the Orient Express hotel and train assets, the people added. Accor is restoring 17 original train carriages to be launched on a route named the “Orient-Express-Nostalgie-Istanbul” as well as launching six other train routes and several hotels in Italy under the Orient Express brand in collaboration with Oaktree Capital-backed luxury hospitality group Arsenale.

Accor has made a push into more upscale hospitality in recent years. The hotel group’s luxury and lifestyle division accounted for 43 per cent of revenues last year, up from 39 per cent the year before. The group reported more than €1bn in earnings before interest, taxes, depreciation and amortisation for last year, driven by an 82 per cent like-for-like increase in profits from its upscale segment.

Marriott-owned hotel group Ritz-Carlton launched its own luxury cruise liner last year. Luxury resort operators Aman Resorts and Four Seasons have also announced plans to launch their own cruise ships. Accor paid a total of €44mn to buy the Orient Express brand from state-owned French rail operator SNCF as part of a 2017 deal, according to a person familiar with the matter.

The travel sector continues to benefit from a post-pandemic boom in demand, despite high inflation. The global luxury travel market is projected to grow by 45 per cent between 2023 and 2028 to $2tn, according to market research cited by consultancy Deloitte. The luxury cruise sector is growing three times faster than the industry at large, nearly doubling capacity by 2028, according to an Oxford Economics report from last September.

Event details and information
Business of Luxury

>>> US After Hours Summary: PUBM +31.9%, HIMS +19%, TREX +8% up big on earnings;

After Hours Summary: PUBM +31.9%, HIMS +19%, TREX +8% up big on earnings; AAN -28.2%, U -16.4%, WDAY -8.9% selling off following quarterly results

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PUBM +31.9%, HIMS +19%, TMDX +16.4%, EVER +15.9%, TREX +8%, HLIO +7.8%, AIN +6.3%, RLJ +5.3%, AEP +3.4% (appoints interim CEO), STRL +3.2%, SKYT +2.9%, PRIM +2.8%, IIPR +2.5%, IRBT +1%, ADUS +0.4%, CPE +0.3%, DRQ +0.1%

Companies trading higher in after hours in reaction to news: JANX +95.4% (announces encouraging data from trials), CDXS +20.3% (licensing agreement with Roche), AMH +3.6% (replacing DOC in S&P MidCap 400), AWR +2.4% (files common share offering), RCM +2.2% (Coliseum capital issues open letter to board), SCLX +1.8% (enters into term sheet with Virpax Pharmaceuticals), TCBK +1.4% (increases dividend), SITM +0.6% (files mixed shelf), GILD +0.2% (FDA approves expanded indication for Biktarvy), EXPE +0.2% (reducing workforce by 1,500), DOC +0.1% (to be replaced by AMH in S&P MidCap 400)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: AAN -28.2%, U -16.4%, SIBN -12.4%, CARG -11.7%, WDAY -8.9% (acquiring HiredScore), PWSC -8.3%, ACHR -6.6%, FATE -6.3%, ASUR -5.6%, STAA -3.9%, EFC -3.2% (cutting monthly dividend), DDS -1.3%, SBAC -1.2%, FSK -0.9%, RVMD -0.4%, OKE -0.4%, HEI -0.3%, AES -0.3%, EVBG -0.1%

Companies trading lower in after hours in reaction to news: FGEN -13.5% (regains rights to Roxadustat), FIVN -4.3% (convertible notes offering), PRGS -3.2% (convertible notes offering), UVSP -2.8% (files mixed shelf), HES -2.7% (files mixed shelf), DLTR -1.9% (resolves DoJ investigation), SHAK -1.4% (restatements of prior financial statements), NWBI -1.2% (appoints new CFO), NOVA -1.1% (appoints new COO), LAAC -1% (appoints new CEO), AL -0.7% (long-term lease agreements for Boeing aircraft), PEAK -0.6% (completes consent solicitation), NTB -0.6% (files mixed shelf), CDE -0.2% (advancing Silvertip exploration), XOM -0.2% (may match CVX's price offered to HES, according to WSJ)

WSJ : Iran Reduces Near Weapons-Grade Stockpile, Defying Expectations

Iran Reduces Near Weapons-Grade Stockpile, Defying Expectations
Country still has enough weapons-grade material for several nuclear weapons

VIENNA—Iran reduced its stockpile of near weapons-grade nuclear material over the past 3½ months, the United Nations’ atomic watchdog said Monday, a surprise step likely to be welcomed by Western countries who have been alarmed by Iran’s buildup of highly enriched nuclear fuel.

Iran still has enough near-weapons grade material to fuel almost three nuclear weapons, underlining its status as a threshold nuclear-weapon state. However, by diluting some of its 60% enriched uranium in recent weeks to lower-grade material, its stockpile fell for the first time since it started producing the 60% nuclear fuel in 2021.

Iran’s decision to reduce its stockpile of 60% nuclear fuel comes as Iranian-backed militias are involved in clashes throughout the Middle East with Israel and the U.S., from Yemen’s Houthi attacks on international vessels in the Red Sea to Israel’s clashes with Hezbollah on its northern border and conflict with Hamas in Gaza.

It also comes as Washington and its European partners have floundered over how to respond to Iran’s expanding nuclear program.

In its confidential quarterly report, sent to member states on Monday, the International Atomic Energy Agency said Iran had reduced its stockpile of 60% enriched uranium by 6.8 kilograms to 121.5 kilograms since late October.

U.S. officials say it would take Iran less than two weeks to convert that amount into weapons grade material, roughly 90%. Tehran is the only nonnuclear weapons state producing 60% enriched uranium.

By the IAEA’s definition, Iran needs a minimum of 42 kg of uranium enriched to 60% to make a nuclear bomb.

Iran continued to build up its stockpile of lower-purity enriched uranium. It added 145.1 kilograms to its stockpile of 20% enriched uranium which experts say could be increased to weapons grade level within several weeks. Uranium enriched to around 90% can be used to fuel nuclear bombs. Iran now has 712 kilograms of 20% enriched uranium.

Iran says its nuclear program is purely for peaceful purposes. U.S. officials have said Iran could field a nuclear weapon within several months.

The Biden administration has upheld longstanding U.S. policy of pledging that it will prevent Iran from attaining a nuclear weapon.

The reduction in 60% enriched uranium will offer some respite to the U.S. and its European partners who have grown increasingly concerned about the expansion of Iran’s nuclear program.

The Biden administration failed in its efforts to revive the 2015 nuclear deal with Iran, which lifted international sanctions on Tehran in exchange for tight but temporary limits on its nuclear work. So did an attempted de-escalation effort last year which grew out of indirect discussions between senior U.S. and Iranian officials in Oman.

The indirect talks ended after the Hamas terrorist attack on Israel on Oct. 7, which killed 1,200 people, mostly civilians. Tehran praised the attack.

Iran had slowed its production of 60% enriched uranium last year as part of its de-escalation efforts. However, Iran reversed that slowdown in November, the agency said late last year.

In recent weeks, Iran twice carried out a process of diluting the material by mixing it with low-grade 2% enriched uranium.