>>> Europe : Brokers Upgrades & Downgrades - 13th of October 2023 V2(+)

>>> Up
* Admiral Raised to Outperform at KBW; PT 2,560 pence
* Aeroports de Paris SA Raised to Neutral at JPMorgan
* Alphabet PT Raised to $160 from $150 at Cowen (+)
* Atrium Ljungberg Raised to Buy at Carnegie(Earlier) (+)
* Aroundtown Raised to Neutral at BNPP Exane; PT 2 euros
* BPER Banca Raised to Overweight at Barclays; PT 4.30 euros
* British Land Raised to Outperform at BNPP Exane; PT 370 pence
* Deliveroo Raised to Neutral at JPMorgan; PT 142 pence
* Derwent London Raised to Neutral at BNPP Exane; PT 1,820 pence
* Great Portland Raised to Neutral at BNPP Exane; PT 400 pence
* Holcim AG Raised to Neutral at Goldman; PT 57 Swiss francs
* KMC Properties Raised to Buy at ABG; PT 6.50 kroner
* Land Sec. Raised to Outperform at BNPP Exane; PT 700 pence
* Mister Car Wash Raised to Outperform at Baird; PT $10
* Monte Paschi Raised to Overweight at Barclays; PT 3.40 euros
* MorphoSys ADRs Raised to Overweight at Morgan Stanley; PT $9.20
* Paradox Interactive Raised to Buy at DNB Markets; PT 290 kronor
* QT Group Raised to Buy at SEB Equities; PT 68 euros
* Remy Cointreau Raised to Outperform at Oddo BHF; PT 129 euros
* Shurgard Raised to Neutral at BNPP Exane; PT 40 euros
* Subsea 7 Raised to Buy at Jefferies; PT 170 kroner
* Talenom Raised to Buy at Inderes; PT 6 euros
* Varonis Systems Raised to Overweight at Barclays; PT $37
* Zalando Raised to Buy at HSBC; PT 28 euros

>>> Down
* Aedifica Cut to Neutral at BNPP Exane; PT 55 euros
* Campari Cut to Underperform at Oddo BHF; PT 11.20 euros
* Delfingen Ind Reinstated Add at IDMidcaps; PT 58 euros (+)
* Direct Line Cut to Market Perform at KBW; PT 173 pence
* Hansa Biopharma Cut to Hold at SEB Equities; PT 25 kronor (+)
* Hansa Biopharma Cut to Sell at Bryan Garnier; PT 16 kronor (+)
* Humana Cut to Hold at ABG; PT 30 kronor
* JD.com ADRs Cut to Equal-Weight at Morgan Stanley; PT $33
* Klepierre Cut to Hold at HSBC; PT 26 euros
* Sartorius Cut to Hold at SocGen; PT 363 euros
* Sartorius Cut to Hold at M.M. Warburg (+)
* TechnipFMC Cut to Hold at Jefferies; PT $22
* Telia PT Cut to 20 kronor from 22 kronor at Deutsche Bank (+)

>>> Initiation
* Dar Global Rated New Buy at Liberum; PT $5
* Medacta Rated New Buy at Stifel; PT 154 Swiss francs
* Meta Platforms Reinstated Buy at William O'Neil (+)
* Smith & Nephew Rated New Hold at Stifel; PT 1,025 pence

>>> Call
* Encavis New Equal-Weight at Morgan Stanley, Seen Fairly Priced
* MorphoSys Risks Positively Skewed, Upgraded at Morgan Stanley
* Swiss Re Underperformance Overdone, Raised to Buy at Berenberg

WSJ : Donald Trump Criticizes Benjamin Netanyahu as Israel Wages War With Hamas

Donald Trump Criticizes Benjamin Netanyahu as Israel Wages War With Hamas
Former president faces backlash from Biden, GOP 2024 rivals

Former President Donald Trump is facing criticism from Democrats and Republicans for remarks in a campaign speech in which he characterized the militant group Hezbollah as “very smart” and faulted Israeli Prime Minister Benjamin Netanyahu over a 2020 mission that killed an Iranian military leader.

It was the latest example of the former president and current 2024 Republican front-runner making controversial comments related to foreign policy and leaders, even as he also vowed that if re-elected, the U.S. would support Israel in “defeating, dismantling, and permanently destroying the terrorist group, Hamas.”

More than 1,300 Israelis have been killed since the Hamas assault began over the weekend, leading to a fierce Israeli military response. At least 25 U.S. citizens have died. Gaza officials say more than 1,500 Palestinians have been killed in Gaza and another 6,600 have been injured.

President Biden highlighted Trump’s comments as wrongheaded. “Our nation’s support for Israel is resolute and unwavering. And the right time to praise the terrorists who seek to destroy them is never,” he said Thursday in a post on X, formerly known as Twitter, linking to a video clip of Trump’s remarks Wednesday night.

Florida Gov. Ron DeSantis, a rival of Trump’s for the GOP nomination, wrote: “It is absurd that anyone, much less someone running for President, would choose now to attack our friend and ally, Israel, much less praise Hezbollah terrorists as ‘very smart.’ ”

Former Vice President Mike Pence, who also is competing for the GOP nomination, said Thursday on a New Hampshire radio program, “This is no time for the former president or any other American leader to be sending any message other than America stands with Israel.”

Former New Jersey Gov. Chris Christie, Trump’s most persistent detractor on the campaign trail, said on CNN: “Only a fool would give comments that could give aid and comfort to Israel’s adversary in this situation.”

Trump appeared Wednesday in West Palm Beach, Fla., before a group of supporters known as Club 47 USA.

“You know, Hezbollah is very smart,” Trump said, recounting how he once took heat for describing Chinese leader Xi Jinping as a “very smart man.” Trump has made similar comments about the intelligence or strength of Russian President Vladimir Putin and North Korean leader Kim Jong Un.

A Trump spokesman said Thursday that Trump was “clearly pointing out how incompetent Biden and his administration were by telegraphing to the terrorists an area that is susceptible to an attack.”

In the speech, Trump boasted of his efforts to support Israel. But he also criticized Netanyahu, saying the Israeli leader “let us down” in a U.S. mission that killed Iranian military leader Maj. Gen. Qassem Soleimani.

Trump said Israel helped work on the plan for months. “We had everything all set to go, and the night before it happened, I got a call that Israel will not be participating in this attack,” Trump said, explaining to the audience that “nobody’s heard this story before.”

“They’ve got to strengthen themselves up,” Trump said of Israel.

In a Fox News Radio interview Thursday, Trump said Netanyahu wasn’t prepared for Hamas’s attack.

“He was not prepared and Israel was not prepared. And under Trump, they wouldn’t have to be prepared,” Trump said. “Who would have thought their intelligence wouldn’t have been able to pick this up. Thousands of people were involved. Thousands of people knew about it and they let this slip by. That was not a good thing for him or for anybody.”

Some commenters, including a group supporting DeSantis’s presidential bid, linked Trump’s comments to his anger over the Israeli leader for making a congratulatory call to Biden after the 2020 election—one Trump continues to falsely claim was rigged and stolen.

While not addressing his controversial comments, Trump Thursday night in a social-media post said that Israel had “no better friend or ally.” He singled out the so-called Abraham Accords, brokered by the U.S. during his administration and signed by the U.S., Israel, the United Arab Emirates and Bahrain, normalizing relations between the nations. In the same post, he criticized President Biden for his handling of issues that Trump said “emboldened our enemies.”

WSJ : Ligado Sues U.S. Seeking $39 Billion in Spectrum Fight

Ligado Sues U.S. Seeking $39 Billion in Spectrum Fight
Debt-laden satellite company alleges Pentagon improperly denied its use of spectrum for 5G networks

Long-struggling satellite company Ligado Networks sued the U.S. over spectrum rights it has been unable to use, alleging that the Defense Department and Commerce Department blocked its business plans through a “highly orchestrated public disinformation campaign.”

The lawsuit, filed Thursday in the U.S. Court of Federal Claims, seeks to recover as much as $39 billion as compensation for property that Ligado says was wrongly denied. The complaint comes as the company stares down about $4 billion of November bond payments.

The company has also been in talks with creditors. Ligado, previously known as LightSquared, emerged from bankruptcy in 2015 and has flirted with financial disaster over the years as it worked to secure its spectrum rights.

Ligado alleged Thursday that the Pentagon and Commerce Department used a false pretext to deny its use of wireless spectrum licenses it would otherwise be allowed to commercialize.

A Pentagon spokesperson said the department doesn’t comment on litigation. A Commerce Department spokesman declined to comment.

Federal officials at both departments have for years said that Ligado’s planned fifth-generation wireless signals could interfere with the use of the Global Positioning System.

Ligado’s lawsuit said that the Pentagon instead claimed all of Ligado’s spectrum in a frequency range known as the L-band for undisclosed activities other than GPS without telling other regulators or members of Congress.

The Pentagon’s weapons and communications programs, many of them classified, often use radio frequencies that are unavailable for civilian use.

“High ranking U.S. government officials have acted deliberately to deprive an American company of its rightfully licensed property,” Ligado Chairman Ivan Seidenberg said in a statement. “The government must be held accountable for these actions.”

WSJ : U.S. Company Liable for Qatar World Cup Labor Exploitation, Lawsuit Allege

U.S. Company Liable for Qatar World Cup Labor Exploitation, Lawsuit Alleges
A group of Filipino workers filed suit against Jacobs Solutions, which oversaw construction of 2022 World Cup stadiums

More than three dozen Filipino construction workers who helped build the multibillion-dollar stadiums hosting last year’s World Cup in Qatar have sued the U.S.-based company that oversaw their construction, alleging it violated human trafficking laws and knowingly participated in an exploitative venture.

The civil complaint, filed Thursday in a U.S. District Court in Denver, alleges construction-services firm Jacobs Solutions and its subsidiaries illegally profited from their participation in a decadelong project that relied on forced and trafficked labor to build the tournament’s facilities from scratch.

The suit details a litany of alleged abuses against the plaintiffs, including confiscated passports, requirements to work 36 or 72 hours straight, crowded housing, limited water in extreme heat, insufficient food and limited access to medical care.

“Our clients allege they were exploited and abused, that they were convinced to go to Qatar based on lies, and that they were coerced to work despite being denied humane living and working conditions,” said Eli Kay-Oliphant, a lawyer at Sparacino, one of the law firms representing the laborers.

Jacobs said it had not yet had the opportunity to thoroughly review the allegations but was “committed to respecting the human rights and dignity of those within our operations and where we do business.” CH2M Hill initially secured the contract to oversee the Qatari construction projects. Jacobs acquired the firm in 2017.

A representative for Qatar couldn’t immediately be reached to comment.

The plaintiffs are seeking unspecified monetary damages under the Trafficking Victims Protection Reauthorization Act, which targets forced labor, involuntary servitude and other forms of human trafficking.

The act allows a victim to sue perpetrators of the abuse, even if their involvement was limited to participation in a venture that involved human trafficking, if they knew or should have known about the exploitation.

Qatar has long been criticized for relying on the exploitative kafala sponsorship system to recruit migrant workers for its booming, ambitious construction industry. These laborers are often underpaid, overworked and housed in squalid conditions, and employers regularly confiscate workers’ passports for the term of their contracts, according to a report by the U.S. State Department.

The plaintiffs took employment contracts with subcontractors at the World Cup construction sites in Qatar for mostly two- to three-year stretches between 2012 and 2021, according to the suit. During that period, CH2M, later Jacobs, and relevant subsidiaries were responsible for managing the work operations and employed “health and safety managers” and other advisory positions, tasked with site visits to monitor safety standards to contract requirements, according to the suit.

Human-rights groups estimated deaths on the World Cup job sites likely reached into the thousands, a number Qatar disputes. In 2014, the International Trade Union Confederation used statistics from foreign embassies and the country’s medical ministry to estimate that 1,200 migrant laborers, most of them from South Asia, had died in three years while building projects mostly tied to the World Cup.

Qatari leaders in statements last year touted modernization efforts and reforms that included a raise of minimum wages and food or housing allowances, although international watchdog groups say the new laws have had meager implementation.

FT : Bill Gates-backed Breakthrough fund targets third $1bn capital raising

Bill Gates-backed Breakthrough fund targets third $1bn capital raising
New investment pool expected to boost portfolio to 140 companies across sectors from energy to agriculture

The Breakthrough Energy Ventures investment company backed by Bill Gates is aiming to raise another $1bn for its third and latest fund to take stakes in companies and technology tackling global warming.

Gates told the FT that Breakthrough was “in the process of raising fund three and that’s going very well”. The number of companies that Breakthrough Energy Ventures invested in would increase by some 40 per cent to about 140 holdings across sectors from energy to agriculture as a result.

“We have a little more than $1bn in funds one and two, and fund three will be about the same size. And then we will do some other funds that are more for follow-on type things,” he said.

The first fund, which closed with about $1bn, drew an array of fellow billionaires, while the second fund closed with $1.25bn in 2021. The group also has a $100bn Europe-focused fund. The Breakthrough board and investors include Mukesh Ambani, Jeff Bezos, Reid Hoffman and Sir Chris Hohn.

While the earlier funds were raised when interest rates were low, the opportunistic third fund comes at a time when venture capital for start-up companies is challenged by rising interest rates and economic uncertainty.

“Some will go away so you can subtract [from that 140],” he said, because some companies “will not succeed or some will not work at all”, though Breakthrough had a low failure rate across the portfolio, he added.

“We closed [about] 15 per cent of the things we’ve invested in. A lot of these [that failed] are companies we’ve founded . . . we have theories where there are no companies, and we’ve created a bunch of companies [to test the theories].”

Breakthrough investments include US green hydrogen electrolyser producer ElectricHydrogen, Arkea Bio, which is working on reducing methane from livestock, green cement maker Solidia, and Fleetzero, which focuses on battery technology for cargo shipping.

While Gates is a well-known and avowed advocate of technology to address climate change, he has also long been sceptical about the use of carbon capture and storage (CCS) as a wider solution to limiting the greenhouse gases produced by the burning of fossil fuels for energy.

The technology is being promoted by the coal, oil and gas industry as a way to continue operating for decades to come.

But CCS was unlikely to be economically viable for mass-scale use in the long term, Gates maintained. “It’s kind of a brute force solution,” he said. “It always costs money.”

“You eventually want to get to the point where you’re willing to tax any emission activity at the marginal cost of capture and then actually spend it on capture. That’s the way you get to zero [emissions],” he said.

“But for most cases, you should use an alternative technique rather than emitting and then paying for capturing,” he said. “For everything you can, you want to solve it by never generating the carbon dioxide.”

Reflecting what he sees as the residual role for carbon removal technologies, however, the Breakthrough funds are investors in direct air capture start-ups.

While oil and gas producing countries such as Saudi Arabia have pushed for the inclusion of the capture of emissions as a factor in global climate change agreements, Gates said: “They are not doing any CCS [at scale], they’re not funding the companies that work on CCS.”

In any case, the world would miss its near-term goals on cutting greenhouse gases by almost half by 2030 to limit global warming to 1.5C since pre-industrial times. It required innovative companies to address the challenges of cutting emissions in difficult sectors from steel to cement, he said.

“Innovation is how you square the circle.”

>>> Stoxx 600 Pre-Market Indications

  • Zalando (ZAL TH) +2%
    • Zalando Raised to Buy at HSBC; PT 28 euros
  • Hexagon (HXG TH) +1.3%
  • Carl Zeiss Meditec (AFX TH) -0.9%
  • ING (INN1 TH) -0.9%
  • Aixtron (AIXA TH) -1%
  • Freenet (FNTN TH) -1%
  • Fresenius Medical (FME TH) -1.1%
  • Intesa Sanpaolo (IES TH) -1.4%
  • Qiagen (QIA TH) -1.5%
  • Orsted (D2G TH) -1.7%
  • Merck KGaA (MRK TH) -3.1%
  • Sartorius (SRT3 TH) -9.5%
    • Sartorius, Sartorius Stedim Issue Profit Warnings: Street Wrap

>>> TradeGate Pre-Market Indications

DAX:
  • Zalando (ZAL TH) +2%
    • Zalando Raised to Buy at HSBC; PT 28 euros
  • Qiagen (QIA TH) -1.1%
  • Merck KGaA (MRK TH) -2.4%
  • Sartorius (SRT3 TH) -9.5%
    • Sartorius, Sartorius Stedim Issue Profit Warnings: Street Wrap
MDAX:
  • No major mover
SDAX:
  • MorphoSys (MOR TH) +6.7%
    • MorphoSys Risks Positively Skewed, Upgraded at Morgan Stanley
  • PNE AG (PNE3 TH) -1.1%

>>> What to look at today - 13th of October 2023

Global equities extended losses as Treasury yields surged after US inflation data bolstered bets on Federal Reserve rate hikes. The latest data on continued weakness in China’s economy added to the gloom. MSCI’s All Country World Index fell for a second day, with major Asian benchmark indexes in the red. Hong Kong shares underperformed and mainland Chinese shares slipped after both consumer and producer prices came in below estimates, a sign that the country’s economy still faces drags despite the government rolling out a series of support measures. European equity futures pointed to a lower open.   Swap contracts pushed the odds of another quarter-point Fed hike to about 40% — from closer to 30% Wednesday after US consumer price data. Investors also await JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. results as they kick off the earnings season Friday.  Some of the biggest US banks are poised to write off more bad loans than since the early days of the pandemic as higher-for-longer interest rates and a potential economic downturn put borrowers in a bind. Data from US University of Michigan consumer sentiment is also due later Friday. Asian equities were also hurt as China’s trade data was only slightly better than expectation. The authorities are now also considering forming a state-backed stabilization fund to shore up confidence in the nation’s $9.5 trillion stock market. Treasuries gained in Asia after dropping across the curve in the previous session, with the yield on the 30-year rate surging as much as 19 basis points after a $20 billion auction of the securities drew weak demand.  The dollar edged down after strengthening against all of its Group-of-10 peers Thursday following the increase in Treasury yields. The yen inched closer to the 150 mark. oil headed for a modest weekly gain as fears over the Israel-Hamas conflict were offset by signs of flagging demand. Gold eged higher. US After Hours DG +7.8% as investors cheer decision by struggling retailer to bring back former CEO; SGH -24.6% drops on earnings; BDC -16.2% falls on lowered guidance.

Nikkei -0.69% Hang Seng -2.40% CSI -1.29% Shanghai -0.85% Shenzen -1.04%

Eur$ 1.0543 CNH 7.3073 CNY 7.3054 JPY 149.70 GBP 1.2194 CHF 0.9073 RUB 97.5417 TRY 27.7871 WTI$ 83.67 +0.92% Gold 1,877 +0.43% BTC 26,800 +0.24% ETH 1,539 +0.20%

S&P +0.04% Nasdaq -0.01% EuroStoxx -0.45% FTSE -0.22% Dax -0.39% SMI -0.39%

Macro :
- Big UK Banks Assessing China Risks, Reuters Says
- US Mulls Adding AI Chip Curbs to Chinese Cos. Abroad: Reuters
- China Sept. Consumer Prices +0.2% M/m, Unch Y/y; Est. +0.2% Y/y

Keep an eye on :
- AAF LN : Airtel Uganda Extends IPO Offer Period by Two Weeks
- ALV GY : Generali Reaches Pact to Sell Tua Assicurazioni to Allianz
- ALO FP :
- AZN LN : AstraZeneca Granted FDA Orphan Drug Status for Durvalumab
- BATS LN : FDA Orders Marketing Halt of E-Cigarettes; BAT to Challenge
- BYS SW : Bystronic 9M Sales CHF681.2M Vs. CHF712.4M Y/y
- DBHN GY : Deutsche Bahn Nears €1.6B Deal to Sell Arriva to I Squared: FT
- DIS US : Comcast, Disney Hire Investment Banks to Value Hulu: CNBC
- ENX FP : Euronext Top Equity-Trading Venue in Europe as 3Q Volume Drops
- FRA GY : Fraport Sept. Frankfurt Airport Passengers +18.2%
- FREY FP : Frey Buys Polygone Riviera Shopping Center for €272.3m
- G IM : Generali Reaches Pact to Sell Tua Assicurazioni to Allianz
- HFD LN : Halfords Jumps on Betaville ‘Uncooked’ Takeover Speculation
- KESKOB FH : Kesko Sept. Sales From Continuing Operations EU1.02B
- MANU US : Jim Ratcliffe Said to Lead Race to Invest in Manchester United
- MTRO LN : ‘Everything is possible’: the Colombian billionaire taking on Metro Bank
- STJ LN : St James’s Place Pressured by UK Regulators to Overhaul Fees: FT
- SANN SW : Santhera Gets Positive CHMP Opinion on Vamorolone for DMD
- SBMO NA : SBM Offshore Gets Feed Contracts for Whiptail Project in Guyana
-SRT GY : Sartorius Sees FY Sales About -17% --> *SARTORIUS ADRS DROP 5% IN US TRADING ON FORECAST CUT
- SIE GY : Siemens, Marubeni Lead €108m Funding for Battery Group Skeleton
- TELIA SS : Telia Appoints Patrik Hofbauer as Its New President, CEO
- TOM2 NA : TomTom 3Q Revenue Misses Estimates
- TRYG DC : Tryg 3Q Profit After Tax Beats Estimates
- UCB BB : UCB: Bimekizumab Use in Severe HS Shows Meaningful Improvements

>>> Europe : Brokers Upgrades & Downgrades - 13th of October 2023

>>> Up
* Admiral Raised to Outperform at KBW; PT 2,560 pence
* Aeroports de Paris SA Raised to Neutral at JPMorgan
* Aroundtown Raised to Neutral at BNPP Exane; PT 2 euros
* BPER Banca Raised to Overweight at Barclays; PT 4.30 euros
* British Land Raised to Outperform at BNPP Exane; PT 370 pence
* Deliveroo Raised to Neutral at JPMorgan; PT 142 pence
* Derwent London Raised to Neutral at BNPP Exane; PT 1,820 pence
* Great Portland Raised to Neutral at BNPP Exane; PT 400 pence
* Holcim AG Raised to Neutral at Goldman; PT 57 Swiss francs
* KMC Properties Raised to Buy at ABG; PT 6.50 kroner
* Land Sec. Raised to Outperform at BNPP Exane; PT 700 pence
* Mister Car Wash Raised to Outperform at Baird; PT $10
* Monte Paschi Raised to Overweight at Barclays; PT 3.40 euros
* MorphoSys ADRs Raised to Overweight at Morgan Stanley; PT $9.20
* Paradox Interactive Raised to Buy at DNB Markets; PT 290 kronor
* QT Group Raised to Buy at SEB Equities; PT 68 euros
* Remy Cointreau Raised to Outperform at Oddo BHF; PT 129 euros
* Shurgard Raised to Neutral at BNPP Exane; PT 40 euros
* Subsea 7 Raised to Buy at Jefferies; PT 170 kroner
* Talenom Raised to Buy at Inderes; PT 6 euros
* Varonis Systems Raised to Overweight at Barclays; PT $37
* Zalando Raised to Buy at HSBC; PT 28 euros

>>> Down
* Aedifica Cut to Neutral at BNPP Exane; PT 55 euros
* Campari Cut to Underperform at Oddo BHF; PT 11.20 euros
* Direct Line Cut to Market Perform at KBW; PT 173 pence
* Humana Cut to Hold at ABG; PT 30 kronor
* JD.com ADRs Cut to Equal-Weight at Morgan Stanley; PT $33
* Klepierre Cut to Hold at HSBC; PT 26 euros
* Sartorius Cut to Hold at SocGen; PT 363 euros
* TechnipFMC Cut to Hold at Jefferies; PT $22

>>> Initiation
* Dar Global Rated New Buy at Liberum; PT $5
* Medacta Rated New Buy at Stifel; PT 154 Swiss francs
* Smith & Nephew Rated New Hold at Stifel; PT 1,025 pence

>>> Call
* Encavis New Equal-Weight at Morgan Stanley, Seen Fairly Priced
* MorphoSys Risks Positively Skewed, Upgraded at Morgan Stanley
* Swiss Re Underperformance Overdone, Raised to Buy at Berenberg