(ZH) Ukraine Offered To Conduct Strikes On Syria & Iran To Halt Drone Production

Ukraine Offered To Conduct Strikes On Syria & Iran To Halt Drone Production

The Guardian on Wednesday has published some of the contents of a secretive document sent from the Ukrainian government to its Western allies in the G7, which compiles findings from the Iranian-manufactured drones Russia has used in hundreds of attacks on Ukrainian targets.
The conclusion of the document entitled "Barrage deaths: report on Shahed-136/131 UAVs" is that Western components have made their way into construction of Iranian Shahed Kamikaze drones, which Kiev sees as a scandal which must be dealt with.
"A wide range of components produced by western companies have been found in the downed drone models, according to the submission to the G7, which comprises France, the US, the UK, Germany, Japan, Italy and Canada, plus the EU," The Guardian writes, based on the secret document it has reviewed.
The publication attempted to track down some of the Western companies, located across Europe, whose parts are being used by the Iranians to manufacture the drones:
A fuel pump manufactured in Poland by the German company Ti Automotive GmbH, of which the British multinational TI Fluid Systems is the parent company, was discovered in a Shahed-136, as well as a microcontroller with built-in flash memory and a very low-voltage drop regulator with inhibitor made by the Swiss firm STMicroelectronics, according to the paper.
Also discovered in a Shahed-136, was an integrated circuit of a buffer network driver and a transistor made by International Rectifier, a subsidiary of the German firm Infineon Technologies AG.
TI Fluid Systems did not respond to a request for comment. Their equipment is freely available to buy from retailers across Europe and the company has previously said it does not sell into Iran.
Likely these components are exported to Iran via third party countries with which Tehran has relations, despite Washington's years-long sanctions campaign against the Islamic Republic.
The Ukrainian report references customs information to show that "almost all the imports to Iran originated from Turkey, India, Kazakhstan, Uzbekistan, Vietnam and Costa Rica."
The report found that Western technology enabled Russia to conduct hundreds of drone raids on Ukrainian cities:
In a 47-page document submitted by Ukraine’s government to the G7 governments in August, it is claimed there were more than 600 raids on cities using unmanned aerial vehicles (UAVs) containing western technology in the previous three months.
According to the paper, obtained by the Guardian, 52 electrical components manufactured by western companies were found in the Shahed-131 drone and 57 in the Shahed-136 model, which has a flight range of 2,000km (1,240 miles) and cruising speed of 180kmh (111mph).
But perhaps most interesting, and bizarre, was the "solution" that Kiev offered...
The Ukrainian government not only urged Western allies to attack suspected drone manufacturing plants in Iran, Syria, and Russiabut went so far as to request long-range missile so it could conduct these attacks itself.
The Guardian says that Kiev actually wanted to attack Syria and Iran. "Iranian kamikaze drones used in the latest attacks on Ukrainian cities are filled with European components, according to a secret document sent by Kyiv to its western allies in which it appeals for long-range missiles to attack production sites in Russia, Iran and Syria," says the report.
And according to the very words quoted from the Ukraine-authored document itself:
Among the suggestions for action by Ukraine’s western allies – at which they would probably baulk – are "missile strikes on the production plants of these UAVs in Iran, Syria, as well as on a potential production site in the Russian federation."
The document goes on: "The above may be carried out by the Ukrainian defense forces if partners provide the necessary means of destruction."
If such a wild scenario as Ukraine attacking Middle East countries were to play out, it would probably broaden the war. At the very least, Iran would be pulled more directly into the conflict, and it would be easy to imagine a scenario where Tehran began sending its own troops to Ukraine to partner with the invading Russian forces.

>>> US Research Calls

Research Calls

Upgrades:
DigitalBridge (DBRG) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $25
Essential Utilities (WTRG) upgraded to Buy from Neutral at Northcoast; tgt $42
Huntington Ingalls (HII) upgraded to Overweight from Neutral at JP Morgan; tgt lowered to $247
Redfin (RDFN) upgraded to Neutral from Underperform at DA Davidson; tgt lowered to $8
Downgrades:
NextEra Energy Partners (NEP) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $40
NextEra Energy Partners (NEP) downgraded to Perform from Outperform at Oppenheimer
Oshkosh (OSK) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
Others:
Agilent (A) initiated with a Mkt Perform at Bernstein; tgt $123
Apple Hospitality REIT (APLE) initiated with a Peer Perform at Wolfe Research
Avantor (AVTR) initiated with a Mkt Perform at Bernstein; tgt $22
Duolingo (DUOL) initiated with a Buy at UBS; tgt $195
Exact Sciences (EXAS) initiated with an Outperform at Bernstein; tgt $83
First Horizon (FHN) initiated with a Neutral at UBS; tgt $12
Guardant Health (GH) initiated with an Outperform at Bernstein; tgt $34
Howmet Aerospace (HWM) initiated with a Buy at Deutsche Bank; tgt $59
Huntington Ingalls (HII) initiated with a Hold at Deutsche Bank; tgt $217
Illumina (ILMN) initiated with an Underperform at Bernstein; tgt $111
Infinera (INFN) initiated with a Buy at Stifel; tgt $7
Ironwood Pharma (IRWD) initiated with a Mkt Outperform at JMP Securities; tgt $22
JFrog (FROG) initiated with a Sector Perform at Scotiabank; tgt $29
Natera (NTRA) initiated with a Mkt Perform at Bernstein; tgt $48
National Grid (NGG) initiated with an Overweight at Barclays
Pacific Biosciences (PACB) initiated with an Outperform at Bernstein; tgt $11
Park Hotels & Resorts (PK) initiated with an Outperform at Wolfe Research; tgt $16
Pebblebrook Hotel Trust (PEB) initiated with a Peer Perform at Wolfe Research
Prosperity Bancshares (PB) initiated with a Buy at UBS; tgt $64
Revvity (RVTY) initiated with an Outperform at Bernstein; tgt $133
Ryman Hospitality (RHP) initiated with an Outperform at Wolfe Research; tgt $98
Sunstone Hotel (SHO) initiated with a Peer Perform at Wolfe Research
The Trade Desk (TTD) initiated with a Buy at UBS; tgt $100
Thermo Fisher (TMO) initiated with an Outperform at Bernstein; tgt $603
Unity Software (U) initiated with a Neutral at UBS; tgt $38
Waters (WAT) initiated with a Mkt Perform at Bernstein; tgt $280

>>> US Gapping Down

Gapping down
In reaction to earnings/guidance:

KMX -12.2%, CNXC -6% (also increases dividend), ACN -4.8% (announces 15% increase in quarterly dividend to $1.29 per share; Board of Directors approves $4.0 billion of additional share repurchase authority) MU -3.8%, JEF -2.3%, WOR -2.2% (also names new Exec Chairman), FUL -1.6%
Other news:

OPRA -7.1% (ADS offering by pre-IPO shareholder)
AN -3.9% (in sympathy with KMX earnings)
JCI -3.2% (reports cybersecurity incident)
CVNA -2.4% (in sympathy with KMX earnings)
IMVT -2.1% (prices offering of 7.37 mln shares of common stock at $38.00 per share)
PINE -1.3% (files for $350 mln mixed securities shelf offering)
Analyst comments:

API -3.6% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
RTX -0.7% (initiated with a Sell at Deutsche Bank)

>>> US Gapping Up

Gapping up
In reaction to earnings/guidance:

JBL +1.9%, MRNS +1.3% (guidance), NAPA +0.9% (also CEO to retire), JBLU +0.7% (guidance)
Other news:

BNOX +223.9% (topline results from the Phase 2b ATTUNE Clinical Trial of BNC210 in patients with post-traumatic stress disorder)
GRTS +36.1% (awarded BARDA contract to conduct Phase 2b study for COVID-19 valued at up to $433 mln)
MNOV +18.7% (Results of Studies under BARDA Contract to Develop MN 166 (ibudilast) as a Medical Countermeasure Against Chlorine Gas-induced Lung Injury)
PTON +11.8% (PTON and LULU announce partnership; PTON to become content provider for LULU which will become primary athletic apparel partner to PTON)
GME +8.7% (elects Ryan Cohen as CEO)
SLNO +6.2% (stock offering)
TRMB +2.6% (will acquire an 85% interest in Trimble's (TRMB) portfolio of Ag assets and technologies for cash consideration of $2.0 billion and the contribution of JCA Technologies)
SGMT +2% (completes enrollment for Phase 3 trial)
TTE +1.9% (sells a 40% interest in Block 20 to Petronas ahead of its development)
PFIS +1.6% (PFIS and FNCB to merge)
LDOS +1.2% (collaboration with Sofia Airport in Bulgaria)
Analyst comments:

BWXT +1.3% (initiated with a Buy at Deutsche Bank)
TSCO +0.6% (upgraded to Buy from Neutral at DA Davidson)

WSJ : China Evergrande Shares Suspended After Reports of Founder’s Disappearance

China Evergrande Shares Suspended After Reports of Founder’s Disappearance
Chairman Hui Ka Yan has been placed under police surveillance, according to media reports

HONG KONG—Trading in the shares of China Evergrande Group EGRNF 20.00%increase; green up pointing triangle and two of its publicly listed units was suspended on Thursday, after reports that the beleaguered property developer’s founder and chairman had been placed under police surveillance.

Hui Ka Yan, who is also Evergrande’s controlling shareholder, was taken away by Chinese police earlier this month and is being monitored by authorities, Bloomberg News reported earlier. A domestic Chinese media outlet said Hui was being held at a location in Beijing. He hasn’t been formally charged with any crimes.

The developer’s Hong Kong-listed shares, as well as those of its property-services unit and electric-vehicle manufacturing business, were all halted from trading on Thursday. They recently plummeted to multiyear lows.

An Evergrande spokesperson didn’t respond to requests for comment. The police in Guangdong province, Beijing and Guangzhou—the city where Evergrande is based—couldn’t be reached for comment.

In China, police have been known to place people suspected of crimes in so-called residential surveillance away from their homes, or in state-run detention centers. Individuals have in the past been held in this manner for weeks or months before being formally charged.


Hui, who is now 64 years old, founded Evergrande in 1996 in the southern province of Guangdong. Under his oversight, the company expanded aggressively and became China’s largest and most indebted residential developer before it defaulted on its international bonds in late 2021. Evergrande had the equivalent of more than $327 billion in liabilities at the end of June this year.

Evergrande’s debt crisis set off a cascading series of problems for China’s housing market, construction companies and many other businesses that were deeply entrenched in the property sector. It also caused losses for many investors. Dozens of other developers have also defaulted and some stronger players are now struggling to survive.

New home sales have slumped for much of the past two years and Chinese policy makers and regulators have been using different methods to stop the declines.

Evergrande’s problems have mounted recently. Last week, the company scrapped an offshore debt restructuring plan that had taken more than a year to agree upon with international investors.

Over the weekend, Evergrande said an investigation into a subsidiary barred it from issuing new bonds outside of mainland China—something that was essential for the debt restructuring to go ahead. On Monday, Evergrande’s mainland property business, Hengda Real Estate Group, skipped roughly $547 million of principal and interest payments on a yuan-denominated bond, according to a stock exchange filing.

In late August, Evergrande’s wealth-management unit said it couldn’t make previously agreed payments to investors. On Sept. 16, police in Shenzhen said they had detained several employees of the unit, which is based in that city. The police have asked investors to report losses that they have incurred from investing in Evergrande’s wealth products.

Evergrande’s former chief financial officer was recently detained by police, who also imposed restrictions on the company’s former chief executive officer, according to a September report in Caixin, a domestic business news outlet. The duo had been ousted by the developer last year following an internal investigation into how about $2 billion in a subsidiary’s cash was seized by banks.

For much of the past two years, Hui kept a relatively low profile but was featured regularly in Evergrande’s social-media posts leading internal meetings and working on the company’s restructuring plans. The company last published pictures and a video of Hui attending a meeting in December last year.

Some big corporate failures in China in past years have been followed by arrests or detentions of the companies’ leaders.

In 2021, hotels-to-airlines conglomerate HNA Group said Chairman Chen Feng and CEO Adam Tan were detained by police on suspicion of committing crimes. HNA was one of China’s most acquisitive private companies outside the country, until it struggled to repay its debt and was forced to file for bankruptcy and reorganization.

Wu Xiaohui, the former chairman of Anbang Insurance Group, another formerly highflying company that acquired trophy assets abroad, was detained by Chinese authorities in 2017 and charged with fraud the following year. Wu ended up being penalized with a large fine and sentenced to 18 years in prison.

>>> Europe : Brokers Upgrades & Downgrades - 28th of September 2023 V2(+)

>>> Up
* Bpost Raised to Buy at KBC Securities; PT 6.90 euros
* Elisa Raised to Hold at HSBC; PT 46 euros
* Lemonsoft Raised to Accumulate at Inderes; PT 6.40 euros
* NextEra Energy Raised to Buy at CFRA
* Redeia Corp SA Raised to Overweight at Barclays; PT 18 euros
* Severn Trent Raised to Overweight at Barclays; PT 3,360 pence
* Solaria Energia Raised to Overweight at Barclays; PT 21 euros
* Talanx Raised to Buy at Berenberg; PT 69 euros

>>> Down
* Beneteau Cut to Add at Gilbert Dupont; PT 15 euros (+)
* Capricorn Energy Cut to Add at AlphaValue/Baader
* Central Asia Metals Cut to Hold at Halyk Finance; PT 223 pence
* Cogelec SACA Cut to Hold at TP ICAP Midcap; PT 8.20 euros (+)
* CTS Eventim Rated New Buy at SocGen; PT 65 euros
* Engie Cut to Equal-Weight at Barclays; PT 18 euros
* H&M Cut to Hold at Deutsche Bank; PT 175 kronor
* Naturgy Cut to Underweight at Barclays
* Nexstim Cut to Reduce at Inderes; PT 3 euros (+)
* United Utilities Cut to Equal-Weight at Barclays; PT 1,290 pence
* Voltalia Cut to Neutral at Oddo BHF (+)
* Zoo Digital Group Cut to Hold at Stifel; PT 90 pence (+)

>>> Initiation
* AB InBev ADRs Rated New Outperform at Cowen; PT $67
* Alfen Rated New Neutral at BNPP Exane; PT 45 euros
* Argenx Rated New Outperform at Oddo BHF; PT 600 euros
* BAT ADRs Rated New Market Perform at Cowen; PT $33
* Diageo ADRs Rated New Market Perform at Cowen; PT $152
* Fastned GDRs Rated New Outperform at BNPP Exane; PT 38 euros
* Fortum Reinstated Overweight at Barclays
* Galapagos Rated New Neutral at Oddo BHF; PT 44 euros
* Hemnet Rated New Buy at Pareto Securities; PT 220 kronor
* Imperial Brands ADRs Rated New Market Perform at Cowen; PT $25
* Jumbo Rated New Equal-Weight at Morgan Stanley; PT 29 euros
* Kempower Rated New Outperform at BNPP Exane; PT 64 euros
* Macfarlane Rated New Buy at Berenberg; PT 145 pence
* National Grid Reinstated Overweight at Barclays
* Uniper Reinstated Underweight at Barclays

>>> Call
* Bpost Gets Only Buy Rating as KBC Sees Better Visibility Ahead (+)
* European Utilities With Generation Exposure Favored at Barclays
* National Grid Overweight at Barclays, Pennon Top UK Water Pick
* Talanx Raised to Buy at Berenberg on Outstanding Business Model