FT : UN inspectors find mines at Russian-occupied nuclear plant in Ukraine

UN inspectors find mines at Russian-occupied nuclear plant in Ukraine
Explosives planted in buffer zone at Zaporizhzhia facility should not affect its safety and security systems, says IAEA

UN atomic watchdog inspectors have found landmines at the site of Ukraine’s Zaporizhzhia nuclear power plant, occupied by Russian forces since the early days of the war after their full-scale invasion last year.

The International Atomic Energy Agency said the mines were planted in a buffer zone between the internal and external perimeter barriers, at what is the biggest nuclear facility in Europe.

“Having such explosives on the site is inconsistent with the IAEA safety standards and nuclear security guidance and creates additional psychological pressure on plant staff,” Rafael Grossi, the IAEA’s director- general, said in a statement on Monday night.

But he added that the “detonation of these mines should not affect the site’s nuclear safety and security systems”.

Since last year Ukraine has accused Russia of militarising the plant by basing troops there and storing weaponry at the site. It is located in Energodar, a city in the southern regions of Ukraine, which Russia’s forces occupy along with the country’s far east.

Grossi said the IAEA had been aware of the previous placement of mines “outside the site perimeter and also at particular places inside”. He added the nuclear body’s permanent inspectors on the site “have been told that it is a military decision, and in an area controlled by military”.

The IAEA said its experts had carried out inspections and regular “walk-downs” across the nuclear plant “without seeing any heavy military equipment”. But they said they were “continuing to request access to the roofs of the [plant’s] reactors and their turbine halls, including units three and four which are of particular interest”.

Western officials, military analysts and scientists have long warned about the possibility of a nuclear accident at Zaporizhzhia.

Safety concerns spiked last month after the nearby Kakhovka dam along the Dnipro river was blown up, flooding swaths of land and threatening to deprive the nuclear plant of water needed to cool nuclear fuel on site, even though electricity generation was halted last year.

“The IAEA experts are continuing to closely monitor the situation regarding the availability of water for cooling the ZNPP’s six reactors and other essential nuclear safety and security functions,” the IAEA statement said.

“Available water supply remains relatively stable . . . the site continues to have sufficient water for some months,” it added.

Lingering concerns about the nuclear power plant come a week into a Russian air strike campaign that has targeted Ukraine’s Black Sea ports in a bid to choke Ukrainian grain exports. Moscow last week withdrew from a UN-brokered agreement from last summer that created a maritime food shipment corridor to ease Russia’s Black Sea blockade of Ukrainian ports.

In a phone call with UK prime minister Rishi Sunak on Tuesday, Ukraine’s president Volodymyr Zelenskyy pleaded for additional air defence systems to protect his country’s ports, including the provincial capital Odesa, whose historic centre was this weekend heavily scarred by a Russian missile strike.

“Ukraine urgently needs to strengthen its air defence to protect its historical heritage and continue the Black Sea Grain Initiative,” Zelenskyy wrote on Twitter.

On Monday Russia launched drone strikes on Ukraine’s Reni port on the Danube, which forms a border with Romania, an EU country and member of the Nato military alliance.

Russia conducted fresh “kamikaze” drone strikes in the early hours of Tuesday targeting Kyiv and regions to the west, east and south of the capital. Officials said all those aimed at Kyiv were intercepted, but some infrastructure damage was reported in other regions.

EU agriculture ministers are scheduled to meet in Brussels on Tuesday to discuss alternative routes for Ukrainian grain to reach world markets after Russia threatened to attack ships in the Black Sea, the main supply route.

Plans include increasing capacity to bring cereals out over land and river routes through the EU, said Luis Planas, Spain’s agriculture minister, who is chairing the meeting.

>>> US Research Calls

Research Calls

  • Upgrades:
    • Adidas AG (ADDYY) upgraded to Buy from Hold at Societe Generale
    • Adidas AG (ADDYY) upgraded to Outperform from Neutral at Exane BNP Paribas
    • Datadog (DDOG) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $140
    • Fortum Oyj (FOJCY) upgraded to Buy from Hold at Berenberg
    • Huntington Banc (HBAN) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $13
    • KBC Group SA (KBCSY) upgraded to Buy from Hold at Deutsche Bank
    • Meta Platforms (META) upgraded to Buy from Neutral at New Street; tgt $350
    • Walmart (WMT) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $210
    • Zscaler (ZS) upgraded to Buy from Neutral at BTIG Research; tgt $185
  • Downgrades:
    • Avanos Medical (AVNS) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • Bank of Hawaii (BOH) downgraded to Underperform from Mkt Perform at Keefe Bruyette; tgt $47
    • CI&T Inc (CINT) downgraded to Neutral from Buy at Citigroup; tgt raised to $7
    • Corteva (CTVA) downgraded to Neutral from Buy at Redburn
    • Goldman Sachs (GS) downgraded to Neutral from Buy at Citigroup; tgt raised to $400
    • Inditex (IDEXY) downgraded to Neutral from Outperform at Exane BNP Paribas
    • Kodiak Sciences (KOD) downgraded to Underweight from Neutral at JP Morgan
    • MainStreet Bancshares (MNSB) downgraded to Equal-Weight from Overweight at Stephens; tgt $24
    • NIKE (NKE) downgraded to Underperform from Neutral at Exane BNP Paribas
    • Progressive (PGR) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $114
    • Rackspace Technology (RXT) downgraded to Sell from Neutral at Citigroup; tgt raised to $1.50
    • Sprouts Farmers Market (SFM) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $42
    • TC Energy (TRP) downgraded to Neutral from Sector Outperform at CIBC
    • Tractor Supply (TSCO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $226
    • Vermilion Energy (VET) downgraded to Hold from Buy at Desjardins
    • Walt Disney (DIS) downgraded to Underweight from Neutral at Atlantic Equities; tgt lowered to $76
    • Zevia PBC (ZVIA) downgraded to Neutral from Buy at Goldman; tgt lowered to $3
  • Others:
    • dLocal Limited (DLO) initiated with a Positive at Susquehanna; tgt $18.50
    • Emerald Holding (EEX) initiated with a Buy at Rosenblatt; tgt $7.20
    • Electronic Arts (EA) initiated with a Hold at HSBC Securities; tgt $128
    • Endava (DAVA) placed on negative catalyst watch at Citigroup; tgt lowered to $63
    • EPAM Systems (EPAM) placed on negative catalyst watch at Citigroup; tgt raised to $240
    • Fidelis Insurance Holdings Limited (FIHL) initiated with a Market Perform at BMO Capital Markets; tgt $15
    • Fluence (FLNC) initiated with a Neutral at ROTH MKM; tgt $31
    • Howmet Aerospace (HWM) initiated with an Outperform at Robert W. Baird; tgt $61
    • Incyte (INCY) initiated with a Buy at Citigroup; tgt $82
    • JD.com (JD) named Research Tactical Idea at Morgan Stanley; tgt $60
    • Kenvue (KVUE) initiated with a Buy at Edward Jones
    • lululemon athletica (LULU) assumed with an Overweight at KeyBanc Capital Markets; tgt $425
    • MAC Limited (MTAL) initiated with a Buy at Canaccord Genuity; tgt $13
    • Mobileye Global (MBLY) resumed with an Equal-Weight at Morgan Stanley; tgt $34
    • NIKE (NKE) assumed with a Sector Weight at KeyBanc Capital Markets
    • On (ONON) initiated with an Overweight at KeyBanc Capital Markets; tgt $42
    • Playtika (PLTK) initiated with a Buy at HSBC Securities; tgt $15.80
    • ProKidney Corp. (PROK) initiated with a Buy at BTIG Research; tgt $16
    • Shift4 Payments (FOUR) initiated with a Buy at Mizuho; tgt $80
    • SoFi Technologies (SOFI) initiated with an Equal-Weight at Stephens; tgt $7
    • Sprinklr (CXM) initiated with a Buy at DA Davidson; tgt $17
    • Take-Two (TTWO) initiated with a Buy at HSBC Securities; tgt $170
    • Warner Music Group (WMG) initiated with an Outperform at TD Cowen; tgt $38
    • Watsco (WSO) initiated with a Neutral at Mizuho; tgt $360
    • Wix.com (WIX) placed on 90-day upside catalyst watch at Citigroup; tgt $120

>>> US Research Calls

Research Calls

  • Upgrades:
    • Datadog (DDOG) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $140
    • Walmart (WMT) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $210
    • Zscaler (ZS) upgraded to Buy from Neutral at BTIG Research; tgt $185
  • Downgrades:
    • Avanos Medical (AVNS) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • Corteva (CTVA) downgraded to Neutral from Buy at Redburn
    • Goldman Sachs (GS) downgraded to Neutral from Buy at Citigroup; tgt raised to $400
    • Progressive (PGR) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $114
    • Rackspace Technology (RXT) downgraded to Sell from Neutral at Citigroup; tgt raised to $1.50
    • Walt Disney (DIS) downgraded to Underweight from Neutral at Atlantic Equities; tgt lowered to $76
  • Others:
    • dLocal Limited (DLO) initiated with a Positive at Susquehanna; tgt $18.50
    • Emerald Holding (EEX) initiated with a Buy at Rosenblatt; tgt $7.20
    • Howmet Aerospace (HWM) initiated with an Outperform at Robert W. Baird; tgt $61
    • Incyte (INCY) initiated with a Buy at Citigroup; tgt $82
    • Kenvue (KVUE) initiated with a Buy at Edward Jones
    • MAC Limited (MTAL) initiated with a Buy at Canaccord Genuity; tgt $13
    • On (ONON) initiated with an Overweight at KeyBanc Capital Markets; tgt $42
    • Playtika (PLTK) initiated with a Buy at HSBC Securities; tgt $15.80
    • ProKidney Corp. (PROK) initiated with a Buy at BTIG Research; tgt $16
    • Shift4 Payments (FOUR) initiated with a Buy at Mizuho; tgt $80
    • Sprinklr (CXM) initiated with a Buy at DA Davidson; tgt $17
    • Take-Two (TTWO) initiated with a Buy at HSBC Securities; tgt $170
    • Warner Music Group (WMG) initiated with an Outperform at TD Cowen; tgt $38
    • Watsco (WSO) initiated with a Neutral at Mizuho; tgt $360

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:

  • TBI -15.3%, SPOT -6.8%, MEDP -6%, DOV -5.5%, ALK -5.1%, DHR -5.1%, IRDM -5.1%, CDNS -4.1%, RTX -3.1%, NWE -2.8%, IBTX -2.6%, CCK -2.2%, HXL -2.1%, AGYS -2%, AVY -2%, IVZ -2%, MCO -1.7%, HUBB -1.4%, GLW -1.3%, MLI -0.9%, NUE -0.7%, HRI -0.7%, AGNC -0.6%, PII -0.6%

Other news:

  • STOK -39.7% (reports Safety & Efficacy Data from Patients Treated with STK-001 in the Phase 1/2a Studies (MONARCH & ADMIRAL) and the SWALLOWTAIL Open-Label Extension (OLE) Study in Children and Adolescents with Dravet Syndrome)
  • TARS -11.5% (FDA Approves XDEMVY (lotilaner ophthalmic solution) 0.25% for the treatment of Demodex blepharitis)
  • SOUN -8.2% (files $400 mln mixed shelf)
  • AMC -8.2% (moving lower potentially due to court filing)
  • VRDN -0.9% (stock offering)

Analyst comments:

  • RXT -7% (downgraded to Sell from Neutral at Citigroup)
  • KOD -5.1% (downgraded to Underweight from Neutral at JP Morgan)
  • PGR -1.7% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • DIS -0.8% (downgraded to Underweight from Neutral at Atlantic Equities)
  • GS -0.5% (downgraded to Neutral from Buy at Citigroup)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:

  • FFIV +10.2%, LOGI +7%, SHW +5.2%, ZWS +5%, UL +4.6%, IPAR +3.9% (guidance), GE +3.9%, XRX +3.9%, LTH +3.3%, RGP +3%, PJT +2.7%, VZ +2.7%, BRO +2.6%, MMM +2.4%, MSCI +2.4%, WSFS +2.1%, HSTM +2%, VLRS +2%, GM +1.8%, PHM +1.6%, NXPI +1.4%, BIIB +1.2%, NXGN +1.1%, ST +1.1%, KMB +1%, SSD +0.9%

Other news:

  • NIO +4.8% (CYVN Investments disclosed 7.7% stake)
  • APE +2.8% (moving higher potentially due to court filing) SSL +2.8% (provides FY23 sales and production update)
  • MCFT +1.1% (authorizes $50 mln repurchase program)
  • MDC +1% (increases dividend)

Analyst comments:

  • DDOG +3.6% (upgraded to Outperform from Peer Perform at Wolfe Research)
  • ZS +2.7% (upgraded to Buy from Neutral at BTIG Research)
  • META +1.2% (upgraded to Buy from Neutral at New Street)
  • WMT +1.1% (upgraded to Overweight from Neutral at Piper Sandler)

>>> What to look at today - 25th of July 2023

Chinese shares rallied on optimism that more economic support will come from Beijing, while traders also geared up for a number of key central bank rate decisions later this week. Technology shares in Hong Kong jumped more than 4% while a China property stock gauge was on course to post the biggest gain since December as the nation’s top leaders used a crucial Politburo meeting to flag more aid. Other Asian markets were narrowly mixed, with the benchmark index in Australia marginally higher and Japanese equities trading slightly lower. While the Communist Party’s top decision-making body fell short of announcing large-scale stimulus, it signaled more support for the troubled real estate sector, alongside pledges to boost consumption and resolve local government debt. That helped give bullish momentum for equity traders. The offshore yuan also advanced to its strongest level in more than a week after the People’s Bank of China continued its support for the currency. The commodity-heavy Australian dollar, which is sensitive to China’s growth outlook, gained 0.4%. The big question that comes next is whether the positive sentiment will be sustainable. Key Federal Reserve and European Central Bank’s gatherings this week will be closely watched for signs policymakers may be reaching the end of the cycle of aggressive policy tightening. There were fresh reminders about the negative recessionary affects of continuous rate hikes with disappointing data from both the US and euro-area. Aside from the economic picture, global companies with a combined $27 trillion in value were set to report results, including giants Microsoft Corp., LVMH and Samsung Electronics Co. Yields on the two-year Treasury declined around eight basis points Tuesday in Asia after an auction Monday drew the highest yield since 2007, while those for the 10-year were steady. The dollar edged slightly lower. The outlook for the world’s largest economy will likely hinge on the Fed’s willingness to tolerate inflation markedly higher than it would prefer. After taking a break from tightening last month, Chair Jerome Powell and his colleagues look locked in to raising interest rates by a quarter percentage point on Wednesday. Among the corporate highlights from the US, Tesla Inc. advanced after disclosing strong sales outside the US and China. Apple Inc. gained as Bloomberg News reported the company is keeping its iPhone shipments steady despite the 2023 turmoil. Elsewhere, oil held near three-month high as China moved to bolster growth. Wheat and corn gained as Russia attacked one of Ukraine’s biggest Danube river ports. US After Hours FFIV +8.4%, NXPI +1.1%, PKG +1% up on earnings; TBI -12.5%, CDNS -4.1%, MEDP -3.9%, WHR -1.1% tracking lower following earnings; SOUN -17.1% plunges on mixed shelf filing; AMC -11.5% down big potentially on court filing.

Nikkei -0.47% Hang Seng +3.16% CSI +2.61% Shanghai +1.89% Shenzen +1.94%

Eur$ 1.1075 CNH 7.1529 CNY 7.1523 JPY 141.36 GBP 1.2838 CHF 0.8690 RUB 90.6333 TRY 26.9497 WTI$ 78.95 +0.27% Gold 1,962 +0.35% XBT 29,082 -0.22% ETH 1,848 -0.12%

S&P +0.05% Nasdaq -0.01% EuroStoxx -0.05% FTSE -0.16% Dax -0.10% SMI

Macro :
- GlobalFoundries criticises German subsidies for TSMC
- Chinese Stocks Rally Sharply on Politburo Message: Macro Squawk
- ‘We Were Wrong’: Morgan Stanley’s Wilson Offers Stocks Mea Culpa
- Citi Says Investors in Profit-Taking Mode Amid Earnings Flurry
- Dubai Taxi IPO Plan Puts Privatization Back in Focus: ECM Watch

Keep an eye on :
- ABBN SW : Green Energy Spending, Air Travel Brighten Industrials Outlook
- AC FP : Accor Ebitda Can Top Forecast With €1 Billion in Sight: BI Focus
- ADS GY : Adidas Sees FY Oper Loss EU450M, Saw Loss EU700M; ADS Rise
- AIR FP : Airbus Weighs a Separate Leader for Its Planemaking Arm: Reuters
- AKZA NA : Akzo Nobel Raises FY View; 2Q Adjusted Ebitda Misses Estimates
- ALO FP : Alstom Signs Contract Valued at About EU900m for Stream Trains
- ALO FP : Alstom 1Q Backlog Beats Estimates
- AAD GY : Amadeus Fire 1H Operating Ebita EU32.9M
- AAPL US : Apple iPhone 15 Pro Could Surprise Buyers With A Price Hike
- AZN LN : Ono, Bristol-Myers Settle PD-L1 Patent Suit With AstraZeneca
- BAYN GY : Bayer Cuts 2023 Outlook Amid Slump in Prices for Roundup
- BEN FP : Beneteau 2Q Revenue EU550.1M Vs. EU398.2M Y/y
- BIIB US : Biogen Alzheimer’s Drug Launch to Eclipse Results: Preview
- BNP FP : AMF Says BNP Paribas Must Reimburse up to EU7.75M in Mgmt Fees
- CRL IM : Carel Industries Announces Plan to Acquire 82.4% of Kiona
- AM FP : Qatar Weighs Buying 24 Extra Rafale Fighter Jets: La Tribune
- DSY FP : Dassault Systemes 2Q Non-IFRS Rev Ex-FX Misses Estimates
- DIS US : Disney Weighs Delaying Some 2023 Movie Releases Amid Strikes
- EDEN FP : Edenred Sees FY Ebitda EU1.02B to EU1.09B, Est. EU1.02B
- FFARM NA : ForFarmers to Merge Feed Activities With Piast Pasze in Poland
- FTK GY : flatexDEGIRO 2Q Ebitda Misses Estimates
- GAM SW : Niel’s Investor Group Asks Swiss Regulator to Reprimand GAM
- GVOLT PL : Greenvolt to Sell Two Renewable Projects in Poland for €107m
- HMB SS : Shein Sued by H&M for Copyright Infringement in Hong Kong
- IDIA SW : Idorsia Suspends '25 Profitability Goal, Beats 2Q Op. Loss Est.
- IPAR US : Inter Parfums FY Net Sales Forecast Beats Estimates
- ITP FP : Interparfums Boosts FY Sales Forecast
- KINDSDB SS : Kindred Reiterates FY Guidance as 2Q Profit Beats Estimates (1)
- KNIN SW : Kuehne + Nagel 2Q Ebitda Beats Estimates
- LBTYA US : Liberty Global Misses Profit Estimates, Boosts Share Buybacks
- LISN SW : Lindt & Spruengli Boosts FY Organic Sales Forecast
- LOGN SW : Logitech's 1Q Signals Better Days Beyond 2Q Margin Trough: React
- LHA GY : Lufthansa Takes Fight Over €6 Billion Covid Aid to Top EU Court
- MC FP : LVMH to Sponsor Paris Olympics in a First for Luxury Group (1)
- NUE US : Nucor 2Q EPS Beats Estimates
- NXPI US : NXP Semi Sees 3Q Adjusted EPS $3.39 to $3.82, Est. $3.43
- PETM US : BC Partners Agrees to Sell Minority Stake in PetSmart to Apollo
- PST IM : Poste Italiane 2Q Ebit Beats Estimates
- RAND NA : Randstad 2Q Organic Revenue Beats Estimates
- RCO FP : Remy Cointreau 1Q Organic Revenue Beats Estimates
- SHEL LN : Shell, Pertamina, Petronas Agree on Masela Stake Transfer
- SOF BB : Sofina Prelim 1H Net Asset Value per Share EU279
- SPOT US : Spotify Drops Most Since December on Subscription Price Hike
- SO FP : Sodexo’s Pluxee Announces Partnership With Santander in Brazil
- SUN SW : Sulzer 1H Ebit CHF151.5M Vs. Loss CHF25.5M Y/y
- TSLA US : Tesla Looks Abroad to Keep Growth Going as US Revenue Plateaus
- HO FP : Thales Buys Imperva From Thoma Bravo for $3.6B Ent. Value
- TUI1 GY : TUI Says All Bookings to Rhodes Canceled Through July 28
- UBSG SW : Swiss Regulator Orders UBS to Take Archegos-Related Measures
- UTG LN : Unite Group 1H Pretax Profit GBP116.9M Vs. GBP334.1M Y/y
- DG FP : Vinci Takes Over Cabo Verde Ops After Financial Structuring
- VAR NO : Var Energi 2Q Ebit $778M Vs. $1.43B Q/Q
- TEF SM : Virgin Media O2 Plans to Cut ‘Some’ Jobs This Year
- VOW GY : BYD Widens Lead Over Volkswagen as China’s Top Car Brand on EVs

>>> Europe : Brokers Upgrades & Downgrades - 25th of July 2023

>>> Up
* Adevinta Raised to Buy at HSBC; PT 90 kroner
* Adidas Raised to Outperform at BNPP Exane; PT 210 euros
* Boliden Raised to Neutral at Credit Suisse; PT 290 kronor
* Fortum Raised to Buy at Berenberg
* Schibsted Raised to Buy at Goldman; PT 259.50 kroner
* Walmart Raised to Overweight at Piper Sandler; PT $210

>>> Down
* 7C Solarparken Rated New Buy at Berenberg; PT 6 euros
* Auto Trader Cut to Underweight at JPMorgan; PT 555 pence
* Catena Media Cut to Hold at ABG; PT 28 kronor
* Inditex Cut to Neutral at BNPP Exane; PT 36 euros
* Moneysupermarket Cut to Hold at Peel Hunt; PT 290 pence
* Nike Cut to Underperform at BNPP Exane; PT $92
* Poxel Cut to Hold at Jefferies; PT 70 euro cents
* Sartorius Cut to Reduce at AlphaValue/Baader
* Viaplay Cut to Sell at DNB Markets; PT 35 kronor

>>> Initiation
* 1812 Brewing Rated New Outperform at Oddo BHF
* 7C Solarparken Rated New Buy at Berenberg; PT 6 euros
* Electronic Arts Rated New Hold at HSBC; PT $128
* Mobileye Resumed Equal-Weight at Morgan Stanley; PT $34
* Universal Music Rated New Outperform at Cowen; PT 26 euros

>>> Call