TheChek News Flow

>>> US Early premarket gappers

Early premarket gappers

Gapping up:
PERI +8.1%, VSTM +4.7%, MITK +4.6%, HUT +4.6%, MARA +3.6%, BANC +3.4%, MRUS +2.8%, COTY +2.2%, SAVE +2%, ACT +1.1%, NKTX +0.9%, LDOS +0.8%, WAB +0.7%, AEG +0.6%

Gapping down:
ASLN -3.1%, JBLU -2.5%, ABCM -1.8%, XOM -1.3%, AAL -1.3%, PAC -1.1%, SLDP -0.8%, F -0.8%, VMEO -0.7%, MPWR -0.5%, UMC -0.5%

FT : US utilities defend gas stoves to head off electrification threat

US utilities defend gas stoves to head off electrification threat

Lobbyists back bills to keep blue flames on hobs as policymakers pursue climate measures

The lowly kitchen stove accounts for less than 1 per cent of US natural gas consumption. But the companies whose pipes deliver it to homes have marshalled political forces to head off suggestions that gas stove use be curtailed.

Federal records show large US gas utilities, including CenterPoint Energy and CMS Energy, and their trade groups have lobbied on bills this year such as the Save Our Gas Stoves Act, which the House of Representatives passed in June.

The act aims to block the Department of Energy from imposing new efficiency standards for gas stoves that its sponsor said would force most current models off the market. The White House has insisted it has no plan to ban gas stoves.

For utilities — monopolies that make regulated returns based on the value of their assets — the lobbying effort reflects fears that stoves are the start of a broader phaseout of natural gas as climate policy aims to electrify more of the energy system.

Ryan Kelley, portfolio manager of the Hennessy Gas Utility Fund, said: “The actual financial hit for a complete nationwide ban on natural gas stoves is very small, and not really a huge issue. I think the bigger issue is that the trend will lead to outright banning of anything in the home that uses natural gas.”

More than 47mn US households cook with gas, or 38 per cent of the total, according to the Energy Information Administration. Residential cooking used 88.3bn cubic feet of gas in 2020, or 0.3 per cent of that year’s total US gas consumption of 30.5tn cu ft.

Gas hobs have come under new scrutiny over indoor air pollution and climate-altering emissions from burning fuel.

In October, researchers found gas stoves in California were leaking benzene, a pollutant that causes cancer. A study in January linked the stoves to increased risk of asthma.

“Products that can’t be made safe can be banned,” said Richard Trumka, a Joe Biden-appointed commissioner at the US Consumer Product Safety Commission, referring to gas stoves in January.

The CPSC quickly clarified that it was not considering a ban on gas stoves, but the comment sparked a backlash from Republican lawmakers.

The energy department proposed its efficiency standards for stoves in February, aiming to bring them into force in 2027. The agency said the government does not seek to forbid gas stoves, branding the accusation “absurd”.

Gas stoves are being targeted in some local and state jurisdictions. New York in May became the first state to ban natural gas connections in new buildings, prohibiting gas stoves along with water heaters, clothes dryers and other appliances that burn gas. Service to existing buildings was not affected by the legislation.

Richard Meyer, vice-president of energy markets at the American Gas Association, which represents gas utility companies, said: “The approach from many states and cities in different parts of the US has been to change building codes that would really require all electric equipment or deny hookups of fuel gas equipment to the home.”

In Washington, stoves have become a culture-war symbol for Republicans who claim the government wants to regulate away consumers’ fuel choices. “God. Guns. Gas stoves,” Ohio lawmaker Jim Jordan wrote on Twitter in January.

The Republican-controlled House last month passed the Save Our Gas Stoves Act and the Gas Stove Protection and Freedom Act, which would stop the CPSC from banning stoves.

The AGA welcomed the bills, arguing “customers want natural gas”, and urged the Democrat-controlled Senate to pass the legislation. The American Public Gas Association, which represents municipal-owned utilities, said the bills “prevent the regulatory assaults on gas-cooking products that would significantly impact the direct use of natural gas, which APGA members advocate for”.

Utilities have flagged the threat of restrictions to investors. Houston-based CenterPoint Energy, which delivers gas in six states, warned in its annual report that customer growth could be affected by “bans on or further regulation of natural gas-fired appliances”.

Asked about federal lobbying, CenterPoint said: “We believe it is important for our congressional offices to have an understanding of the impact regulation or legislation may have on customer fuel choice.”

Consumers Energy, a subsidiary of CMS Energy, said the Michigan utility was “focused on policies that best serve and provide affordable access to energy” for its customers, adding: “We support the bipartisan Save Our Gas Stoves Act and hope to encourage more discussion among policymakers as we work toward our goal of a carbon-neutral natural gas system by 2050.”

National Grid, the UK-based utility with businesses in the US north-east, also lobbied on the Gas Stove Protection and Freedom Act and Save Our Gas Stoves Act, records showed, although the records did not specify the company’s position on the bills. National Grid did not respond to a request for comment.

Kelley of Hennessy Funds said the energy used by stoves made up a “pretty small percentage” of gas utility companies’ overall revenues. In the home, natural gas is primarily used for space heating.

However, scrutiny of gas stoves comes as climate advocates push for broad electrification of the energy system, powered by zero-carbon sources such as solar, wind and nuclear, to replace direct combustion of fuels.

“One of the reasons why the industry and the trade groups are fighting hard against it is that it could be seen as the first step,” Kelley said.

Joe Vukovich, of the Natural Resources Defense Council environmental group, accused the industry of taking a “scorched earth” approach.

“They keep trying to portray things that are not a gas stove ban as a gas stove ban,” Vukovich said. “This is a playbook we’ve seen in a lot of different policy areas — you try to portray what your opponents are doing as a ban or as anti-consumer choice, and you say how terrible that is and that it’s un-American.”

>>> Europe : Brokers Upgrades & Downgrades - 6th of July 2023 V2(+)

>>> Up

* BHP Raised to Hold at Liberum

* Brunello Cucinelli Raised to Neutral at BNPP Exane; PT 83 euros

* Caledonia Mining Raised to Buy at Liberum

* Constellation Brands PT Raised to $282 from $254 at Argus

* Microsoft PT Raised to $415 from $335 at Morgan Stanley

* Mondi Raised to Overweight at JPMorgan; PT 1,355 pence

* Simon Property Raised to Outperform at Wolfe; PT $127

* Smiths Raised to Sector Perform at RBC; PT 1,775 pence

* Smurfit Kappa Raised to Overweight at JPMorgan; PT 3,100 pence

* Tele2 Raised to Buy at DNB Markets; PT 107 kronor
* u-blox Raised to Buy at Baader Helvea; PT 139 Swiss francs

* United Utilities Raised to Overweight at Morgan Stanley

* UPM-Kymmene Raised to Equal-Weight at Morgan Stanley

* Vicat Raised to Hold at HSBC; PT 27 euros

>>> Down

* Alfen PT Cut to 50 euros from 58 euros at Jefferies

* American Express Cut to Neutral at Baird; PT $185

* Clariant PT Cut to 14 Swiss francs from 16 Swiss francs at Citi

* Eagle Materials Cut to Underweight at JPMorgan; PT $190

* Energy Srl Cut to Hold at Stifel; PT 3 euros (+)

* Euronext Cut to Hold at Deutsche Bank; PT 69 euros

* Geberit Cut to Reduce at HSBC; PT 419 Swiss francs

* Heidelberg Materials AG Cut to Hold at HSBC; PT 81 euros

* Kingspan Cut to Hold at HSBC; PT 64 euros

* Martin Marietta Cut to Neutral at JPMorgan; PT $470

* Nemetschek Cut to Underweight at Barclays; PT 60 euros
* Purmo Group Cut to Hold at SEB Equities; PT 7.90 euros

* Vulcan Materials Cut to Neutral at JPMorgan; PT $230

* Wentworth Cut to Hold at Panmure Gordon; PT 35 pence

>>> Initiation

* CTP Rated New Buy at Berenberg; PT 14.50 euros
* Fasadgruppen Group Rated New Buy at SEB Equities; PT 126 kronor

* Idorsia Resumed Sell at Citi; PT 5.50 Swiss francs

* WDP Rated New Hold at Berenberg; PT 28 euros

>>> Call

* Clariant PT Cut at Citi, Cites Volume Weakness Hitting Profit (+)

* Idorsia Rated Sell at Citi on Lack on Quviviq Revenue Inflection

* Japan May Intervene If Yen Weakens Past 150 to Dollar, Citi Says

* Nemetschek Downgraded at Barclays on Construction Weakness

* Smiths Valuation Back In Line, Raised to Sector Perform at RBC

* Smurfit Kappa and Mondi Raised at JPMorgan on Bottoming Prices

* UPM Raised as Morgan Stanley Sees Less Packaging Sector Downside

>>> Stoxx 600 Pre-Market Indications

Wacker Chemie (WCH TH) -1.3%
DHL Group (DPW TH) -1.3%
Infineon (IFX TH) -1.3%
Lotus Bakeries (7LB TH) -1.4%
HelloFresh (HFG TH) -1.5%
Renault (RNL TH) -1.5%
Heidelberg Materials AG (HEI TH) -2.8%
- Heidelberg Materials AG Cut to Hold at HSBC; PT 81 euros
Nemetschek (NEM TH) -2.9%
- Nemetschek Downgraded at Barclays on Construction Weakness
Gerresheimer (GXI TH) -3.7%
- Gerresheimer 2Q Adj. Ebitda Misses Estimates, FY View Confirmed
Embracer (TH9 TH) -8.8%
- Embracer Offering of 80m Shares Prices at SEK25/Share

>>> TradeGate Pre-Market Indications

DAX:

Fresenius SE (FRE TH) -0.9%
Continental (CON TH) -1%
Infineon (IFX TH) -1.2%
Vonovia (VNA TH) -1.3%
Heidelberg Materials AG (HEI TH) -3%
- Heidelberg Materials AG Cut to Hold at HSBC; PT 81 euros

MDAX:

TAG Immobilien (TEG TH) -0.9%
HelloFresh (HFG TH) -1.1%
Nemetschek (NEM TH) -2.3%
- Nemetschek Downgraded at Barclays on Construction Weakness
Gerresheimer (GXI TH) -4.2%
- Gerresheimer 2Q Adj. Ebitda Misses Estimates, FY View Confirmed

SDAX:

Suedzucker (SZU TH) +3.5%
- Suedzucker Boosts FY Operating Profit Forecast, Beats Estimates
Heidelberger Druck (HDD TH) +0.7%
MorphoSys (MOR TH) -0.9%
Salzgitter (SZG TH) -1.3%
PNE AG (PNE3 TH) -1.4%
SUSE (SUSE TH) -4.1%
- SUSE 2Q Adjusted Ebitda Misses Estimates, FY Outlook Confirmed

>>> What to look at today - 6th of July 2023

Equity benchmarks across Asia fell on Thursday with Hong Kong shares leading the losses in a broad, risk-off move across global markets. The Hang Seng Index tumbled as much as 3.2% while benchmarks in Japan and Australia fell more than 1%. A gauge representing Chinese firms also dropped. US equity futures fell, compounding Wednesday losses for the S&P 500. Chinese investors don’t expect policymakers to unveil aggressive stimulus or big economic reforms at a key meeting expected later this month, accordingu to Goldman Sachs Group Inc. Traders have been hoping for more as a slew of data disappointed, including the latest services industry release on Wednesday. Investors also digested news that Chinese banks have stopped buying bonds issued in the Shanghai free trade zone after heightened regulatory scrutiny, in a development that hurts local government financing vehicles. Treasuries rose two basis points to 3.95%, adding to gains on Wednesday that were spurred by the latest Federal Reserve minutes. The two-year rate inched up to 4.96%. The action was driven by Fed minutes showing division among policymakers over the decision to pause in the central bank’s June meeting, with the voting members on track to take rates higher this month. Traders are also looking ahead to US jobs data over the next two days that will further illuminate the path for interest rates. A series of US employment reports due Thursday and Friday will be pivotal. The so-called JOLTS report of job openings is expected to show a tapering of available positions and a separate measure of jobless claims is anticipated to tick higher, in a sign of cooling in the labor market. Meanwhile, Treasury Secretary Janet Yellen touches down in Beijing Thursday to attempt to further repair the relationship between the world’s two largest economies. Elsewhere in China, the central bank extended support for the yuan via a stronger daily reference rate, a day after its flagship newspaper published commentary stating that the country has ample tools to stabilize the weakening currency. Other efforts to shore up the yuan included a decision among China’s largest banks to reduce rates on the country’s $453 billion in corporate US dollar deposits - the second cut in a matter of weeks. In emerging markets, the central bank of Malaysia will hand down interest rate decisions after Sri Lanka cut for the second meeting. Moves in major currencies were relatively muted, aside from the yen strengthening about 0.3% versus the dollar. Traders are likely to keep a keen eye on both the yen and the yuan again, with no end in sight to the broad downward pressure on these currencies. Oil edged higher to compound a rally on Wednesday. Gold rose while Bitcoin traded flat just above $30,000. US After Hours Quiet after hours session; JBLU -1.1% lower as court rules against Northeast Alliance deal with AAL; but SAVE +2.3% higher as JBLU plans to focus more on it.

Nikkei -1.75% Hang Seng -3.08% CSI -0.72% Shanghai -0.58% Shenzen -0.34%

Eur$ 1.0834 CNH 7.2644 CNY 7.2515 JPY 144.03 GBP 1.2695 CHF 0.8990 RUB 90.4905 TRY 26.0546 WTI$71.70 -0.13% Gold 1,918 +0.14% BTC 30,4890 +0.07% ETH 1,913 +0.13%

S&P -0.42% Nasdaq -0.54% EuroStoxx -0.57% FTSE -0.58% Dax -0.59% CAC SMI -0.20%

Macro :
- BlackRock’s Bitcoin ETF May Be Clearing Way for Next Bull Market

- CAC Has Fat Wallet, But Risky Earnings Prospects Limit Buybacks

Keep an eye on :

- ADOC FP : Adocia in Exclusivity Pact With Sanofi; to Repay Debt Early

- AI FP : Air Liquide Plans Home Healthcare Activity Transform, Job Cuts

- AGAS NO : Avance Gas to Sell 2008 built VLGC Iris Glory for $60 million

- ANIM IM : Anima Holding June Net Inflows EU212M

- ATRLJB SS : Atrium Ljungberg 1H Net Loss SEK440M Vs. Profit SEK4.87B Y/y

- BMW GY : BMW AG: BMW of North America Reports Q2 2023 U.S. Sales Results.

- BNR GY : Brenntag to Make Divisions More Autonomous as Part of Strategy

- CO FP : Credit Swaps Panel Asked on Casino CDS Payout for Seventh Time

- EMBRACB SS : Embracer Offering of 80m Shares Prices at SEK25/Share

- EMMN SW : Emmi Sells Glaeserne Molkerei to Mutares, Price Not Disclosed

- GXI GY : Gerresheimer 2Q Adj. Ebitda Misses Estimates, FY View Confirmed
- KTCG AV : Kapsch Sees €243m AutoTicket Compensation in Germany Arbitration

- LNZ AV : Lenzing Completes EU400 Million Capital Increase

- LSG NO : Leroy Prelim 2Q Harvest 29,700 Tons Excluding Scottish Seafarms

- META US : Instagram Unveils Threads App, a Threat to Musk’s Twitter

- NAS NO : Norwegian Air June Passenger Load Factor 85.8% Vs. 84.8% Y/y

- NOKIA FH : Jio Is Set to Sign 5G Equipment Deal With Nokia for $1.7b: ET

- RDC GY : Redcare Pharmacy NV Prelim 2Q Revenue EU421M

- SAN FP : Adocia in Exclusivity Pact With Sanofi; to Repay Debt Early

- SAN FP : Pfizer, Sanofi to Drive $1.3 Billion Sales in Newborn RSV Market

- STLA IM : Stellantis ‘Very Safe’ Until 2027 on Critical Raw Materials: CEO

- SZU GY : Suedzucker Boosts FY Operating Profit Forecast, Beats Estimates

- SUSE GY : SUSE 2Q Adjusted Ebitda Misses Estimates, FY Outlook Confirmed

- TKA GY : Thyssenkrupp’s Nucera Valued at €2.5 Billion in German Listing

- VINPAI IPO : Vinpai Launches IPO on Euronext Growth in Paris at €6.55/Shr

- VOW GY : Audi to Unveil EV Manufacturing Plans in Mexico This Month: Rtrs

- VOW GY : VW to Start China Deliveries of First Fully-Electric Sedan in 4Q

>>> Europe : Brokers Upgrades & Downgrades - 6th of July 2023