>>> Europe : Brokers Upgrades & Downgrades - 19th of June 2023 V2(+)

>>> Up
* CTT Raised to Equal-Weight at Barclays; PT 3.60 euros
* Entain Raised to Buy at Redburn (+)
* Essity Raised to Hold at Jefferies; PT 277 kronor
* Fevertree Drinks Raised to Buy at HSBC; PT 1,600 pence
* FirstGroup Raised to Buy at HSBC; PT 155 pence
* Getlink Raised to Overweight at Morgan Stanley; PT 19 euros
* Granges Raised to Buy at Handelsbanken
* Midwich Raised to Buy at HSBC; PT 545 pence

>>> Down
* 1&1 Cut to Equal-Weight at Barclays; PT 13 euros
* BASF Cut to Hold at HSBC; PT 46 euros Munters Cut to Hold at Kepler Cheuvreux; PT 125 kronor (+)
*
* Nordnet Cut to Underweight at JPMorgan; PT 144 kronor (+)
* United Internet Cut to Equal-Weight at Barclays; PT 16 euros

>>> Initiation
* Bambuser Rated New Buy at ABG; PT 4 kronor
* Lamda Rated New Buy at Wood & Company; PT 7.50 euros
* OVS Rated New Outperform at Mediobanca SpA; PT 3.60 euros
* Uponor Resumed Equal-Weight at Morgan Stanley; PT 28.85 euros

>>> Call
* DB Strategists Say Investors Increasingly Overweight Equities (+)
* Essity Pricing Risks Understood, Jefferies Upgrades to Hold
* Getlink Raised at Morgan Stanley on Pricing, Volume Improvements
* JPMorgan Strategists See Cheap Cyclicals as Unlikely to Perform (+)
* KPN Top Pick at Morgan Stanley on Sector-Beating Fundamentals (+)

>>> Stoxx 600 Pre-Market Indications

  • Beiersdorf (BEI TH) +0.9%
  • MTU Aero (MTX TH) +0.8%
    • MTU Aero Raises FY View, Sees FY Adj. Ebit >EU800M, Est. EU778M
  • Vodafone (VODI TH) +0.7%
  • Rheinmetall (RHM TH) +0.7%
  • Edenred (QSV TH) +0.7%
  • Fresenius Medical (FME TH) -1.3%
    • Fresenius, mBank, DVI Deutsche Score Highest in BBB- Junk Risk
  • Vestas (VWSB TH) -1.3%
  • AstraZeneca (ZEG TH) -1.4%
  • Qiagen (QIA TH) -1.5%
  • Kone (KC4 TH) -1.6%
  • Air Liquide (AIL TH) -1.6%
    • EMEA Stocks Are Forming 72 Major Technical Chart Patterns
  • Merck KGaA (MRK TH) -2.3%
  • Eurofins Scientific (ESF0 TH) -2.4%
  • NatWest (RYSD TH) -3.4%
  • Sartorius (SRT3 TH) -14%
    • Sartorius, Stedim Warnings Are Worse Than Expected: Street Wrap

>>> TradeGate Pre-Market Indications

DAX:
  • Beiersdorf (BEI TH) +0.9%
  • MTU Aero (MTX TH) +0.8%
    • MTU Aero Raises FY View, Sees FY Adj. Ebit >EU800M, Est. EU778M
  • BMW (BMW TH) -1%
  • SAP (SAP TH) -1%
  • Siemens Energy (ENR TH) -1.2%
  • Merck KGaA (MRK TH) -2%
  • Sartorius (SRT3 TH) -14%
    • Sartorius, Stedim Warnings Are Worse Than Expected: Street Wrap
MDAX:
  • Hensoldt (HAG TH) +0.6%
  • Aixtron (AIXA TH) -0.8%
  • Nordex (NDX1 TH) -0.9%
  • Lufthansa (LHA TH) -0.9%
    • Lufthansa Reader Interest Increases; Option Volume High
  • K+S (SDF TH) -1%
  • Fresenius Medical (FME TH) -1.4%
SDAX:
  • MorphoSys (MOR TH) +1.8%
  • flatexDEGIRO (FTK TH) +1.3%
  • GFT (GFT TH) +1.2%
  • Adtran Holdings (QH9 TH) +1%
  • Suess MicroTec (SMHN TH) +0.9%
  • Amadeus Fire (AAD TH) -1.2%
  • Varta (VAR1 TH) -1.3%
  • United Internet (UTDI TH) -1.5%
    • United Internet Cut to Equal-Weight at Barclays; PT 16 euros
  • Synlab (SYAB TH) -1.8%
  • 1&1 (DRI TH) -2.5%
    • 1&1 Cut to Equal-Weight at Barclays; PT 13 euros

>>> Europe : Brokers Upgrades & Downgrades - 19th of June 2023

>>> Up
* CTT Raised to Equal-Weight at Barclays; PT 3.60 euros
* Essity Raised to Hold at Jefferies; PT 277 kronor
* Fevertree Drinks Raised to Buy at HSBC; PT 1,600 pence
* FirstGroup Raised to Buy at HSBC; PT 155 pence
* Getlink Raised to Overweight at Morgan Stanley; PT 19 euros
* Granges Raised to Buy at Handelsbanken
* Midwich Raised to Buy at HSBC; PT 545 pence

>>> Down
* 1&1 Cut to Equal-Weight at Barclays; PT 13 euros
* BASF Cut to Hold at HSBC; PT 46 euros
* United Internet Cut to Equal-Weight at Barclays; PT 16 euros

>>> Initiation
* Bambuser Rated New Buy at ABG; PT 4 kronor
* Lamda Rated New Buy at Wood & Company; PT 7.50 euros
* OVS Rated New Outperform at Mediobanca SpA; PT 3.60 euros
* Uponor Resumed Equal-Weight at Morgan Stanley; PT 28.85 euros

>>> Call
* Essity Pricing Risks Understood, Jefferies Upgrades to Hold
* Getlink Raised at Morgan Stanley on Pricing, Volume Improvements

>>> What to look at today - 19th of June 2023

Asian stocks fell in a decline led by Chinese tech companies as investors reset expectations for a stimulus from China after a key meeting Friday ended with little detail on a package. A gauge of the region’s equities dropped 0.9% as benchmarks in mainland China and Hong Kong declined alongside Japanese and South Korean shares. Australian stocks were clear outliers, climbing around 0.6%. US stock and bond markets are closed Monday for a holiday. Reports covering China’s State Council meeting chaired by Premier Li Qiang were light on details about any potential stimulus or timing. Instead, media stated China must adopt “more forceful” measures and respond in a timely manner to support the economic recovery.  The lack of tangible evidence for support appears to unnerve investors who had bid up Chinese equities last week in the hope of a sweeping package that would support infrastructure and the ailing property market. Instead, Goldman Sachs Group Inc. cut its forecast for Chinese growth, citing limited options to boost stimulus. Support for property would likely be targeted and moderate, economists for the bank said. Chinese tech platforms were among the hardest hit companies with Alibaba Group Holding Ltd, Meituan and Baidu Inc. all tumbling around 4% to drag the Hang Seng Tech index as much as 2.7% lower.  The offshore yuan fell, while the Australian dollar reversed an early gain to fall alongside the New Zealand dollar. The yen traded flat after reversing an early decline that at one point touched levels not seen since November last year. An index of the dollar bounced back Monday after suffering its worst week since January. China is set to cut its one and five year loan prime rates in decisions expected Tuesday, according to economist forecasts, after the country reduced a key lending rate last week. Elsewhere, chipmaker stocks were also under pressure. Samsung and SK Hynix fell following a decline for US-traded Micron Technologies on Friday after it warned that about half of its sales tied to China-headquartered clients may be affected by a Chinese cybersecurity probe. Fed Chair Jerome Powell will give his semi-annual report to Congress on Wednesday. Federal Reserve Bank of St. Louis President James Bullard and his counterparts in New York and Chicago are all set to speak in the week ahead. Other key central bank developments in the week ahead include policy meetings in Turkey, the UK and Switzerland.

Nikkei -1.01% Hang Seng -1.22% CSI -0.71% Shanghai -0.41% Shenzen +0.02%

Eur$ 1.0934 CNH 7.1494 CNY 7.1475 JPY 141.52 GBP 1.2812 CHF 0.8944 RUB 83.9125 TRY 23.62 WTI$ 70.75 -1.45% Gold 1,957 -0.05% BTC 26,416 -0.21% ETH 1,723 -0.40%

S&P -0.02% Nasdaq +0.09% EuroStoxx -0.58% FTSE -0.38% Dax -0.59% SMI -0.39%

Macro :
- Spain-France Hydrogen Link Poised to See EU Funding
- Citi Strategists Say S&P 500’s Move Above 4,400 Is ‘Unloved’
- Goldman Says Markets Too Optimistic on Pace of US Inflation Drop

Keep an eye on :
- AIR FP : Riyadh Air in Active Talks for Narrow-Body Order, CEO Says (45.3%)
- AF FP : Air France-KLM Says No Level Playing Field With Turkish Airlines
- ALCOR FP : Biocorp Main Shareholder Agrees to Sell Stake to Novo Nordisk
- BT/A LN : BT’s £39bn pension fund cuts UK investments in blow to Hunt’s Big Bang 2.0 ambitions
- FPARA SS ; Swedish Landlord FastPartner Downgraded to Junk at Moody’s
- MAP SM : Mapfre Creates €100m Fund to Invest in Biogas Plants: Expansion
- MBG GY : Mercedes-Benz Adds ChatGPT to Voice Control of Its Vehicles
- META US : Meta Says Age Lowered for Users of VR Headset to 10 Years Old
- ML FP : Michelin to Buy Flex Composite Group for €700M Enterprise Value
- MUV2 GY : Munich Re, Swiss Re Face El Niño Driven Shift in Weather Claims
- OERL SW : ArianeGroup, Oerlikon Sign Order for Parts of Ariane 6 Rocket
- ORSTED DC : Ørsted warns about rising costs of UK wind development
- PIRC IM : Italy Curbs Chinese Influence at Pirelli Over Data Concerns
- PIRC IM : Italy Gives Tronchetti Power to Name Pirelli CEO, Curbing China
- RAL FP : Rallye Reaches Pact With Creditors on Casino Securities
- DIM FP : Sartorius Stedim Biotech Cuts 2023 Forecast Due to Weak Demand
- SRT GY : Sartorius Cuts FY Adjusted Ebitda Margin Forecast
- SHL LN : Shell to Sell Pakistan Stake to Foreign Investor: FinMin Dar
- STLA IM : Stellantis Limits Gasoline-Car Sales Over California Rules
- SUBC NO : Subsea7 Says Offer to Buy DOF Group For NOK35/Share Is Rejected
- SREN SW : Munich Re, Swiss Re Face El Niño Driven Shift in Weather Claims
- STLN SW : Haefner Sells 8.07% Swiss Steel Holding Stake to PCS Holding
- TTE FP : TotalEnergies CEO Says Greenwashing Criticism Is Unfair
- UBSG SW : Ermotti Hints at ‘Massive’ Cuts to Credit Suisse IB in Op-Ed
- VER AV : Austria Gets EU1.56B Dividend From State Assets Agency OeBAG
- DG FP : France May Apply New Tax on Highway Firms After Ruling: Echos
- XXL NO : XXL Prelim 2Q Ebitda Loss Misses Estimates

Electrek : Tesla Supercharger network could be worth $100 billion, analyst says

Tesla Supercharger network could be worth $100 billion, analyst says

Analysts are trying to estimate the value of Tesla’s Supercharger network as the NACS connector becomes the North American standard and could widen Tesla’s charging lead.

One of the top Tesla analysts believes it could be worth more than $100 billion.

The Supercharger network is the only global EV fast-charging network, and in North America, it is by far the most extensive and reliable.

Initially, Tesla meant it as a service to its owners and didn’t want to make it a profit center, but the automaker assumed that a more robust EV charging industry would emerge.

In North America, it hasn’t really been the case.

That’s why automakers like GM and Ford are now announcing that they are adopting Tesla’s NACS connector in order to give their EV buyers access to the Tesla Supercharger network.

It could lead to Tesla owning a large part of the EV charging business, especially in North America.

Morgan Stanley’s Adam Jonas, one of the top Tesla analysts, tried to estimate what kind of value this charging business could add to Tesla.

Jonas and his team believe that long term, Tesla could produce and store its own solar electricity to power its Superchargers. Based on that assumption, they built a few scenarios using various estimated percentages of US miles driven with electric vehicles in 2030, Supercharger market shares powering those miles driven, an average efficiency of 4 miles per kWh, and a revenue of $0.32 per kWh.

They ran these scenarios through valuation at 20X FY30 net operating profit after tax discounted at a 9.0% weighted average cost of capital.

Here are the different valuations for Tesla’s Supercharger network based on those numbers (via Seeking Alpha):

  • The Morgan Stanley “reasonable case” assumes 10% EV miles penetration, 50% Tesla share of Supercharging and 30% net operating profit after tax margin to lead to a potential net present value of $3 per share for the business.
  • The Morgan Stanley “plausible case” assumes 20% EV miles penetration, 70% Tesla share of Supercharging, and 50% NOPAT margin to lead to a potential net present value of $14 per share.
  • The Morgan Stanley “dominant case” assumes 30% EV miles penetration, 80% Tesla share of Supercharging, and 70% NOPAT margin to lead to a potential net present value of $33 per share.
  • The Morgan Stanley “monopoly case” assumes 50% EV miles penetration, 100% Tesla share of Supercharging, and 80% NOPAT margin to lead to a potential net present value of $78 per share.
With over 3 billion shares outstanding, it would value the Supercharger network at over $100 million at a price per share of $33.

9to5 : Kuo: iPhone 15 to include upgraded Ultra Wideband chip for deep Vision Pr

Kuo: iPhone 15 to include upgraded Ultra Wideband chip for deep Vision Pro integration

Apple officially announced its new Vision Pro platform at WWDC at WWDC this month, with a release date of “early 2024.” Now, reliable Apple analyst Ming-Chi Kuo is out with a new report detailing Apple’s plans to better integrate the iPhone with the Vision Pro ecosystem, starting with the iPhone 15 later this year.

iPhone 15 with improved UWB features
In a new post on Twitter, Kuo details that Apple will “aggressively upgrade hardware specifications” of the iPhone as part of its effort to build a competitive ecosystem surrounding Vision Pro. “The ecosystem is one of the key success factors for Vision Pro, including the integration with other Apple hardware products, and related main hardware specifications are Wi-Fi and UWB,” Kuo explains.

The first step in this process will reportedly be upgrading the Ultra Wideband chip inside the iPhone 15. According to Kuo, the iPhone 15 will likely use a new version of the Ultra Wideband chip, which Apple currently brands as the U1 chip, to be more efficient and more reliable.

“iPhone 15 will likely see a specification upgrade of UWB, with the production process moving from 16nm to more advanced 7nm, allowing for improved performance or reduced power consumption for nearby Interactions,” Kuo says.

Apple’s U1 chip first debuted in the iPhone 11, and it has been included in each iPhone model since then.
The U1 chip is also present in Apple’s AirTag item tracker, the Apple Watch Series 6 and newer, the HomePod mini, the second-generation full-size HomePod, and the latest-generation AirPods Pro charging case.

Apple uses the U1 chip for a number of different things, including Find My features, Handoff, Precision Finding, AirDrop, and more. Kuo believes that an upgraded version of the U1 chip will improve the performance of these features and also play a key role in the integration between Vision Pro and Apple’s other products.

iPhone 16 with Wi-Fi 7
Looking further into the future, Kuo says that the iPhone 16 is slated to be Apple’s first iPhone with support for the Wi-Fi 7 technology. “iPhone 16 will likely upgrade to Wi-Fi 7, which will be more conducive to Apple’s integration of hardware products running on the same local network and provide a better ecosystem experience,” the analyst explains.

Wi-Fi 7 is the next-generation standard for Wi-Fi technology and promises a big boost in transfer speeds and data throughput.
In fact, the Wi-Fi Alliance has specifically pointed to the benefits that Wi-Fi 7 will offer for virtual and augmented reality technology.

Even more exciting is the next generation of AR and VR content users have in store. WiFi 7 unleashes a world of possibilities to explore new virtual worlds with fully interactive content. With ultra-high speeds and imperceptible levels of latency, users can immerse themselves in these worlds with lifelike responsiveness and new sensory technologies that elevate the experience beyond our wildest imaginations.

Apple hasn’t yet offered specific details about what kind of hardware is inside the Vision Pro headset. Nonetheless, it’s clear that Vision Pro will use some of this next-generation technology – and Apple hopes it will deeply integrate with the iPhone and other devices into the future.

WSJ : Homeless Numbers Rise in U.S. Cities

Homeless Numbers Rise in U.S. Cities
Wall Street Journal review finds sharper increases than in recent years as pandemic-era protections end and housing costs climb

The number of homeless people counted on streets and in shelters around the U.S. has broadly risen this year, according to a Wall Street Journal review of data from around the nation.

The Journal reviewed data from 150 entities that count homeless people in areas ranging from cities to entire states. More than 100 places reported increases in early 2023 counts compared with 2022, and collectively, their numbers indicate the U.S. may see a sharper climb than in recent years. Most major urban areas reporting data so far have seen increases, including Chicago, Miami, Boston and Phoenix.

The increases underscore what advocates for the homeless say is growing pressure from high housing costs and the end of temporary pandemic-era protections, such as eviction moratoriums.

“We have increased homelessness and increased destabilization,” said Shannon Isom, chief executive of Community Shelter Board, a government-supported organization that reported a 22% homeless increase in the Columbus, Ohio-area.
The annual point-in-time count there, conducted Jan. 25, found 2,337 homeless people.

The U.S. Department of Housing and Urban Development collects the data, which are still considered preliminary and could change. The department said it would release more comprehensive results with a national estimate late this year.

The U.S. Interagency Council on Homelessness, a federal agency, said many communities are seeing increases after the end of rental assistance and other pandemic programs. The agency said the Biden administration had awarded $486 million in new vouchers and grants, among other steps, since this year’s count.

Roughly 400 organizations, known as continuums of care, conduct so-called point-in-time counts each year. These tallies are imperfect snapshots: They are widely considered undercounts, and factors such as weather and changing methodology can affect results. But the results are widely relied upon to assess trends and marshal resources.

The Journal received data from 67 of the 100 locales with the highest homeless counts last year, along with many others. Preliminary data show 48 of those 67 reported an increase this year, with combined counts up 9% from the numbers HUD published for those places in 2022 and 13% since 2020. Some places said comparisons to 2020 are better because of counting disruptions during the pandemic.

If this trend holds, the U.S. could notch a sharper climb after several recent years of smaller recorded increases.
Nationally, HUD estimated there were roughly 582,500 people experiencing homelessness on a single night early last year, up less than a percentage point from 2020.

The final U.S. estimate will depend heavily on New York City and Los Angeles County, which had by far the highest homeless numbers last year and haven’t yet reported their new point-in-time figures.
Data in the Journal’s review covers places that reported about 43% of last year’s national tally.

Rising housing costs and the limited supply of affordable apartments are major factors contributing to homelessness around the country, according to the continuums performing the counts.

In the Phoenix-area, where a local government association says apartment rents rose 68% between 2017 and 2022, Maricopa County recorded a 7% homeless increase. That was in part because more shelter beds were added in the area. People in shelters are easier to count than those living on the street.

Sue Coss, 55 years old, said she and her longtime boyfriend had received a housing voucher during the pandemic. She said she became homeless for the first time this spring after they were evicted from their Phoenix-area home.

“We didn’t have the money,” she said. “There’s no help. And there’s a lot of people in our situation right now.”

Some temporary measures, such as eviction bans and other pandemic aid, were aimed at trying to keep people in their homes during the pandemic.

“When they went away, the numbers went back up,” said David Hewitt, director of housing stability for Hennepin County, Minn., which includes Minneapolis.

The continuum there last year had its smallest homeless numbers since it began counting about a decade-and-a-half ago, which Hewitt credited in part to rental assistance and a halt on evictions.

But homelessness rose 24% this year, even as adult homeless numbers fell, driven by a 79% surge in homeless families. A county policy guarantees shelter space for families.

California, known for its expensive housing markets, has spent $17 billion the past four fiscal years on a homeless problem that continued worsening through last year’s numbers.
Mental-health issues and opioid dependence are often complicating factors, and the fentanyl crisis has taken a deadly toll on homeless people.

Migrant arrivals are a factor in some places.
Chicago said roughly 2,200 asylum seekers in shelters were included in a homeless count that surged 58% from a count last year that preceded the migrant influx.

The largest number in the Journal’s data review came from San Diego County, which counted 10,264 homeless people, a 22% increase from last year. One factor was the first-ever count of people camping on state transportation property, including under overpasses. Even without those additions, the numbers there were 14% higher.

“What you’re seeing is a system that is stressed and overloaded,” said Ray Ellis, chair of San Diego’s Regional Task Force on Homelessness.

Some places reported decreases, including Sonoma County, Calif., where the homeless count dropped 22%, and the region including Colorado Springs, Colo. which reported its lowest homeless count since 2016. Officials and advocates in both areas—as well as Indianapolis—said additional housing units helped reduce homeless numbers.

Some counts have caveats. Delaware reported a sharp statewide decline, but the nonprofit running the continuum suggested it was influenced by temporary hotel/motel shelter beds getting cut back to prepandemic levels. The statewide increase in North Dakota followed the first-ever inclusion of a count on the Turtle Mountain Band of Chippewa Indians Tribal land, the continuum coordinator there said.

Albuquerque’s sharply higher 2023 tally partially reflects a more robust counting effort that found more people, said William Bowen of the New Mexico Coalition to End Homelessness.

The city recently turned an old hospital into a homeless-services center, and the city council will soon vote on zoning changes aimed at adding housing, said Mayor Tim Keller, a Democrat. A recent state legislative report highlighted New Mexico’s homeless surge and a shrinking supply of affordable rental units.

FT : FCA restricts movement of assets by Odey’s hedge fund

FCA restricts movement of assets by Odey’s hedge fund
Voluntary agreement comes after founder Crispin Odey was ousted over sexual impropriety allegations

The UK’s Financial Conduct Authority has restricted the movement of cash and assets from Odey Asset Management in a bid to restore order at the hedge fund after its founder Crispin Odey was ousted over allegations of sexual impropriety.

The FCA will publish details on Monday of voluntary restrictions agreed with Odey Asset Management, two people familiar with the situation told the Financial Times.

The restrictions, which have also been agreed by an associated firm, Odey Wealth Management, will require both to conserve cash and assets for the normal running of their businesses.

One of the people said the FCA would require preapproval for transactions above a certain level, other than in the normal course of business.

The FCA declined to comment, as did Odey Asset Management and Odey Wealth Management.

One person familiar with the regulator’s protocols said it was normal to impose restrictions on firms going through “difficulties” to ensure that they could continue to run their businesses in an orderly way.

The moves follow a tumultuous 10 days for the businesses founded by Crispin Odey, who was accused of sexual assault or harassment by 13 women in an investigation published by the FT.

Odey’s law firm has said he “strenuously disputes” the allegations.

Odey Asset Management, which includes a hedge fund that had $4.4bn under management before the allegations emerged, told investors last week that it was in talks to shed some of its funds, people and infrastructure.

The firm’s other partners had ousted Odey days earlier, but that was not enough to stem the tide.

So far, four of Odey Asset Management’s funds have been suspended, the most recent on Friday after a “sizeable level” of withdrawal requests.

The FCA has come under pressure after it emerged that the regulator had been investigating Odey for more than two years. The House of Commons Treasury select committee has written to the FCA calling on it to explain how it handled the affair.