Early premarket gappers
- Gapping up:
- APP +15.7%, MAXN +13.4%, PRPL +11.2%, FLNC +10.6%, FVRR +10.5%, OSUR +10.4%, MGNI +9.9%, ALGM +9.7%, DXPE +9.7%, U +9.7%, NICE +6%, HOOD +5.3%, NXT +5%, DV +4.2%, EYE +4.1%, TTD +4%, ORCC +3.3%, ING +3.2%, ALRM +2.8%, CPRX +2.7%, STE +2.7%, JD +2.6%, ADEA +2.1%, ENTG +2.1%, HIMX +2%, CPA +1.9%, TTEK +1.9%, TNK +1.8%, YETI +1.6%, AZUL +1.4%, CR +1.3%, MFC +1%
- Gapping down:
- SONO -25%, CDNA -15.6%, WW -12%, MXCT -10.8%, BLFS -8.2%, DM -7.9%, HLMN -6.6%, GDEN -6.3%, VUZI -6.3%, DIS -5.7%, TSLX -5.3%, REXR -3.2%, MARA -3.1%, BYND -2.6%, BYND -2.6%, RIOT -2.4%, FLEX -2.4%, COOK -2.3%, PAR -2.2%, HPK -2.1%, NTR -2.1%, NDLS -2.1%, LAW -2%, BELFB -1.7%, IRT -1.5%, INTT -1.4%, DOX -1.4%, CDZI -1.3%, HAE -1.3%, TAK -1.2%, SOVO -1.1%, BNTX -1%, RPAY -1%, SST -0.9%, RBA -0.8%
Wingcopter, Germany’s drone delivery startup, raises another $44M from the EIB
Wingcopter, a startup out of Germany that has made a name for itself in the world of delivery drones used primarily for delivery of medicine and other goods to remote areas, has picked up some more financing to expand its business. The European Investment Bank is putting €40 million (close to $44 million) into the startup, funding that it will use in two areas: further developing its hardware line; and to kick off a new business in logistics and delivery services, anchored by a fleet of its drones.
The funding is being described as “quasi-equity” — and it’s a common approach taken by the EIB (other examples here and here) that involves one portion of the funding coming in as equity and the rest as a venture loan. Tom Plümmer, Wingcopter’s CEO and co-founder, would not disclose the proportions of either in an interview. He said the plan is to raise a significant Series B next year — or whenever the markets turn around.
For now, this latest infusion brings the total raised by Wingcopter to €100 million, which has also been backed in two previous fundraises by a mix of strategic and financial backers such as the retail giant REWE, Xplorer Capital, Japan’s ITOCHU, and Expa, the investment firm started by Garrett Camp of Uber.
And it more than doubles Wingcopter’s previous valuation — a figure that it is not disclosing, either. But if you consider that its bigger U.S. counterpart Zipline last month raised $330 million at a valuation of $4.2 billion, Wingcopter clearly sees the opportunity in the market — and given it has raised only around one-tenth the amount overall, where it likely is right now.
Wingcopter’s raise is coming at a key moment in the wider vertical take-off and landing space overall. In addition to Zipline’s raise, just a week ago, the VTOL business Lilium, which is developing an air taxi business, disclosed that it was raising another $250 million, with $100 million committed so far from Tencent. The company is publicly listed in on NasdaqGS and its stock has been floundering and got a tiny bump from the news.
Indeed, in the more dicey financial waters of today, companies like Wingcopter, Zipline, and others in the space like Flytrex, have something that the air taxi businesses do not: active deployments, albeit small ones. The company has been working with Unicef in Malawi to help it deliver medicines to hard-to-reach areas, and the plan is to expand that service to more geographies and in more partnerships.
>>> Up
* Autoliv Raised to Buy at Kepler Cheuvreux; PT $105 (+)
* Bakkafrost Raised to Buy at Arctic Securities; PT 800 kroner
* Bakkafrost Raised to Buy at Arctic Securities; PT 800 kroner
* Diploma Raised to Buy at Jefferies; PT 3,150 pence
* L'Oreal PT Raised to 350 euros from 296 euros at Jefferies
* Neobo Fastigheter Raised to Buy at Kepler Cheuvreux (+)
* Sobi Raised to Buy at Kepler Cheuvreux; PT 245 kronor (+)
* Sopra Steria Raised to Buy at AlphaValue/Baader; PT 252 euros
>>> Down
>>> Down
* Ahold Delhaize Cut to Hold at HSBC; PT 33 euros
* Bridgepoint Cut to Underweight at JPMorgan; PT 224 pence
* Demant Cut to Hold at SEB Equities; PT 325 kroner
* E.On Cut to Hold at DZ Bank; PT 12.80 euros (+)
* Gofore Raised to Buy at Inderes; PT 31 euros
* HighCo Cut to Neutral at Oddo BHF; PT 5.70 euros
* HighCo Cut to Neutral at Oddo BHF; PT 5.70 euros
* Marshalls Cut to Sell at Shore Capital (+)
* Outokumpu Cut to Hold at SEB Equities; PT 6 euros
>>> Initiation
* Demant Maintained at Buy at SEB Equities; PT 325 kroner
>>> Call
* Diploma Upgraded to Buy at Jefferies on Capacity For M&A
>>> Initiation
* Demant Maintained at Buy at SEB Equities; PT 325 kroner
>>> Call
* Diploma Upgraded to Buy at Jefferies on Capacity For M&A
* Elis Delivers Strong First-Quarter Growth, Morgan Stanley Says
* ITV 2Q Ad Revenue Under Pressure After In-Line 1Q: Credit Suisse (+)
* SMA Solar Results Beat Across The Board, Jefferies Says (+)
Prada’s Patrizio Bertelli Rescues Historic Newsstand in Tuscany
Prada bags and shoes.
The owner of a historic newsstand in a Tuscan city said he was “delighted” the business has been saved by one of his old customers — Patrizio Bertelli, the chair of the Italian fashion house Prada.
Piero Scartoni, 91, who has been getting up at 5 a.m. to run the newsstand in Piazza San Jacopo in the centre of Arezzo since 1953, can finally retire after it was bought by Bertelli, who was born in the city and is the husband of the fashion designer Miuccia Prada.
“Bertelli was a customer in the 1960s and 70s,” said Scartoni. “He used to buy a load of newspapers and magazines. He was a special customer. Then he became one of the richest people in Italy. I’m delighted he came to the rescue.”
Scartoni is well known in Arezzo for his encyclopaedic knowledge of newspapers and rare magazines, while his newsstand, whose other customers over the years have included the late film director Pier Paolo Pasolini, became a hub for debating the news topics of the day.
But, as with other newsstands across Italy, he has struggled to maintain the business amid the decline in newspaper readership.
“Nobody reads any more,” he said. “I used to sell 200 copies a day of La Nazione [one of the oldest regional newspapers in Italy], and now it’s 65.”
Still, despite being eligible for retirement in 1996, Scartoni persevered with the business with the help of his daughter, Cristiana.
“I would still carry on, but my family doesn’t want it,” he said. “They keep saying, ‘Dad, please retire’. I come and sell a few newspapers, but the administration has become too difficult. I’m almost 100 so I should really stop.”
Italy loses about 1,000 newsstands across the country each year. Many small towns are now without a single one.
“All the newsstands in Arezzo are for sale, but nobody wants them,” said Scartoni. “It’s a gruelling job as you have to start at 5 a.m. It’s just not worth it any more, as you hardly earn anything.”
He lamented the decline in newspaper readership, saying: “The barbarians arrived, and now artificial intelligence is on the way, which will produce monsters.”
Bertelli paid €100,000 (£87,000) for the newsstand, according to Corriere della Sera.
The businessman has rescued other historical establishments in the city that were at risk of closure, including Buca di San Francesco, a restaurant open since the 1920s, and the 19th-century Caffè dei Costanti.
- ING (INN1 TH) +2.4%
- ING 1Q Net Income Beats Estimates; €1.5B Share Buyback
- Deutsche Telekom (DTE TH) +1.2%
- Deutsche Telekom Beats Earnings Estimates on German Growth
- Allianz (ALV TH) +1%
- Allianz SE to Buy Back Up to EU1.5 Billion Shares
- BAT (BMT TH) +0.8%
- Aurubis (NDA TH) +0.8%
- Aurubis AG: Aurubis continues growth course: Multimetal company raises full-year forecast based on strong half-year
- Novo Nordisk (NOVC TH) +0.6%
- ASML (ASME TH) -0.5%
- TUI (TUI1 TH) -0.5%
- RWE (RWE TH) -0.5%
- Infineon (IFX TH) -0.6%
- Gerresheimer (GXI TH) -0.8%
- Ahold Delhaize (AHOG TH) -1.5%
- Ahold Delhaize Cut to Hold at HSBC; PT 33 euros
- Bayer (BAYN TH) -1.9%
- Bayer Sees FY Forecast at Lower End of Guidance Ranges
- Coloplast (CBHD TH) -2.1%
- Coloplast Narrows FY Ebit Margin Forecast
DAX:
- Deutsche Telekom (DTE TH) +1.1%
- Deutsche Telekom Beats Earnings Estimates on German Growth
- Allianz (ALV TH) +1%
- Allianz SE to Buy Back Up to EU1.5 Billion Shares
- BASF (BAS TH) +0.6%
- Bayer Sees FY Forecast at Lower End of Guidance Ranges
- Daimler Truck (DTG TH) +0.5%
- Bayer (BAYN TH) -1.9%
- Bayer Sees FY Forecast at Lower End of Guidance Ranges
MDAX:
- Jenoptik (JEN TH) +1.9%
- Jenoptik 1Q Ebitda Beats Estimates
- Aroundtown (AT1 TH) +1.6%
- Aurubis (NDA TH) +1.3%
- AURUBIS 1H OPER REV. EU8.78B, -5.2% Y/Y
- ProSieben (PSM TH) +0.7%
- Nordex (NDX1 TH) +0.7%
- Stroeer (SAX TH) -0.8%
- Stroeer 1Q Adjusted Ebitda Beats Estimates
- Siltronic (WAF TH) -1%
- Siltronic 1Q Sales Meets Estimates
- TAG Immobilien (TEG TH) -1.7%
- TAG Immobilien 1Q FFO per Share Beats Estimates
SDAX:
- VERBIO Vereinigte (VBK TH) +1.6%
- VERBIO Vereinigte BioEnergie AG: Recovery in Bioethanol segment leads to solid Q3 2022/23 earnings
- GFT (GFT TH) -0.6%
- GFT 1Q Pretax Profit EU15.0M Vs. EU13.4M Y/y
- Bilfinger (GBF TH) -0.6%
- Bilfinger 1Q Adjusted Ebita EU22M, Confirms 2023 Outlook
- Cancom (COK TH) -0.6%
- Cancom Reports 1Q Ebitda of EU24.1M, Confirms 2023 Outlook
- 1&1 (DRI TH) -1.1%
- SUSE (SUSE TH) -14%
- Suse Second-Quarter Results Miss, Guidance Cut: Street Wrap
Blackstone in talks with US regional banks over lending partnerships
Talks comes as Federal Reserve warns of credit crunch following worst industry turmoil since 2008
Blackstone is in discussions with large US regional banks about providing them with extra firepower to lend to companies amid signs the recent industry turmoil is morphing into a credit crunch.
Jon Gray, president of Blackstone, told the Financial Times his company was talking to regional banks about entering into partnerships, which would involve lenders making or “originating” loans that the private equity group can funnel to its insurance customers.
“The discussions we are having is to potentially partner with a regional bank,” Gray said in an interview. He declined to name the lenders involved in the negotiations but said they had between $100bn and $250bn in assets.
Under Gray’s proposal, the insurers would pay a fee to Blackstone for directing the assets their way.
It comes as private capital giants such as Blackstone, Apollo Global, KKR and Ares Management explore ways to increase their exposure to credit after the collapse of two large US regional banks, Silicon Valley Bank and First Republic.
The Federal Reserve on Monday warned the collapse of the lenders was fuelling a “sharp contraction” in credit that could “drive up the cost of funding for businesses and households”.
Gray said regional banks were still best placed to decide whether to lend to commercial and real estate clients, describing them as having “powerful origination capabilities and relationships”.
But he said groups such as his could be a “valuable partner” by helping to offload some of the risk after a loan has been securitised. “Rather than putting all [of the risk] on its balance sheet, maybe they keep 50 cents [on the dollar], and put 50 cents with us.”
Blackstone plans to channel the securities to asset-hungry insurers which would hold the debt to maturity. “What’s really changed from our standpoint is that we have a very low-cost capital because of our insurance clients,” Gray said.
Blackstone does not have a controlling stake in any insurers but offers asset management services to large players such as AIG. These customers, Gray said, are a natural home for assets that might otherwise be held on banks’ balance sheets.
The talks between Blackstone and regional lenders come at a time when private equity groups are making a big push into the insurance sector, which hoovers up trillions of dollars of debt each year.
Apollo chief executive Marc Rowan said on an earnings call this week that he expects his group to dramatically increase lending following the banking turmoil.
The New York group has in recent years built more than a dozen lending businesses that write loans, which sit on the balance sheets of the insurers it owns. The company has forecast these units could originate at least $150bn in annual loans by 2026.
Earlier this year, Apollo increased its own securitisation capabilities by buying a significant chunk of Credit Suisse’s securitised products division. The unit, now called Atlas SP, lent US regional bank PacWest $1.4bn in March and accepted some of the lender’s asset-backed securities as collateral.
“The banking system wants the client, but not the asset,” Rowan said, echoing Gray’s opinion that in many cases the lender should still have the primary relationship with customers.
Rowan said his group did not pose a significant threat to traditional lenders. “I assure you that the CEOs of the four big banks in the US do not wake up every day wondering what the mighty Apollo is doing,” he said.