>>> Up
* Boliden Raised to Equal-Weight at Morgan Stanley; PT 300 kronor
* Enel Chile ADRs Raised to Buy at Banco BTG Pactual; PT $4.30
* SAP Raised to Hold at Jefferies; PT 115 euros
* Sartorius Raised to Buy at Berenberg; PT 390 euros
* Shell Raised to Equal-Weight at Morgan Stanley; PT 2,450 pence
>>> Down
* Shell Raised to Equal-Weight at Morgan Stanley; PT 2,450 pence
>>> Down
* Eneti Cut to Neutral at Citi; PT $14
* Equinor Cut to Underweight at Morgan Stanley; PT 290 kroner
* Lime Technologies Cut to Hold at DNB Markets; PT 300 kronor
* McPhy Cut to Sell at Panmure Gordon; PT 7.50 euros
* Steico Cut to Hold at Pareto Securities; PT 40 euros
>>> Initiation
* Steico Cut to Hold at Pareto Securities; PT 40 euros
>>> Initiation
* Atrys Health Rated New Outperform at Oddo BHF; PT 6.50 euros
* Bunge Rated New Buy at Roth MKM; PT $138
* Burford Capital Re-Initiated Buy at Berenberg; PT 1,350 pence
* Caterpillar Rated New Neutral at DA Davidson; PT $263
* DELIVEROO RATED NEW BUY AT GOLDMAN
* DELIVERY HERO RATED NEW BUY AT GOLDMAN
* Helios Underwriting Rated New Buy at Numis; PT 240 pence
* Helios Underwriting Rated New Buy at Numis; PT 240 pence
* Idorsia Resumed Underweight at Morgan Stanley; PT 7 Swiss francs
* *JUST EAT TAKEAWAY RATED NEW NEUTRAL AT GOLDMAN
* Ossur HF Resumed Buy at Nordea; PT 37.80 kroner
* THG PLC Reinstated Equal-Weight at Barclays; PT 87 pence
>>> Call
>>> Call
* Morgan Stanley Sees Positive Skew for Miners, Raises Boliden
* Energy Sector Reset Not Finished, MS Raises Shell, Cuts Equinor
* Idorsia Resumed Underweight at MS on Cautious Quviviq Outlook
* SAP Loses Only Sell as Jefferies Says Negatives Have Played Out
* Sartorius De-Stocking Now Priced In, Berenberg Upgrades to Buy
A gauge of Asian stocks headed for its first advance this week as a rally in Japanese shares provided a counterweight to global markets facing the prospect of further interest rate hikes from the Federal Reserve. A modest 0.5% advance for Japan’s Topix index on Thursday added to a string of gains that’s taken the benchmark to the highest level since 1990. Investors have warmed to corporate reforms, rising profitability and the return of inflation to Japan. Goldman Sachs Group Inc. analysts are among those who are upbeat on Japan, forecasting the Topix to rise about 8% from its current level in 12 months. South Korean stocks also ticked higher, Australian shares dropped and markets were closed for holidays in Hong Kong, mainland China and Taiwan, reducing activity in region. Futures contracts for the S&P 500 and Nasdaq 100 edged lower after after the two benchmarks fell for a third consecutive session Wednesday. Investors are rethinking the bullish spirits unleashed by last week’s Fed rate pause after Chair Jerome Powell underscored the need to tame inflation during his semi-annual report to Congress on Thursday. Powell warned that higher rates were needed and two more rate hikes this year was “a pretty good guess.” Separately, Atlanta Fed President Raphael Bostic, who isn’t among officials voting on rates this year, said he supported holding the central bank’s benchmark. Chicago Fed chief Austan Goolsbee, who does vote in 2023, said the decision to hold rates steady last week was a “close call.” Treasury yields were broadly flat in Asian trading after shorter maturity yields rose as Powell’s signal of higher rates fanned recession worries. The rise in short-dated yields pushed the inversion of a key segment of the yield curve to a full percentage point for the first time since March. Australia’s 10-year yield fell three basis points, while New Zealand’s yield of the same maturity moved four basis points higher. The yen strengthened slightly but remained close to 142 per dollar. The Bloomberg dollar index was little changed. Other central banks will also be in focus Thursday for markets, with a wave of decisions spanning Asia and Europe. Among them, policymakers are seen keeping rates on hold in Philippines and Indonesia and raising them in Switzerland, Norway and the UK. Traders are betting the Bank of England will have to accelerate the pace of interest-rate hikes after data Wednesday showed inflation remained at 8.7%, higher than expected for a fourth month. While the BOE is seen raising rates by 25 basis points to 4.75%, the risk of a larger half-point increase is growing. Traders also lifted expectations for the terminal rate to 6%, which would be the highest since the turn of the century. Two-year gilt yields rose to levels last seen in 2008. Traders are betting the Bank of England will have to accelerate the pace of interest-rate hikes after data Wednesday showed inflation remained at 8.7%, higher than expected for a fourth month. While the BOE is seen raising rates by 25 basis points to 4.75%, the risk of a larger half-point increase is growing. Traders also lifted expectations for the terminal rate to 6%, which would be the highest since the turn of the century. Two-year gilt yields rose to levels last seen in 2008. US After Hours KBH +0.7% ticks higher on earnings; CDMO -21% falls on earnings; AAOI +13.8% pops on MSFT supply deal; LOGI +2.1% higher on buyback authorization.
Nikkei -0.71% Hang Seng Closed CSI Closed Shanghai Closed Shenzen Closed
Eur$ 1.0989 CNH 7.1822 CNY 7.1795 JPY 141.84 GBP 1.2756 CHF 0.8928 RUB 84 TRY 23.5726 WTI$ 72.15 -0.52% Gold 1,929 -0.20% BTC 30,320 +1.12% ETH 1916 +1.93%
S&P -0.19% Nasdaq -0.35% EuroStoxx -0.62% FTSE -0.74% Dax -0.60% SMI -0.38%
Macro :
- EU’s Von Der Leyen Warns Vestager on EIB Conflict of Interest
- Ukraine Says Russia Gas Flows Through Country May End in 2024:FT
Keep an eye on :
Keep an eye on :
- AGN NA : Aegon Targets ~€1.2B in Operating Capital Generation in 2025
- AIR FP : Airbus, Leonardo Sign Memorandum on Pilot Training Systems
- BMW GY : China Premier Asks BMW to Maintain Investment: Xinhua
- BMW GY : China Premier Asks BMW to Maintain Investment: Xinhua
- BOO LN : Boohoo Holder Citadel Cuts Voting Rights to 1.86% From 8.96%
- ALCRB FP : Carbios Announces the Launch of a Rights Issue Totalling Around €122 Million, Likely to Be Increased to Around €141 Million
- CO FP : Fimalac Group Increases Stake in Casino to 12.05%: AMF
- CO FP : Casino to Defer ~€300m Tax, Social Payments Under Deal With Govt
- COLOB DC : Coloplast Largest Shareholders to Establish New Holding Co.
- CTT PL : CTT Says Board Approves New Share Buyback Program
- DLAR LN : Odey Cuts Interest in De La Rue to 2.93% from 6.89%
- DBHN GY : German Rail Passengers Face More Turmoil After Wage Talks Stall
- ELUXB SS : Midea Is Said to Drop Pursuit of Appliance Maker Electrolux
- GV FP : Enters distribution agreement with CliniSciences; No financial details disclosed
- GVOLT PL : Greenvolt 1Q Net Income EU0.3M Vs. EU1.1M Y/y
- IBE SM : Co. invests NOK35.1M and Spirax-Sarco Engineering invests NOK 41.0M in Kyoto Group AS to accelerate electrification
- LEO GY : Leoni Sales, Adj. Ebit ‘Well Up’ in 1Q Versus Prior Year
- LOGN SW : Logitech Launches $1 Billion Buyback
- NRG US : Elliott Investment Mgmt Seeks Ouster of NRG Energy CEO: WSJ
- RNO FP : Renault Plans to Build Electric Vehicle Plant in S. Korea: Daily
- SU FP : China Premier Asks Schneider Electric to Boost Cooperation
- SESG FP : Intelsat Is Said to End Negotiations to Combine With SES (Yesterday Night)
- SESG FP : SES Says Talks With Intelsat on Possible Merger Have Ended - This morning
- SNBN SW : SNB Says Regulation Slowed Response to Credit Suisse Crisis
- SPOL NO : SpareBank 1 Ostlandet CEO Richard Heiberg to Retire in 2024
- TIT IM : Telecom Italia Sounds Out Buyers for Stake in Enterprise Unit
- TTE FP : Total Signs Deal to Buy Green Hydrogen for German Oil Refinery
- VLA FP : Valneva Supervisory Board Recommends One-Tier Governance Model
- VLX LN : Volex to Announce £137m Acquisition, £55m Share Sale: Sky
- VOLVB SS : Volvo Sees SEK 1.3b Charge From Closing US Nova Bus Plant
- VOW GY : *VW TARGETS AUTOMOTIVE CASH FLOW OF EU6 BLN TO EU8 8LN IN 2023
DAX:
- Sartorius (SRT3 TH) +1.4%
- Sartorius De-Stocking Now Priced In, Berenberg Upgrades to Buy
- Deutsche Bank (DBK TH) -1%
- Adidas (ADS TH) -1.1%
- Commerzbank (CBK TH) -1.2%
- Infineon (IFX TH) -1.4%
MDAX:
- Delivery Hero (DHER TH) +2.4%
- DELIVERY HERO RATED NEW BUY AT GOLDMAN
- Nordex (NDX1 TH) +1.5%
- K+S (SDF TH) -1%
- Puma (PUM TH) -1.2%
- Evotec SE (EVT TH) -1.5%
- TeamViewer SE (TMV TH) -1.6%
- ProSieben (PSM TH) -1.6%
SDAX:
- MorphoSys (MOR TH) +0.9%
- GFT (GFT TH) +0.8%
- SUSE (SUSE TH) +0.5%
- Metro (B4B TH) +0.5%
- VERBIO Vereinigte (VBK TH) +0.5%
- United Internet (UTDI TH) -0.7%
- BayWa (BYW6 TH) -1.2%
- Aroundtown (AT1 TH) -1.8%
- Kloeckner (KCO TH) -1.9%
- Deutz (DEZ TH) -2.5%
- Delivery Hero (DHER TH) +1.8%
- DELIVERY HERO RATED NEW BUY AT GOLDMAN
- Sartorius (SRT3 TH) +0.8%
- Sartorius De-Stocking Now Priced In, Berenberg Upgrades to Buy
- AB InBev (1NBA TH) +0.6%
- SocGen (SGE TH) -1.3%
- European Banks’ €39 Billion Profit Boost a Tough 2024 Comparison
- Talanx (TLX TH) -1.4%
- Nemetschek (NEM TH) -1.4%
- Porsche Automobil (PAH3 TH) -1.5%
- VW Pushes for Higher Returns During Switch to Costly EVs (1)
- Puma (PUM TH) -1.7%
- Infineon (IFX TH) -1.7%
- Equinor (DNQ TH) -1.7%
- Adidas (ADS TH) -1.8%
- Inditex (IXD1 TH) -2.1%
>>> Up
* AB InBev Raised to Buy at Deutsche Bank; PT 60 euros (+)
* Boliden Raised to Equal-Weight at Morgan Stanley; PT 300 kronor
* Enel Chile ADRs Raised to Buy at Banco BTG Pactual; PT $4.30
* Nordex Raised to Outperform at BNPP Exane (+)
* SAP Raised to Hold at Jefferies; PT 115 euros
* Sartorius Raised to Buy at Berenberg; PT 390 euros
* Shell Raised to Equal-Weight at Morgan Stanley; PT 2,450 pence
>>> Down
* Shell Raised to Equal-Weight at Morgan Stanley; PT 2,450 pence
>>> Down
* AO World Cut to Hold at Shore Capital (+)
* Eneti Cut to Neutral at Citi; PT $14
* Equinor Cut to Underweight at Morgan Stanley; PT 290 kroner
* Lime Technologies Cut to Hold at DNB Markets; PT 300 kronor
* McPhy Cut to Sell at Panmure Gordon; PT 7.50 euros
* Steico Cut to Hold at Pareto Securities; PT 40 euros
>>> Initiation
* Steico Cut to Hold at Pareto Securities; PT 40 euros
>>> Initiation
* Atrys Health Rated New Outperform at Oddo BHF; PT 6.50 euros
* Bunge Rated New Buy at Roth MKM; PT $138
* Burford Capital Re-Initiated Buy at Berenberg; PT 1,350 pence
* Caterpillar Rated New Neutral at DA Davidson; PT $263
* DELIVEROO RATED NEW BUY AT GOLDMAN
* DELIVERY HERO RATED NEW BUY AT GOLDMAN
* Helios Underwriting Rated New Buy at Numis; PT 240 pence
* Helios Underwriting Rated New Buy at Numis; PT 240 pence
* Idorsia Resumed Underweight at Morgan Stanley; PT 7 Swiss francs
* IMCD Rated New Buy at KBC Securities; PT 156 euros (+)
* *JUST EAT TAKEAWAY RATED NEW NEUTRAL AT GOLDMAN
* Ossur HF Resumed Buy at Nordea; PT 37.80 kroner
* THG PLC Reinstated Equal-Weight at Barclays; PT 87 pence
>>> Call
>>> Call
* Morgan Stanley Sees Positive Skew for Miners, Raises Boliden
* Energy Sector Reset Not Finished, MS Raises Shell, Cuts Equinor
* Idorsia Resumed Underweight at MS on Cautious Quviviq Outlook
* SAP Loses Only Sell as Jefferies Says Negatives Have Played Out
* Sartorius De-Stocking Now Priced In, Berenberg Upgrades to Buy
*GOTHAM CITY RESEARCH SAYS IT’S SHORT SES-IMAGOTAG
After Hours Summary: KBH +0.7% ticks higher on earnings; CDMO -21% falls on earnings; AAOI +13.8% pops on MSFT supply deal; LOGI +2.1% higher on buyback authorizationAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: EPAC +2.6%, SCS +1.1%, KBH +0.7%
Companies trading higher in after hours in reaction to news: AAOI +13.8% (enters into supply agreement with MSFT to provide design and assembly services), KURA +3% (Director bought 50000 shares), LOGI +2.1% (authorizes new $1 bln share repurchase program), MRNS +2% (patent granted by USPTO), MFIN +0.6% (files $100 mln mixed shelf securities offering), SPCE +0.4% (Board Chair Evan Lovell died unexpectedly), RIVN +0.2% (acquires mapping company Iternio), IPI +0.1% (completes Phase One and provides update on Phase Two of its HB Injection Pipeline Project), ATAT +0.1% (co-CFO resigns)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: CDMO -21%
Companies trading lower in after hours in reaction to news: ALVR -19.1% (commences $75 mln public offering), GPOR -9.3% (stock offering by selling shareholders), CRNC -3.4% ($190 mln convertible notes offering), IGMS -1.8% (announces $100 mln public offering and concurrent private placement), COLD -1.3% (CP and COLD announce collaboration to co-locate Americold warehouse facilities), RJF -1% (reports May operating data), CP -0.6% (CP and COLD announce collaboration to co-locate Americold warehouse facilities), RTX -0.6% (awarded $294 mln U.S. Navy contract modification), AAPL -0.1% (releases developer software tools for the Apple Vision Pro)
Asset or accessory? Luxury handbags spark growing interest
Booming prices make the accessories attractive to investors seeking protection against inflation and market volatility
Three years ago, a London-based finance co-ordinator who works for a corporate company bought her first Hermès handbag. She now owns four. Having spent a little under £100,000, she plans to keep the handbags for at least five years and expects between a 40 and 50 per cent return on investment once she sells them.
“Coming from a finance background you can on your own see how profitable the market is and the returns you can get,” she tells the Financial Times. “It wasn’t really something that I had in mind, it was something that I was introduced to and I got to know slowly. Eventually I studied the market and saw that it is actually a good way to invest.”
The term “investment piece” is commonly used in fashion to describe pieces that are worth splurging on because of their timelessness. For a growing number of wealthy individuals, the expression has taken a much more literal connotation when referring to handbags.
“This asset class is becoming more prevalent for our clients,” says Hari Hundle, managing partner at Mayfair’s boutique wealth advisory firm Hundle, which manages about $1bn of assets from London. “We are seeing a huge growth in special unique assets. Their value is de-correlated to the market, and the market has been quite volatile, so this is a useful investment class. It started as a point of passion and luxury, but it has evolved.”
It’s a trend that has also been picked up by luxury research group Agility, which compiles studies on the spending habits of the wealthy. “A lot of high net worth individuals have passion investments, which would consist of a couple of things, such as watches and jewellery,” says managing director and co-founder Amrita Banta. “The handbags category has definitely started playing a part in that.”
Hundle says it is women and younger clients who tend to have an interest in the luxury handbag category, but only about 10 to 20 per cent take that interest to an investment level. Those clients, however, typically still invest more in established categories such as art or classic cars.
“If you were to put all luxury acquisitions and investments in an asset class, art and cars would be 80 per cent of what they are buying,” Hundle says. “The art market and the car market are more liquid, there are more buyers and there is more variety of supply.
For us, the handbag market has three suppliers: Hermès, Chanel and Louis Vuitton.”
Interest in handbags as collectibles has grown hand in hand with prices in the primary market, which have skyrocketed. In the past 10 years, a medium Chanel classic flap bag has more than doubled in price to $10,200. HSBC research shows that prices of the hero products of the 21 luxury brands they track increased by an average of 3 per cent in the three months between October 2022 and January 2023. A 2022 report from Credit Suisse says Chanel handbags, as well as traditional Chinese works of art and wristwatches, offer the best inflation protection. Investors are drawn to the handbag category for these reasons, as well as the opportunity to invest in objects that they actually enjoy.
“Since 2012, we have continued to see an incredible growing interest in the category, as well as increasing sales,” Rachel Koffsky, international head of handbags and accessories at Christie’s, writes via email. “Today, most of our clients are balancing passion and love for the object with making sound financial decisions when it comes to making their acquisitions. Some clients make six-figure acquisitions in order to wear their bag every day, some to wear once a year, and some to display in a custom case as a wearable work of art.”
At the auction house, global sales of handbags totalled $32.8mn in 2022, the highest value ever achieved by the department since it launched standalone handbag sales in 2012.
Christie’s Asia-Pacific division is at present offering an in-person Collecting Handbags as an Alternative Asset course for HK$3,800 (£390).
The London-based finance co-ordinator who spoke to the FT was advised in her purchases by BagsbyAppointment, a company founded in 2019 by Farida Patel, who after working in private banking for more than 10 years started to source and trade luxury handbags for private clients. About 100 of its clients, or a fifth of the total, have built handbag portfolios so far, bringing to the service an average of £500,000 to £1mn, although some clients start with smaller sums. “We advise on what to buy, when to buy it and how long they should keep the items for,” says head of strategy and growth Serena Piazzolla. (Patel declined to speak to the FT, citing a wish to keep a low profile.)
Much like the art market, the collectible handbag market is dependent on experts’ advice on what to buy. Sebastian Duthy, director of Art Market Research, a London-based research company that focuses on investments in fine art and luxury collectibles, warns that not all handbags, even from the Hermès, Chanel and Louis Vuitton triad, increase in value over time.
“You got to do your homework and you got to be connected with the information circle,” says Duthy. “Something very rare, and as long as it is in pristine conditions, will go up in value.” To preserve conditions, companies such as BagsbyAppointment offer a storage service. “Keeping the bags in pristine conditions is the number one priority when you make an investment,” says Piazzolla. “Occasionally [clients] will wear them, maybe for one night, but always knowing that what they are wearing is a financial asset.” Limited editions are considered the safer bet. The Hermès Kelly Cut So Black with feathers, released in 2010 as part of then creative director Jean Paul Gaultier’s So Black collection, retailed for about £10,000. One was recently sold by Christie’s for €277,200.
“What we want to explain to wealth managers and family offices is that those collectibles can represent an important portion of the wealth of their clients and need to be managed properly,” says Adriano Picinati di Torcello, director at Deloitte Luxembourg, who also warns that “there is no guarantee” for capital gains.
“When we look at the component of ‘investment’ we need to be very careful about the fashion trends and taste, which as we know can evolve over time,” he says. “Condition is extremely important and also provenance. Let’s be very selective, very prudent about conditions and provenance and [authenticity] documentation.”