TheChek News Flow

(BN) Hedge Fund Verde Says Victim of Brazil’s ‘Biggest Fraud Ever’

>>> US Close Dow -0,10% S&P -0,61% Nasdaq -1,00% Russell n-1,40%

Closing Stock Market Summary

The stock market traded in an uninspired manner Monday as it fell prone to continued selling interest on the heels of Friday's much stronger than expected January employment report.

The indices started the session in a southerly direction, and while they rebounded from their early lows that saw the S&P 500 slip below 4,100, they could never sustain any upward momentum. Instead, they spent much of the day moving laterally in a relatively tight trading range below their flatlines. The Dow Jones Industrial Average briefly scooted above its flatline in late afternoon trading before fading again into negative territory.

Monday's session was a day of consolidation for the market following its big run to begin the year. There wasn't a great deal of conviction on the sell side or the buy side, yet the selling interest prevailed in the midst of rising Treasury yields, festering valuation concerns, and some increased geopolitical tension after the U.S. shot down China's suspected spy balloon off the South Carolina coast on Saturday.

The 2-yr note yield jumped 17 basis points to 4.46% and the 10-yr note yield rose 10 basis points to 3.63%. In turn, the U.S. Dollar Index jumped 0.7% to 103.61.

Those moves reflected some budding angst that the January employment report will give the Fed more room to raise rates and to keep rates higher for longer. This sentiment was also evident in the fed funds futures market, which is now pricing in a 73.7% probability of a third, 25-basis point rate increase at the May FOMC meeting, according to the CME FedWatch Tool, versus only a 30% probability last Thursday (i.e., the day before the employment report).

Notably, market participants will hear from Fed Chair Powell on Tuesday when he has a "Conversation with David Rubinstein" before the Economic Club of Washington D.C., at 12:40 p.m. ET. The specter of that event presumably kept the market under wraps today as well.

The bump in market rates, though, has bumped the stock market off its bullish rails, although there was another speculative flurry seen in the AI stock space, as well as in so-called meme stocks like Bed Bath & Beyond (BBBY 5.86, +2.81, +92.1%), which alone saw approximately 240 million shares traded today.

The eye-popping price action today, though, was reserved mostly for story stocks. Catalent (CTLT 66.96, +10.91, +19.5%) was one of those stories after Bloomberg reported that it has caught Danaher's (DHR 263.66, -6.19, -2.3%) eye as a takeover target.

Otherwise, today's moves were relatively modest in scope at the sector and index level.

The communication services (-1.3%), information technology (-1.2%), and materials (-1.1%) sectors were today's biggest losers. The lone sectors to end the day in positive territory were utilities (+0.9%) and consumer staples (+0.02%).

Growth stocks and value stocks alike languished during today's trade. The Russell 3000 Growth Index fell 0.8% and the Russell 3000 Value Index dropped 0.7%.

Decliners led advancers by a 3-to-1 margin at the NYSE and by a 2-to-1 margin at the Nasdaq.

Nasdaq Composite: +13.6% YTD

Russell 2000: +11.2% YTD

S&P Midcap 400: +10.2% YTD

S&P 500: +7.1% YTD

Dow Jones Industrial Average: +2.2% YTD

There was no U.S. economic data of note today.

Tuesday will feature the December Trade Balance Report at 8:30 a.m. ET ( consensus -$68.5B; prior -$61.5B) and the December Consumer Credit Report at 3:00 p.m. ET (consensus $24.5B; prior $27.9 bln).

Notable companies reporting earnings before Tuesday's open include BP (BP), Carrier Global (CARR), Centene (CNC), DuPont (DD), Fiserv (FISV), Hertz Global (HTZ), and Royal Caribbean (RCL.

FT : Eurazeo ousts chief Virginie Morgon after shareholder power struggle

Eurazeo ousts chief Virginie Morgon after shareholder power struggle

Private equity group’s head loses support of company’s two largest shareholders

Virginie Morgon, one of the rare female leaders of a private equity group, has been ousted from the helm of France’s Eurazeo after losing the support of its two largest shareholders.

A statement from Eurazeo on Monday said the supervisory board and Morgon “jointly decided that her duties as CEO and member of the executive board of Eurazeo should cease”.

The firm announced the nomination of new leadership for the publicly traded French group, which has €32.4bn in assets under management, including nearly €23.2bn from third parties.

The leadership overhaul marks the culmination of several years of squabbles and changes within the Paris-listed company’s shareholder base.

Eurazeo’s historical anchor shareholder is the aristocratic David-Weill family, one of the key shareholders in Lazard investment bank. Before joining Eurazeo in 2008, Morgon spent 16 years at Lazard in New York, London and Paris, and was a protégée of former Lazard chair Michel David-Weill, who died last year.

Morgon took over as chief executive in 2018 and has been instrumental in growing and diversifying Eurazeo beyond its roots in mid-market private equity in its domestic market. The company’s investment strategies now encompass venture capital, private equity, private debt and real assets, and it has 12 offices globally.

Shares in Eurazeo, which has a market cap of €5.1bn, dropped 2 per cent on Monday and are down 10 per cent over the past five years.

In April 2017, it emerged that rival alternatives manager Tikehau Capital had started to build up a position in Eurazeo’s share capital. The following month, Crédit Agricole put its 15.4 per cent stake in Eurazeo up for sale, and the private equity group’s management feared Tikehau might use the opportunity to invest further and become its largest shareholder.

The Decaux family, which owns the eponymous outdoor advertising business, was brought in as a white knight, and its investment vehicle JCDecaux Holding bought the Crédit Agricole stake in June 2017. Tikehau reacted by selling out of Eurazeo by the end of 2021.

According to people familiar with the situation, the Decaux family, which now owns 18 per cent of Eurazeo and is its largest shareholder, and the David-Weill family, which owns 16 per cent and is Eurazeo’s second-largest shareholder, had three main concerns.

They wanted to accelerate the push into asset management, they felt that Morgon’s management style was not sufficiently collegiate, and they had grown frustrated with the company’s lacklustre share price growth.

Eurazeo is now trading at a similar level to when the Decaux family bought into the group. Following the death of Michel David-Weill, Morgon could no longer count on the David-Weill family to support her and be a foil to the group’s largest shareholder.

Jean-Charles Decaux, president of the supervisory board, said in a statement that Morgon had “accelerated the group’s growth, diversification, and internationalization”.

Under Morgon’s tenure, Eurazeo pushed into the US and expanded through acquisitions such as a stake in New York-based private equity firm Rhône Group and French private equity manager Idinvest. The firm’s assets have more than doubled from €16.8bn at the end of 2018, to €32.4bn.

Eurazeo on Monday announced what it called “a new, collegial, and focused” executive board that it has charged with accelerating its position in third-party asset management and improving performance. The new executive board is composed of two chairs, Christophe Bavière and William Kadouch-Chassaing, as well as two other executives.

Bavière is the founding chair of Idinvest, and Kadouch-Chassaing is Eurazeo’s general manager of finance and strategy.

Morgon said in the statement that she was leaving Eurazeo “with huge pride in the successful transformation of the group”. She did not respond to requests for further comment. Eurazeo declined to comment beyond the statement. The Decaux family could not immediately be reached for comment.

FT : Magistrates in England and Wales told to halt prepayment meter warrants

Magistrates in England and Wales told to halt prepayment meter warrants

Judge issues guidance to stop forcible installations for vulnerable households as Ofgem investigates energy suppliers

Magistrates in England and Wales have been told to stop approving warrants that allow energy companies to forcibly fit prepayment meters, following an intervention from a senior judge on Monday.

Lord Justice Andrew Edis, senior presiding judge of England and Wales, issued guidance to magistrates courts to halt listing applications for permits of entry until further notice, after energy markets regulator Ofgem opened an investigation into the practice.

Ofgem last week ordered British Gas to suspend forcible installations after it emerged that debt collection agents acting on behalf of Britain’s biggest suppliers had been breaking into the homes of vulnerable people to fit prepayment devices.

Grant Shapps, UK business secretary, said he had been “appalled” by the treatment of energy customers.

The regulator had asked suppliers to voluntarily stop such activities while it carries out two separate investigations into British Gas and the wider prepayment meter market.

Ofgem rules dictate that suppliers cannot fit pre-pay meters under a court warrant in the homes of people either considered to be in “very vulnerable situations”, or who would find the experience “very traumatic”.

Magistrates courts had previously been routinely issuing installation warrants in bulk. Most applications for such permits are not contested by the householder who must be notified that a warrant has been sought.

Edis said in a letter to magistrates on Monday that, in light of the Ofgem investigation, “applications for warrants of entry for the purpose of installing a prepayment meter should, with immediate effect, cease to be listed”.

He added that “no further such applications are to be determined until further notice”.

Edis noted that the courts must act proportionately and with regard to the human rights of people affected, particularly those who are vulnerable.

He said that the decision to recommence listing such warrants will depend on the progress of Ofgem’s investigation and any legislative review. Edis added that the direction did not effect other cases, such as applications for warrants in commercial cases.

The Ministry of Justice is to urgently consult with energy companies on the next steps.

The Magistrates Association, an independent association that represents magistrates in England and Wales, said it welcomed the new guidance.

“As well as highlighting that magistrates have, thus far, been following the correct procedures with regards to such applications, it reiterates that energy companies must follow due process regarding vulnerability assessments,” it said.

British Gas-owned Centrica has apologised for the “deeply disturbing” behaviour of agents installing prepayment meters in the homes of vulnerable customers on its behalf, which was uncovered by a Times investigation.

However, fuel poverty campaigners said the allegations against British Gas were likely to be the “tip of the iceberg”.

The End Fuel Poverty Coalition, a group of charities, trade unions and local authorities, had called for a review into the role of magistrates in granting permits to forcibly fit the devices.

The use of prepayment meters has raised concerns as they require customers to top up in advance, which tends to be more expensive than paying for electricity and gas via direct debit.

Fuel poverty campaigners warned that they also lead to vulnerable households “self disconnecting” if they cannot afford to pay.

Citizens Advice, a charity, said that in 2022 more than 27,500 people could not afford to top up their prepayment meter, a higher figure than for the entirety of the previous 10 years combined.

(ZH) Wind-Power Makers Suffer Huge Losses, Want To Abandon Major Project

Download Wind-Power_Makers_Suffer_Huge_Losses__Want_To_Abandon_Major_Project___ZeroHedge.pdf

(BFW) Temenos Sale to a Financial Sponsor Is ‘Plausible,’ Citi Says

(BN) Steve Eisman of ‘Big Short’ Fame Sees a New Paradigm for Markets

(BN) Turkey’s South Hit by a Second High-Magnitude Earthquake

>>> Europe : Brokers Upgrades & Downgrades - 6th of February 2023 V3(++)

>>> Up

* Aalberts Raised to Outperform at Oddo BHF; PT 59 euros (+)

* Aedas Homes SA Raised to Hold at Mirabaud Securities (+)

* Alcon PT Raised to 88 Swiss francs at Berenberg

* Alma Media Raised to Buy at Nordea; PT 11.50 euros (+)

* Boeing PT Raised to $240 from $200 at Argus

* CaixaBank Raised to Outperform at KBW; PT 5 euros

* CaixaBank Raised to Outperform at Oddo BHF; PT 4.80 euros (+)

* Floridienne SA/NV Raised to Accumulate at KBC Securities (++)

* Grifols Raised to Buy at AlphaValue/Baader

* Julius Baer PT Raised to 73 Swiss francs at RBC

* Lloyds Bank Raised to Overweight at Barclays; PT 75 pence
* Raisio Raised to Buy at SEB Equities; PT 3 euros

* Scatec Raised to Buy at Kepler Cheuvreux; PT 99 kroner (++)

* Spotify Raised to Overweight at Atlantic Equities; PT $160 (+)

* Suess MicroTec Raised to Neutral at Oddo BHF; PT 20 euros (++)

* Swiss Prime Raised to Outperform at ZKB (+)

* Telenor Raised to Buy at Nordea; PT 131 kroner

* United Bankers Raised to Accumulate at Inderes; PT 16 euros

* Zur Rose Raised to Neutral at Citi; PT 55 Swiss francs

* Zur Rose Raised to Hold at Deutsche Bank; PT 56 Swiss francs (+)

>>> Down

* Addnode Group AB Cut to Hold at Handelsbanken

* Carl Zeiss Meditec Cut to Hold at Berenberg; PT 138 euros

* Cint Cut to Hold at SEB Equities; PT 27 kronor

* Cint Cut to Hold at Nordea (++)

* Consti Cut to Accumulate at Inderes; PT 14.20 euros

* Electrolux Cut to Hold at Pareto Securities; PT 120 kronor (++)

* Hargreaves Lansdown Cut to Underperform at Credit Suisse
* IBM Cut to Hold at Edward Jones

* Industrivarden Cut to Hold at Pareto Securities; PT 310 kronor (++)

* Meta Platforms Cut to Neutral at Phillip Secs; PT $182

* NatWest Cut to Equal-Weight at Barclays; PT 400 pence

* Outokumpu Cut to Reduce at Inderes; PT 4.80 euros

* Pandora Cut to Hold at Jyske Bank; PT 625 kroner (+)

* PayPal Cut to Market Perform at Raymond James (++)

* Vale ADRs Cut to Sector Perform at RBC; PT $15

* Virgin Money UK Cut to Equal-Weight at Barclays; PT 230 pence

* Wienerberger Cut to Hold at Stifel; PT 30 euros

>>> Initiation

* Banca Generali Rated New Buy at Jefferies; PT 41.30 euros

* Banca Mediolanum Rated New Buy at Jefferies; PT 11.40 euros

* Dow Assumed Outperform at Credit Suisse

* Elkem Cut to Hold at SEB Equities; PT 40 kroner (++)

* FinecoBank Rated New Underperform at Jefferies; PT 14.80 euros

* Goosehead Insurance Rated New Outperform at Credit Suisse

* Kinnevik Cut to Sell at Danske Bank Markets; PT 172.90 kronor (++)

* LyondellBasell Assumed Outperform at Credit Suisse

* Meyer Burger Rated New Buy at Goldman

* OVH Rated New Hold at Stifel; PT 18 euros (+)
* Paradox Interactive Reinstated Hold at ABG; PT 210 kronor

* Serco Rated New Buy at Investec; PT 198 pence (++)

* Tate & Lyle Reinstated Buy at Numis; PT 975 pence

>>> Call

* Banca Generali, Mediolanum Preferred to FinecoBank at Jefferies

* CaixaBank Raised to Outperform on Capital Returns View: KBW (+)

* Carl Zeiss Cut at Berenberg on Short-Term Profitability Pressure

* Goldman Strategists Say Potential Upside for S&P 500 Is Limited

* Goldman’s Kostin Says US Stocks Rally Will Fizzle on Growth Risk (++)

* Hargreaves Lansdown Cut at CS on Funds Performance, Competition

* Idorsia’s PT Cut at Vontobel on Disappointing Clazosentan Trial (+)

* Meyer Burger Rated New Buy at Goldman on ‘Booming Demand Ahead’ (+)

* Uber Reaches Deal to Sell Stake in Russia JV to Yandex, RBC Says

* Wienerberger Cut at Stifel on Residential New Build Slowdown (++)

* Zur Rose Raised at Citi as Swiss Sale Increases Germany Focus

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