>>> Europe : Brokers Upgrades & Downgrades - 31st of January 2023

>>> Up
* Admicom Raised to Buy at Inderes; PT 52 euros
* AMSC ASA Raised to Buy at Pareto Securities; PT 51 kroner
* BAE Raised to Buy at UBS; PT 1,050 pence
* Compass Group Raised to Buy at HSBC; PT 2,320 pence
* EFG International Raised to Neutral at Citi; PT 9 Swiss francs
* Phoenix Group Raised to Add at Peel Hunt
* Rockwool Raised to Buy at Handelsbanken
* Taylor Wimpey Raised to Equal-Weight at Morgan Stanley
* TF1 Raised to Equal-Weight at Barclays; PT 8 euros
* WPP Raised to Overweight at Barclays; PT 1,200 pence

>>> Down
* Airbus Cut to Sell at UBS; PT 105 euros
* AT&S PT Cut to 26 euros from 28 euros at Berenberg
* FDJ Cut to Reduce at HSBC; PT 35 euros
* Intel Cut to Sell at Fubon; PT $22
* J D Wetherspoon Cut to Hold at HSBC; PT 510 pence
* Lapwall Cut to Reduce at Inderes; PT 3.75 euros
* LEGAL & GENERAL CUT TO HOLD VS BUY AT BERENBERG
* M6 Cut to Underweight at Barclays; PT 14.50 euros
* M&G CUT TO HOLD VS BUY AT BERENBERG, PT 218P
* M&G Cut to Add at AlphaValue/Baader
* RELX Cut to Equal-Weight at Barclays; PT 2,585 pence
* Restaurant Group Cut to Hold at HSBC; PT 35 pence
* Sixt Raised to Buy at Jefferies; PT 130 euros
* Thales Cut to Neutral at UBS; PT 135 euros
* Valmet Cut to Accumulate at Inderes; PT 32 euros

>>> Initiation
* Chesnara Rated New Outperform at RBC; PT 350 pence
* Credito Emiliano Cut to Add at Intesa Sanpaolo; PT 8.70 euros
* Nova Ljubljanska Rated New Buy at HSBC; PT 112 euros
* Serica Re-Initiated Buy at Peel Hunt; PT 437 pence

>>> Call
* Berenberg Sees Risks for UK Life Insurers, Cuts L&G and M&G
* Cosmo Gets Another Buy as Berenberg Highlights Sales Potential
* HSBC Positive on Leisure Sector, Hospitality Pressure Continues
* Rockwool Up to Buy at Handelsbanken as Margin Pressures Abate
* Sixt Raised to Buy at Jefferies on Stable Prices, Travel Outlook
* Swiss Banks Offer ‘Compelling’ Opportunities, EFG Raised: Citi
* UK Builders Not Cheap, Berkeley Cut, Taylor Wimpey Raised at MS
* Vestas Raised to Buy at Handelsbanken With Recovery ‘in Sight’

>>> What to look at today - 31st of January 2023

Asian shares and US and European equity futures fell Tuesday as investors positioned for interest-rate hikes this week from the Federal Reserve and the European Central Bank. Equities benchmarks for China, Japan, India, South Korea and Australia all dropped, with small early gains in some markets evaporating. The moves extended on a torrid session on Wall Street that dragged the Nasdaq 100 to its worst day since Dec. 22 as Apple Inc. and Microsoft Corp. weighed on the market. Samsung Electronics Co. fell about 3.5% in Seoul, weighing on South Korea’s Kospi gauge, after profit slumped on poor demand for semiconductors and weakness in smartphones and memory chips.  In Hong Kong, Alibaba Group Holding Ltd.’s decline this week reached around 9%, reducing its market value by $28 billion amid concern that China’s consumer recovery may fail to meet lofty expectations.  The drop in Alibaba, and Chinese shares in general, still leaves them well up this year. An index of global equities also remained on course for a gain of about 6% in January. The selloff in Adani Group shares continued. While the flagship Adani Enterprises Ltd. was up about 2% in early trading as the company’s $2.5 billion follow-on share sale enters its final day, other parts Gautam Adani’s business empire were sharply lower. Ten of the conglomerate’s companies have seen about $75 billion in market value erased after US short-seller Hindenburg Research leveled fraud accusations last week.  oil fell further after touching a three-week low on Monday. Traders are waiting for more clues on Chinese demand, the Fed decision and the latest guidance from OPEC+. on the agenda for the week are policy meetings in Europe and the UK on Thursday, and the US jobs report on Friday. A less tight labor market is a key goal for the Fed.  US After Hours SYM +10.9% and WHR +1.5% up on earnings, CRK +6.6% up on news it will replace ADC in the S&P SmallCap 600; HLIT -8.6%, ITGR -5.4%, NXPI -3.3%, PCH -2% on earnings, DASH -2% on future stock sales announcement by co-founders

Nikkei -0.39% Hang Seng -1.48% CSI -0.94% Shanghai -0.35% Shenzen -0.36%

Eur$ 1.0838 CNH 6.7572 CNY 6.7534 JPY 130.16 GBP 1.2345 CHF 0.9253 RUB 70.1526 TRY 18.8098 WTI$ 77.46 -0.56% Gold 1,915 -0.45% BTC 22,850 +0.46% ETH 1,5670 +0.80%

S&P -0.07% Nasdaq -0.24% EuroStoxx -0.45% FTSE -0.37% Dax -0.44% SMI

Macro :
- JPMorgan’s Kolanovic Sees This Year’s Early Equity Rally Fading
- Adani Backed by UAE Royals Buying $400 Million in Share Sale
- Historic Outperformance of MSCI China May Be Over: China Today

Keep an eye on :
- AMG NA : AMG Signs MOU With FREYR for Battery-Grade Lithium Hydroxide
- AMS SW : AMS-Osram CEO Alexander Everke Will Be Succeeded by Aldo Kamper
- ATCOA SS : Atlas Copco Buys Business Unit from South Korea’s Zeus
- AOF GY : Atoss Proposes EU2.83/Share Payment, Including Special Dividend
- AG1 GY : AUTO1 Extends €1b Inventory Financing, Boosts Consumer Loan ABS
- BSA GY ; Bauer Agrees Legal Settlement, Plans Capital Increase
- BWLPG NO : BW LPG Gains as DNB Names It Top Pick Among Gas Shipping Firms
- CAV1V FH : Triton Changes Timetable for Start of Caverion Offer Period
- EDF FP : EDF Hopes to Take Part in Poland’s Nuclear Power Program: DGP
- EDF FP : France Interested in Building Saudi Nuclear Plant: Le Maire
- ELIS FP : Elis Sees 2023 Organic Revenue Above +10% Hemnet Holder General Atlantic Offers 8m Shares
- EAPI FP : EuroAPI Restarted Prostaglandin Prod in Budapest on Jan. 19
- GLEN LN : Glencore Sells Russian Aluminium Into LME Storage: Reuters
- HLAG GY : Hapag-Lloyd FY Revenue Misses Estimates
- HEM SS : General Atlantic Doubles Henmet Offering to 16.8m Shares
- HOLMB SS : Holmen 4Q Operating Profit Beats Estimates
- KPN NA : KPN Sees 2023 Adj. EBITDA AL About EU2.41B, Est. EU2.51B
- LAND SW : Landis+Gyr Targets 2025 Adjusted Ebitda Margin 12% to 14%
- LEO GY : Leoni CEO Aldo Kamper to Leave Company March 2023
- LOGN SW : Logitech Hires Boynton as CFO, Names Arunkundrum COO
- TL5 SM : MFE, Mediaset Espana Boards Approve Merger
- MUSTI FH : Musti Group 1Q Net Sales Beats Estimates
- NCCB SS : NCC 4Q Operating Profit Beats Estimates
- OR FP : L'Oreal, P&G to Boost Recycled Content in Packaging: BNEF
- PMAG AV : Pierer Mobility Prelim FY Ebit Beats Estimates
- P911 GY : Porsche, Ferrari Electrified China Growth Poised for 2023 Return
- RNO FP : Nissan Resolves Renault Grievance Through Big Payoff for Partner
- RHM GY : American Rheinmetall Vehicles and GM Defense awarded multi-phase program to replace the US army's heavy tactical trucks with production of up to 40K new trucks valued at up to $14B
- RHM GY : Rheinmetall Launches €1b Convertible Bond Offering
- RVRC SS : RVRC Holding 2Q Adjusted Operating Profit Beats Estimates
- SK FP : SEB 4Q Sales Beats Estimates
- STERV FH : Unicaja Sees 2023 NII Growing; 4Q Net Loss Misses Estimates
- SWEDA SS : Swedbank Beats Profit Estimates on Surging Net Interest Income
- TEL2B SS : Tele2 4Q Adjusted Ebitda After Leases Beats Estimates
- TIT IM : Tel. Italia May Target Net Debt Below €15b by 2025: Messaggero
- TUI1 GY : Griffin Global in Purchase, Leaseback of Two Aircraft With TUI
- UBSG SW : UBS Group 4Q Net Income Beats Estimates
- UNI SM : Unicaja Sees 2023 NII Growing; 4Q Net Loss Misses Estimates
- UCG IM : UniCredit 4Q Net Income Beats Estimates
- VTWR GY : Vantage Towers Forecasts FY Results
- VOW GY : VW’s Skoda Auto Cuts Production Due to Chip Shortage: Reuters
- WRT1V FH : Wartsila 4Q Adjusted Ebit Misses Estimates

FT : Britishvolt founder to bid for bankrupt battery start-up

Britishvolt founder to bid for bankrupt battery start-up
Orral Nadjari expected to table firm offer by Tuesday as administrators seek buyer

The ousted founder of Britishvolt is preparing a bid to try to buy back the defunct battery start-up out of administration, according to people with knowledge of the process.

Orral Nadjari, who founded the business in 2019 but was removed as its chief executive last summer, entered a non-binding bid for the company with administrators EY last week and is expected to submit a binding offer before Tuesday’s deadline, the people said.

The funding for the move, which is believed to be between £25mn and £30mn, has been raised from individuals across the UAE, where Nadjari is based, they added.

He is principally interested in the company’s nascent battery technology, which is still in the prototype stage and requires more funding to commercialise, rather than its factory site at Blyth, Northumberland, which has been the focus of other possible bidders.

Britishvolt, which harboured ambitions to build the UK’s largest battery gigafactory, had been seeking funding to develop its batteries for market and had expected to receive its first significant orders from carmakers later this year.

But the business, which has yet to generate revenues and had employed hundreds of staff, fell into administration earlier this month, after running out of cash.

Its collapse was a blow to UK ambitions to develop a homegrown battery maker to serve the car industry and comes as governments across Europe and the world vie to attract battery investments.

Britishvolt’s prospective factory site in Blyth is likely to be developed as a battery factory by whichever group eventually buys the company, as there are covenants on the land that require it to be used for that purpose.

A handful of bidders have been shortlisted by EY, including Australian battery start-up Recharge Industries and a group of current shareholders, who launched a last-ditch attempt to buy the company before its administration earlier this month.

The administrators need to find a buyer this week in order to prevent the company, which has retained 26 people, from being wound up completely, according to people with knowledge of the timing.

Nadjari proved to be a controversial leader of Britishvolt, bringing together battery experts and setting a vision for the business but with an ebullient style that made relations with the UK government and some investors difficult.

In an interview with the FT last year, he described himself as having a “bulldozer visionary entrepreneurial spirit” and called the company “my baby”. 

He left the company last summer, though he remained its largest shareholder until the business collapsed into administration.

Although based in Abu Dhabi, he returned to the UK last week and gave several media interviews, including one to the FT where he criticised the UK’s industrial strategy.

Nadjari, reached by WhatsApp on Monday evening, declined to comment, saying he had signed an NDA.

Britishvolt’s administrator EY declined to comment.

Australia’s Recharge Industries, which is led by a former PwC partner, is believed to be the favoured bidder of the shortlisted groups.

It is mainly interested in the factory site at Blyth, which is reckoned to be one of the best in Europe for making batteries, because of its access to clean power.

FT : ‘Colossal’ central bank buying drives gold demand to decade high

‘Colossal’ central bank buying drives gold demand to decade high
Fallout from US sanctions on Russia helped fuel 18 per cent leap in purchases last year

Demand for gold surged to its highest in more than a decade in 2022, fuelled by “colossal” central bank purchases that underscored the safe haven asset’s appeal during times of geopolitical upheaval.

Annual gold demand increased 18 per cent last year to 4,741 tonnes, the largest amount since 2011, driven by a 55-year high in central bank purchases, according to the World Gold Council, an industry-backed group.

Central banks hoovered up gold at a historic rate in the second half of the year, a move many analysts attribute to a desire to diversify reserves away from the dollar after the US froze Russia’s reserves denominated in the currency as part of its sanctions against Moscow. Retail investors also piled into the yellow metal in a bid to protect themselves from high inflation.

Central bank purchases of gold hit 417 tonnes in the final three months of the year, roughly 12 times higher than the same quarter a year ago. It took the annual total to more than double of the previous year at 1,136 tonnes.

Krishan Gopaul, senior analyst at the WGC, said “colossal” central bank buying is a “huge positive for the gold market”, even as the industry group predicted that it would be tough to match last year’s purchases because of a slow down in total reserve growth.

“Since 2010 central banks have been net purchasers of gold following two decades of net sales. What we have seen recently in this environment is central banks have accelerated their purchases to a multi-decade high,” he said. He added that a lack of “counterparty risk” was a key attraction of the metal for central banks, compared with currencies under the control of foreign governments.


Only about a quarter of the fourth-quarter central bank purchases were reported to the IMF. Reported purchases in 2022 were led by Turkey taking in almost 400 tonnes, China, which reported buying 62 tonnes in November and December, and Middle Eastern nations.

Gold industry analysts widely believe the remainder is accounted for by central banks and government agencies in China, Russia and the Middle East, which can include sovereign wealth funds.

James Steel, a veteran precious metals analyst at HSBC, said that “portfolio diversification is the main reason” for US dollar-laden central banks buying gold. He adds that “a key reason for choosing gold is that central banks are limited in what assets they can hold, and they may be reluctant to commit to other currencies”.

Demand among retail investors for bar and coins also jumped to a nine-year high in 2022 above 1,200 tonnes with strong demand in Europe, Turkey and the Middle East offsetting weakness in China where buyers were housebound by Covid lockdowns.

Gold prices slid from a record high last March above $2,000 to just above $1,600 per troy ounce in November as rising interest rates led to outflows from gold-backed exchange traded funds equivalent to $3bn over the year. Gold produces no yield, dulling its appeal to investors when interest rates on low-risk bonds climb.

However, demand from central banks and retail investors helped prevent the yellow metal sliding further and set the stage for a powerful rally since November.


In those three months, gold has jumped almost a fifth to $1,928 per troy ounce — its highest level in nine months — helped by the US Federal Reserve signalling that it would slow down the pace of rate hikes.

The WGC expects a revival in gold demand from institutional investors this year as interest rates in main economies approach their peak, while falling inflation could damp demand for bars and coins.

As a result of exceptional central bank buying and an expected return of inflows for gold-backed ETFs, UBS raised its year-end target for the precious metal to $2,100 per troy ounce, up from $1,850 previously.

>>> US After Hours Summary: SYM +10.9% and WHR +1.5% up on earnings, CRK +6.6% u

After Hours Summary: SYM +10.9% and WHR +1.5% up on earnings, CRK +6.6% up on news it will replace ADC in the S&P SmallCap 600; HLIT -8.6%, ITGR -5.4%, NXPI -3.3%, PCH -2% on earnings, DASH -2% on future stock sales announcement by co-founders

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SYM +10.9%, CSWC +2.5% (also increases dividend), ARE +2.3%, HP +1.5%, WHR +1.5%, PFG +0.7%, CFLT +0.4%

Companies trading higher in after hours in reaction to news: CRK +6.6% (replacing ADC in the S&P SmallCap 600), GRPN +1.6% (to reduce 500 global positions), ALB +0.2% (launches subsidiary Ketjen), AAPL +0.1% (executives violated worker rights, according to Bloomberg)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: HLIT -8.6%, ITGR -5.4% (Q4 and FY23 guidance; to offer $375 mln principal amount of its convertible senior notes), NXPI -3.3%, PCH -2%, AGNC -0.7%, CADE -0.4%, ELS -0.1%, JJSF -0.1%

Companies trading lower in after hours in reaction to news: BBAI -6.1% (stock offering by selling shareholders), ADC -2.9% (replacing STOR in S&P MidCap 400), DASH -2% (announces future stock sales by co-founders), STZ -1.8% (prices public offering of $500 mln senior notes), PARA -0.5% (Showtime to merge with Paramount+, according to The Information), DG -0.4% (CFO to retire), LOGI -0.2% (names new CEO and COO), GABC -0.1% (increases quarterly dividend)

>>> US Close Dow -0,77% S&P -1,30% Nasdaq -1,96% Russell -1,35%

Closing Stock Market Summary

This busy week for the stock market got started on a downbeat note as investors took some money off the table following a strong showing this month. Entering today, the Nasdaq and S&P 500 were up 11.0% and 6.0%, respectively, so far in January. The main indices spent most of the session on a steady decline, ultimately settling near their worst levels of the day. 

Investors took a more cautious approach today in front of policy decisions from the Fed, the ECB, and the Bank of England later this week. The skittishness around the FOMC decision largely relates to Fed Chair Powell's press conference and the possibility that Mr. Powell will make a concerted effort on Wednesday to rein in the market's enthusiasm by tamping down its optimism over any potential rate cuts this year.

On a related note, Nick Timiraos of The Wall Street Journal wrote over the weekend that Fed officials are concerned that inflation could reaccelerate due to tight labor markets. Mr. Timiraos added in a Monday article that the Fed's interest rate strategy could depend on how much members believe the economy will slow.

Some hesitation today on the part of buyers stemmed from a wait-and-see mindset ahead of several market-moving data releases, including the Q4 Employment Cost Index, the January ISM releases, and the January Employment Situation Report.

In addition, more than 100 S&P 500 companies will be reporting earnings this week, headlined by Meta Platforms (META 147.06, -4.68, -3.1%), Apple (AAPL 143.00, -2.93, -2.0%), Alphabet (GOOG 97.95, -2.76, -2.7%), and Amazon.com (AMZN 100.55, -1.69, -1.7%). Mega cap stocks had been leading the January charge, but trailed the broader market today as they succumbed to profit-taking interest. The Vanguard Mega Cap Growth ETF (MGK) closed down 1.9% versus a 1.1% loss in the Invesco S&P 500 Equal Weight ETF (RSP) and a 1.3% loss in the S&P 500.

Downside leadership from the mega cap space was evident in S&P 500 sector performance. The information technology (-1.9%), communication services (-1.8%), and consumer discretionary (-1.7%) sectors were among the worst performers today. 

Energy (-2.3%) was the top laggard for the 11 sectors as oil prices faded ahead of the OPEC+ meeting later this week. WTI crude oil futures fell 1.9% to $77.94/bbl.

Only one sector -- consumer staples (+0.1%) -- was able to maintain a slim gain by the close.

  • Nasdaq Composite: +8.9% YTD
  • Russell 2000: +7.3% YTD
  • S&P Midcap 400: +6.8% YTD
  • S&P 500: +4.6% YTD
  • Dow Jones Industrial Average: +1.7% YTD

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

Caterpilllar (CAT), Exxon Mobil (XOM), General Motors (GM), Marathon Petroleum (MPC), McDonald's (MCD), Pfizer (PFE), Phillips 66 (PSX), PulteGroup (PHM), Spotify (SPOT), Sysco (SYY), and UPS (UPS) are among the notable companies reporting earnings ahead of tomorrow's open. 

Looking ahead to Tuesday, market participants will receive the following economic data:

  • 8:30 a.m. ET: January Chicago PMI ( consensus 45.4; prior 44.9), Q4 Employment Cost Index ( consensus 1.1%; prior 1.2%)
  • 9:00 a.m. ET: November FHFA Housing Price Index (prior 0.0%), November S&P Case-Shiller Home Price Index ( consensus 6.8%; prior 8.6%)
  • 10:00 a.m. ET: December Consumer Confidence ( consensus 108.1; prior 108.3)

Business Of Fashion : Matchesfashion Secures £60m Support Package From Owner

Matchesfashion Secures £60m Support Package From Owner

Apax Partners, the private equity firm which acquired the luxury retailer in 2017, has agreed to inject £60 million ($74.2 million) into the business, a spokesperson for the company confirmed Monday.

The retailer’s support package was first reported by Sky News.

The financing is intended to support the business through its turnaround plan under chief executive Nick Beighton, who became the company’s fourth chief executive in as many years when he joined the business in July.

The additional financing means Matchesfashion will be in a better position to use “technology, product, logistics and culture, to help grow the top line of the business as well as our profitability,” Beighton told BoF over email on Monday.

In November, former Asos chief Beighton told BoF that “a recovery is already underway” at Matchesfashion after a turbulent few years for the retailer.

WWD : Sotheby’s to Auction Hong Kong Property Tycoon Joseph Lau’s Rare Hermès Ba

Sotheby’s to Auction Hong Kong Property Tycoon Joseph Lau’s Rare Hermès Bags
The collection of 77 limited-edition bags, including six diamond Birkins, is valued at $2 million.

Hermès Rose Bonbon Shiny Porosus Crocodile Mini Kelly 20 I Gold Hardware, 1997; and Hermès Bleu Jean Shiny Porosus Crocodile Birkin 25 18K White Gold and Diamond Hardware, 2006.
SOTHEBY'S
The first batch of 77 rare bags, which Lau acquired over the past two decades, is valued at 16.3 million Hong Kong dollars, or $2 million. Part of the sale proceeds will go to charity, Sotheby’s revealed.
Touted as the largest single-owner handbag sale in Asia, the lot includes a shearling Teddy Kelly 35 and a So Black Kelly 35, both from the Jean-Paul Gaultier era at Hermès, circa 2004 to 2010.

There is also a rare bespoke multicolored Fringe Birkin 35 in red leather, as well as six diamond Birkins of various sizes in blue jean, matte, electric blue, red, violet and fuchsia.

The blue jean shiny croc Bikin 25 with 18-karat white gold and diamond hardware is valued between 1 million and 2 million Hong Kong dollars, or $127,000 to $254,800, and is the priciest item on offer. The rest of the diamond Birkins are valued between 400,000 and 700,000 Hong Kong dollars, or $50,960 to $89,180.
Hermès Limited Edition Bronze Chèvre Metallic Kelly 25 Sellier Gold Hardware, 2005
SOTHEBY’S
Other prized pieces in the auction include a Rose Bonbon mini Kelly 20, an Orange Kelly Doll and a Bronze Metallic Kelly 25, which according to Sotheby’s was only in production between 2004 to 2005. The color of the bag was inspired by the window displays designed by Leïla Menchari for the Hermès flagship store at Rue du Faubourg Saint-Honoré in Paris. The Metallic Kelly bag is valued between 400,000 to 600,000 Hong Kong dollars, or $50,960 to $76,440.

Morgane Halimi, global head of handbags and accessories, said, “The limited-edition pieces that have made and shaped the history of handbags in the past two decades can all be found in this collection.”
With a net worth of $13.6 billion, according to Forbes, Lau is the former chairman of property developer Chinese Estates. He is best known by the public in Hong Kong for love affairs with several high-profile actresses in the past two decades, which often involved gifting rare bags and high jewelry as proof of affection.

He has been married to former showbiz journalist Kimbee Chan since 2016. They have two children.
In 2017, Lau transferred 75 percent of his shares in Chinese Estates to Chan and their son, citing serious health issues. This made Chan the richest woman in Hong Kong. Chan is also an avid rare Hermès bag collector.