Equities climbed in Asia on Wednesday amid upbeat sentiment over China’s economic reopening and as traders bet that the US consumer price index will show further softening. Shares advanced about 1% in Hong Kong, Japan and Australia after the S&P 500 moved back above its key 3,900 mark. US futures fluctuated and contracts for European shares rose. South Korea’s Kospi trimmed an earlier gain as semiconductor makers narrowed an advance and financials widened losses. Plans by Apple Inc. to start using its own custom displays in mobile devices also damped sentiment. Treasury yields trimmed the advance they made on Tuesday, with the rate on 10-year debt slipping to just below 3.6% as investors remained focused on the price outlook for the US. Federal Reserve Chair Jerome Powell earlier refrained from commenting on the outlook for monetary policy as traders looked to Thursday’s inflation data for any signs of cooling. Such a scenario could help build the case to slow the pace of rate hikes, even as some officials say it’s too early to declare victory over inflation. A gauge of dollar strength inched lower lower and was within sight of a seven-month low. The yen traded in the middle of its range since late December. The offshore yuan was near the strongest level versus the greenback since August.
Meanwhile in Asian markets, much focus is on China and its reopening from Covid curbs. The MSCI Asia Pacific Index rose, adding to Monday’s move, when it entered a bull market amid hopes for economic growth and weakness in the dollar. Optimism over demand from China was also evident in the iron ore market, with the steel-making ingredient rallying above $120 a ton in Singapore. et China’s reopening has also triggered a surge of infections and tighter requirements for its citizens to enter many countries. Beijing has begun to hit back against this, suspending some visas for South Korea and Japan. oil fell after an industry report showed a large build in US crude stockpiles amid a downbeat outlook for monetary policy. US After Hours PI +4.9% higher on solid guidance; ICHR -16.8%, HALO -5.8%, ACLS -1.2% lower on guidance
Nikkei +0,95% Hang Seng +1,55% CSI +0,34% Shanghai +0,28% Shenzen -0,08%
Eur$ 1,0748 CNH 6,7778 CNY 6,7674 JPY 132,26 GBP 1,2168 CHF 0,9214 RUB 69,6713 TRY 18,7871 WTI$ 74,65 -0,60% Gold 1,883 +0,35% BTC 17,393 -0,45% ETH 1,328 -0,06%
S&P -0,12 Nasdaq -0,34% EuroStoxx +0,27% FTSE +0,34% Dax +0,29% SMI +0,07%
Macro :
- ECB’s Centeno Says There’s No Alternative to Raising Rates
Macro :
- ECB’s Centeno Says There’s No Alternative to Raising Rates
- Yellen to Stay On at Biden’s Request as Showdown Nears Over Debt
- Mystery Buyer Helped Fuel Nickel Squeeze With $600 Million Bet
- Saudi Arabia Sets Up New Firm to Invest in Global Mining Assets
- Golden Globes: ‘Babylon,’ ‘Wednesday,’ ‘The Crown,’ ‘Avatar’ Sequel Among Noteworthy Snubs
Keep an eye on :
Keep an eye on :
- AIR FP : Boeing Reports 774 Commercial Orders in 2022
- AIR FP : Airbus books 820 net plane orders, highest since 2017
- ATO FP : Thales Says it Won’t Bid For a Stake in Atos Cyber Unit Evidian
- BSLN SW : Basilea Prelim FY Revenue About CHF148M, Est. CHF114.7M
- BAYN GY : Activist Bluebell Said to Build Bayer Stake in Breakup Push
- BMW GY : Samsung SDI May Build Battery Plant in Hungary W/ BMW: Chosun
- CINT SS : Cint Group Names Giles Palmer CEO as Tom Buehlmann Is Leaving
- CONN US : Franchise Group Mulls Going Private; May Buy Conn’s Inc.: WSJ
- XOM US : Exxon Mobil to Complete Greek Seismic Surveys in 1Q, Ta Nea Says
- KYOTO NO : Kyoto Group Offering of 3.43m Shares Prices at NOK17.50/Share
- MC FP : LVMH to Name Delphine Arnault CEO of Dior: Miss Tweed
- NDX1 GY : Nordex Gets Order From SSE Renewables for More Than 100 MW
- NOVN SW : Novartis Won’t Completely Exit Opthalmology Unit, CEO Says
- POM FP : Plastic Omnium, Shenergy Form Hydrogen JV in China
- SPIE FP : Spie Convertibles Price at 37.5% Premium, 2% Coupon: Terms
- SPIE FP : Spie Convertibles Price at 37.5% Premium, 2% Coupon: Terms
- ENR GY : Siemens Energy-led Group Wins €4 Billion Offshore Grid Order
- SHEL LN : Oman Agrees to 10-Year Deal to Supply LNG to Shell From 2025
- SAE GY : Shop Apotheke Prelim 4Q Revenue Misses Estimates
- SIKA SW : Sika FY Sales Misses Estimates
- SOLG LN : Cornerstone Receives Final Court Order Approving Arrangement
- TMV GY : TeamViewer Prelim FY Revenue EU566M
- UBXN SW : u-blox Prelim FY Revenue About CHF624M, Est. CHF600.3M
- UMG NA : Universal Music Group Names Sherry Lansing as Board Chair
- OLED US : Universal Display Rallies as Outlook Could Imply Sales Bottom
- FAN LN : Volution Group Shares Jump After Betaville ‘Uncooked Alert’
- VOW GY : VW Denies Having Decided on Sites for Next EV Battery Plant
>>> Up
* Corbion Raised to Overweight at Barclays; PT 40 euros
* Dassault Systemes Raised to Buy at HSBC; PT 42 euros
* Lanxess Raised to Overweight at Morgan Stanley; PT 54 euros
* Marel HF Raised to Buy at Berenberg
* SMA Solar Raised to Buy at Jefferies; PT 85 euros
* Swisscom Raised to Buy at SocGen
* Swisscom Raised to Buy at SocGen
* Vestas Raised to Buy at Jefferies; PT 254 kroner
>>> Down
>>> Down
* Alfen Cut to Underperform at Jefferies; PT 65 euros
* Bunzl Cut to Hold at Deutsche Bank; PT 3,060 pence
* Buzzi Unicem Cut to Hold at Berenberg
* Carlsberg PT Cut At Citi on Buyback at Risk, Low Visibility
* Caverion Cut to Reduce at Inderes; PT 8 euros
* Deliveroo Cut to Underweight at JPMorgan; PT 91 pence
* Elkem Cut to Hold at DNB Markets; PT 35 kroner
* Eurofins Scientific Cut to Underperform at Jefferies
* Eurofins Scientific Cut to Sell at Deutsche Bank; PT 58 euros
* Frontier Developments Cut to Neutral at Citi; PT 620 pence
* Frontier Developments Cut to Neutral at Citi; PT 620 pence
* Frontier Developments Cut to Hold at Berenberg; PT 620 pence
* Maersk Cut to Sell at Goldman; PT 14,000 kroner
* Pfeiffer Vacuum Cut to Underperform at Jefferies; PT 140 euros
* Roche Cut to Hold at Intron Health; PT 300 Swiss francs
* Santander Chile ADRs Cut to Sell at Goldman; PT $14
* Stillfront Cut to Neutral at Goldman; PT 20 kronor
* STMicroelectronics Cut to Sell at Goldman; PT 31 euros
* STMicroelectronics ADRs Cut to Sell at Goldman; PT $32.80
>>> Initiation
>>> Initiation
* Alcon Rated New Buy at HSBC; PT 80 Swiss francs
* Amplifon Reinstated Reduce at HSBC; PT 22 euros
* BioMerieux Reinstated Reduce at HSBC; PT 80 euros
* BlackRock Rated New Outperform at CICC; PT $885
* Blackstone Rated New Outperform at CICC; PT $100
* Cenergy Rated New Buy at Ambrosia Capital; PT 4.30 euros
* Cenergy Rated New Buy at Ambrosia Capital; PT 4.30 euros
* Coloplast Reinstated Reduce at HSBC; PT 690 kroner
* ConvaTec Reinstated Reduce at HSBC; PT 200 pence
* Demant Reinstated Buy at HSBC; PT 220 kroner
* DiaSorin SpA Rated New Hold at HSBC; PT 135 euros
* Eurofins Scientific Reinstated Buy at HSBC; PT 76 euros
* GN Store Nord Reinstated Buy at HSBC; PT 220 kroner
* LBG Media Rated New Buy at Peel Hunt; PT 135 pence
* Oxford Nanopore Rated New Buy at HSBC; PT 320 pence
* Qiagen Rated New Buy at HSBC; PT 57 euros
* Smith & Nephew Reinstated Buy at HSBC; PT 1,300 pence
* Sonova Reinstated Hold at HSBC; PT 290 Swiss francs
>>> Call
>>> Call
* Atlas Copco Cut as Rally Makes Risk-Reward Weaker: Handelsbanken
* Berenberg Sees Tough 2023 for EU Construction, Cuts Buzzi Unicem
* Carlsberg PT Cut At Citi on Buyback at Risk, Low Visibility
* Deliveroo Cut as JPMorgan Sees Weak 4Q in UK for Food Delivery
* Pfeiffer Vacuum Downgraded at Jefferies on Approaching Headwinds
* Roche Faces Near-Term Challenges, Cut to Hold at Intron Health
* SMA Solar Raised at Jefferies With Consensus Upgrades Seen Ahead
* Vestas Up to Buy With Wind Sector at Inflection Point: Jefferies
* Vestas Up to Buy With Wind Sector at Inflection Point: Jefferies
Heathrow Airport seizes shipment of Uranium - Sky News (update)
- Metropolitan Police Official states amount of contaminated material is 'extremely small' and poses no threat to public
- Counter-terror police has launched an investigation
- Shipment is said to have arrived on a flight from Oman with origination of Pakistan. Shipment was sent for Iranian nationals living in the UK
Brunello Cucinelli Closes ‘Superb’ 2022 With 29.1 Percent Sales Increase
Cucinelli described the year as a "breakthrough" one for his namesake company, and said he expects 2023 to be "excellent" for the brand.
MILAN — Brunello Cucinelli topped the guidance for year-end revenues at his namesake company twice over.
Last month, Cucinelli, the brand’s executive chairman and creative director, said he expected a 28 percent growth, up from 25 percent in October, as reported. But on Monday, preliminary 2022 sales showed an even bigger sales gain of 29.1 percent. In the 12 months ended Dec. 31, revenues reached 919.5 million euros, compared with 712.2 million euros in 2021.
Cucinelli said 2022 was “undoubtedly our breakthrough year,” not only because of the sales growth but because “at the same time the brand image was strongly consolidated worldwide.”
In light of the strong spring orders and the “extraordinary start” of the fall 2023 sales campaign, he said he expects “an excellent year,” confirming his previous forecast of reaching sales of 1 billion euros in 2023, representing 12 percent growth.
Cucinelli reiterated that he expects 10 percent growth in 2024 to be “reasonable,” and that revenues can be doubled “significantly in advance of the initial schedule of the 10-year plan that began in 2019, which had considered reaching this goal in 2028.”
In 2022, sales in Italy rose 21.8 percent to 102.6 million euros, accounting for 11.1 percent of the total. Cucinelli defined these as “superb” results, boosted by the company’s retail channel and the performance of its multibrand partners, “who visibly could be seen to have returned to invest confidently in their businesses.”
Revenues in Europe, excluding Italy, rose 20.4 percent to 263.8 million euros, representing 28.7 percent of the total, driven by “great strength of demand” in large capital cities as well as provincial towns; by the return of international tourism, particularly from North America, and “year-round efforts to enliven” its boutiques and those of its multibrand partners “through small events that have met the great desire of many customers to return to experience physical stores.”
Sales in the Americas jumped 40.5 percent to 334.7 million euros, representing 36.4 percent of the total, confirming the strength of the market for the brand.
“Demand related to high luxury has not only been consolidating, but has fully confirmed those ‘structural’ characteristics that have contributed to the great growth achieved, and we believe can contribute to the further growth we expect in the coming years,” said Cucinelli in a statement issued at the end of trading in Milan, where the company is publicly listed.
Revenues in Asia increased 28.1 percent to 218.4 million euros, accounting for 23.8 percent of the total.
Cucinelli remarked on the “very high potential” for the brand in the region in the medium to long term and pointed to the “growing appeal” of the label in China.
“We think that the relevance of the no-logo and ready-to-wear offerings is definitely increasing in China, and we are delighted to see an increasing number of customers coming into our stores looking for both specialty garments and somewhat more everyday clothing.”
Cucinelli observed that the idea of humanistic capitalism and the values of human sustainability are increasingly a “pronounced focus” as is “gracious growth and the search for the right balance between profit and gift. The very concept of living in harmony, which inspires us to radically rethink humankind’s relationship with nature, we imagine may in fact find some connection with Confucian thought, emphasizing a contemporary dialogue between peoples.”
Business in Japan, South Korea and the Middle East is accelerating with “excellent relative growth trends.”
In the year, the retail channel was up 36.6 percent to 573.3 million euros, representing 62.4 percent of the total. The jump was boosted by like-for-like growth, with “very good” sellout figures.
As of Dec. 31, the number of retail boutiques totaled 119, up from 114 in the previous year, and the number of hard shops stood at 42, unchanged from the end of 2021.
Revenues from the wholesale channel showed an increase of 18.4 percent to 346.1 million euros, representing 37.6 percent of the total.
As reported, Cucinelli will receive the Neiman Marcus Award for Distinguished Service in the Field of Fashion in Paris on March 4 during the city’s fashion week.
“This recognition crowns a very long-standing and mutually successful partnership based on reciprocal esteem and constant interaction,” said Cucinelli.
The entrepreneur has continued to invest in the company even throughout the two pandemic years, and investments in 2022 amounted to about 73 million euros. In addition, the company paid 15.05 million euros for the acquisition of a 43 percent stake in longtime supplier Lanificio Cariaggi Cashmere.
During 2022, Cucinelli also oversaw the purchase of an extensive area on the outskirts of Solomeo to further expand its factory in the coming years.
“The solid corporate structure and cash generation related to operating activities, as well as sound net working capital management, have enabled us to sustain our investment project and dividend distribution policy with a payout of 50 percent,” said Cucinelli.
As of Dec. 31, net debt stood at about 8 million euros, compared with 23 million euros last year.
Pietro Beccari to become Louis Vuitton CEO, Delphine Arnault Dior CEO
Luxury goods group LVMH is expected to announce on Wednesday Jan. 11 its most important management reshuffle in five years, according to a statement of which Miss Tweed got a copy before it was due to be published.
Pietro Beccari, who was CEO of Christian Dior Couture since 2018, has been named Chairman and CEO of Louis Vuitton. The veteran luxury manager will succeed Michael Burke, who will take up new duties working directly with LVMH CEO Bernard Arnault, LVMH will say on Wednesday.
Delphine Arnault, deputy CEO of Louis Vuitton and in charge overseeing all product activities since 2013, has been appointed President and CEO of Christian Dior Couture. Charles Delapalme, International Director of Christian Dior Couture since 2018, is appointed Deputy CEO of Christian Dior Couture.
Stéphane Bianchi, President of the Watches & Jewelry Division, will also oversee the Tiffany & Co and Repossi Houses, which are joining the Watches & Jewelry Division of the LVMH Group.
All the changes are scheduled to come into effect February 1st LVMH will say.
Bernard Arnault, Chairman and CEO of LVMH, congratulated Beccari, pointing to his exceptional work over the past five year. Arnault said there was “no doubt” he would lead Louis Vuitton “to even greater desirability and success.”
LVMH declined to comment. The reshuffle means that LVMH is pressing ahead with a generational changing of the guard and putting younger managers in charge of the group’s most strategic brands. Beccari has led Dior’s spectacular growth in the past five years and has never made a secret of his ambition to become CEO of Louis Vuitton. Meanwhile, Delphine Arnault has earned credit for her strong product skills at Louis Vuitton. Dior will be her first challenge as CEO. Previously, she worked as deputy CEO of Dior with Sidney Toledano. The appointment also makes her the first female boss of the storied French brand. Her father would not have given her this job if he did not think she was cut out for it, industry sources have said.
After Hours Summary: PI +4.9% higher on solid guidance; ICHR -16.8%, HALO -5.8%, ACLS -1.2% lower on guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: PI +4.9%, BLZE +1.9%, TNDM +0.2%
Companies trading higher in after hours in reaction to news: PROK +23.9% (announces publication of trial design for Phase 2 trial of REACT), HKD +9.7% (receives further confirmation that parties will not sell shares before Aug 2024), BLND +8.6% (announces strategic and financial initiatives to achieve path to profitability), CONN +4.9% (FRG is considering going private, also eyeing potential deal to acquire CONN, both according to WSJ), WOLF +0.1% (names new CTO), NOC +0.1% (awarded $464 mln U.S. Air Force contract)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: ICHR -16.8%, HALO -5.8%, ACLS -1.2%
Companies trading lower in after hours in reaction to news: WFG -1% (will indefinitely curtail its Perry Sawmill in FL later this month), BBY -0.9% (BBY looks to take on AMZN with free shipping, according to CNET), TSLA -0.4% (files for $717 mln expansion of Gigafactory Texas, according to Electrek), BKD -0.3% (reports occupancy for Dec), WFC -0.2% (to shrink mortgage exposure; to exit Correspondent business and will reduce mortgage servicing portfolio), FRG -0.1% (FRG is considering going private, also eyeing potential deal to acquire CONN, both according to WSJ), DIS -0.1% (AMZN and DIS-owned ESPN's ratings for NFL lagged competitors, according to Forbes), CNS -0.1% (reports Dec AUM)
Closing Stock Market SummaryThe stock market traded in mixed fashion to begin today's session after yesterday's rally fizzled out late in the afternoon trade. The major indices spent the first half of the day floating around their flat lines due to a lack of conviction from either buyers or sellers.
Fed Chair Powell gave a speech titled "Central Bank Independence" at 9:00 a.m. ET, but his comments had limited impact on the market. Instead, the fickle start to the trading day was likely driven by hesitation ahead of the December Consumer Price Index on Thursday followed by bank earnings reports on Friday, which marks the official start to the Q4 earnings reporting season.
Shortly after the open, decliners outpaced advancers by a slim margin at the NYSE while advancers led decliners at the Nasdaq.
Buyers exhibited more commitment, though, starting around midday. By the closing bell, advancing issues led declining issues by a roughly 5-to-2 margin at both the NYSE and the Nasdaq. The main indices closed near their best levels of the day, which left the S&P 500 comfortably above a key technical point (its 50-day moving average at 3,907).
The late push higher was fueled by broad buying interest. The Invesco S&P 500 Equal Weight ETF (RSP) closed at its best level of the day, up 0.8%, versus a 0.7% gain in the S&P 500. Ten of the 11 S&P 500 sectors closed in the green led by the communication services (+1.3%) and consumer discretionary (+1.3%) sectors. Meanwhile, the consumer staples sector (-0.2%) was alone in negative territory to close out the session.
Notably, small cap stocks performed better than their larger peers, leading the Russell 2000 to a gain of 1.5%.
Treasury yields rose noticeably today. The 2-yr note yield rose six basis points to 4.26% and the 10-yr note yield rose ten basis points to 3.62%.
Reviewing today's economic data:
- December NFIB Small Business Optimism 89.8; Prior 91.9
- November Wholesale Inventories 1.0%; Prior was revised to 0.6% from 0.5%
- S&P Midcap 400: ++3.5% YTD
- Russell 2000: +3.5% YTD
- Nasdaq Composite: +2.6% YTD
- S&P 500: +2.1%YTD
- Dow Jones Industrial Average: +1.7% YTD
Looking ahead to Wednesday, market participants will receive the following economic data:
- 7:00 a.m. ET: Weekly MBA Mortgage Applications Index (prior -13.2%)
- 10:30 a.m. ET: Weekly EIA Crude Oil Inventories (prior +1.69 million)
Elliott portfolio manager behind GSK and Fresenius campaigns leaves firm
Sebastien de La Riviere’s move is latest in a number of high-profile departures inside activist’s London office
The Elliott Management investor behind activist campaigns at UK healthcare giant GSK and Germany’s Fresenius has left the £55.7bn hedge fund, adding to an exodus of senior figures in its London office.
Sebastien de La Riviere, who had worked in Elliott’s London office since 2008, left in recent weeks and his positions in GSK and Fresenius, the world’s largest dialysis company, have been reallocated to other portfolio managers inside the firm, said people familiar with the matter.
It is the latest high-profile departure inside Elliott’s London office, where several key figures left the firm last year. Among them was senior portfolio manager Mark Levine, a longstanding and close ally of Gordon Singer, the son of Elliott’s founder Paul Singer who leads the London office.
Other departures include portfolio managers Mark Wills, who left in the summer of 2022, and Giorgio Furlani, who left last month to run Elliott-backed AC Milan football club. Sarah Rajani, the firm’s director of communications in London, also exited in recent months.
The exodus means Gordon Singer and Nabeel Bhanji are the only remaining senior portfolio managers in London.
Elliott set up its London office in 1994 and many of its activist campaigns in Europe and Asia are led by portfolio managers based there. The London office paid out £137mn in wages and salaries to 106 staff members in 2021, up from £113mn in 2020. Elliott’s website says the firm employs 499 people globally.
De La Riviere and Elliott declined to comment. Bloomberg first reported on his departure.
De La Riviere pushed for changes at GSK starting in 2021, questioning if chief executive Emma Walmsley was the right candidate to lead the pharmaceutical company after it spun off its consumer health division.
Elliott called on the GSK board to launch a process to determine if Walmsley, who does not have a background in science, should lead the UK drugmaker and to name new directors, with more scientific experience. It said the company had “credibility challenges” after a period of persistent underperformance and a lack of productivity in the drug pipeline.
The hedge fund also urged the GSK board to evaluate takeover offers for the joint venture with Pfizer that was later spun-off as Haleon. GSK later rejected a £50bn bid from Unilever to acquire the unit and there were no other offers.
Shares in GSK have lost about 10 per cent since the Financial Times first reported Elliott took a position in the company, in April 2021. Billions were wiped off the market capitalisation in July, as investors became nervous about lawsuits over the safety of the heartburn drug Zantac. Despite winning an important victory, which dismissed thousands of lawsuits, the shares have not fully recovered.