>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • DIS +9%, EAF +9%, FUTU +1.9%, VXX +0.9%
  • Gapping down:
    • NIU -5.1%, COIN -4.8%, TGNA -3%, SGRY -2.6%, SI -1.2%, AAPL -1.1%, ENFN -1%, QQQ -0.8%, HA -0.6%, SPY -0.5%, IWM -0.5%

>>> Europe : Brokers Upgrades & Downgrades - 21st of November 2022 V2(+)

>>> Up
* B&M European Raised to Buy at Goldman; PT 490 pence
* CaixaBank Raised to Strong Buy at Alantra Equities (+)
* OTP Bank Raised to Equal-Weight at Morgan Stanley
* Pekao Raised to Overweight at Morgan Stanley; PT 113 zloty
* Piraeus Bank Raised to Overweight at Morgan Stanley
* PKO Raised to Equal-Weight at Morgan Stanley; PT 36 zloty
* Polytec Holding Raised to Accumulate at Erste Group
* Rheinmetall Raised to Buy at Deutsche Bank; PT 220 euros
* SAP Raised to Overweight at Barclays; PT 130 euros
* SAP ADRs Raised to Overweight at Barclays; PT $136
* TeamViewer Raised to Overweight at Barclays; PT 14 euros
* Urban Logistics REIT Raised to Buy at Berenberg; PT 170 pence

>>> Down
* 2020 Bulkers Cut to Neutral at SpareBank; PT 85 kroner
* Acciona Cut to Sell at Citi; PT 174 euros
* Bechtle Cut to Neutral at Exane; PT 41 euros (+)
* Boohoo Cut to Neutral at Goldman; PT 55 pence
* Boohoo Cut to Hold at Panmure Gordon; PT 120 pence (+)
* Dassault Systemes Cut to Equal-Weight at Barclays; PT 40 euros
* Kreate Cut to Accumulate at Inderes; PT 10.50 euros
* Next Cut to Hold at Panmure Gordon; PT 6,800 pence (+)
* SGS Cut to Underweight at JPMorgan; PT 2,150 Swiss francs

>>> Initiation
* Ebusco Holding Rated New Buy at Bank Degroof Petercam (+)
* HelloFresh Rated New Buy at Goldman; PT 44 euros
* Iofina Rated New Buy at Canaccord; PT 35 pence (+)
* Izertis Rated New Buy at JB Capital Markets; PT 10.25 euros (+)
* Julius Baer Could See Mild EPS Upgrades; Capital Poor: KBW (+)
* Mobileye Rated New Outperform at Cowen; PT $35
* Mobileye Rated New Peerperform at Wolfe
* Mobileye Rated New Outperform at RBC; PT $41
* Mobileye Reinstated Equal-Weight at Morgan Stanley; PT $32

>>> Call
* Acciona Cut to Sell at Citi on Pressure From Debt, Power Prices
* Compass Results Show Strong Momentum With FY Beats, MS Says (+)
* Goldman Strategists See Stock Losses, Lower Valuations in 2023 (+)
* MS Strategists Say Clients View 1Q S&P 500 Bottom as Aggressive (+)
* HelloFresh Addressing Key Questions, Goldman Initiates at Buy (+)
* Rheinmetall Up to Buy at Deutsche Bank as Focus on Fundamentals
* Scandic Hotels Upgraded at Berenberg on Resurgent Performance
* SGS Shares Look ‘Mispriced,’ JPMorgan Downgrades to Underweight

Business Of Fashion : How Virtual Sampling Went Mainstream

How Virtual Sampling Went Mainstream
There’s been an uptick in brands from footwear to luxury adopting the technology as they look to speed up their processes, cut costs and burnish their sustainability credentials.
Timberland boots, in 3D. (Timberland)

KEY INSIGHTS
  • Brands across the spectrum are embracing 3D design and virtual sampling amid an accelerating digital transformation of the industry over the past few years.
  • Fewer physical samples means savings in time and costs as well as less waste, but implementing 3D tools can require training and a cultural shift in companies.
  • Different segments of the industry are adopting the tools at different rates, with footwear and hard luxury among those at the forefront.

In 2019, Timberland’s design team got a last-minute brief for a new footwear style to be developed as quickly as possible. Normally, however, creating a new product is slow: it can take months to make and revise physical samples, each of which must be shipped back and forth between factories in Asia and the company’s US offices.
Instead, Timberland bypassed that process and did everything in 3D. The virtual samples of the new Madbury sneaker boot were what the sales team used to determine Timberland’s own buy-in and even sell the shoe to retailers.
“We didn’t have time to actually make samples,” said Chris McGrath, Timberland’s vice president of global footwear and design development. “We went straight into 3D, which meant that we designed it in 3D from a sketch, and then we went into selling that 3D item.”
The virtual samples allowed Timberland to respond in a fraction of the time it would typically have taken. It was also that year the company formalised 3D as part of its design process, committing to creating the infrastructure and devoting resources to integrating it. It now has a team of eight dedicated to 3D.

3D design and virtual sampling have been steadily catching hold in fashion after a long period of companies talking about the technology but few fully adopting it. More brands are now embracing it or expanding its use to speed up their processes, cut costs and burnish their sustainability credentials.
Other VF Corp brands besides Timberland such as Vans and Dickies are increasingly using digital prototypes. Macy’s produced 61 percent of its samples virtually in its 2022 development season, up from just 5 percent in 2019. Hugo Boss expects to create 90 percent of samples digitally by the end of next year, the company told BoF. And during its investor day last year, Adidas said more than €5 billion (around $6 billion at the time) of its sales came from products created with 3D design, a figure it planned to continue scaling.
These digital prototypes don’t replace physical ones entirely — designers do still generally need to handle some tangible representation of an item before sending it into production. The technology has made more inroads in categories like footwear than in luxury fashion, where brands want to see how a gown will drape and move on a real person before putting it into production.
There are other challenges, like training or hiring staff. Maybe the biggest, in McGrath’s view, is the cultural change necessary to integrate it into the way a company operates. But indications are that virtual sampling will only become more common across the board. Brands are even beginning to explore designing in virtual reality.
“There is, in a more macro view, an acceleration of the digital transformation in the fashion industry for the last, I would say, two years” said Pierre Maheut, director of strategic initiatives and partnerships at Adobe Substance 3D, a suite of tools that integrates with various 3D software and is used by brands including Hugo Boss, Louis Vuitton and Salomon.
Fashion’s Digital Design Acceleration
Companies that have adopted 3D design say it allows designers to work faster and be more creative, since they’re able to produce and edit more samples more quickly.
It also has sustainability advantages. While companies can recycle some of their physical samples, they still create waste. It can reduce travel too — and the associated carbon emissions — both for physical samples that would normally be shipped back and forth and for teams of people.
McGrath said he would historically go on four or five development trips to Asia each year. He’s only gone once since the pandemic. Part of that was due to Covid, but now Timberland’s designers can send the brand’s factory partners 3D data, look at it on-screen together and make decisions in real-time.

That ability to have different teams collaborate virtually is also a reason Nike turned to 3D to design the Air Max Scorpion during the pandemic.
Timberland can’t replace physical samples entirely with virtual ones because it still needs to understand how a product will perform on foot. But McGrath said they’ve been able to cut rounds of physical sampling along the entire development process in half, saving time at each step.
Luxury’s Adoption of 3D
3D imaging was the most widely adopted new technology among 75 luxury companies surveyed by Bain and Comité Colbert, a federation of French luxury houses. While that includes creating assets for 3D visualisations online, the most popular use case was virtual sampling, according to Mathilde Haemmerlé, an expert in Bain’s retail and luxury practice.
Not all in the industry are embracing it at the same pace, however. Haemmerlé said around 50 percent of hard-luxury brands and 65 percent of beauty brands in their survey used 3D for virtual sampling, but only about 20 percent of fashion and accessories brands did.
That’s largely due to the benefits and drawbacks 3D prototypes offer each category. In high jewellery, for example, creating physical samples can be complex and costly. Beauty brands tend to use it to design packaging, like lipstick tubes, while fragrance companies use it for bottles.
For ready-to-wear, on the other hand, “it’s less ready from a technology perspective,” Haemmerlé said, because it’s still hard for designers to envision how materials will move on a real body.
That’s not to say the technology can’t produce faithful depictions of fabric down to the weave pattern. Adobe’s 3D fabrics can be difficult to distinguish from photographs. Hugo Boss said it’s using the technology for products like jersey items, shirts, knitwear, bodywear and hosiery, and it can be especially useful for creating new versions of staple styles released year after year.
Examples of Adobe Substance 3D's material swatches. (Adobe)
“When you do a new season for some of the very famous brands of footwear, for instance, usually the 3D model does not change,” Adobe’s Maheut said. At Louis Vuitton, he noted, “one of the main challenges is to revisit iconic designs through colour, material and finish.”

It’s helpful to footwear brands like Timberland for another reason, too. Making elements like a shoe’s outsole, midsole and insoles requires steel molds that are cut to order, known as toolings. 3D modeling eliminates the need to produce new toolings each time the company wants to see a design with the sole tweaked slightly.
Given that Timberland has anywhere from six to 12 new toolings in a season, the savings in time and expenses are significant. It helps explain why footwear brands including Nike, Adidas, Salomon and Hoka are also turning to virtual sampling.
The Transition to 3D
Incorporating 3D into the design process takes more than just downloading software. You need people equipped to use it, which means training or hiring staff. Fashion schools have been slow adding 3D to their curriculums, and while that’s now changing, it means the skillset can be in short supply among designers.
On the other hand, McGrath said hiring for 3D roles can attract talent that otherwise might not have considered a job at Timberland. It’s required some adjustments for current employees too.
“There were still people who wanted to pick up a sample as early as possible to make a decision, and we just had to take them through an education program,” he said.
Timberland had to onboard some of its factory partners as well so they could receive and make use of the 3D data. Early on, it was only able to use 3D as an internal tool, which limited its usefulness.
Timberland has now been working on incorporating 3D end-to-end for three years, which McGrath pointed out sounds long but actually isn’t for setting up infrastructure and a full team. They’ve now started to test out designing in virtual reality as well, which provides an even better sense of a product’s dimensions. Nike has similarly started using virtual reality to design.
Companies are already using 3D assets instead of product photos at times in their marketing and on their e-commerce sites. Next brands could use 3D images created for use behind the scenes and adapt them for virtual environments or use in virtual try-on. Timberland and Hugo Boss are already working on it.

>>> Stoxx 600 Pre-Market Indications

  • HelloFresh (HFG TH) +2.5%
    • HelloFresh Rated New Buy at Goldman; PT 44 euros
  • Rheinmetall (RHM TH) +1.4%
    • Rheinmetall Raised to Buy at Deutsche Bank; PT 220 euros
  • Vodafone (VODI TH) +1.4%
  • Telenor (TEQ TH) +1.1%
  • Nordea Bank (04Q TH) +0.9%
  • Norsk Hydro (NOH1 TH) +0.7%
  • Engie (GZF TH) +0.6%
  • Tomra (TMRA TH) +0.6%
  • Alfen (703 TH) +0.6%
  • Axa (AXA TH) -1.3%
  • Philips (PHI1 TH) -1.3%
  • Publicis (PU4 TH) -1.4%
  • UMG (0VD TH) -1.4%
  • Bavarian Nordic (BV3 TH) -1.5%
  • Bechtle (BC8 TH) -1.7%
    • Bechtle Cut to Neutral at Exane; PT 41 euros
  • Red Electrica (RE21 TH) -1.7%
  • Anglo American (NGLB TH) -1.7%
  • Stellantis (8TI TH) -2.2%
    • Stellantis agrees to acquire Hungary’s aiMotive
  • Hexagon (HXG TH) -2.2%

>>> TradeGate Pre-Market Indications

DAX:
  • Siemens Energy (ENR TH) +1.3%
  • Vonovia (VNA TH) +0.5%
  • SAP (SAP TH) +0.2%
    • SAP Raised to Overweight at Barclays; PT 130 euros
  • Bayer (BAYN TH) -0.5%
  • Deutsche Telekom (DTE TH) -0.5%
  • Porsche SE (PAH3 TH) -0.5%
  • Adidas (ADS TH) -0.6%
  • Mercedes (MBG TH) -0.7%
MDAX:
  • HelloFresh (HFG TH) +3.5%
    • HelloFresh Rated New Buy at Goldman; PT 44 euros
  • TeamViewer (TMV TH) +2.2%
    • TeamViewer Raised to Overweight at Barclays; PT 14 euros
  • Rheinmetall (RHM TH) +1.5%
    • Rheinmetall Raised to Buy at Deutsche Bank; PT 220 euros
  • Bechtle (BC8 TH) +1.2%
  • Evotec SE (EVT TH) +0.9%
  • Varta (VAR1 TH) -0.5%
  • Aixtron (AIXA TH) -0.5%
  • Lufthansa (LHA TH) -0.5%
  • Talanx (TLX TH) -0.8%
  • K+S (SDF TH) -1.1%
SDAX:
  • SUSE (SUSE TH) +5.1%
    • SUSE Says Overall 4Q Trading Robust, ACV Higher Than Guidance
  • Wacker Neuson (WAC TH) +2.2%
  • Medios (ILM1 TH) +2.1%
  • Uniper (UN01 TH) +1.6%
  • About You (YOU TH) +1.4%
  • Metro (B4B TH) -1.2%
  • MorphoSys (MOR TH) -1.3%
  • flatexDEGIRO (FTK TH) -1.4%
  • SGL (SGL TH) -1.4%
  • Ceconomy (CEC TH) -1.7%

>>> Europe : Brokers Upgrades & Downgrades - 21st of November 2022

>>> Up
* B&M European Raised to Buy at Goldman; PT 490 pence
* OTP Bank Raised to Equal-Weight at Morgan Stanley
* Pekao Raised to Overweight at Morgan Stanley; PT 113 zloty
* Piraeus Bank Raised to Overweight at Morgan Stanley
* PKO Raised to Equal-Weight at Morgan Stanley; PT 36 zloty
* Polytec Holding Raised to Accumulate at Erste Group
* Rheinmetall Raised to Buy at Deutsche Bank; PT 220 euros
* SAP Raised to Overweight at Barclays; PT 130 euros
* SAP ADRs Raised to Overweight at Barclays; PT $136
* TeamViewer Raised to Overweight at Barclays; PT 14 euros
* Urban Logistics REIT Raised to Buy at Berenberg; PT 170 pence

>>> Down
* 2020 Bulkers Cut to Neutral at SpareBank; PT 85 kroner
* Acciona Cut to Sell at Citi; PT 174 euros
* Boohoo Cut to Neutral at Goldman; PT 55 pence
* Dassault Systemes Cut to Equal-Weight at Barclays; PT 40 euros
* Kreate Cut to Accumulate at Inderes; PT 10.50 euros
* SGS Cut to Underweight at JPMorgan; PT 2,150 Swiss francs

>>> Initiation
* HelloFresh Rated New Buy at Goldman; PT 44 euros
* Mobileye Rated New Outperform at Cowen; PT $35
* Mobileye Rated New Peerperform at Wolfe
* Mobileye Rated New Outperform at RBC; PT $41
* Mobileye Reinstated Equal-Weight at Morgan Stanley; PT $32

>>> Call
* Acciona Cut to Sell at Citi on Pressure From Debt, Power Prices
* Rheinmetall Up to Buy at Deutsche Bank as Focus on Fundamentals
* Scandic Hotels Upgraded at Berenberg on Resurgent Performance
* SGS Shares Look ‘Mispriced,’ JPMorgan Downgrades to Underweight

>>> What to look at today - 21st of November 2022

Stocks declined in Asia amid concern that China may tighten Covid curbs after a string of reported deaths, with investors seeking shelter in the haven assets of Treasuries and the dollar. Shares in Hong Kong led the regional drop, with the benchmark Hang Seng Index falling more than 1.80% in its fourth day of decline as investors weighed if the recent rally on a China reopening was overdone. The MSCI AC Asia Pacific index weakened to a one-week low, while US futures fell.  The dollar rose against both Group-of-10 peers and emerging-market currencies, surging more than 1% against the risk-sensitive Korean won. Treasuries gained across the curve. Oil sank on concern of a weakening demand outlook from China.  China saw its first Covid-related death in almost six months on Saturday and another two were reported on Sunday. Worsening outbreaks across the nation are stoking concerns that the authorities may again resort to harsh restrictions to minimize the death toll, even though they recently called for loosened quarantine and mass testing rules. Wall Street banks from Morgan Stanley to Bank of America Corp. called for further gains as President Xi Jinping mingled with world leaders at the Group of 20 meetings without a mask on.  A city near Beijing that was rumored to be a test case for the ending of virus restrictions has suspended schools, locked down universities and asked residents to stay at home for five days. South Korea’s Kospi dropped more than 1% amid weakness in tech and battery stocks as global funds take profit following a recent rebound in the gauge. Looking beyond Asia, traders this week will also be looking to minutes of the most recent Federal Reserve policy meeting for more clues on the course of rate hikes.  Atlanta Fed President Raphael Bostic said he favors slowing the pace of interest rate increases, with no more than 1 percentage point more of hikes, to try to ensure the economy has a soft landing. Boston Fed President Susan Collins reiterated her view that options are open for the size of the December interest-rate increase, including the possibility of a 75 basis-point move.

Nikkei +0.16% Hang Seng -1.80% CSI -1.01% Shanghai -0.52% Shenzen -0.23%

Eur$ 1.0270 CNH 7.1620 CNY 7.1609 JPY 140.77 GBP 1.1818 CHF 0.9567 TRY 18.6127 WTI$ 79.50 -0.72% Gold 1,745.25 -0.30% BTC 16,120 -0.82% ETH 1,128.45 -1.14%

S&P -0.39% Nasdaq -0.37% EutoStoxx -0.33% FTSE -0.18% Dax -0.31% SMI -0.08%

Macro :
- Goldman Says Dollar Strength Versus Asia FX May Not Last Longer
- EU Ambassadors Reach Deal on Artificial Intelligence, Identity
- Germany to Boost Climate Fund 28% to €36 Billion in 2023

Keep an eye on :
- ABI BB : Budweiser Left With Ads and Plenty of Beer After World Cup Ban
- ADS GY : Musk Welcomes Ye Back to Twitter After Inviting Trump’s Return
- AIR FP : Boeing: Boeing Forecasts Air Cargo Traffic to Increase Twofold Over Next 20 Years Nov 18, 2022
- BRAIT LX : Brait’s Investment Advisor Ethos to Merge With Rohatyn Group
- CBK GY : Ex-Bundesbank Chief Weidmann Proposed as Next Commerzbank Chair
- CON GY : Ambarella Rises After Continental AG’s Plan to Use Processor
- CCAP GY : Corestate Reviewing Insolvency as Restructuring Success Unlikely
- DIS US : Walt Disney Names Robert Iger as CEO, Succeeding Bob Chapek
- DIS US : Trian Acquires Over $800m in Disney, Opposes Iger as CEO: WSJ
- EDF FP : EDF: Luc Remont Named to Board, Recommended as CEO
- BAER SW : Julius Baer Assets Under Management at 429 Billion Francs
- KN FP : H2O and Its Founders Risk Big Fines as Windhorst Bet
- NEM GY : Nemetschek's Industry-Leading Operating Margin Gets Challenged
- MEAL LN : Parsley Box Seeks Investor Backing to Go Private as Shares Slump
- 1913 HK : Prada Denies Report it Aims for Secondary Listing in London
- S92 GY : Net-Zero or Forced Labor? Solar Needs to Tackle Both Challenges
- SSE LN : Ontario Teachers Is Said to Lead Bidding for SSE Networks Stake
- SUSE GY : SUSE Says Overall 4Q Trading Robust, ACV Higher Than Guidance
- 2230 TT : Buffett’s $5 Billion TSMC Purchase Adds to Wave of Bullish Calls
- TATE LN : Tate & Lyle might be an old sweetie, but its new strategy is modern and makes it a must-own
- TIT IM : Italy Ministry Says No Alternative Plan for Telecom Italia Grid
- TSLA US : Tesla Is Recalling Up to 321,628 Vehicles in US: NHTSA
- TSLA US : TSMC May Replace Samsung With Tesla’s Chips Order: EDN
- VK FP : Vallourec 3Q Ebitda Misses Estimates
- VIE FP : VEOLIA ENVIRONNEMENT Debt Tender Offer Update
- WBD IM : Webuild, Partners Close on Contract for Toronto Rapid Transit