Gapping down
In reaction to earnings/guidance:
- CCK -10%, XRX -9.4%, HSII -7.7%, BRO -6.7%, HSBC -6.5%, CLF -6.1%, GLW -5.8%, MCO -5.7%, CR -5.2%, ZION -4.9%, ORAN -3.4%, CNC -3.4%, JBLU -3.4%, TBI -2.9%, PKG -2.7%, MMM -2.7%, AWI -2.4%, CADE -2%, DFS -1.9%, WRB -1.7%, RRC -1.7%, GPK -1.4%, ARE -1.3%, TRU -1.2%, PHM -1.2%, NWE -1%, VLO -0.9%
Other news:
- PEBO -2.7% (Peoples Bancorp and Limestone Bancorp (LMST) announce he signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire in an all-stock merger Limestone and the parent company of Limestone Bank)
- TBPH -2.5% (to Present New Ampreloxetine Data in Neurogenic Orthostatic Hypotension at the 33rd International Symposium on the Autonomic Nervous System)
- CRON -2.4% (SEC charged CRON for improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods)
- UEC -1.9% (stock offering by selling shareholders)
- BILL -0.9% (adds Google Cloud CMO to Board)
Analyst comments:
- ANET -2.5% (downgraded to Neutral from Outperform at Credit Suisse)
- EQX -2.4% (downgraded to Underperform from Sector Perform at RBC Capital Mkts)
- FA -1.9% (downgraded to Hold from Buy at Jefferies)
Gapping up
In reaction to earnings/guidance:
- MEDP +26.1%, AAN +12.2%, XM +9.6%, CLS +7.4%, CALX +7.3%, LOGI +6.9%, ARI +6%, SHW +5.7%, UBS +5.5%, GM +5.2%, GE +3.9%, ADTN +3.4%, UPS +3.3%, HUBB +3%, BNR +2.9%, SAP +2.8%, KO +2.8%, SSB +2.4%, BIIB +2.3%, AGNC +2%, ADM +1.9%, HAL +1.6%, HLX +1.5%, HXL +1.4%, ARCC +1.2%, NVS +0.9%, KMB +0.6%
Other news:
- WEBR +24.5% (BDT Capital offers to acquire WEBR at $6.25/share in cash)
- GRTS +5.3% (Phase 1 results from its ongoing CORAL-BOOST and CORAL-CEPI trials evaluating its self-amplifying mRNA vaccine candidates against SARS-CoV-2; also announces private placement of $45.0 mln)
- EEFT +5% (amends and extends its unsecured revolving credit facility)
- PRIM +3.9% (awarded $400 mln worth of projects)
- COOK +2.3% (trading higher in sympathy with WEBR)
- GHM +2.2% (achieves record $92 mln in orders in Q2)
- BCML +1.6% (authorizes up to 5% in repurchases)
- MIST +1.6% (Announces Late-Breaking Presentation of Data from Phase 3 RAPID Clinical Trial of Etripamil Nasal Spray in Patients with Paroxysmal Supraventricular Tachycardia at the American Heart Association Scientific Sessions 2022)
- LAUR +1.4% (approves special cash dividend)
- AVDL +1.1% (presents new data)
Analyst comments:
- HIBB +5.3% (upgraded to Buy from Neutral at BofA Securities)
- ASB +1.2% (upgraded to Neutral from Underperform at BofA Securities)
- NFLX +0.8% (upgraded to Outperform from Neutral at Daiwa Securities)
Early premarket gappers
- Gapping up:
- MEDP +24.8%, WEBR +23.5%, AAN +17.9%, XM +11.6%, CLS +7.4%, CALX +7.3%, ARI +6%, LOGI +5.7%, COOK +5.5%, EEFT +5%, UBS +4%, PRIM +3.9%, ADTN +3.5%, VLRS +3.2%, SAP +3.1%, BNR +2.9%, HLX +2.5%, SSB +2.4%, GHM +2.2%, LAUR +1.9%, TM +1.7%, AGNC +1.7%, HXL +1.4%, AVDL +1.1%, TRQ +0.8%
- Gapping down:
- CCK -9.4%, HSII -7.7%, HSBC -6.9%, CR -5.2%, ZION -4.9%, ORAN -3.6%, PII -3.2%, TBI -2.9%, CRON -2.7%, PKG -2.7%, TBPH -2.5%, BRO -2.5%, AWI -2.4%, CADE -2%, UEC -1.7%, ARE -1.7%, WRB -1.5%, RRC -1.4%, DFS -1.3%, PCVX -1.1%, NWE -1%, AMZN -0.7%
- Prosus (1TY TH) +3.9%
- Global Stocks Hold Gain Amid Volatility in China: Markets Wrap
- Norsk Hydro (NOH1 TH) +3.8%
- Norsk Hydro 3Q Adjusted Ebitda Beats Estimates (1)
- Randstad (RSH TH) +2.8%
- Randstad 3Q Organic Revenue Beats Estimates
- Vodafone (VODI TH) +2.1%
- Air Liquide (AIL TH) +2%
- Air Liquide 3Q Revenue Beats Estimates
- SAP (SAP TH) +1.3%
- SAP Third-Quarter Revenue Beats Estimates on Cloud Income (1)
- Imperial Brands (ITB TH) +1.1%
- Imperial Brands PLC IMB Transaction in Own Shares
- ING (INN1 TH) +0.7%
- Watch European Lenders on Earnings as ECB Mulls Profit Curbs
- UBS Profit Beats Estimates as Rate Tailwind Offsets Market Slump
- Kingspan (KRX TH) +0.7%
- Adidas (ADS TH) -0.9%
- Adidas, Puma Cut at Morgan Stanley on Major Industry Headwinds
- Swedish Match (SWMC TH) -1.1%
- Puma (PUM TH) -1.9%
- Adidas, Puma Cut at Morgan Stanley on Major Industry Headwinds
- Covestro (1COV TH) -3.1%
- Covestro Narrows FY Ebitda Forecast
- Linde (LIN TH) -4%
- Chemicals Group Linde Plans To Delist From Frankfurt
DAX:
- SAP (SAP TH) +1.4%
- SAP Third-Quarter Revenue Beats Estimates on Cloud Income (1)
- Infineon (IFX TH) +1.2%
- Siemens Energy (ENR TH) +1.1%
- Deutsche Bank (DBK TH) +0.8%
- Watch European Lenders on Earnings as ECB Mulls Profit Curbs
- UBS Profit Beats Estimates as Rate Tailwind Offsets Market Slump
- Daimler Truck (DTG TH) +0.7%
- Adidas (ADS TH) -0.6%
- Adidas, Puma Cut at Morgan Stanley on Major Industry Headwinds
- Puma (PUM TH) -1.5%
- Adidas, Puma Cut at Morgan Stanley on Major Industry Headwinds
- Covestro (1COV TH) -3.1%
- Covestro Narrows FY Ebitda Forecast toward Lower End
- Linde (LIN TH) -4.1%
- Linde Proposes Delisting From Frankfurt Stock Exchange
MDAX:
- Adtran Holdings (QH9 TH) +3.6%
- Telefonica Deutschland (O2D TH) +0.8%
SDAX:
- Jenoptik (JEN TH) +2.2%
- Jenoptik Started With Buy at Jefferies, Draegerwerk Rated Hold
- PNE AG (PNE3 TH) +1.5%
- Heidelberger Druck (HDD TH) -1.2%
>>> Up
* TechnipFMC Raised to Buy at HSBC; PT $13.50
* Vekselbanken Raised to Buy at Norne Securities; PT 220 kroner
>>> Down
* Adidas Cut to Underweight at Morgan Stanley; PT 101 euros
* Aurskog Sparebank Cut to Sell at Norne Securities; PT 194 kroner
* Meta Platforms PT Cut to $200 from $225 at Jefferies
* Nam R. Cut to Hold at Stifel; PT 2.90 euros
* Persimmon PT Cut to 1,117 pence at Morgan Stanley
* Philips Cut to Reduce at HSBC; PT 12 euros
* Puma Cut to Equal-Weight at Morgan Stanley; PT 50 euros
* Taylor Wimpey PT Cut to 85 pence at Morgan Stanley
>>> Initiation
* Draegerwerk Rated New Hold at Jefferies; PT 42 euros
* Idorsia Reinstated Add at Baader Helvea; PT 15.90 Swiss francs
* Jenoptik Rated New Buy at Jefferies; PT 28 euros
* Philips Reinstated Equal-Weight at Morgan Stanley; PT 17 euros
* Porsche AG Rated New Hold at Stifel; PT 98 euros
* Sinch Rated New Overweight at JPMorgan; PT 45 kronor
* UPS Rated New Buy at Jefferies; PT $190
>>> Call
* Jenoptik Started With Buy at Jefferies, Draegerwerk Rated Hold
* Logitech’s Mixed Results May See Volatility in Shares, Citi Says
* UK Homebuilder Estimates Slashed, Morgan Stanley Sees Value Trap
Global equities extended an advance amid sharp swings in Chinese stocks while other key markets around the region followed Wall Street higher following optimism from early US earnings reports. Hong Kong and mainland shares swung back to gains Tuesday, with the biggest move in the hard-hit technology sector. The Hang Seng Index rose around 1% after suffering its worst day since the financial crisis on Monday as investors reacted to President Xi Jinping tightening his control of government. An index of global equities rose fractionally after advancing over the past two days. Markets in Japan and Australia reflected gains in the the US on Monday while futures for the S&P 500 fluctuated during Asian trading. The offshore yuan fell to the lowest level since trading began a dozen years ago, as Xi’s power grab raised concern that concentrated decision-making could weaken growth and destabilize geopolitics. The decline extended after China’s central bank set the official fixing rate for the currency at the lowest level in 14 years. A fifth of S&P 500 companies have now posted third-quarter earnings with more than half outperforming estimates. Microsoft Corp., Alphabet Inc., Amazon.com Inc. and Apple Inc. report this week. The iPhone maker raised prices for its subscription music and TV services, citing higher input costs. Oil steadied as traders assessed near-term supply tightness in the crude market and broad appetite for risk assets including commodities. Gold was also steady in Asia. US After Hours WEBR +24% on BDT Capital offering to acquire the company; MEDP +20.2% on earnings and upbeat FY23 guidance; AAN +16.4% on earnings; CCK -16.5% on earnings miss and weak guidance
Nikkei +1,23% Hang Seng +0,87% CSI +0,91% Shanghai +0,74% Shenzen +0,34%
Eur$ 0,9879 CNH 7,3378 CNY 7,3061 JPY 148,87 GBP 1,1299 CHF 1,0005 RUB 61,5119 TRY 18,6043 WTI$ 84,84 +0,30% Gold 1,650,30 +0,25% BTC 19,345 -0,25% ETH 1,347 -0,30%
S&P -0,06% Nasdaq -0,06% EuroStoxx +0,08% FTSE -0,02% Dax -0,07% SMI +à,31%
Macro :
- JPMorgan’s Kolanovic Calls China Stocks Selloff a Buying Moment
- Global Junk-Bond Sales Drop Most Ever With No Signs of Recovery
- *YELLEN 'CAN'T RULE OUT THE RISK' OF A RECESSION: MSNBC
Keep an eye on :
- ADS GY : Ye Documentary Shelved by Studio Following Antisemitic Remarks
- AI FP : Air Liquide 3Q Revenue Beats Estimates
- AKER NO : Aker Solutions 3Q Adjusted Ebitda NOK749M Vs. NOK459M Y/y
- ALFA SS : Alfa Laval 3Q Adjusted Ebita Misses Estimates
- AAD GY : Amadeus Fire Sees FY Operating Ebita Above EU70M
- BAYN GY : Crop Giant Bayer Partners With Nori on Carbon Removal Market
- BILL SS : Billerud 3Q Adjusted Ebitda Beats Estimates
- ALCAR FP : Carmat Gets Approvals to Resume Aeson Commercial Implants
- 1COV GY : Covestro Narrows FY Ebitda Forecast
- DSV DC : DSV Boosts FY Ebit Before Significant Items Forecast, DSV Warns of Slowdown After Raising 2022 Profit Forecast
- EMSN SW : EMS-Chemie 9M Net Sales CHF1.87B Vs. CHF1.69B Y/y
- ENG SM : Enagas 9M Net Income EU353.4M Vs. EU307.3M Y/y
- ENGI FP : Inpex Buys Stake in 98.4MW Indonesia Geothermal Power Project
- EUCAR FP : Avis Shares Climb Most Since March After JPMorgan Upgrade
- GSK LN : Lyell Immunopharma Says GSK Discontinuing License Pact
- HELN SW : Helvetia Seeks New CEO as Gmuer to Step Down Mid-2023
- HSBA LN : HSBC 3Q Adjusted Pretax Profit Beats Estimates
- HSBA LN : HSBC's $1 Billion Boost to Cost Savings, NII Ticks Boxes: React
- IDIA SW : Idorsia 3Q Net Loss CHF216M, Est. Loss CHF221.4M
- IDS LN : More Than 115,000 Postal Workers to Strike Oct. 25: CWU Union
- ITP FP : I Interparfums Boosts FY Sales Forecast
- INWI SS : Inwido 3Q Net Sales Beats Estimates
- KEMIRA FH : Kemira 3Q Oper Ebitda Beats Estimates
- KNIN SW : Kuehne + Nagel 9M Ebit Meets Estimates
- LAGRB SS : Lagercrantz 2Q Net Income Beats Estimates
- LIAB SS : Lindab 3Q Net Income Misses Estimates
- LOGN SW : Logitech 2Q Sales Misses Estimates
- MYTIL GA : Mytilineos 9M Net Income EU312M Vs. EU115M Y/y
- NEOEN FP : Neoen Announces Results of Early Redemption for Convertibles
- NHY NO : Norsk Hydro 3Q Adjusted Ebitda Beats Estimates
- NOS PL : NOS 3Q Net Income EU106M Vs. EU46.1M Y/y
- NOVN SW : Novartis Profit Beats Estimates as Sales of New Drugs Rise
- ORA FP : Orange 3Q Ebitda After Leases Meets Estimates
- ORA FP : Orange Says European Markets Return to Growth, Boosting Sales
- ORSTED DC : Orsted, CIP Partner on 5.2 Gigawatts of Wind Projects
- POM FP : Plastic Omnium 3Q Revenue Beats Estimates
- PRU LN : Prudential Slumps to March 2020 Lows Due to High China Exposure
- RAND NA : Randstad 3Q Organic Revenue Beats Estimates
- RCO FP : Remy Cointreau 2Q Organic Revenue Beats Estimates
- RESURS SS : Resurs Holding 3Q Operating Income Beats Estimates
- ROG SW : Arthritis Drug Shipment Delay Mars Chugai’s 3Q: Street Wrap
- RBREW DC : Royal Unibrew Says Acquisition of Aqua d’Or Won’t Be Completed
- SAP GY : SAP Third-Quarter Revenue Beats Estimates as Cloud Earnings Rise
- SK FP : SEB Cuts FY Operating Result From Activity Margin Forecast
- SEQUA BB : Sequana Medical’s Alfapump Endpoint Data in Line With Views
- SHB LN : Shaftesbury Capital's Global Lure Douses Value Crash: BI Focus
- SHEL LN : Europe Biggest Oil Refinery Suffers Second Fault This Month
- SSABA SS : SSAB 3Q Adjusted Operating Profit Beats Estimates
- TTK GY : Takkt Maintains FY Ebitda Forecast
- THG LN : THG PLC 3Q Revenue Misses Estimates
- TTE FP : Total Sees Papua LNG FID in 2023, First Gas by End of 2027
- TWTR US : Twitter Should Be as Broadly Inclusive as Possible, Musk Says
- UBSG SW : UBS Group 3Q Net Income Beats Estimates
- ULVR LN : Unilever Recalls Widely Used Dry Shampoos Over Cancer Risk
- ULVR LN : Peltz Met With Possible Unilever CEO Candidates: Rtrs
- VAR NO : Var Energi Posts 3Q Net Loss of $30M After Balder X Impairment
- VPLAYB SS : Viaplay Sees FY Revenue +20%, Saw at Least +28%
- VIV F P : Spotify, Warner Climb as Apple Raises Price of Apple Music
- WRT1V FH : Wartsila 3Q Net Sales Beats Estimates
- WLN FP : Worldline 3Q Revenue Beats Estimates
UK energy suppliers force vulnerable on to prepayment meters
About 10,000 households a month made to switch as a result of falling behind with bills
Energy suppliers are set to force vulnerable British households to switch to expensive prepayment electricity and gas meters at a rate of 10,000 meters a month by the end of 2022, as consumers fall behind with regular payments.
Data from the energy regulator Ofgem showed the number of prepayment meters fitted in homes rising on a quarterly basis for the first time since 2019, despite government intervention aimed at shielding families from soaring wholesale gas and power prices.
Price comparison website Uswitch, which obtained the figures via a freedom of information request, predicted that if the trend continued there would be 10,000 installations a month by the end of the year.
That would take the total number of fitted meters to 7.5mn, up from 7.35mn in the last quarter of 2021. Some homes may have more than one meter.
The increase in prepayment meters is an early sign of distress in the energy market. Although a minority of households choose to pay for their energy consumption in advance, the majority are pushed into using them by suppliers if they fall behind with regular payments. Households normally pay for their energy after using it.
Fuel poverty campaigners have highlighted the risks of households “self- rationing” if they cannot afford to top up their meters.
The forecasts will add to concern that many households will struggle this winter despite the government’s pledge to limit typical household energy bills to £2,500 a year until April by restricting the price per unit of electricity or gas suppliers can charge. But the cap is still almost double what the average household paid last winter.
Outgoing prime minister Liz Truss originally promised the support would last two years but chancellor Jeremy Hunt last week reduced it to six months.
He said the Treasury would review the policy after April and seek to target “the most vulnerable”. The cost of the original package had been estimated at £150bn.
Richard Neudegg, Uswitch’s director of regulation, said the rise in prepayment meters suggested households were “increasingly at risk this winter”.
“Families and individuals on prepayment meters will be plunged into darkness as they self-disconnect when they can’t afford to top up,” said Neudegg, as he urged the Treasury to prioritise those households in its April review.
Households on prepayment meters have to pay more for their energy under Britain’s price cap because of the higher costs incurred by suppliers in servicing them.
Peter Smith, director of policy at the charity National Energy Action, called the forecasts “really worrying” and criticised suppliers for often defaulting “too quickly” to installing prepayment meters “despite this often not being wanted by the customer”.
EnergyUK, a trade body that represents companies including Centrica, EDF Energy, ScottishPower and SSE, said “suppliers offer a range of ways to pay for energy” and that “customers may find prepayment meters an effective way to help them manage their budget and monitor their energy usage”.
Warner Bros Discovery says charges from content cuts could reach $2.5bn
Newly merged entertainment company is looking to rein in costs after ‘spend, spend, spend’ era
Warner Bros Discovery expects to write off as much as $2.5bn because of shelved shows and movies along with other programming decisions, as chief executive David Zaslav looks to cut billions of dollars in costs.
After the merger of Warner with Discovery, Zaslav has represented a return to budget discipline following an era of extravagant spending in Hollywood. His team has been scouring the sprawling entertainment group — which includes HBO, the Warner movie studio and CNN — for $3bn in cost cuts over the next two years.
Warner warned in an SEC filing on Monday that restructuring costs could total up to $4.3bn through 2024, including between $2bn and $2.5bn in charges because of “strategic content programming assessments”.
The company has already incurred more than half of the restructuring charges it outlined on Monday. Warner wrote off $1bn in restructuring costs in the second quarter and expects to report between $1.3bn and $1.6bn in charges in the third quarter.
These charges are related to decisions not to move forward with shows already in development, pulling existing shows or movies from the HBO Max streaming platform, or changing the release strategy for programming, said a person close to the situation. The group is “overwhelmingly done” with these changes, the person said.
Under Zaslav’s watch Warner has cancelled high-profile projects including a nearly completed movie, Batgirl; JJ Abrams’s HBO series Demimonde; and a CNN streaming service, CNN Plus. Batgirl’s directors Adil El Arbi and Bilall Fallah had publicly expressed disbelief with the decision.
Zaslav has vowed to adopt a “more sensible” approach to budgets and pricing, after what he described as the “spend, spend, spend and charge very little” approach taken in recent years as media groups fixated on streaming growth.
“It was a reaction to the capital markets — let’s go ahead and collapse businesses and overspend on content,” Zaslav said when the company’s last quarterly earnings were released in August.
Warner Bros Discovery has cut estimates for operating profits this year to between $9bn and $9.5bn, blaming the more difficult outlook for advertising, overspending on streaming content and a budget position that was worse than what was disclosed pre-merger.
A Warner Bros Discovery spokesperson declined to comment.