Gapping down
News:
- RNA -20.1% (announces FDA partial clinical hold on new participant enrollment in the Phase 1/2 MARINA clinical trial of AOC 1001)
- SAIC -0.9% (awarded $757 mln firm-fixed-price U.S. Army contract)
Analyst comments:
- LAW -1.3% (downgraded to Hold from Buy at Loop Capital)
Gapping up
In reaction to earnings/guidance:
- UNFI +2.8%, GRAB +1.8% (guidance update), SPLK +0.9% (reaffirms guidance; also CFO to depart co)
Select ETFs showing strength:
- IWM +1.5%, QQQ +1.4%, SPY +1.3%, DIA +1%
Other news:
- OCUL +11.4% (reports interim 7-month data from U.S. Phase 1 Clinical Trial of OTX-TKI for the Treatment of Wet AMD)
- SYM +8.4% (UNFI to roll out SYM's robotics automation at five distribution centers)
- DCFC +8.2% (fast chargers are available for purchase by government entities through the U.S. General Services Administration's (GSA) five-year Blanket Purchase Agreement (BPA) dedicated to EV-related equipment)
- NLS +7.2% (announces strategic review)
- UNFI +4% (UNFI to roll out SYM's robotics automation at five distribution centers)
- EGY +3.6% (Successful Drilling of North Tchibala 2H-ST Well and Provides Operational Update)
- STNG +3% (announces repurchase of 222396 shares in the open market)
- SCVL +2.7% (CFO to retire)
- RIO +2.3% (to begin underground mining at Kennecott copper operations)
Analyst comments:
- H +4% (upgraded to Outperform from In-line at Evercore ISI)
- LCID +3.2% (initiated with an Overweight at Cantor Fitzgerald)
Burberry’s British pivot
After repositioning Burberry as an international brand, creative director Riccardo Tisci turns his gaze to UK shores
In his first address to investors in May, new Burberry chief executive Jonathan Akeroyd said he wanted to return to highlighting Burberry’s Britishness. It was a departure from the strategy laid down five years ago by his predecessor Marco Gobbetti and chief creative officer Riccardo Tisci, who wanted to position Burberry as a more international brand.
There was a certain logic to it then — Brand Britain had lost a fair bit of its lustre in the wake of the Brexit vote, and here was a company that wanted to open borders, not close them. But it has also meant, over time, that Burberry has lost its link to the one thing that set it apart from every other major luxury brand. It has become more like everything else, and its performance in recent years has lagged behind larger European rivals such as LVMH, Kering and Chanel.
At any rate, Tisci got Akeroyd’s memo. In a show originally meant to bow during London Fashion Week but postponed on account of the Queen’s death, the Italian designer took over a south London warehouse to present a spring/summer 2023 collection inspired by the British seaside and the “different ideas and ideals of Britishness through dress”, he wrote in his show notes.
It is the styles of the British elite that tend to inspire designers here — think of Erdem or SS Daley, or Tisci’s predecessor Christopher Bailey — but Tisci was clearly looking elsewhere on the beach. Accompanied by the mournful soprano voice of opera singer Nadine Sierra, models walked out in tailoring that was less Vita Sackville-West and more utilitarian — suits cut from blue denim and washed gabardine with big pockets and soft, seamless shoulders; a semi-sheer tank dress in Burberry plaid, layered over a white vest; oversized mesh tees and sweatshirts with gothic lettering for men.
Riccardo Tisci presented a collection inspired by the British seaside . . . © Isidore Montag/Gorunway.com
. . . including cut-out swimwear in the brand’s classic check and handbags worn as pool floaties © Isidore Montag/Gorunway.com
Eveningwear came in the form of crumpled silk gowns with Ferris wheels embroideries . . . © Isidore Montag/Gorunway.com
. . . while tailoring was utilitarian, in washed gabardine or denim and with big pockets © Isidore Montag/Gorunway.com
A series of black velvet dresses came with padded collars and sleeves, as if they had been inflated . . . © Isidore Montag/Gorunway.com
. . . while menswear presented oversized mesh T-shirts and sweatshirts worn over trousers © Isidore Montag/Gorunway.com
These were followed by long-sleeved and belted swimsuits layered over matching skirts cut to highlight the crotch and the backs and sides of hips. For evening there were lingerie-style dresses of silk, crumpled as if they’d just been picked up off the floor, some with Ferris wheels embroidered over the breasts; and a trio of padded black velvet dresses that looked as if their sleeves and low necklines had been pumped with air (something Moschino’s Jeremy Scott also did this season as a camp riff on inflation).
Burberry has successfully expanded its handbag offer over the past five years, and here models carried large backpacks and compact rectangular bags worn, unmissably, like pool floaties on each arm. On their feet were simple black thong sandals, some with pool-float-style nozzles between the toes — Kanye West arrived in a glittering pair.
Together, it was a laudably expansive view of Britishness, but it did not result in very attractive clothes. A decade ago, luxury shoppers turned to Burberry for a well-made trench and an aspirational vision of Britain. It is hard to imagine them wanting to buy into this.
Chinese carmaker Nio warns energy crisis slowing European expansion
Founder of electric vehicle maker says rollout of battery swapping stations is proving slower than expected
The head of Chinese electric carmaker Nio has warned that Europe’s energy crisis is slowing its expansion in a region where it is aiming to take on dominant players such as Mercedes-Benz and BMW.
William Li, the group’s founder and chief executive, said that soaring energy costs are one impediment to the company’s rollout of battery swapping stations across Europe.
In contrast to rival carmakers that rely on recharging their batteries, Nio uses a system of swap stations in which batteries are removed and replaced with new ones in a process that takes just minutes.
“Right now we are behind the schedule regarding the swap station installation, but that is driven by multiple reasons and the electricity cost is one part,” Li said in an interview. Slower-than-expected planning approvals and the need to train workers were also hindering the rollout, he added.
The company began selling its electric cars in Norway last year, its first outside China, but only has two swap stations operating in the country, short of a forecast at the start of the year that it would have five.
We didn’t really manage our expectation for the European market, and the actual speed is actually behind our expectation
William Li, Nio founder and chief executive
Nio, regarded as one of China’s leading challengers to Tesla, is betting its domestic success will prove a springboard to crack Europe and the US. The group, whose shares are listed on Wall Street, has ambitions to have 1,000 charging stations outside of China by 2025, with the majority in Europe.
Li, who founded Nio in 2014, also said that rising battery costs, driven by increases in the price of raw materials, would also delay the group’s target of becoming profitable in the short term. The group posted a second-quarter net loss of $411mn.
“Profitability is still our target, but what matters most is finding the right cadence for us to become profitable,” he said, pointing to the cost of growing its Chinese business while funding an aggressive international expansion.
Nio already has about 800 stations in China’s biggest cities, a total it expects to reach 4,000 by 2025.
“We have been pretty fast and efficient in China,” at rolling out the battery swapping stations, said Li. “Then we didn’t really manage our expectation for the European market, and the actual speed is actually behind our expectation.”
The company is banking on the same model working in Europe, despite lower population density requiring it to install more stations.
Given that a battery can account for a third of the price of an electric car, Nio reckons that its model of selling drivers the car and giving them the choice of leasing the battery will give it a larger market than rivals.
In Norway, where it began selling cars last September, some 95 per cent of its customers lease batteries rather than buy them with the car.
A further hurdle for its European rollout is the need to install transformers, which are essential to running the stations and can take up to two years to build. Li also pointed to the difficulty in securing planning permission for the stations.
“It will also take more effort than time for us to really communicate with all these authorities and offices to get the permit for approval from them,” Li said.
The carmaker, which went public in New York in 2018, would consider establishing a manufacturing plant in Europe if its sales in the region hit 200,000 sales in the region. The group has sold about 240,000 cars globally, with just a handful of those outside China.
Li, a serial entrepreneur, dismissed concerns that consumers in the US and Europe may be wary of buying Chinese cars given the strained political relations. US consumers, he pointed out, continued to purchase Japanese cars even when the two countries had a trade war during the 1980s.
Early premarket gappers
- Gapping up:
- NLS +7.8%, STNG +4.3%, EGY +4.1%, RWT +3.4%, SCVL +2.7%, UNFI +2.1%, LUV +1.8%, RIO +1.8%, GRAB +1.8%, BIIB +1.5%, SPLK +1.3%, IWM +1.2%, QQQ +1.2%, PTON +1.1%, MRNA +1.1%, SPY +1%, DIA +0.8%
- Gapping down:
- OCUL -3.2%, SAIC -0.9%, SYM -0.5%, CTLT -0.5%, EBS -0.5%
>>> Up
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>>> Initiation
>>> Call
Asian markets traded on a cautious note Tuesday following another selloff in US stocks, soaring bond yields and volatile currency markets as investors brace for a heightened risk of global recession. A gauge of the region’s equities fluctuated as shares edged higher in Japan and Australia while Hong Kong stocks fell 1%. US futures contracts rose after the S&P 500 closed at its lowest since 2020 and the Cboe Volatility Index spiked past 30, a level it hasn’t closed above since June. Bonds remained under pressure in Australia and Japan, while the benchmark 10-year Treasury yield held near 3.9% -- a level last seen in 2010. The Bank of Japan announced an unscheduled bond buying operation across a wide range of maturities after the country’s 20-year bond yields rose to the highest level since 2015. The rate on the benchmark 10-year security touched the 0.25% upper limit of the BOJ’s tolerance band as global debt markets come under pressure from expectations for further monetary tightening. The dollar gauge inched back from a record high Monday, when Federal Reserve officials repeated hawkish comments on policy. Asian currencies including the yen and yuan strengthened slightly while staying around levels that have caused concern from authorities in Japan and China. BOJ Governor Haruhiko Kuroda said Monday that Japan’s intervention in the currency market was appropriate given recent volatility in the yen. Japan spent about 3 trillion yen ($21 billion) on its action, Nikkei reported. Traders are bracing for more pushback from China’s central bank as the yuan approaches the lowest level in 14 years. The pound advanced following its drop to a record low Monday. The Bank of England said it may not act before November to stem a rout, leaving traders wary of the risk that the currency could drop to parity with the dollar. Negative sentiment is also flowing into markets for energy and raw materials. West Texas Intermediate crude oil traded around $77 a barrel near its January lows. US After Hours Pretty quiet after hours, no earnings; SPLK +3.3% higher after reaffirming guidance; NLS +6.5% announces strategic review
Nikkei +0,57% Hang Seng -1,05% CSI +0,18% Shanghai +0,26% Shenzen +0,29%
Eur$ 0,9643 CNY 7,1623 CNH 7,1628 JPY 144,39 GBP 1,0787 CHF 0,9910 RUB 58,2250 TRY 18,4608 WTI$ 77,19 +0,60% Gold 1,631,65 BTC 20,050 +4% ETH 1,380,50 +4%
S&P +0,71% Nasdaq +0,74% EuroStoxx +0,54% FTSE +0,52% Dax +0,53% SMI
Macro :
Keep an eye on :
- KWS GY : KWS Saat FY Ebit Beats Estimates