>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • AUB +3.4%, DHI +1.6%, GE +1.4%, LMT +1.3%, FNB +1.2%, IPAR +1.1%, RTX +0.9%, JNJ +0.7%, HAL +0.5%

Other news:

  • HPK +14% (announces strategic alternative review including possible sale; also provides operational guidance)
  • CBAY +10.4% (announces the pricing of its previously announced underwritten public offering of common stock and pre-funded warrants)
  • YEXT +6.7% (announces cost cut plan includes 8% workforce reduction) SSL +5.4% (reports H1 production and sales metrics)
  • AMLI +4.9% (announces royalty buyback at its TLC lithium project in Nevada)
  • DKL +4.3% (raises distribution by 3% to to $1.02 per common unit)
  • PLRX +2.4% ($175 mln stock offering)
  • GATO +2.3% (Extends South-East Deeps Zone at Cerro Los Gatos)
  • CDLX +1.8% (names new COO)
  • HESM +1.1% (increases dividend)

Analyst comments:

  • ALLO +5.1% (upgraded to Overweight from Neutral at JP Morgan)
  • LYFT +3.5% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
  • BX +1% (upgraded to Overweight from Neutral at JP Morgan)

Fwd:Briefing; SCANX; Early premarket gappers

Early premarket gappers

  • Gapping up:
    • HPK +15.2%, CBAY +4.7%, YEXT +4.5%, PLRX +4.4%, SSL +4.1%, GATO +2.3%, CDLX +1.8%, DHR +1.8%, HESM +1.2%, FNB +1.2%, IPAR +1.1%
  • Gapping down:
    • MGA -14%, PFLT -7%, ZION -2.7%, UMPQ -1.8%, ENTG -1.3%, ENVX -1%, ALB -0.8%, BRO -0.7%, INTC -0.6%, CR -0.5%, IBTX -0.5%

FT : Swatch expects bumper sales as China emerges from Covid restrictions

Swatch expects bumper sales as China emerges from Covid restrictions
Swiss watchmaker says easing of rules will ‘revitalise sales in tourist destinations’

Swiss watchmaker Swatch is anticipating record sales this year as China reopens after exiting its zero Covid-19 policy and tourism resumes.

Net sales rose 4.6 per cent to SFr7.5bn ($8bn) last year at constant exchange rates, compared with a year earlier. Operating profit increased 13 per cent to SFr1.16bn, missing analysts’ forecasts of SFr1.19bn.

However, sales increased 25 per cent in local currencies in all regions, with the exception of China, where Covid-19 lockdowns meant a shortfall in sales of more than SFr700mn, Swatch said.

“After the end of Covid-19 measures, consumption quickly recovered, not only in China, but also in the surrounding markets of Hong Kong SAR and Macau,” Swatch said in a statement on Tuesday.

The easing of travel restrictions in China will “revitalise sales in tourist destinations”, it added, saying that January’s sales growth in China “reinforces the group’s expectation to aim for a record year in 2023”.

Beijing’s zero-Covid strategy over the past three years “severely dampened” growth, it said.

Swatch has “massively” increased its stock, spending on raw materials, work in progress and semi-finished goods, in view of potential energy shortages and delivery bottlenecks, it said.

“This measure will also pay off, considering higher demand in China after its zero-Covid strategy exit,” it said.

The company posted double-digit sales growth in Europe, US, the Middle East and most of Asia, apart from China.

Swatch in March launched the MoonSwatch collaboration, a £207 plastic version of Omega’s Speedmaster, prompting thousands of shoppers to queue up around the world to buy it. It notched up 1mn sales.

TEchCrunch : Strava acquires Fatmap, a 3D mapping platform for the great outdoor

Strava acquires Fatmap, a 3D mapping platform for the great outdoors

Image Credits: Fatmap

Strava, the activity tracking and social community platform used by more than 100 million people globally, has acquired Fatmap, a European company that’s building a high-resolution 3D global map platform for the great outdoors. Terms of the deal were not disclosed.

Founded in 2009, Strava has emerged as one of the preeminent activity tracking services, proving particularly popular in the cycling and running fraternities which use the Strava app to plot routes, converse with fellow athletes, and record all their action for posterity via GPS. The company has increasingly been targeting hikers too, and last year it launched a new trail sports and routes option aimed at walkers, mountain bikers, and trail runners.
Fatmap, for its part, was founded a decade ago, with an initial focus on providing ski resorts with high-resolution digital maps. In the intervening years, the company has worked with various satellite and aerospace companies to bolster its platform with detailed maps incorporating summits, rivers, passes, paths, huts, and more, arming anyone venturing into mountainous terrain the information they need to know exactly what they’ll encounter before they arrive.


Fatmap in action Image Credits: Fatmap / Strava

With 1.6 million registered users, Fatmap’s mission, ultimately, is to be the Google Maps of the great outdoors, with a premium subscription ($30 / year) unlocking access to extra features such as downloadable maps and route planning in the mobile app.

Integrated
The ultimate long-term goal for Strava is to integrate Fatmap’s core platform into Strava itself, but that will be a resource-intensive endeavor that won’t happen overnight. And that is why Strava is working to create a single sign-on (SSO) integration in the near-term, meaning that subscribers will be able to access the full Fatmap feature-set by logging into the Fatmap app with their Strava credentials.

While Strava and Fatmap will remain separate products for now, Strava said that it will decide in the future whether Fatmap will live on as a standalone product once the technical integration has taken place.

CEO and cofounder Michael Horvath, who stepped down in 2013 before returning as head honcho six years later, said that the Fatmap acquisition is part of Strava’s “ongoing investment to provide a best-in-class digital experience” for those seeking an active lifestyle.

“Where other map platforms have been designed for navigating streets and cities, Fatmap built a map designed specifically to help people explore the outdoors,” Horvath told TechCrunch in a Q&A. “We will enable Fatmap technology in all of Strava’s services, empowering anyone to discover and plan an outdoor experience with curated local guides, points of interest and safety information.”

In terms of timescales, Strava said that it has set up a dedicated team tasked with integrating Fatmap, and it anticipates this to start showing up inside Strava from around mid-2023. The company was also quick to stress that Fatmap’s tech will be available to both free and paid-for Strava members, though certain features relating to maps, discovery, and route-planning will be reserved for paying subscribers.

Strava provided TechCrunch with the following mockup to give an idea of what Fatmap might look like inside a future incarnation of Strava.

Strava / Fatmap integration mockup

Strava has raised north of $150 million in funding since its inception, with big-name backers including esteemed Silicon Valley investor Sequoia Capital, but the company hasn’t engaged in much acquisition activity in its 14 year history. Strava did acquire injury prevention app Recover Athletics last May for an undisclosed figure though, and today we’ve learned that Strava also bought online athlete community Prokit in 2021, something that Strava didn’t officially announce at the time.

It’s clear that the proprietary 3D mapping technology Fatmap had developed would have taken too much time and resources for Strava to replicate itself from scratch, which is why buying Fatmap outright likely made more sense in this instance.

“Strava’s primary goal is to be the digital experience at the center of active people’s lives — that includes offering people a holistic view of their active lifestyle, no matter where they live, which sport they love or what device they use,” Horvath said. “This concept fuels much of our strategic thinking and product roadmap. For acquisitions specifically, we explore those that can accelerate our strategic vision to create the best subscription service for active people serving the largest active community in the world.”

While Fatmap is incorporated in the U.K. and has part of its workforce based there, the bulk of its 50 employees are spread across offices in France, Germany and Lithuania. Strava said that it’s keeping the Fatmap team in tact, and each will continue to report to Fatmap founder and CEO Misha Gopaul, who will now serve as VP of Product at Strava and report to Strava’s chief product and technology officer Steve Lloyd.

While Strava isn’t revealing how much it paid for Fatmap, the startup had only raised around $8 million so the deal is unlikely to break the bank for Strava. What it will do, though, alongside its other two recent acquisitions, is make Strava a stickier proposition for a greater number of people — not just cycling and running for which Strava is better known.

FT : UK public sector borrowing soars more than expected

UK public sector borrowing soars more than expected
ONS figures more than double to show the highest December borrowing since monthly records began in 1993

UK public sector borrowing more than doubled in December, driven up by higher debt interest payments and the government’s measures to help households and businesses with soaring energy prices.

Public sector net borrowing hit £27.4bn last month, up from a revised £10.7bn in the same month in 2021 and the highest December borrowing since monthly records began in 1993, according to data published by the Office for National Statistics on Tuesday.

The figure was much higher than the £17.7bn forecast by economists polled by Reuters and well above the £17.6bn forecast in November by the Office for Budget Responsibility, the UK fiscal watchdog.

Public borrowing rose “largely because of a sharp rise in spending on energy support schemes and an increase in debt interest,” said the ONS.

Higher interest on government debt cost £17.3bn last month, the highest December figure since monthly records began in April 1997.

“Right now we are helping millions of families with the cost of living, but we must also ensure that our level of debt is fair for future generations,” said chancellor Jeremy Hunt.

The cost of servicing government debt has risen sharply since mid-2021 largely as a result of higher inflation, with the interest payable on index-linked gilts rising in line with the retail prices index.

Spending rose on the government’s policies to help households and businesses deal with high energy prices, including the energy bills support scheme.

Public sector borrowing in the financial year to December was £128.1bn, £5.1bn more than that borrowed in the same period last year, but £2.7bn less than forecast by the OBR.

>>> Europe : Brokers Upgrades & Downgrades - 24th of January 2023 V2(+)

>>> Up
* Alcon PT Raised to $85 from $70 at Argus
* Atlantic Sapphire ASA Raised to Buy at Arctic Securities
* DS Smith Raised to Outperform at Davy
* Industrials REIT Cut to Hold at Panmure Gordon; PT 131 pence
* M&C Saatchi Raised to Buy at Peel Hunt; PT 200 pence (+)
* Rolls-Royce Raised to Neutral at Exane (+)
* Shaftesbury Raised to Buy at Panmure Gordon; PT 459 pence
* Swatch Raised to Equal-Weight at Morgan Stanley
* US Solar Fund Raised to Positive at Stifel

>>> Down
* Alfa Laval Cut to Hold at Nordea (+)
* AMD Cut to Market Perform at Bernstein
* Ambu Cut to Sell at SEB Equities; PT 85 kroner
* Canada Goose Cut to Neutral at Baird; PT C$38.73
* Credito Emiliano Cut to Accumulate at Banca Akros (+)
* Dassault Aviation Cut to Neutral at Exane (+)
* Direct Line Cut to Sell at Citi
* Dometic Cut to Hold at Pareto Securities; PT 80 kronor (+)
* Ericsson Cut to Sell at Goldman; PT 50 kronor
* Ericsson ADRs Cut to Sell at Goldman; PT $4.90
* Greencoat UK Wind Cut to Positive at Stifel
* JLEN LN Cut to Positive at Stifel
* MTU Aero Cut to Underperform at Exane (+)
* Randstad Cut to Underperform at Oddo BHF; PT 50 euros
* RCOI LN Cut to Positive at Stifel
* Sage Cut to Add at Numis; PT 880 pence
* Sobi Cut to Hold at Handelsbanken
* Unite Group Cut to Hold at Panmure Gordon; PT 1,038 pence

>>> Initiation
* Do & Co Reinstated Buy at Berenberg; PT 60 euros
* Kesko Rated New Buy at DNB Markets; PT 25 euros

>>> Call
* AB Foods Posts Strong Update, Aided by Primark, Ingredients: RBC (+)
* AMD Cut at Bernstein on Worsening PC Climate, Intel Competition (+)
* Citi Reshuffles EU Insurer Picks, Downgrades Direct Line to Sell
* Davy Sees Positive Risk-Reward in Packaging, DS Smith Raised
* E.ON Still Offers 20% Upside After PT Cut, Berenberg Says
* Ericsson Cut, PT to Street-Low at Goldman Amid Series of Risks
* European Stocks Still Have Upside After Rally, Bernstein Says (+)
* Komax Strong Order Intake Should Underpin Outlook, Baader Says (+)
* Liberum Raises Airline Price Targets, EasyJet Preferred Pick
* Liberum, Deutsche Bank Raise Airline PTs on Positive Outlook (+)
* Swatch Sales Weighed Down by Headwinds in China, Says Vontobel (+)

>>> TradeGate Pre-Market Indications

DAX:
  • No major movers
MDAX:
  • TAG Immobilien (TEG TH) +1.5%
  • Rheinmetall (RHM TH) +1.1%
    • Germany’s Rheinmetall Could Ship 139 Leopard Tanks, RND Reports
  • Encavis (ECV TH) +1%
  • Fraport (FRA TH) -1.2%
SDAX:
  • PVA TePla (TPE TH) +1%
  • flatexDEGIRO (FTK TH) +0.7%
  • Schaeffler (SHA TH) -0.6%
  • PNE AG (PNE3 TH) -1%

>>> TradeGate Pre-Market Indications

DAX:
  • No major movers
MDAX:
  • TAG Immobilien (TEG TH) +1.5%
  • Rheinmetall (RHM TH) +1.1%
    • Germany’s Rheinmetall Could Ship 139 Leopard Tanks, RND Reports
  • Encavis (ECV TH) +1%
  • Fraport (FRA TH) -1.2%
SDAX:
  • PVA TePla (TPE TH) +1%
  • flatexDEGIRO (FTK TH) +0.7%
  • Schaeffler (SHA TH) -0.6%
  • PNE AG (PNE3 TH) -1%

>>> What to look at today - 24th of January 2023

Asian shares climbed Tuesday in the wake of tech-stock fueled gains on Wall Street and bets for less-aggressive interest rate hikes from the Federal Reserve.  The dollar ticker lower and Treasuries held recent declines, reflecting wanning demand for haven assets. Australian and New Zealand bonds fell, as did Japan’s benchmark 10-year debt.  Australian stocks advanced about 0.5% and Japan’s Topix index rallied as much as 1.5% while many other markets in the region remained closed for Lunar New Year celebrations. The upbeat tone for riskier assets was carried over from the US on Monday, when the tech-heavy Nasdaq 100 had its best two-day rally since November and the S&P 500 extended its surge to 12% from an October low.  A gauge of greenback strength was lower while remaining in the middle of its range from the past week. It’s biggest decline versus Group-of-10 currencies was against the yen. With key centers including Hong Kong, Shanghai, Singapore and Seoul closed, much of the focus among global investors Tuesday is on central banks and US corporate earnings. Marquee names like Microsoft Corp. and Intel Corp. report results this week that will help shape the outlook for the technology sector.  Markets have priced in a smaller 25-basis-point hike at the Fed’s Jan. 31-Feb. 1 meeting. Even as several officials say rates must peak above 5% and stay higher for longer, traders remain skeptical.  Treasury Secretary Janet Yellen said she’s encouraged by progress on inflation, with energy prices and supply-chain issues easing across the globe even as the US labor market remains strong. oil steadied as traders waited for fresh signals on the state of Chinese crude demand after the nation ditched Covid curbs. Gold held a small gain. US After Hours HPK +9.6% pops high on strategic alternative review; YEXT +3.5% higher on workforce reduction.

Nikkei +1.46% Hang Seng Closed CSI Closed Shanghai Closed Shezen Closed

Eur$ 1.0878 CNH 6.7820 CNY 6.7927 JPY 130.22 GBP 1.2389 CHF 0.9214 RUB 69.1658 TRY 18.7727 WTI$ 81.61 -0.02% Gold 1,934 +0.16% BTC 23,070 +0.31% ETH 1,637 +0.31%

S&P +0.02% Nasdaq -0.04% EuroStoxx +0.26% FTSE +0.15% Dax +0.20% SMI +0.16%

Macro :
- Hedge Funds Arini and Selwood Bounce Back After Credit Maelstrom
- Britain’s Health Care Black Hole Is Devouring the Entire Country
- German Indecision on Supplying Tanks to Ukraine Sows Discontent
- Lagarde Says ECB Will Stay the Course to Return Inflation to 2%

Keep an eye on :
- AAPL US : Apple’s $3,000 Headset Will Be Controlled by Staring, Pinching
- ARM LN : UK Public Could Participate in Arm Listing Through Retail Offer
- AGL IM : Dufry Indicated Paolo Roverato as New Proposed CEO of Autogrill
- AVTX NA : Avantium to Supply Henkel With FDCA From Plant-Based Sugars
- BSLN SW : Basilea Prelim FY Revenue About CHF148M
- BNP FP : BNP Sees ‘Soft Landing’ Bets Failing Like ‘Transitory Inflation’
- ALCAR FP : Carmat Expects to Break Even in 2027 as Ramps Up Production
- COL SM : Colonial Weighs Sale of Madnum Residential Project: Cinco Días
- CSGN SW : Credit Suisse Backer Qatar Investment Authority Raises Its Stake
- DUFN SW : Dufry Indicated Paolo Roverato as New Proposed CEO of Autogrill
- ENGI FP : Engie Says Outright European Power Production Declined in 2022
- GRE SM : Grenergy Aims to Sell 49% Stake in 1,094 MW Portfolio: Expansion
- HEN3 GY : Avantium to Supply Henkel With FDCA From Plant-Based Sugars
- HOLN SW : Holcim Acquires Fiberglass Mat Facility From Maryland Paper
- HYL BB : Hyloris in Commercial Partnership for Maxigesic IV
- ITP FP : Interparfums FY Sales Meets Estimates
- IVG IM : Iveco’s IDV Unit Buys Controlling Stake in Mira UGV; No Terms
- KOMN SW : Komax Prelim FY Revenue Above CHF600M, Est. CHF586.9M
- LOGN SW : Logitech 3Q Sales Misses Estimates
- MMT FP : French Billionaire Bids for TV Broadcast License Used by M6
- PHNX LN : Phoenix Is an ESG Peer Group Leader In BI's Scorecard
- RHM GY : Germany’s Rheinmetall Could Ship 139 Leopard Tanks, RND Reports
- RNO FP : Renault CEO to Join Nissan Talks via Video: Reuters (Jan. 23)
- SU FP : Turkish President Postpones Schneider Enerji Labor Strike
- UHR SW : Swatch FY Operating Profit Misses Estimates
- TTE FP : TotalEnergies to Help Smaller Firms With Electricity Discount
- VAR NO : Var Energi Net Production Averaged 214 Kboepd in 4Q