>>> Europe : Brokers Upgrades & Downgrades - 7th of June 2022 V2(+)

>>> Up
* Anglo American Raised to Buy at Jefferies; PT 4,500 pence
* BHP ADRs Raised to Buy at Jefferies; PT $82
* British Land Raised to Overweight at Barclays; PT 580 pence
* Liberty Global Raised to Buy at Berenberg; PT $30
* Novo Nordisk Raised to Overweight at JPMorgan; PT 925 kroner
* OTP Bank Raised to Buy at Erste Group; PT 12,000 forint
* Pennon Raised to Buy at Citi; PT 1,160 pence
* Remy Cointreau Raised to Hold at SocGen; PT 185 euros
* Rio Tinto Raised to Add at AlphaValue/Baader
* Rio Tinto ADRs Raised to Buy at Jefferies; PT $93
* Vale ADRs Raised to Buy at Jefferies; PT $24

>>> Down
* Capri Holdings PT Cut to $91 from $107 at UBS
* Dassault Systemes Cut to Underperform at Jefferies; PT 33 euros
* Flutter Cut to Reduce at Numis; PT 8,360 pence
* National Grid Cut to Sell at Citi; PT 998 pence
* PVH PT Cut to $132 from $156 at UBS
* Victoria's Secret PT Cut to $49 from $59 at UBS

>>> Initiation
* Digital Bros Rated New Buy at Stifel; PT 40.10 euros
* Induction Healthcare Group Rated New Buy at Canaccord (+)
* Trident Royalties Rated New Buy at Stifel; PT 100 pence (+)

>>> Call
* British Land Raised to Match Peer Land Securities: Barclays (+)
* Dassault Systemes Cut at Jefferies on Costs From Cloud Shift
* European REIT Re-Positioning M&A Curbed by Funding Obstacles
* Goldman Strategists See Rising Yields as a Headwind for Stocks (+)
* Liberty Global Raised at Berenberg on Growth Trends, Synergies
* US Is Most Attractive Equity Market, Citi Quant Strategists Say

FT : US trading firm Jane Street sues LME for nickel trade chaos

US trading firm Jane Street sues LME for nickel trade chaos
Lawsuit comes a day after similar action by Elliott against metals exchange over March trade halt

Jane Street, a top Wall Street market-maker, has followed US hedge fund Elliott Management and launched a lawsuit against the London Metal Exchange over the nickel short squeeze fiasco.

Jane Street filed the judicial review claim against LME and its clearing house on June 6, seeking $15.3mn after nickel trading was suspended and trades were cancelled on March 8, when prices surged as much as 250 per cent, the metal exchange’s owner Hong Kong Exchanges and Clearing said on Tuesday.

The move followed a $456mn claim made by Elliott, which was announced by HKEX on Monday.

The LME’s handling of the nickel chaos has come under increasing scrutiny, with UK regulators probing the trading suspension.

The surge in nickel price centred on Xiang Guangda, a self-made Chinese billionaire who runs Tsingshan Holding Group, the world’s biggest producer of nickel and stainless steel.

Xiang had bet that the price of nickel would fall, but Russia’s invasion of Ukraine upended his wager by sending prices of raw materials soaring, leaving him exposed to losses of potentially billions of dollars.

The LME, which sets global reference prices for industrial metals, cancelled several hours of trades for the day and suspended trading in nickel for days.

International fund managers including the chief executive of AQR Capital Management, one of the world’s largest hedge funds, have accused the LME of cronyism over the decision to cancel the trades.

LME has denied that parent company HKEX influenced its decision to suspend nickel trading.

“Exchanges function to create an orderly market and a level playing field for investors. The LME’s arbitrary decision to cancel nickel trades during a period of heightened volatility severely undermines the integrity of the markets and sets a dangerous precedent that calls future contracts into question,” Jane Street said.

“As a leading global market maker, Jane Street has undertaken this action to recoup its losses caused by the LME’s illegal actions and to strengthen the exchange and restore the market’s trust in it.”

LME will contest the claim “vigorously” and views it as “without merit”, HKEX said.

A person familiar with Jane Street’s case said that the amount claimed, which is significantly smaller than in the Elliott suit, was “secondary” and that the company wanted to “send a message” that it would take action against “unreasonable” market actions.

“If your job . . . is to essentially ensure an orderly smooth functioning of the global financial markets, they can’t do that if the counterparties, aka an exchange, don’t align with the contracts that they enter into,” the person said. They added that uncertainty created by actions such as the LME’s increased the risks of providing liquidity for exchange traded fund markets, one of the group’s biggest businesses.

>>> Stoxx 600 Pre-Market Indications

  • EasyJet (EJT1 TH) +1.8%
  • Orange (FTE TH) +1.7%
  • Rio Tinto (RIO1 TH) +1.4%
  • Maersk (DP4B TH) +1.2%
  • Glencore (8GC TH) +1%
  • Equinor (DNQ TH) +0.8%
  • GSK (GS7 TH) +0.7%
  • Infineon (IFX TH) -1.1%
  • Adidas (ADS TH) -1.1%
  • Verbund (OEWA TH) -1.2%
  • Adyen (1N8 TH) -1.3%
  • AB InBev (1NBA TH) -1.4%
  • ASML (ASME TH) -1.4%
  • BE Semiconductor (BSI TH) -1.4%
  • ASMI (AVS TH) -1.6%
  • Prosus (1TY TH) -1.8%
  • Delivery Hero (DHER TH) -2.6%

>>> TradeGate Pre-Market Indications

DAX:
  • Siemens (SIE TH) -1%
  • Delivery Hero (DHER TH) -1.8%
MDAX:
  • TeamViewer (TMV TH) -1.1%
  • Aroundtown (AT1 TH) -1.3%
  • Grand City Properties (GYC TH) -2.5%
SDAX:
  • Schaeffler (SHA TH) -1.1%
  • PVA TePla (TPE TH) -1.1%
  • Nordex (NDX1 TH) -1.4%
  • Ceconomy (CEC TH) -1.8%

>>> What to look at today - 7th of June 2022

Stocks in Asia were mixed Tuesday in choppy trading as investors assessed the impact of a jump in Treasury yields on the outlook for earnings and the economy. The yen sank to a 20-year low.  Equities in Japan rose as the currency’s plunge on a widening interest-rate gap with the US provided a tailwind for exporters. Australia’s three-year yields soared and stocks extended a decline on a bigger-than-expected half-point hike by the central bank. China technology stocks fluctuated as traders sought clarity on the government’s regulatory stance. Hong Kong was steady and China rose. US and European futures dropped. Asian currencies tumbled and the dollar gained as investors fled risk assets, including Bitcoin, which fell back below the $30,000 mark.  Treasuries were mostly steady after losses that sent five- and 10-year yields over 3% for the first time since mid-May ahead of a slew of new debt supply before crucial inflation data at the end of the week. The 10-year Treasury yield jumped more than 10 basis points as yields across the curve advanced at least seven basis points Monday.  Investors are reluctant to take on risk and volatility remains elevated. Equities are struggling to mount a sustainable rebound amid fears rising borrowing costs will hurt growth and corporate earnings. The US jobs report on Friday validated the Federal Reserve’s aggressive monetary tightening path, while surging yields are shaping up as a headwind for sentiment. The European Central Bank is set to announcean end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation. US After Hours Quiet after hours; GTLB +9.4%, HQY +3.2%, COUP +0.6% higher on earnings

Nikkei +0.49% Hang Seng -0.12% CSI +0.65% Shanghai +0.48% Shenzen +0.10%

Eur$ 1.0683 CNH 6.6666 CNY 6.6645 JPY 132.85 GBP 1.2496 CHF 0.9716 RUB 61.7365 TRY 16.6381 WTI$ 119.33 +0.70% Gold 1,842.90 +0.08% BTC 29,500 -6.2% ETH 1,752 -5.8%

S&P -0.72% Nasdaq -0.95% EuroStoxx -0.83% FTSE -0.48% Dax -0.81% SMI +0.23%

Macro :
- Bitcoin Tumbles as Much as 7.1% to Drop Back Below $30,000
- Boris Johnson Wins Party Confidence Vote in His Leadership

Keep an eye on :
- BAVA DC : Bavarian Nordic Enters 5-Year Vaccine Contract With Canada
- BAYN GY : Monsanto Ordered to Pay $21.4 Million Over PCB in School
- CCL LN : *CARNIVAL SAYS ENTIRE SEABOURN FLEET BACK IN SERVICE
- CSGN SW : Credit Suisse Real Estate Fund Issue of CHF100-150M Under Review
- DBK GY : Deutsche Bank Relocates Specialists From Russia to Germany: FT
- HSBA LN : Klarna $10-15 Billion Hit Shows Consumer, Inflation, Fintech Woe
- BAER SW : Julius Baer to Set Up Advisory Office in Qatar
- KSS US : Kohl’s in Exclusive Talks Over Franchise Group’s $8 Billion Bid
- FB US : Meta Sued Over Instagram Addiction of Girl With Eating Disorder
- MFEB IM : MFE to Boost Cash Portion of MES Offer to EU2.16 Per Share
- MUX GY : Mutares Weighs New Senior Secured Bond of Up to EU175m
- PHTM LN : Photo-Me Says Performance is Above Expectations
- SAS SS : Sweden Should Not Contribute More Capital to SAS, Minister Says
- STLA IM : Tofas Says Stellantis to Produce New Fiat Doblo In Spain
- TE FP : Technip Energies Wins Study Contract for European Lithium Plant

>>> Europe : Brokers Upgrades & Downgrades - 7th of June 2022

>>> Up
* Anglo American Raised to Buy at Jefferies; PT 4,500 pence
* BHP ADRs Raised to Buy at Jefferies; PT $82
* British Land Raised to Overweight at Barclays; PT 580 pence
* Liberty Global Raised to Buy at Berenberg; PT $30
* Novo Nordisk Raised to Overweight at JPMorgan; PT 925 kroner
* OTP Bank Raised to Buy at Erste Group; PT 12,000 forint
* Pennon Raised to Buy at Citi; PT 1,160 pence
* Remy Cointreau Raised to Hold at SocGen; PT 185 euros
* Rio Tinto Raised to Add at AlphaValue/Baader
* Rio Tinto ADRs Raised to Buy at Jefferies; PT $93
* Vale ADRs Raised to Buy at Jefferies; PT $24

>>> Down
* Capri Holdings PT Cut to $91 from $107 at UBS
* Dassault Systemes Cut to Underperform at Jefferies; PT 33 euros
* Flutter Cut to Reduce at Numis; PT 8,360 pence
* National Grid Cut to Sell at Citi; PT 998 pence
* PVH PT Cut to $132 from $156 at UBS
* Victoria's Secret PT Cut to $49 from $59 at UBS

>>> Initiation
* Digital Bros Rated New Buy at Stifel; PT 40.10 euros

>>> Call
* Dassault Systemes Cut at Jefferies on Costs From Cloud Shift
* European REIT Re-Positioning M&A Curbed by Funding Obstacles
* Liberty Global Raised at Berenberg on Growth Trends, Synergies
* US Is Most Attractive Equity Market, Citi Quant Strategists Say

Business Of Fashion : What Adidas X Gucci Means for Gucci — and Adidas

What Adidas X Gucci Means for Gucci — and Adidas
This week, everyone will be talking about the long-anticipated release of Adidas X Gucci merchandise, the Global Fashion Summit in Copenhagen and US inflation data.

Items from the collaboration between Gucci and Adidas go on sale on June 7. (Gucci)

A Much-Hyped Collaboration
  • Items from Gucci’s collaboration with Adidas, first announced in February, go on sale June 7
  • For Adidas, the collection comes on the heels of another luxury partnership with Balenciaga
  • Gucci has reported uneven growth in recent quarters, even as rivals have found success with timeless, ultra-expensive merchandise

Gucci and Adidas have had months to build hype for the collection that goes on sale this week, from the first glimpse on the runway in Milan in February to the full lookbook revealed last month to an odd episode in May where Chinese social media users were seemingly outraged by the existence of a non-waterproof umbrella with a listed price of 11,100 yuan ($1,600). The umbrella will almost certainly sell briskly nonetheless, along with Gucci’s $850 spin on the Gazelle sneakers and other items that mix and remix the two brands’ logos.
Adidas needs luxury collaborations like this one, and a recent team-up with Balenciaga, to close the hype gap with Nike, which has proven far more adept at generating brand heat over the last couple of years. All that buzz has real-world consequences; Nike’s stock is up about 15 percent since June 2020, Adidas’ is down 30 percent.
For Gucci, an attention-grabbing collaboration featuring products with mass appeal at luxury prices is par for the course. The question is whether Adidas X Gucci represents the latest chapter in that particular playbook or the start of a new one. Gucci remains one of the most talked-about luxury brands (its Instagram post announcing the Adidas partnership has over 1.2 million likes). But its sales haven’t grown at the same pace as rivals that have better balanced conversation-driving moments with clothes and accessories that luxury consumers view as timeless investments.
The Bottom Line: Kering is holding an investor day this week, where it’s expected to delve further into its strategy for Gucci, as well as Saint Laurent, which has found enormous success with a less hype-driven approach to luxury.