>>> What to look at today - 11th of August 2022

Stocks extended a rally Thursday following softer-than-expected US inflation data, which stoked speculation that the Federal Reserve could pivot to a shallower pace of interest-rate hikes. European futures rose after the S&P 500 hit a three-month high and the Nasdaq 100 pulled 20% above a June low. The advance in China’s bourses lagged as investors digested a warning from its central bank about inflation threats and a pledge to avoid massive stimulus.
The dollar edged up, paring a retreat from a day earlier that was the biggest since the onset of the pandemic. Singapore’s currency weakened after the city state trimmed its 2022 economic growth forecast. Short-term Treasury yields dropped Wednesday as investors scaled back expectations of how aggressively the Fed will have to tighten monetary policy. There’s no cash Treasuries trading in Asia due to a Japan holiday. US headline inflation was 8.5% in July, down from the 9.1% June advance that was the largest in four decades. That’s still high and Fed officials were quick to stress more rate hikes are coming. They also signaled investors should rethink expectations of cuts next year to shore up economic growth. The question is whether the rebound in global equities and other riskier investments from this year’s rout can continue against that backdrop.  crude oil held most of a jump above $91 a barrel, while Bitcoin broke past $24,000 in a sign of the brighter spirits in markets. US After Hours DIS +6.5% on earnings and will launch ad-supported tier for Disney+; SONO -18.6%, RRGB -16.4%, BMBL -12.3%, APP -10.7% lower on earnings

Nikkei -0.65% Hang Seng +1.23% CSI +0.52% Shanghai +0.46% Shenzen +0.51%

Eur$ 1.0286 CNH 6.7407 CNY 6.7411 JPY 133.14 GBP 1.2190 CHF 0.9437 RUB 60.7354 TRY 17.8746 WTI$ 91.73 -0.21% Gold 1,786.60 -0.32% BTC 24,370 +1.92% ETH 1,880 +1.95%

S&P +0.24% Nasdaq +0.36% EuroStoxx +0.32% FTSE +0.15% Dax +0.32% SMI

Macro :
- Kashkari Says Fed to Raise Rates, Keep Them There Until CPI Ebbs

Keep an eye on :
- AGN NA : Aegon 2Q Net Loss EU365M Vs. Profit EU842M Y/y
- ALKB DC : ALK-Abello 2Q Revenue Beats Estimates
- ANTO LN : Antofagasta 1H Revenue Meets Estimates
- AR4 GY : Aurelius 1H Oper Ebitda EU127.6M Vs. EU122.4M Y/y
- POST AV : Austrian Post 2Q Ebit Beats Est.; Targets 2021 Result Levels (1)
- BAVA DC : Monkeypox Vaccine Maker Has Concerns on US Dose-Splitting: WaPo
- BELL SW : Bell 1H Ebitda CHF143.7M Vs. CHF145.7M Y/y
- GBF GY : Bilfinger 2Q Sales EU1.08B Vs. EU977M Y/y
- CEC GY : Ceconomy 3Q Adjusted Ebit Loss EU109M Vs. Loss EU93M Y/y
- COA LN : Coats to Conduct Placing to Raise About £100M
- COIN US : Coinbase Under SEC Scrutiny Over Its Crypto-Staking Programs
- COLR BB : Colruyt Family Raises Colruyt Holding to 60.9% as of Aug. 4
- CTY1S FH : Citycon Narrows FY EPRA EPS Forecast
- CSGN SW : Credit Suisse’s Top Shareholder Discloses 10% Stake After Slump
- DTE GY : Daimler Truck 2Q Adjusted Ebit Beats Estimates
- DTE GY : Deutsche Telekom FY Adj. EBITDA AL Forecast Misses Estimates
- DEZ GY : Deutz 2Q Adjusted Ebit EU26.8M Vs. EU16.0M Y/y
- DNO NO : DNO 2Q Ebitda Misses Estimates, Declares Dividend
- EUZ GY : Eckert & Ziegler Maintains FY Revenue Forecast
- EVT GY : Evotec SE Boosts FY Revenue Forecast
- FAST NA : Fastned 1H Underlying Ebitda Loss EU2.67M Vs. Loss EU2.10M Y/y
- FFARM NA : ForFarmers 1H Adjusted Ebitda EU43.1M Vs. EU40.8M Y/y
- GFT GY : GFT Boosts FY Revenue Forecast
- GLJ GY : Grenke Maintains FY Net Income Forecast
- HLAG GY : Hapag-Lloyd 1H Revenue EU16.97B Vs. EU8.75B Y/y
- HEM SS : Hemnet Chairman Hakan Erixon Resigns
- HSBA LN : HSBC's $130 Billion Market Value vs. Breakup Upside Not a Given
- INS GY : Instone Real Estate Cuts FY Adjusted Revenue Forecast
- ISS DC : ISS Boosts FY Organic Revenue Forecast
- SDF GY : K+S Maintains FY Ebitda Forecast, Misses Estimates
- KBC BB : KBC Group Sees FY Net Interest Income About EU5.05B
- KIN BB : Kinepolis Signs Leases to Operate Cinemas in Barcelona, Marbella
- METN SW : Metall Zug 1H Net Sales CHF324.4M Vs. CHF302.8M Y/y
- B4B GY : Metro 3Q Sales Beats Estimates
- MLP GY : MLP Maintains FY Ebit Forecast
- MONC IM : Canada Goose Seasonally Slow Start May Signal Gains: Preview
- NWG LN : NatWest Group Sees Tender Offer Bringing ~£56M 3Q Income Charge
- NEL NO : Nel 2Q Operating Loss NOK241m, Est. Loss NOK179.9m
- NETC DC : Netcompany 2Q Revenue Misses Estimates
- NWO GY : New Work 1H Profit EU23.3M Vs. EU26.2M Y/y
- NN NA : NN 1H Operating Profit Beats Estimates
- NZYMB DC : Novozymes Sees FY Ebit Margin 26% to 27%
- ONEM US : *CVS IS SAID TO HAVE BEEN MYSTERY BIDDER FOR ONE MEDICAL
- PSM NA : ProSieben Cuts FY Revenue Forecast, Misses Estimates
- ROG SW : Roche: FDA Approves Label Expansion for Ventana MMR RxDx Panel
- RWE GY : RWE 1H Adjusted Ebitda Beats Estimates
- SFQ GY : SAF-Holland SE 1H Adjusted Ebit EU55.6M Vs. EU47.0M Y/y
- SIE GY : *SIEMENS TAKES FURTHER RUSSIA-RELATED WRITE-OFF OF ~EU600M
- S92 GY : SMA Solar 1H Ebitda EU16.0M Vs. EU38M Y/y
- SAX GY : Stroeer 2Q Adjusted Ebitda Beats Estimates
- SYAB GY : Synlab Sees FY Revenue EU3.2B, Saw EU3.1B
- TKA GY : Thyssenkrupp Lowers Profit Outlook Amid Rising Rates (Correct)
- TLW LN : Capricorn Urged to Drop Tullow Deal With Opposition Mounting
- VLA FP : Valneva Cuts FY Revenue Forecast
- DG FP : Vinci Bid for Kontron IT Business Looks Smart - and Cheap: React
- WEW GY : Westwing Group Cuts FY Revenue Forecast
- ZURN SW : Zurich Ins. 1H Operating Profit Beats Estimates

>>> Europe : Brokers Upgrades & Downgrades - 11th of August 2022

>>> Up
* Komax Raised to Add at Baader Helvea; PT 300 Swiss francs

>>> Down
* Covestro Cut to Neutral at Oddo BHF; PT 39 euros
* Deliveroo Cut to Neutral at Citi; PT 110 pence
* Intl Petroleum Cut to Equal-Weight at Barclays; PT 148 kronor
* TAG Immobilien Cut to Sell at Deutsche Bank; PT 9.50 euros

>>> Initiation
* Harbour Energy Reinstated Buy at Goldman; PT 609 pence

>>> Call
* Deliveroo Cut to Neutral at Citi on Limited Upside Potential
* Komax Upgraded to Add at Baader After Schleuniger Deal
* Metro 3Q an Ebitda Beat, Lacks Details on Key Issues: Jefferies
* Zurich Insurance Results ‘Very Strong,’ Buyback Positive: MS

FT : UK minister questions sustainability of Drax biomass fuel

UK minister questions sustainability of Drax biomass fuel
Kwarteng says shipping wood pellets from Louisiana is costly and ‘doesn’t make any sense’

The UK’s business secretary has admitted that importing US-made wood pellets to be burnt for energy by power company Drax is not sustainable and “doesn’t make any sense”. 

Kwasi Kwarteng also told MPs that the government had not fully investigated the sustainability of burning wood pellets, a type of biomass. He said the Department for Business, Energy and Industrial Strategy had discussed biomass with industry but “we haven’t actually questioned some of the premises” of the sustainability of pellets.

The government has spent millions subsidising the burning of pellets in Drax’s Yorkshire facility over the past decade and the fuel features prominently in the UK’s net zero strategy.

Kwarteng made the comments this week during a meeting with a group of cross-party backbench MPs, who raised concerns about the sustainability of wood pellets, which are described as renewable by Drax.

“There’s no point getting [wood pellets] from Louisiana . . . that isn’t sustainable,” said Kwarteng. Shipping pellets from Louisiana — one of Drax’s sourcing regions in the US — has “a huge cost financially and environmentally . . . [it] doesn’t make any sense to me at all,” he added.

Drax has been gradually converting its coal-fired power station to biomass power and is seeking to reinvent itself as a green energy company. The company, which imports about 80 per cent of the wood pellets it uses in the plant from North America, received around £832mn in government subsidies in 2020 and about £790mn in 2019, according to analysis by think-tank Ember.

That support is due to expire in 2027, but the company is seeking new subsidies for the development of biomass paired with carbon capture and storage technology, known as Beccs.

Drax argues that its pellets are responsibly sourced and that the emissions produced by their combustion are offset by the growth of new carbon-absorbing trees.

However, numerous environmental groups and scientists have questioned these claims. They argue that it takes a long time for trees to absorb carbon, that importing pellets is emissions-intensive and that the large-scale harvesting of wood threatens ecosystems.

In January, David Joffe of the Climate Change Committee, which advises the government, said there were “big challenges about ensuring the sustainability of biomass grown outside the UK”. He added that imported biomass was “not something that the UK should be relying on at large scale”. However, the committee has stressed the need for some biomass energy if the UK is to reach its target of net zero carbon emissions by 2050.

Allies of Kwarteng confirmed that he had raised concerns about Drax’s use of pellets imported from the US. But he was said by colleagues to remain fully supportive of the company and the biomass sector, which they said was a vital baseload provider for the UK power network.

“Without Drax, the UK would have to import more electricity from Europe at a time when the continent is in serious trouble,” said a government official.

In the meeting with MPs, Kwarteng admitted that biomass had not developed as quickly as other renewable fuels, such as offshore wind and hydrogen.

“I can well see a point where we just draw the line and say [biomass] isn’t working, this doesn’t help carbon emission reduction and so we should end it,” he said. “All I’m saying is that we haven’t quite reached that point yet.”

The government’s net zero strategy envisages that the use of Beccs would account for two-thirds of so-called “negative emissions” — or technologies that remove carbon from the atmosphere — in the UK by 2050.

It has committed £1bn for the development of a carbon capture sector, including £30mn to support the production of “sustainable domestic biomass.” The business department also said it would “develop markets and incentives” to support investment in emissions removal technologies including Beccs

“The business secretary has always been clear biomass has a key role to play in boosting Britain’s energy security,” said a government spokesperson. “The UK government only supports biomass which complies with our strict sustainability criteria and will shortly publish our biomass strategy which will further detail our position on its future use.”

A Drax spokesperson said the company “is one of Europe’s lowest carbon intensity power generators and our sustainable biomass is critical to UK energy security, supplying enough reliable renewable electricity to keep the lights on for 4mn households”.

FT : Mortgage wake-up call for middle classes

Mortgage wake-up call for middle classes
Rising interest rates could cost some borrowers more than rising energy bills

How much could your household finances be squeezed in the next few years? The answer could well come down to the size of your mortgage.

If you’ve borrowed a lot of money to buy your dream home, rising interest rates have the potential to curb the spending power of the middle classes much more than rising energy bills have done so far.

I have a friend who has been paying an extra £500 a month on her mortgage since she rolled off a fixed-rate deal. She needs to move house in a year, for school-related reasons, so didn’t want to lock into another fix.

When the Bank of England increased the base rate by half a percentage point last week — the biggest rise in 27 years — she sent me a WhatsApp message saying “Arrrrrrghhhh”.

Most UK borrowers have locked into a fixed rate, but around 1.3mn will expire this year and 1.81mn next year, according to trade body UK Finance.

Bank of England data shows more than £10bn was overpaid on mortgages in the first six months of this year — a trend evidenced in FT Money’s bonus survey in February, where 13 per cent of respondents said this was your intention.

Soaring property prices, bigger mortgages and lengthier repayment terms mean that even a small change to interest rates will increase the lifetime costs of your home loan.

Here are some points to consider well in advance of when your current fix comes to an end.

Get your paperwork in order
Anyone with a fixed mortgage needs to plan for what to do when it expires. Find the date, ring it in your diary and be ready to start looking for a new deal at least six months beforehand.

“The amount of mortgage applications lenders are getting are still at very high levels, and we’ve seen two or three pause taking on new business while they get back up to speed,” says Andrew Montlake, managing director at mortgage broker Coreco.

He has heard stories of customers waiting three to four weeks to get a mortgage review appointment, by which time interest rates have risen.

If you’re sticking with the same lender, remortgaging deals — known as retention products — can’t usually be secured until you have less than four months remaining. But if you’re switching to a new lender, it’s often possible to “lock in” a rate six months ahead of your current deal expiring.

Expect to pay around £500 for an independent mortgage broker to help you find the best deal for your circumstances.

Careful preparation should mean you avoid the misery of reverting to your lender’s standard variable rate (SVR). The average SVR is already 5.17 per cent, according to Moneyfacts, the price comparison site.

This figure has increased for eight consecutive months and is likely to swell further, adding up to a huge payment shock for those who roll off a fix.

How long to fix for?
You won’t thank me for saying that the best time to fix your mortgage was six months to a year ago.

Five-year fixes are still the most popular product, but the average rate offered on these deals breached 4 per cent in August, according to Moneyfacts — a level last seen in 2014.

The average two-year fix is a shade under this at 3.95 per cent.

The more equity you have in your home, the better the rate you will be able to secure. However, deals with the lowest rates tend to have the highest fees (typically £1,000 or more). Add the fees to your loan, and you’ll be paying interest on top.

Mortgage brokers report early signs that more borrowers are prepared to gamble on a two-year fix, betting that central banks will be forced to cut rates in a recession.

High-profile US investors Cathie Wood and Ray Dalio have both said they expect to see rate cuts in 2023-24. However, non-billionaires are likely to value the certainty of a fixed rate on their biggest monthly outgoing.

Be prepared to make a quick decision
Whether you’re buying a home or remortgaging, speed is of the essence. The average mortgage product has an average shelf life of just 17 days, according to Moneyfacts — an all-time low.

If a lender’s rate moves to the top of a best buy table, they will often withdraw it swiftly to avoid the operational challenge of a deluge of applications.

“I could give a client one rate at 9am, then have to call back at noon and say that deal is being withdrawn at 5pm today,” says Coreco’s Montlake. “Some clients think it’s a sales technique, but that is the reality of the market.”

Should you pay to nix your current fix?
With rates ticking up, you may be tempted to pay a penalty to quit your existing deal and lock into a new one.

As a rule of thumb, early repayment charges on a five-year fix are 5 per cent of the outstanding balance in the first year, falling on a sliding scale to 1 per cent by the final year.

If you break a fix on a £500,000 mortgage with two years left to run, that could cost you £10,000, plus product fees for the new mortgage — and your monthly repayments would instantly be higher.

Is it worth it? A free mortgage calculator from budgeting app Nous.co attempts to answer this question based on market predictions about where interest rates could be by the time your fix ends and what the likely costs or savings could be.

I’d also use a mortgage overpayment calculator to see what impact using that cash to make a one-off repayment could have, assuming your mortgage deal allows this, and whether this could tip you into a lower LTV. Sprive, a new app, allows people to vary their overpayments in accordance with their monthly spending.

What about buy-to-let mortgages?
Landlords are more likely to have interest-only mortgages. Though most are locked into fixed-rate deals, this means they will be exposed to much bigger cost swings than repayment borrowers when rates expire.

Lenders apply a range of affordability calculations to buy-to-let loans. The main one is the interest coverage ratio — the monthly rent expressed as a percentage of your monthly interest payment — typically 125 to 145 per cent.

However, lenders use a “stress rate” to calculate these ratios and this is much higher than the actual interest paid on the loan.

David Hollingworth, associate director at broker L&C Mortgages, notes that several lenders have increased their stress rates this month, and expects others to follow. “The upshot will be landlords need to charge higher rents to borrow the same amount,” he says.

For example, Metro Bank has just upped one of its stress rates from 4 to 5.5 per cent, and demands interest cover of 140 per cent.

On a £200,000 interest only mortgage, he calculates this would mean landlords require an extra £350 of monthly rental income to satisfy the lender’s requirements.

As we’ve been hearing on the Money Clinic podcast this week, renters are already finding these higher costs are being passed on to them, with London letting agents reporting rent rises of 40 per cent on the renewal of tenancies.


However much rising mortgage rates make you want to scream, just be grateful that you own your home.

>>> US Close Dow +1.63% S&P +2.13% Nasdaq +2.89% Russell +2.95%

Closing Stock Market Summary

Cooler-than-expected CPI data sent the stock market higher today. The three main indices saw some up and down price action but ultimately closed with sizable gains. The Nasdaq and S&P 500, which breached the 4,200 level, closed just below session highs. 

The moderation in both CPI and core CPI was the main driving factor for the market today. It fueled the notion that the Fed will be less aggressive with its rate-hike path and switch to a rate-cut cycle sooner rather than later. Total CPI was unchanged month-over-month and core CPI was up 0.3%.

The mega caps, growth stocks, and cyclical sectors led the way after those areas sold off heavily in recent sessions. The Vanguard Mega Cap Growth ETF (MGK), up 2.9%, closed ahead of the broader market. The Russell 3000 Growth Index (+2.7%) closed ahead of the Russell 3000 Value Index (+1.9%). The PHLX Semiconductor Index (SOX) closed up 4.3%.

S&P 500 sector performance reflected a risk-on mindset. The materials (+2.9%), consumer discretionary (+2.9%), communication services (+2.8%), and information technology (+2.8%) sectors topped the leaderboard. 

The buying was broad-based with all 11 S&P 500 sectors closing in the green with gains ranging from 0.5% (utilities) to 2.9% (materials). The Invesco S&P 500 Equal Weight ETF (RSP) jumped 2.1% on the day.

Market breadth showed a strong skew towards advancing issues. Advancer led decliners by a roughly 6-to-1 margin at the NYSE and a less than 3-to-1 margin at the Nasdaq.

Pushing back against the market's notion of a policy pivot in the near future, Minneapolis Fed President Kashkari (2023 FOMC voter) said he thinks the terminal rate is 3.9%, adding that the Fed is "far far far away" from declaring victory on inflation. Meanwhile, Chicago Fed President Evans (not an FOMC voter) said he expects rates to top out at 4.0% but also said, "... if things get better more quickly, we can not raise rates quite as much..."

Treasury yields fell sharply immediately after the CPI report came out. The 2-yr note yield, which was at 3.27% just before the release, dropped to 3.08% in its wake before settling the day at 3.19%. The 10-yr note yield, which was at 2.80% just before the release, fell to 2.69% in its wake but gave back just about everything and settled at 2.79%.

Before tomorrow's open, Canada Goose (GOOS), Cardinal Health (CAH), Hanesbrands (HBI), Six Flags (SIX), US Foods (USFD), and Warby Parker (WRBY) are all set to report earnings.

Also on Thursday, market participants will receive the July PPI ( consensus 0.3%; prior 1.1%) and core PPI (consensus 0.4%; prior 0.4%) at 8:30 a.m. ET. At the same time, weekly initial jobless claims ( consensus 263,000; prior 260,000) and continuing claims (prior 1.416 million) will be released. At 10:30 a.m. ET, weekly EIA Natural Gas Inventories (prior +41 bcf) will be released.

Reviewing overnight developments:

  • Total CPI was unchanged month-over-month ( consensus +0.2%), leaving it up 8.5% year-over-year versus 9.1% in June. Core CPI, which excludes food and energy, was up 0.3% month-over-month (consensus +0.5%), leaving it up 5.9% year-over-year versus 5.9% in June.
    • The key takeaway from the report is that it supports the peak inflation view, which in turn supports the market's hope that the Fed will temper its aggressive rate-hike approach in coming months and ultimately transition to a rate-cut cycle in 2023, perhaps as early as the first half of 2023.
  • Weekly MBA Mortgage Applications Index showed 0.2% increase versus the prior increase of 1.2%.
  • June Wholesale Inventories rose 1.8% ( consensus 1.9%) versus the prior revised increase of 1.9% (from 1.8%).

Dow Jones Industrial Average: -8.3% YTD
S&P 400: -9.9% YTD
S&P 500: -11.7% YTD
Russell 2000: -12.3% YTD
Nasdaq Composite: -17.8% YTD

>>> US After Hours Summary: DIS +6.5% on earnings and will launch ad-supported t

After Hours Summary: DIS +6.5% on earnings and will launch ad-supported tier for Disney+; SONO -18.6%, RRGB -16.4%, BMBL -12.3%, APP -10.7% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: VCSA +31.6%, MTTR +14.6%, NOTV +12.4%, ENVX +11.4%, DIS +6.5% (also will launch ad-supported tier for Disney+ on Dec. 8; also ups prices for no-ads options), AOSL +6.4%, VZIO +5.3%, ACHR +5.2%, CACI +4.9%, STKL +4.1%, BROS +3.3%, DHT +3%, CPNG +2.7%, ACVA +2.1%, FNV +1.5%, PAAS +0.6%, MFC +0.3%

Companies trading higher in after hours in reaction to news: ENVX +11% (awarded follow-on US Army contract), NTRA +4.5% (files pre-submission to FDA for its Panorama non-invasive prenatal test), GPRK +3.5% (increases dividend), NL +1.4% (special dividend of $0.35/sh), DCPH +1.2% (announces publication of INTRIGUE Phase 3 study of QINLOCK), AB +0.6% (reports July AUM), HY +0.2% (CFO to retire), COIN +0.1% (being investigated over staking programs, according to Bloomberg)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SONO -18.6% (also CFO to step down, names new CFO), RRGB -16.4%, BMBL -12.3%, APP -10.7%, MQ -9.1%, ENS -5.6%, COOK -5%, AKA -4.4%, AVT -2%, STAA -1.6%

Companies trading lower in after hours in reaction to news: ATNX -37.8% (commences stock offering), CERE -9.5% (commences $250 mln stock offering), MAIN -3.9% (commences $50 mln stock offering), AXON -3.2% (names new CFO), BNL -3% (commences 13 mln share offering; also provides update on Q3 acquisitions activity), LNDC -2.9% (rebrands as Lifecore Biomedical, names new CEO), KRG -2.8% (increases dividend), BTBT -1.8% (stock offering), AAPL -0.2% (inks agreement with Futuro Studios to add original content to its Podcasts app, according to Bloomberg), MSFT -0.2% (laying off hundreds of contracted recruiters and talent acquisition staff, according to Business Insider), WBX -0.1% (acquires COIL Inc, an EV charging installation service), EVGO -0.1% (files for $750 mln mixed securities shelf offering; also stock offering)

>>> Stoxx 600 Pre-Market Indication

  • Rio Tinto (RIO1 TH) +1.9%
  • Brenntag (BNR TH) +1.6%
    • Brenntag 2Q Oper Ebitda Beats Estimates
  • Ahold Delhaize (AHOG TH) +1.1%
    • Ahold Delhaize Suspends Plans for Sub-IPO Bol.com in 2H
  • TUI (TUI1 TH) +1%
    • Travel Giant TUI Sees Holiday Demand Solid for Rest of Summer
  • Prysmian (AEU TH) +0.5%
    • Prysmian Raised to Buy at Intesa Sanpaolo; PT 39.20 euros
  • Telefonica (TNE5 TH) +0.3%
    • Telefonica’s Risk of a Junking Is Growing as Debt Woes Persist
  • Daimler Truck (DTG TH) -0.9%
    • Watch Auto Suppliers as Bridgestone Guidance Misses Estimates
  • Equinor (DNQ TH) -0.9%
  • VW (VOW3 TH) -0.9%
  • Lufthansa (LHA TH) -1.1%
    • Lufthansa Keys on Efficiency to Be Competitive: Company Outlook
  • Nokia (NOA3 TH) -1.3%
  • Rheinmetall (RHM TH) -1.4%
  • Carrefour (CAR TH) -1.4%
  • Ferrari (2FE TH) -1.6%
  • Rational (RAA TH) -1.8%
  • Evotec SE (EVT TH) -6.5%
    • Lonza Now Top Life Sciences Pick at Morgan Stanley, Evotec Cut

>>> TradeGate Pre-Market Indication

DAX:
  • Brenntag (BNR TH) +1.8%
    • Brenntag 2Q Oper Ebitda Beats Estimates
  • Continental (CON TH) +0.4%
    • Autos Deep in Red as Continental Slides: EMEA Industrials Wrap
  • Bayer (BAYN TH) -0.5%
    • AMLO Says He Met With Bayer CEO Werner Baumann
  • Infineon (IFX TH) -0.6%
    • Watch Chip Stocks as TSMC’s July Sales Climb 50% From Year Ago
  • Deutsche Post (DPW TH) -0.7%
  • VW (VOW3 TH) -0.9%
  • Daimler Truck (DTG TH) -0.9%
    • Watch Auto Suppliers as Bridgestone Guidance Misses Estimates
MDAX:
  • Evonik (EVK TH) +2%
    • Evonik Boosts FY Sales Forecast
  • Aroundtown (AT1 TH) +0.9%
  • Varta (VAR1 TH) +0.7%
  • GEA Group (G1A TH) +0.6%
    • GEA Group 2Q Adjusted Ebitda Beats Estimates
  • Thyssenkrupp (TKA TH) +0.5%
  • Uniper (UN01 TH) -0.7%
  • K+S (SDF TH) -0.9%
  • Commerzbank (CBK TH) -0.9%
  • Rheinmetall (RHM TH) -1.4%
  • Evotec SE (EVT TH) -4.7%
    • Lonza Now Top Life Sciences Pick at Morgan Stanley, Evotec Cut
SDAX:
  • Jenoptik (JEN TH) +4.8%
    • Jenoptik 1H Revenue Beats Estimates
  • Heidelberger Druck (HDD TH) +4.6%
    • Heidelberger Druck Reports ‘Convincing’ 1Q Numbers, Baader Says
  • Ceconomy (CEC TH) +0.9%
  • Metro (B4B TH) -0.6%
  • Deutz (DEZ TH) -0.8%

>>> What to look at today - 10th of August 2022

Stocks fell in Asia on Wednesday following a Wall Street retreat and caution persisted ahead of US inflation data that will shape investor expectations for further Federal Reserve interest-rate hikes. A gauge of Asian equities dropped for the second day, with technology stocks the biggest drag. Chinese shares wavered as traders evaluated slower-than-anticipated consumer and factory inflation in the world’s second-largest economy.  US contracts fluctuated following a drop in the S&P 500 for a fourth session. Micron Technology Inc. became the latest chipmaker to warn about slowing demand, fanning economic concerns and spurring a slide in the technology-heavy Nasdaq 100. Treasury yields and a dollar gauge were steady, crude oil traded at around $90 a barrel, and both gold and Bitcoin fell.  The two-year Treasury rate exceeds the 10-year by nearly 50 basis points. The inversion, around deepest since 2000, is viewed as a sign of a looming recession under the Fed’s monetary-tightening campaign to curb inflation.  A report Wednesday is expected to show headline US consumer-price inflation cooled but stayed elevated in July, while the core reading may have quickened on an annual basis. How the figures affect views on Fed tightening will be key for risk sentiment. In China, consumer price inflation accelerated in July to 2.7%, the highest levelin two years, but missed economists’ expectations. The producer price index climbed 4.2%, below the median forecast and down from June. Elon Musk sold $6.9 billion of shares in Tesla Inc., the billionaire’s biggest sale on record, saying he needed cash in case he is forced to go ahead with his aborted deal to buy Twitter Inc. US After Hours TTD +18.5%, ARRY +9.5%, HRB +4.5%, SMCI +3.2% higher on earnings; SG -23.2%, RBLX -16.4%, PRPL -14%, REAL -11.5% lower on earnings

Nikkei -0,75% Hang Seng -2,07% CSI -0,86% Shanghai -0,37% Shenzen -0,18%

Eur$ 1,0214 CNH 6,7612 CNY 6,7569 JPY 134,99 GBP 1,2084 CHF 0,9537 RUB 61,0994 TRY 17,9210 WTI$ 90,19 Gold 1,789,70-2,3% BTC 22,965 -0,80% ETH 1,682,16 -0,80%

S&P -0,17% Nasdaq -0,32% EuroStoxx -0,38% FTSE -0,32% Dax -0,40% SMI -0,60%

Macro :
- Zero Russian Winter Gas May Spur 20%+ Cut to Euro Stoxx 50 EPS
- China July Consumer Prices +2.7% Y/y; Est. +2.9%

Keep an eye on :
- ABN NA : ABN AMRO 2Q Profit Beats Estimates
- ARL GY : Aareal Bank 2Q Operating Profit EU61M Vs. EU41M Y/y
- AGS BB : Ageas 2Q Net Income Beats Estimates
- AD NA : *AHOLD DELHAIZE SUSPENDS PLANS FOR SUB-IPO BOL.COM IN 2H
- ALC SW : Alcon 2Q Core EPS Beats Estimates
- BAYN GY : AMLO Says He Met With Bayer CEO Werner Baumann
- BOTHE BB : Bone Therapeutics to Acquire Majority Participation in Medsenic
- BP/ LN : Bunge, BP to Sell Brazil JV, Mubadala Possible Bidder: Valor
- BNR GY : Brenntag 2Q Oper Ebitda Beats Estimates
- COIN US : Coinbase 2Q Rev. $808.3M, Est. $854.8M
- CRBN NA : Corbion 1H Adjusted Ebitda EU89.9M Vs. EU77.1M Y/y
- CTPNV NA : CTP 1H Net Rental Income EU211.5M Vs. EU160.3M Y/y
- ROO LN : Deliveroo 1H Gross Transaction Value Misses Estimates
- EDF FP : EDF Filed Claim With French Court for About EU8.34 Billion
- EOAN GY : E.On 1H Adjusted Ebit Beats Estimates
- EVK GY : Evonik Boosts FY Sales Forecast
- 2317 TT : Taiwan Wants Foxconn to Drop Stake in China’s Unigroup, FT Says
- G1A GY : GEA Group 2Q Adjusted Ebitda Beats Estimates
- HHFA GY : Hamburger Hafen Maintains FY Ebit Forecast
- ITP FP : Inter Parfums 2Q EPS Misses Estimates
- JEN GY : Jenoptik 1H Revenue Beats Estimates
- LEG GY : LEG Immobilien Maintains FY FFO I Forecast
- 994 HK : Lenovo Profit Beats Estimates While PC Slump Claims Chipmakers
- LEO GY : Leoni 2Q Adjusted Ebit EU14M Vs. EU13M Y/y
- MAJ NA : Majorel Won’t Reduce Headcount After Merger with Sitel, CEO Says
- MSFT US : Microsoft Asks Teams to Rein In Some Expenses, Sources Say -- WSJ
- NOEJ GY : Norma 2Q Adjusted Ebit EU22.3M Vs. EU36.1M Y/y
- NURI : Berlin-Based Digital Bank Files For Insolvency Amid Global Woes
- PRU LN : Prudential 1H Adjusted Operating Profit Misses Estimates
- RMG LN : Royal Mail Postal Union CWU Announces Four Days of Strikes
- SPM IM : *SAIPEM SAYS CEO DIDN'T SIGN ANY DEAL TO EXIT COMPANY
- SQZ LN : Kistos Won’t Make a Firm Offer for Serica
- 9984 JP : SoftBank Buyout Talk Resurfaces After Record Loss Piques Market
- STM FP : Santander Bank Polska Raised to Hold at Erste Group
- SQN SW : Swissquote FY Pretax Profit Forecast Misses Estimates
- TLX GY : Talanx 2Q Net Income Beats Estimates
- TLGO SM : Spain’s Talgo to Supply, Maintain Trains for Egypt: Ministry
- TSLA US : Musk: Will Buy Tesla Shares Again If Twitter Deal Fails
- TSLA US : Elon Musk Sells Total $6.89 Billion Worth of Tesla Shares
- TUI1 GY : TUI 3Q Net Loss EU356.7M Vs. Loss EU934.8M Y/y
- VTSC GY : Vitesco 2Q Ebit Beats Estimates
- WMG US : Warner Music Drops on Disappointing 3Q Streaming Revenue
- WIE AV : Wienerberger 2Q Ebitda Beats Estimates

>>> Europe : Brokers Upgrades & Downgrades - 10th of August 2022

>>> Up
* Jyske Raised to Buy at Nordea; PT 425 kroner
* Linde Raised to Buy at Stifel; PT $356.43
* Lonza Raised to Overweight at Morgan Stanley
* Safestore Raised to Buy at HSBC; PT 1,414 pence

>>> DOwn
* Altice USA Cut to Hold at HSBC; PT $11
* Autostore Cut to Sell at SpareBank; PT 14 kroner
* Eezy Cut to Reduce at Inderes; PT 4.80 euros
* Evotec SE Cut to Underweight at Morgan Stanley; PT 32 euros
* Evotec SE ADRs Cut to Underweight at Morgan Stanley; PT $16
* IWG Cut to Add at Peel Hunt; PT 240 pence
* XP Power Cut to Hold at HSBC; PT 2,430 pence

>>> Initiation
* Acerinox Rated New Equal-Weight at Barclays; PT 11 euros
* Aperam Rated New Underweight at Barclays; PT 29 euros
* Baltic Classifieds Group Rated New Neutral at Davy
* Bytes Technology Rated New Buy at Liberum; PT 550 pence
* NSI NV Rated New Buy at Berenberg; PT 40 euros
* OnTheMarket Rated New Neutral at Davy
* Outokumpu Rated New Overweight at Barclays; PT 6 euros
* Pets at Home Rated New Buy at Jefferies; PT 425 pence
* Softcat Rated New Hold at Liberum; PT 1,550 pence

>>> Call
* Cazoo Double-Upgraded as Positive Catalyst Emerges: Berenberg
* Heidelberger Druck Reports ‘Convincing’ 1Q Numbers, Baader Says
* Lonza Now Top Life Sciences Pick at Morgan Stanley, Evotec Cut
* NSI ‘Changing Gears’ on Growth, Rated New Buy at Berenberg
* Pets at Home Rated New Buy at Jefferies on Strong Growth Outlook
* Signify Has Challenges, But Priced In, Morgan Stanley Upgrades