>>> Europe : Brokers Upgrades & Downgrades - 23rd of February 2022 V2(+)

>>> Up
* Bertrandt Raised to Buy at DZ Bank; PT 59 euros (+)
* Catena Raised to Buy at ABG; PT 570 kronor
* Catena Raised to Buy at Kepler Cheuvreux; PT 565 kronor (+)
* Dechra Pharma Raised to Hold at Liberum; PT 4,020 pence (+)
* DSM Raised to Buy at SocGen; PT 190 euros
* Entra Raised to Overweight at Barclays; PT 235 kroner
* Glencore Raised to Outperform at BMO; PT 525 pence
* Hargreaves Lansdown Raised to Neutral at Citi; PT 1,210 pence
* Jyske Raised to Hold at SEB Equities; PT 421 kroner
* Porsche SE Raised to Buy at M.M. Warburg; PT 133 euros (+)
* Sika Raised to Buy at Stifel; PT 390 Swiss francs
* Software AG Raised to Buy at Baader Helvea; PT 42 euros (+)

>>> Down
* Altice USA Cut to Hold at SocGen; PT $12
* Arla Plast Cut to Hold at Carnegie; PT 47 kronor
* Dustin Cut to Hold at Handelsbanken; PT 90 kronor
* E.On Cut to Neutral at JPMorgan; PT 12 euros
* Fraport Cut to Hold at HSBC; PT 71 euros

>>> Initiation
* AUTO1 Rated New Underperform at Oddo BHF; PT 14 euros
* LEG Immobilien Rated New Outperform at Oddo BHF; PT 141.50 euros

>>> Call
* ASMI Results Show Continuing Order Momentum, Jefferies Says (+)
* Dechra Offers Value After Slump, Liberum Says; Raises to Hold
* Endesa FY Results Offer ‘Encouraging Message’: Morgan Stanley
* Henkel, Danone Get ‘Extra Headache’ in Ukraine Crisis: Bernstein
* Solvay 4Q ‘Strong’ to Citi as Adjusted Ebitda Beats Street (+)
* Synthomer Upgraded at Morgan Stanley With Risks Now Discounted

FT : CSOP AM launches metaverse ETF in Hong Kong

CSOP AM launches metaverse ETF in Hong Kong
The move follows buoyant interest for metaverse ETFs in South Korea, which already has 8 such funds

CSOP Asset Management has become the latest fund house to launch an exchange traded product targeting the metaverse investment theme.

The CSOP Metaverse Concept ETF, Hong Kong’s first metaverse-focused fund, will invest mainly in US-listed companies that are directly or indirectly involved in technology that backs products or services that will aid the development of the augmented reality of the metaverse. Meta Platforms, the newly rebranded parent company of Facebook and Instagram, was its largest holding, at 6.38 per cent at its launch on Monday.

Facebook rebranded as Meta in October 2021 in a bid to reflect a new focus on the building of the metaverse as a digital extension of its social media platform. The move has raised global investor interest in the development of the metaverse.

Meta has seen its share price plunge this month after Facebook reported its first fall in 18 years of daily active user numbers. Nevertheless, CSOP AM, along with many other asset managers in Asia, is confident that the creation of the metaverse translates to a bona fide investment thematic that provides a long-term opportunity for investors.

“The metaverse represents the beginning of a brand new era, in which a parallel new world will be created,” said Melody He, deputy chief executive at CSOP AM.

“As the latest and one of the most important members of the CSOP thematic ETF series, CSOP Metaverse Concept ETF is our bold attempt at something new and futuristic, providing our investors with state of the art investment opportunities,” said He.

According to CSOP, the metaverse “is best understood as the next iteration of the internet”, an industry into which technology giants “are investing massive resources”.

The asset manager said the global metaverse market was expected to grow from about $5mn in 2020 to $1.5tn in 2030.

According to the company, the back-tested CSOP Metaverse Concept Portfolio has risen 345 per cent since the start of 2019, more than twice as much as the tech-focused Nasdaq 100 Index, which has increased 149 per cent over the same period.

Other top holdings of the CSOP Metaverse Concept ETF include online gaming platform and developer Roblox, artificial intelligence group Ndivia, cross-platform gaming company Unity, Apple, Snap, Sony and Tencent.

The investment universe of the new ETF consists of the 46 most representative metaverse leaders in the US, which as of February 3 had a combined market capitalisation of $5.2tn, according to CSOP AM.

Other established tech giants have also recently thrown their hat into the metaverse ring. In January, Microsoft agreed to pay $75bn for games maker Activision Blizzard, the world’s biggest-ever technology acquisition, as a central pillar for the company’s step into the metaverse that will enable digital interaction via a major gaming platform.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Satya Nadella, chair and chief executive officer of Microsoft, said following the acquisition.

CSOP AM highlights the need for using an active ETF strategy in order to adapt to what it calls a rapidly changing industry landscape that features new and emerging technologies.

The fund has an estimated ongoing charges figure of 2 per cent and launched with an initial investment of just $9mn.

In Asia, a craze for the metaverse has fuelled interest from investors in other markets, most notably in South Korea.

Last November, Bloomberg Intelligence described South Korea as “the fastest-growing metaverse ETF market globally”.

It was reported at the time that nearly all popular ETFs focusing on the metaverse are listed in Korea, the one exception being the US-listed Roundhill Ball Metaverse ETF.

As of January 19, there were eight metaverse ETFs in South Korea, which have attracted inflows of over $1bn, according to data from Samsung Asset Management.

Thailand’s first metaverse fund, the MFC Metaverse Equity, was launched by Bangkok-based MFC Asset Management in December last year.

The fund invests at least 80 per cent of its net asset value in the Roundhill Ball Metaverse ETF.

FT : Energy sector methane emissions under-reported by ‘alarming’ rate, IEA says

Energy sector methane emissions under-reported by ‘alarming’ rate, IEA says
Potent greenhouse gas rose in 2021 as gas prices escalated

Highly polluting methane emissions from the energy industry have been under-reported by an “alarming” 70 per cent by governments worldwide, the International Energy Agency said, with an overall rise as gas prices escalated in 2021.

Many of the greenhouse gas inventories submitted by countries to the UN “have not been updated for years, and, even for those that have, many of these inventories are not yet accurate enough to provide a clear picture of emissions”, the IEA said in its latest report, which takes into account satellite tracking of methane combined with other data sources.

Methane traps more heat over a shorter lifespan than carbon dioxide, with 80 times the warming potential of carbon over a 20-year period. Cutting its emission would have a rapid effect in curbing global warming.

Fatih Birol, executive director of the IEA, said the “massive under-reporting” identified in the global methane tracking report was “alarming”.

While the agricultural sector is the largest human-related source of methane, next is the energy sector, with methane coming from coal, oil and gas operations about evenly. Leakage occurs during the intentional flaring of gas, as well as during distribution, and from coal mines.

The IEA said almost all the national inventories had been under-reported.

But a number of high emissions-intensity countries, such as Libya, where an export blockade was lifted last year, and Turkmenistan, boosted oil and gas production between 2020 and 2021 at a greater rate than the global average.

Turkmenistan alone, a leading exporter of gas, was responsible for about a third of the large methane emissions events recorded by satellites in 2021. Texas also remained another source of significant emissions.

By contrast “relatively few major leaks” were detected in big fossil fuel- producing countries in the Middle East, the IEA said.

Overall in 2021, methane emissions from the energy sector grew by just under 5 per cent, the IEA reported. China, Russia, the US and India were among the top five methane-emitting nations from all sources, and also among the top five emitters of energy-related methane, the IEA found.

China’s coal-related methane pollution was equivalent to the total carbon emissions from the world’s shipping sector, the report said.

The pledge made at Glasgow’s COP26 summit last year by more than 100 countries to reduce global methane emissions by 30 per cent by the end of the decade “must become a landmark moment in the world’s efforts to drive down emissions”, Birol said.

Although many fossil fuel-producing countries did not join the global methane reduction pledge, they export oil and gas to countries that are signatories. Importers could press exporters to reduce their energy-sector methane emissions using “diplomatic pressure, incentives, technical and institutional support, and trade measures”, the IEA suggested.

WSJ : Standard General to Buy TV Broadcaster Tegna for $5.4 Billion

Standard General to Buy TV Broadcaster Tegna for $5.4 Billion
Tegna owns 64 U.S. TV stations in 51 different markets as well as the True Crime, Twist and Quest networks

Hedge fund Standard General LP said it has struck a deal valued at $5.4 billion to buy TV broadcaster Tegna Inc., TGNA 7.11% ending years of takeover talks.

Standard General will pay $24 in cash for each share outstanding of Tegna, representing a 39% premium to the stock’s closing price on Sept. 14, before news reports of a possible offer pushed shares higher. The companies valued the deal at $8.6 billion, including debt.

Standard General owned 4.8% of Tegna as of the end of last year, according to securities filings.

Shares of Tegna rose more than 6% in afternoon trading Tuesday to $22.25 a share.

Tegna owns 64 U.S. TV stations in 51 different markets. It also owns the True Crime, Twist and Quest networks.

The deal is also backed by private-equity firm Apollo Global Management, which will hold an unspecified amount of nonvoting shares in the Standard General-owned entity buying Tegna. Apollo, which had held talks years ago to buy Tegna as it pushed to expand in broadcast media, owns a majority stake in Tegna rival Cox Media Group.

Once the deal closes, Standard General founding partner Soo Kim will become chairman of Tegna. Deb McDermott, a Standard General executive and the former chief operating officer of Media General, will become chief executive officer of Tegna.

“We believe TEGNA has a strong foundation and exciting prospects for continued growth as a result of the stewardship of the Board and the current management team,” Mr. Kim said in a statement.

The deal is expected to close in the second half of this year, but if regulatory clearance of the transaction takes longer, Tegna shareholders will also receive a “ticking fee” on top of the deal price. When the deal closes, Cox will acquire Tegna’s Texas stations in Austin, Dallas and Houston, Standard General and Tegna said.

Buyout talks had swirled around Tegna for years. Rival bidders have included media mogul Byron Allen and fellow broadcaster Gray Television Inc., The Wall Street Journal previously reported.

The deal with Standard General follows the hedge fund’s effort to nominate four candidates to Tegna’s board in 2020, and it later pushed for changes at the company. Founded in 2007, Standard General has built activist positions in various ailing companies, including RadioShack Corp. in 2015.

More recently, the firm has been buying up casinos through its Twin River Worldwide Holdings entity, which bought the rights to the Bally’s name and renamed itself Bally’s Corp. Last month, Standard General made an offer to buy the shares of Bally’s it doesn’t already own, in a roughly $2.07 billion deal.

>>> Stoxx 600 Pre-Market Indications

  • Tomra (TMR TH) +3.2%
    • Tomra 4Q EPS Matches Estimates
  • TUI (TUI1 TH) +1.5%
  • Rio Tinto (RIO1 TH) +1.5%
    • Rio Tinto’s Record Profit Masks Challenges to Growth Outlook
  • Prosus (1TY TH) +1%
  • Danone (BSN TH) +0.9%
    • Danone Reports Weakest Profitability in Six Years Amid Inflation
  • Thyssenkrupp (TKA TH) +0.8%
  • Equinor (DNQ TH) +0.7%
  • Raiffeisen (RAW TH) +0.6%
    • Raiffeisen AT1 Coupon Seems Secure Despite Russia Earnings Risk
  • Air Liquide (AIL TH) +0.5%
  • DSM (DSM2 TH) +0.5%
    • DSM Raised to Buy at SocGen; PT 190 euros
  • Evotec SE (EVT TH) -0.8%
  • Adidas (ADS TH) -0.9%
  • Vodafone (VODI TH) -0.9%
  • Safran (SEJ1 TH) -1%
  • K+S (SDF TH) -1%
  • AUTO1 (AG1 TH) -1.1%
  • E.On (EOAN TH) -1.4%
  • Uniper (UN01 TH) -1.6%
    • Uniper Analysing Impact of Nord Stream 2 Suspension: TOPLive
  • Handelsbanken (SVHH TH) -1.8%
  • Puma (PUM TH) -2.4%
    • *PUMA SEES 2022 EBIT EU600M TO EU700M, EST. EU695.9M

FT : Back to the future: Porsche’s IPO gives a sense of déjà vu

Back to the future: Porsche’s IPO gives a sense of déjà vu 

As with many of Volkswagen’s most important announcements in the past decade, the German group’s management board had no control over the timing of a statement that finally confirmed it planned to list the company’s crown jewel, Porsche.

Instead, the drip-feed of rumours from the manufacturer’s many “stakeholders” — which include a secretive family shareholder, powerful unions, the state of Lower Saxony and 12 different car brands — forced VW to issue a statement under stock market rules just as Russia looked poised to invade Ukraine.

Neither a botched bulletin, however, nor the prospect of war, could dampen the case for liberating Porsche, which delivers just 300,000 vehicles out of the 9mn sold by VW each year, yet accounts for roughly a quarter of profits.

Few more valuable assets have been hidden from investors’ direct view. Following the mantra of its former boss Ferry Porsche — who said the company “can and may build anything, as long as the product is better than any competitors” — Porsche is alone among legacy manufacturers in maintaining high margins in the electric age.

In contrast to VW, which has flooded the market with underperforming electric vehicles, Porsche has focused on excellence. The brand most famous for the purr of its combustion engines managed to sell more silent Taycan models than storied 911s last year, delivering 41,000 of the cars, much to the surprise of Porsche’s own executives.

Yet the leaked details of the planned IPO, which still needs to be approved by VW’s board, is already leading to concerns that VW’s management in Wolfsburg will somehow bungle this move, in a manner not too dissimilar to the ill-fated partial float of its Traton trucks arm.

Firstly, there’s concern that VW, which mints €15bn in free cash flow a year and has repeatedly told the market that it has enough money to fund its current electric ambitions, could whittle away the proceeds on expensive and unnecessary projects to placate unions and secure jobs.

Secondly, Porsche’s stock will be split equally into ordinary shares and non-voting preference shares, after which 25 per cent will be floated at an expected valuation of between €80bn-€90bn.

The investment vehicle of the Porsche-Piech family — Volkswagen’s controlling shareholder that’s seeking to regain ownership of an asset it sees as akin to Ferrari and LVMH — could buy half of the ordinary shares on offer.

That leaves just 12.5 per cent in free float, in a structure eerily similar to the two-tier system that has long stymied VW and plagued the formerly independent Porsche.

It may not make the time-travelling DeLorean, but Porsche is in danger of going back to the future.

>>> TradeGate Pre-Market Indications

DAX:
  • Porsche SE (PAH3 TH) +0.8%
  • Siemens Energy (ENR TH) +0.8%
  • Delivery Hero (DHER TH) +0.8%
  • Fresenius SE (FRE TH) +0.8%
  • Adidas (ADS TH) -0.9%
  • E.On (EOAN TH) -1.3%
    • E.On Cut to Neutral at JPMorgan; PT 12 euros
  • Puma (PUM TH) -2.1%
    • Puma Sees 2022 Ebit EU600M to EU700M, Est. EU695.9M
MDAX:
  • Software AG (SOW TH) +3.8%
    • Software AG Raised to Buy at Baader Helvea; PT 42 euros
  • Telefonica Deutschland (O2D TH) +2.6%
    • Telefonica Deutschland 4Q Adjusted Oibda Meets Estimates
  • Thyssenkrupp (TKA TH) +1.1%
  • Daimler Truck (DTG TH) +0.9%
  • K+S (SDF TH) -1%
  • AUTO1 (AG1 TH) -1%
    • AUTO1 Rated New Underperform at Oddo BHF; PT 14 euros
  • Uniper (UN01 TH) -1.1%
    • Uniper Analysing Impact of Nord Stream 2 Suspension: TOPLive
SDAX:
  • flatexDEGIRO (FTK TH) +13%
    • Broker FlatexDegiro Said to Attract Interest From Private Equity
  • Schaeffler (SHA TH) +1%
  • Salzgitter (SZG TH) +0.1%
    • Salzgitter Company Roadshow Scheduled By Baader Bank for Feb. 23
  • Deutsche PBB (PBB TH) -0.6%

>>> What to look at today - 23rd of February 2022

U.S. and European equity futures rose Wednesday as investors assessed limited initial Western sanctions against Russia amid the Ukraine standoff. Crude oil fluctuated, while gold dipped as haven demand eased. S&P 500, Nasdaq 100 and European contracts climbed. Asian equities were bolstered by Chinese tech stocks. The mood was brighter than Tuesday, when the S&P 500 fell into a technical correction after sliding 10% from a January peak. The dollar was steady. U.S. President Joe Biden said Russia had started to invade Ukraine and announced steps targeting Russia’s sale of sovereign debt abroad, its elites and a pair of banks. The sanctions -- and others by U.S. allies -- stopped shortof sweeping measures, though officials warned they could be scaled up.  President Vladimir Putin has denied Russia intends to invade, but lawmakers have given him the green light to deploy troops to separatist-held regions. 
Fears that the Ukraine tension could snarl commodity supplies has bolstered everything from energy to wheat and nickel. Oil fluctuated as traders evaluated those risks as well as the potential return of Iranian barrels.
Markets were already grappling with the prospect of tightening Federal Reserve monetary policy to fight high inflation before the Ukraine crisis flared. A key question is whether or not the jump in raw material costs stirred by the standoff will spur a more aggressive initial Fed hike. New Zealand’s central bank raised rates for the third straight meeting and signaled it will need to lift them higher than previously expected to contain inflation. The local dollar strengthened. US After Hours MELI +10.2%, CDNS +9.5%, VRSK +7.3%, PANW +6% higher on earnings; CSGP -20.6%, RXT -13%, WK -10.2%, TDOC -6.6% lower on earnings

Nikkei -1.71% Hang Seng +0.69% CSI +1.08% Shanghai +0.92% Shenzen +1.71%

S&P +0.29% Nasdaq +0.50% EuroStoxx +0.15% FTSE +0.10% Dax +0.12% SMI +0.26%

Macro :
- Blinken Says Meeting With Russia’s Lavrov Is Canceled
- Brevan Howard Had One of Its Best-Ever Trading Days on ECB Bet

Keep an eye on :
- AED BB : Aedifica FY EPRA EPS Beats Estimates
- AGS BB : Ageas 4Q Net Income Beats Estimates
- ASRNL NA : ASR Nederland FY Operating Profit Beats Estimates
- ATE FP : Alten FY Net Income Beats Estimates
- ASMI NA : ASMI Sees 1Q Revenue EU500M to EU530M, Est. EU520.2M
- CCL LN : Carnival’s P&O Cruises Australia Cancels 2022 Auckland Season
- CNHI IM : CNH Industrial Confirms Intention to Be Net-Debt Free by 2023
- CTM SS : Catena Media 4Q Ebitda EU12.7M Vs. EU12.4M Y/y
- COV FP : Covivio FY Rental Income EU530.7M Vs. EU539M Y/y
- BN FP : Danone FY Recurring Operating Income Beats Estimates
- EFGN SW : EFG International FY Dividend per Share CHF0.36 Vs. CHF0.30 Y/y
- ELI BB : Elia Group Sees 2022 Adjusted ROE +6.25% to +7.25%
- ELE SM : Endesa FY Revenue Beats Estimates, Endesa Keeps Target for Ebitda of EU4.1b in 2022
- ENEL IM : Enel Hires BofA for Electric Mobility Newco: Sole
- EQT SS : Stockland Sells Retirement Unit to Sweden’s EQT for $713 Million
- FTK GY : Broker FlatexDegiro Said to Attract Interest From Private Equity
- HAG GY : Hensoldt FY Adjusted Ebitda Beats Estimates
- HEN3 GY : Henkel 4Q Revenue Meets Estimates
- IDR SM : Spain Allows State Holding Firm SEPI to Raise Indra Stake to 28%
- JDEP NA : JDE Peet's FY Revenue Beats Estimates
- KUD SW : Kudelski FY Revenue Beats Estimates
- MC FP : LVMH flirts with Ralph Lauren merger
- MUV2 GY : Munich Re Sees 2022 Profit EU3.3B
- NESN SW : Nestle to Double Brazil Investment to More Than BRL1.8b in 2022
- NKT DC : NKT Sees 2022 Adjusted Revenue EU1.35B to EU1.45B
- NRS NO : Norway Royal Salmon Sees 2022 Harvest 45,100 Metric Tons
- ONTEX BB : Ontex FY Revenue Matches Estimates
- OKDBV FH : Oriola President, CEO Elisa Markula to Leave Company
- ORP FP : Bpifrance Pulls Out of Orpea Project in Russia: Les Echos
- REE SM : Red Electrica Proposes EU0.7273/Shr Complementary Gross Dividend
- RIO LN : Rio Tinto FY Underlying Profit Misses Estimates
- ROG SW : Roche Granted FDA Orphan Drug Status for Pralsetinib
- SHUR BB ; Shurgard FY Property Operating Revenue EU299.9M Vs. EU271M Y/y
- SFZN SW : Siegfried Sees 2022 Core Ebitda Margin Above +20%
- SOLB BB : Solvay 4Q Adjusted Ebitda Beats Estimates
- SRAIL SW : Stadler Awarded Up to EU3b OBB Contract for 186 Trains Again
- STORB SS : Storskogen 4Q Ebit SEK426M Vs. SEK219M Y/y
- TIT IM : Telecom Italia Said to Mull $1.5 Billion Tower Unit Stake Sale
- O2D GY : Telefonica Deutschland 4Q Adjusted Oibda Meets Estimates
- TOM NO : Tomra 4Q EPS Matches Estimates
- TRUEB SS : Truecaller 4Q Monthly Active Users 301.2M Vs. 259.3M Y/y
- UBI FP : Activision to Delay Next Year’s Planned Call of Duty Game
- UN01 GY : Uniper FY Adjusted Ebit Misses Estimates
- VALN SW : Valora FY Revenue Meets Estimates
- WIE AV : Wienerberger FY Dividend per Share Misses Estimates