Early premarket gappers
- Gapping up:
- GLPG +12.8%, XM +11.1%, NOW +10.3%, RJF +9.7%, ATRA +8.8%, LEVI +8.2%, TWNK +7.8%, STX +7.8%, AVT +7.6%, EEFT +7.4%, CALX +7%, MEOH +7%, FLEX +6.3%, STM +5.5%, RDFN +5%, XLNX +4.7%, LSTR +4.7%, CMP +4.5%, CNC +4.4%, NFLX +4.3%, DB +4.2%, URI +3.7%, MTH +3.5%, MRNA +3.2%, JACK +3.1%, CNMD +3%, MUR +3%, SLM +2.9%, WOLF +2.5%, DKNG +2.4%, TSCO +1.9%, BLL +1.7%, BLL +1.7%, GLNG +1.4%, WHR +1.1%, CMI +1%, DDOG +0.9%, UPST +0.7%, ARAY +0.7%, DHR +0.7%
- Gapping down:
- EPZM -26.3%, TER -16.6%, LC -14.4%, ZYME -13.6%, SAP -7.2%, LRCX -5.6%, EW -5.3%, MKSI -3.7%, CUE -2.8%, RMO -2.7%, CI -2.5%, INTC -2.4%, PTC -2.3%, GPS -2%, SPPI -1.7%, WTS -1.7%, UP -1.7%, TSLA -1.5%, CASA -1.2%, OCA -0.7%, AMP -0.6%, SLG -0.6%, ALK -0.6%
Alex Assouline on Bringing the Business of Fashion Books Into the Digital Era
Book publisher Assouline's chief of operations, brand and strategy chats about cultivating a new generation of customers.
>>> Up
* Air Liquide Raised to Buy at Goldman; PT 188 euros
* Amplifon Raised to Accumulate at Banca Akros (+)
* Byggmax Raised to Hold at Kepler Cheuvreux; PT 76 kronor (+)
* Cargotec Raised to Overweight at Morgan Stanley; PT 55 euros
* Carmila Raised to Outperform at Exane; PT 15.50 euros
* Centrica Raised to Reduce at AlphaValue/Baader
* Derwent London Raised to Outperform at Exane; PT 3,820 pence
* Essity Raised to Buy at Jyske Bank; PT 305 kronor 5+-
* Experian Raised to Sector Perform at RBC; PT 2,850 pence
* Galapagos Raised to Buy at Citi; PT 61 euros
* Gecina Raised to Buy at HSBC; PT 151 euros
* HSBC Raised to Outperform at Exane; PT 650 pence
* Hufvudstaden Raised to Hold at Nordea (+)
* Konecranes Raised to Overweight at Morgan Stanley; PT 45 euros
* LEG Immobilien Raised to Outperform at Exane; PT 139 euros
* Legrand Raised to Buy at Jefferies; PT 104 euros
* Musti Group Raised to Buy at Carnegie; PT 32 euros
* Pennon Raised to Buy at Investec; PT 1,215 pence
* Viscofan Raised to Buy at Mirabaud Securities; PT 61.68 euros
* Voltalia Raised to Outperform at Oddo BHF; PT 22 euros (+)
* Volue Raised to Buy at Pareto Securities; PT 60 kroner (+)
>>> Down
* AO World Cut to Hold at Jefferies; PT 100 pence (+)
* ArcelorMittal Cut to Neutral at Goldman; PT 33 euros
* Bpost Cut to Hold at Jefferies; PT 7.50 euros
* Emmi Cut to Hold at Stifel; PT 1,060 Swiss francs (+)
* Fresnillo Cut to Hold at Jefferies; PT 790 pence
* Fresnillo Cut to Sector Perform at RBC; PT 575 pence (+°
* Grifols Cut to Neutral at Alantra Equities; PT 21.05 euros
* Grifols ADRs Cut to Neutral at Alantra Equities; PT $23.79
* Man Group Cut to Neutral at Exane; PT 240 pence
* Orpea Cut to Sell at AlphaValue/Baader
* Rentokil Cut to Neutral at Exane; PT 550 pence
* Saab Cut to Hold at SEB Equities; PT 250 kronor
* Shurgard Cut to Neutral at Exane; PT 50 euros
* Vestas Cut to Hold at Kepler Cheuvreux; PT 180 kroner (+)
>>> Initiation
* About You Rated New Buy at Jefferies; PT 23 euros
* Dianomi Re-Initiated Buy at Liberum; PT 460 pence
* Kerry Group Rated New Overweight at Morgan Stanley; PT 127 euros
>>> Call
* AO World Cut to Hold at Jefferies as Growth Story Needs Rethink
* Bpost Outlook Seems More Challenging, Cut to Hold at Jefferies
* Deutsche Bank 4Q Mixed, Future Outlook Going Right Way: JPMorgan (+)
* Fresnillo Downgraded at Jefferies on Delayed Return to Growth
* Galapagos Raised to Buy at Citi on Cash Deployment Opportunities
* JPMorgan’s Wolf Says U.S. Stock Selloff is Overdone
* J.B. Hunt Raised as Barclays Sees Favorable Returns, Volume Up
* Odds for Aggressive Tightening by Fed ‘Materially Higher’: DB
* Orpea Cut to Sell at AlphaValue/Baader on Book Allegations (+)
* SAP Drops Premarket; No Update to FY25 FCF Targets: Jefferies (+)
* Siemens Energy Would Re-Rate on Siemens Gamesa Integration: Citi (+)
* STMicro May Rise Following Strong FY22 Guidance: Morgan Stanley (+)
* UBS Buying Wealthfront may Signal Shift in Strategy, Citi Says
Profits at Deutsche Bank’s investment bank almost halve in fourth quarter
Falling trading revenue and rising costs hit division that generated two-fifths of group revenue for full year
Pre-tax profits at Deutsche Bank’s investment banking business almost halved at the end of last year as the division was hit by falling trading revenue, soaring costs and higher provisions for bad loans
The lender said on Thursday the investment bank, which generated almost two-fifths of the group’s revenue for the full year, eked out a pre-tax profit of €319m in the fourth quarter, down from €599m a year earlier. Analysts had expected a profit of €407m from the unit.
Between October and December, revenue from fixed income and currency trading was 14 per cent lower than a year ago as the pandemic-driven trading frenzy on the capital markets eased. At the same time, the division’s payroll costs jumped 30 per cent, pushing up total costs by more than a quarter. Loan-loss provisions doubled.
Overall, the bank’s full-year profit in 2021 quadrupled to €2.5bn and reached the highest level since 2011. The return on equity rose to 3.4 per cent and was below the bank’s 2022 target of at least 8 per cent.
Deutsche on Wednesday said it would resume dividend payments worth €400m this year. It will also buy back €300m of shares, representing just above 1 per cent of its market capitalisation. Chief executive Christian Sewing shelved the dividend in 2019 when he announced a radical restructuring plan that will cost the bank almost €9bn in restructuring expenses by 2022.
“We are delighted to be resuming capital distributions to our shareholders as we promised in the summer of 2019,” Sewing said in a statement, adding that the share buybacks and the dividend were the first steps in delivering his promise to hand back €5bn to investors.
Deutsche’s core tier one equity ratio, a key indicator of balance sheet strength, fell by 0.4 percentage points to 13.2 per cent of risk weighted assets at the end of the year.
- Evraz (EVZ TH) +2.9%
- SOITEC (SOH TH) +2.1%
- EDP (EDP TH) +1.7%
- Sartorius (SRT3 TH) +1.4%
- Sartorius 2022 Adjusted Ebitda Margin Forecast Matches Estimates
- Rio Tinto (RIO1 TH) +1%
- Deutsche Bank (DBK TH) +0.9%
- Deutsche Bank Gains in Premarket After Revenue Beats: TOPLive
- Orpea (OPA TH) +0.8%
- Nibe (NJB TH) +0.8%
- STMicroelectronics (SGM TH) +0.7%
- STMicro to Spend More Than $3 Billion to Bolster Chip Output
- Swedish Match (SWMC TH) +0.6%
- Delivery Hero (DHER TH) -2.5%
- Linde (LIN TH) -2.5%
- Shell (R6C TH) -2.6%
- Airbus (AIR TH) -2.6%
- TUI (TUI1 TH) -2.7%
- Qiagen (QIA TH) -2.8%
- ASMI (AVS TH) -2.9%
- Zalando (ZAL TH) -2.9%
- ASML (ASME TH) -3.1%
- Philips (PHI1 TH) -3.5%
- Philips Breathing Device Crisis Worsens With New FDA Warning
DAX:
- Deutsche Bank (DBK TH) +1.1%
- Deutsche Bank Gains in Premarket After Revenue Beats: TOPLive
- Symrise (SY1 TH) -1.2%
- Continental (CON TH) -1.3%
- Zalando (ZAL TH) -2.3%
- Qiagen (QIA TH) -2.3%
- Linde (LIN TH) -2.3%
- Airbus (AIR TH) -2.3%
- Infineon (IFX TH) -2.5%
MDAX:
- Commerzbank (CBK TH) +2.6%
- Software AG (SOW TH) +0.1%
- Software AG 4Q Adjusted Ebita Beats Estimates
- Aurubis (NDA TH) -1.7%
- Lufthansa (LHA TH) -2%
- Thyssenkrupp (TKA TH) -2%
- K+S (SDF TH) -2.2%
- Aixtron (AIXA TH) -3.2%
SDAX:
- Aareal Bank (ARL TH) +1%
- DWS (DWS TH) +1%
- Deutsche Bank’s DWS Pulls In Than $16 Billion of Client Cash (1)
- SUSE (SUSE TH) +0.7%
- Nordex (NDX1 TH) -2.5%
- SMA Solar (S92 TH) -2.5%
- Deutsche PBB (PBB TH) -2.5%
- 1&1 (DRI TH) -2.7%
- flatexDEGIRO (FTK TH) -3%
>>> Up
* Air Liquide Raised to Buy at Goldman; PT 188 euros
* Cargotec Raised to Overweight at Morgan Stanley; PT 55 euros
* Carmila Raised to Outperform at Exane; PT 15.50 euros
* Centrica Raised to Reduce at AlphaValue/Baader
* Derwent London Raised to Outperform at Exane; PT 3,820 pence
* Experian Raised to Sector Perform at RBC; PT 2,850 pence
* Galapagos Raised to Buy at Citi; PT 61 euros
* Gecina Raised to Buy at HSBC; PT 151 euros
* HSBC Raised to Outperform at Exane; PT 650 pence
* Konecranes Raised to Overweight at Morgan Stanley; PT 45 euros
* LEG Immobilien Raised to Outperform at Exane; PT 139 euros
* Legrand Raised to Buy at Jefferies; PT 104 euros
* Musti Group Raised to Buy at Carnegie; PT 32 euros
>>> Down
* ArcelorMittal Cut to Neutral at Goldman; PT 33 euros
* Bpost Cut to Hold at Jefferies; PT 7.50 euros
* Fresnillo Cut to Hold at Jefferies; PT 790 pence
* Grifols Cut to Neutral at Alantra Equities; PT 21.05 euros
* Grifols ADRs Cut to Neutral at Alantra Equities; PT $23.79
* Man Group Cut to Neutral at Exane; PT 240 pence
* Orpea Cut to Sell at AlphaValue/Baader
* Rentokil Cut to Neutral at Exane; PT 550 pence
* Saab Cut to Hold at SEB Equities; PT 250 kronor
* Shurgard Cut to Neutral at Exane; PT 50 euros
>>> Initiation
* About You Rated New Buy at Jefferies; PT 23 euros
* Dianomi Re-Initiated Buy at Liberum; PT 460 pence
* Kerry Group Rated New Overweight at Morgan Stanley; PT 127 euros
>>> Call
* Bpost Outlook Seems More Challenging, Cut to Hold at Jefferies
* Fresnillo Downgraded at Jefferies on Delayed Return to Growth
* Galapagos Raised to Buy at Citi on Cash Deployment Opportunities
* JPMorgan’s Wolf Says U.S. Stock Selloff is Overdone
* J.B. Hunt Raised as Barclays Sees Favorable Returns, Volume Up
* Odds for Aggressive Tightening by Fed ‘Materially Higher’: DB
U.S. equity futures and Asian stocks slid Thursday after Federal Reserve Chair Jerome Powell signaled a March interest-rate liftoff and stoked speculation about the possibility of unexpectedly aggressive policy tightening. An Asia-Pacific share gauge sank to the lowest in 14 months, with South Korea set for a bear market, China edging closer to one and Australia off 10% from an August peak. Contracts on the S&P 500, tech-heavy Nasdaq 100 and European stocks retreated. The Fed fallout erased a Wall Street rally Wednesday. Powell reinforced the Fed’s determination to quell the highest inflation in a generation amid a robust recovery from the pandemic. The central bank also said it expects to begin balance-sheet reduction after starting rate hikes. A key part of the yield curve was around the flattest since early 2019, hinting at concerns for growth as the Fed dials back economic support. Oil dipped, gold extended a decline and Bitcoin -- whose fortunes have been tightly correlated with stocks of late -- wavered around the $36,000 level. Markets ramped up pricing of Fed hikes, pointing to a 94% probability of five quarter percentage-point moves in 2022.
Meanwhile, the earnings season continues after an uneven start that also sapped investor sentiment. Shares in Samsung Electronics Co. -- South Korea’s biggest company -- fell after profit missed estimates. Electric-vehicle maker Tesla Inc. set a record for profit but warned of supply chain problems. Tech giant Intel Corp. fell on a disappointing forecast.
‘Policy Mistake’ US After Hours NOW +10%, XM +9.7%, LEVI +8%, STX +5.9%, LVS +2.6% higher on earnings; TER -17.7%, LC -12.1%, LRCX -6%, INTC -2.3% lower on earnings
Nikkei -3.11% Hang Seng -4.68% CSI -1.54% Shanghai -1.27% Shenzen -2.22%
Eur$ 1.1218 CNH 6.3545 CNY 6.3485 JPY 114.62 GBP 1.3434 CHF 0.9246 RUB 79.5788 TRY 13.6062 WTI$ 86.61 -0.85% Gold 1,815.05 -0.25% BTC 36,090 -0.80% ETH 2,400 -0.70%
S&P -1.32% NAsdaq -1.72% EuroStoxx -2.27% FTSE -1.73% Dax -2.05% SMI -1.61%
Macro :
- Bridgewater Sees ‘Much Bigger’ Drop in Stocks Before Fed Blinks
- China Is Said to Weigh Breaking Up Evergrande to Contain Crisis
- Bitcoin Drops as Fed Signal of March Liftoff Dents Risk Appetite
- Powell Says U.S. Labor Market Consistent With Maximum Employment
- JPMorgan’s Wolf Says U.S. Stock Selloff is Overdone
- U.S. Investor Bull-Bear Spread -29.8: AAII
Keep an eye on :
- ABN NA : Dutch Government to Resume Sale of Stake in ABN Amro: Kaag
- AIR FP : Airbus Says It Won’t Be Rushed Into Bringing Air-Taxi to Market
- AAF LN : Airtel Africa Joins FTSE 100 Index as Mining Giant BHP Drops Out
- AAPL US : Apple to Let IPhones Accept Payments With Just a Credit Card Tap
- BUCN SW : Bucher FY Sales Meets Estimates
- CABK SM : CaixaBank, Kutxabank Hire KPMG for Soured Assets Sales: El Confi
- DBK GY : Deutsche Bank Expects to Exceed 2022 Revenue Guidance
- DBK GY : Deutsche Bank to Return EU700M to Holders Via Buyback, Dividend
- DGE LN : Diageo 1H Adjusted Operating Profit Beats Estimates
- DUFN SW : Dufry Aims to Reach Climate Neutrality of Own Operations by 2025
- DWS GY : DWS, Hines JV Buys Singapore Logistics Asset; No Terms
- EZJ LN : EasyJet Says Performance is in Line With Expectations
- EDF FP : U.K. Injects Cash to Keep Sizewell Nuclear Plant Moving Forward
- ELIOR FP : Elior Group 1Q Revenue Beats Estimates
- ELISA FH : Elisa FY Dividend per Share Beats Estimates
- ELUXB SS : Electrolux to Take 4Q Charge $85M on Arbitration in Tariff Case
- GLPG NA : Galapagos Jumps After Naming Former J&J Science Chief as CEO
- G IM : Generali to Be Majority Shareholder in Its India Insurance JVs
- GIVN SW : Givaudan Buys 48% of Nanovetores From Brazil’s Criatec Fund
- GRNG SS : Granges 4Q Adjusted Operating Profit Beats Estimates
- INTRUM SS : Intrum 4Q Adjusted Ebit Beats Estimates
- LDO IM : Leonardo Is Said to Weigh Sale of Up To $400 Million Comms Unit
- 373220 KS : LG Energy : IPO +68% on First day : LG Energy Solution Surges After Korea’s Biggest IPO on Record
- LLBN SW : LLB Offers to Buy 100% of Bank Linth; Stock and Cash Options
- LHA GY : Lufthansa Bans Freight Through Frankfurt Hub Due to Omicron
- LHA GY : MSC’s Aponte Says ITA Deal Possible in Under 90 Days: Messaggero
- MRL SM : Merlin Board Ratifies Clemente as CEO, Ends Fight With Santander
- FB U : Meta-Backed Diem to Sell Its Assets to Silvergate Capital: DJ
- NFLX US : Pershing Square Has Bought Over 3.1M Netflix Shares, Ackman Says
- NDA SS : Nordea May Announce 10% ROE Goal Upgrade, New Share-Buyback Plan
- ORP FP : Orpea to Mandate Two Firms for Independent Assessment of Claims
- PHIA NA : FDA Labels New Philips Recall Class I, Most Serious Level
- PHIA NA : Philips Breathing Device Crisis Worsens With New FDA Warning
- RNK LN : Rank Group 1H Net Gaming Revenue GBP333.7M Vs. GBP177.6M Y/y
- SAB SM : Sabadell 4Q Net Income Beats Estimates
- 005930 KS : Samsung : Samsung 4Q Operating Profit Misses Estimates --> -2.46%
- SAP GY : SAP Confirms Preliminary 4Q Results, Outlook Released on Jan. 13
- SAP GY : SAP to Acquire Majority Stake in Taulia; No Terms Disclosed
- DIM FP : Sartorius Stedim Biotech Sees 2022 Revenue +14% to +18%
- SRT GY : Sartorius 2022 Adjusted Ebitda Margin Forecast Matches Estimates
- SEBA SS : SEB to Distribute SEK5b-10b Through Share Buybacks in 2022
- SGSN SW : SGS FY Revenue Meets Estimates
- SAE GY : Germany to Bill At Least 30k E-Scripts by End-March: Apotheker
- ENR GY : Siemens Energy Mulls Full Integration of Siemens Gamesa: Rtrs
- SPI AV : S Immo Holder Evax Requests Extraordinary General Meeting
- SOI FP : SOITEC 3Q Revenue Beats Estimates
- SOI FP : Soitec Says Incoming CEO Met With Executive Committee on Jan. 24
- SOW GY : Software AG 4Q Adjusted Ebita Beats Estimates
- STM FP : STMicroelectronics 1Q Net Revenue Forecast Beats Estimates
- S30 FP : Solutions 30 4Q Revenue EU220.3M Vs. EU240.5M Y/y
- SECARE SS : SwedenCare Offers 35.5m Shares via Pareto Securities, SEB,
- SPSN SW : Swiss Prime Site Immobilien Partnership With Superlab Suisse
- TIT IM : Telecom Italia Confirms Exploring Strategic Options for Network
- TELIA SS : Telia Starts Pilot With Polarium to Develop Energy Optimization
- UBSG SW : UBS Agrees to Buy Wealthfront for $1.4b in Cash: M&A Snapshot
- FR FP : Valeo Prelim FCF Misses Guidance on Chips, Supply Chains
- VBK GY : Verbio Shares Gain Post-Market After Guidance Increase
Nestlé to pay cocoa farmers to stop using child labour
Maker of Kit Kat to tackle root cause through direct payments to smallholders
Nestlé, the world’s largest foodmaker, will triple its cocoa sustainability funding to SFr1.3bn ($1.4bn) over eight years, including direct payouts to African cocoa farmers in a bid to remove child labour from its supply chain.
The Swiss group said it was focusing on poverty as the root cause of child labour. It will be the first multinational food company to pay farmers directly, starting in Ivory Coast and Ghana, the two largest producers of the key ingredient for chocolate. The company, whose brands include Kit Kat and Aero, will distribute payments of up to SFr500 a year to households from whom it sources its cocoa.
The chocolate industry has been dogged by accusations of failing to address the use of child labour in its supply chains. Cocoa is mainly grown by smallholder farmers in tropical Africa, Latin America and Asia, where children are often used in tending to cocoa trees and harvesting the fruit.
Despite commitments by the chocolate industry to eliminate poverty, child labour remains endemic in many of the poorer cocoa producing countries.
In Ivory Coast and Ghana, which account for almost 65 per cent of global cocoa production, 1.56m children, or 45 per cent of agricultural households in the two countries, were engaged in child labour in the industry, including those using sharp tools and agricultural chemicals and carrying heavy loads, according to a study in 2020 by social research group NORC at the University of Chicago.
“Our goal is to have an additional tangible, positive impact on a growing number of cocoa farming families, especially in areas where poverty is widespread and resources are scarce,” said Mark Schneider, Nestlé’s chief executive.
Cocoa farming households will receive payments for sending their children to school, implementing good agricultural practices like pruning, and sustainable measures such as planting shade trees. Those diversifying their incomes through other means, including additional crops and livestock, will also be paid.
Households will be paid for two years while they increase their productivity and income through training and good agricultural practices, which could increase yields up to threefold, a pilot scheme in Ivory Coast with 1,000 farmers showed.
This year the number of Ivorian farmers in the scheme will be increased to 10,000. It will be extended to growers in Ghana in 2024 and to other countries by 2030.
Nestlé said the payments would be “shareholder neutral” as consumers would pay more for sustainable products. It will raise prices on some of its chocolate and push to make its own operations more efficient.
The process of buying bulk commodities from a wide range of sellers makes it difficult to separate out unsustainably produced cocoa. Many chocolate makers and cocoa traders are trying to increase their direct sourcing. Nestlé has pledged to source all of its cocoa through its direct supply chain by 2025, up from the current 46 per cent.
Campaigners, who have been calling on the chocolate industry to pay more for cocoa to reduce poverty, said Nestle’s announcement was encouraging.
“As part of a broader strategy to encourage higher productivity and fair pay for cocoa, [direct payments] could be successful,” said Antonie Fountain, managing director of the Voice Network, an umbrella group for 17 non-profit organisations. He said the programme’s broader impact remained to be seen, but added that “maybe every company will need to do this in the future”.
The payments will help farmers who have struggled with volatile cocoa prices as chocolate demand fluctuated because of the effects of the pandemic. The border closures because of Covid also left some cocoa farmers without migrant labour, affecting production.